John Kruse

ON AIR NOW

John Kruse

6:00am - 7:00am

Contact
Business News


This weeks gains pushed the Nasdaq over its inflation-adjusted March 2000 highs for the first time in 17 years. Meanwhile, the Dow completed another 1000-point advance in a record nine trading days--the previous record was 23 trading days from 24,000-25,000. (LPL)

Of the 36 S&P 500 companies that have reported results through January 17, 78% have reported earnings above estimates, while even more impressively, 81% have surpassed revenue targets (Thomson Reuters data).

China's economy, the world’s second largest, grew 6.9% in 2017. (AP)

The Labor Department said initial claims for state unemployment benefits dropped to 220,000 last week, the lowest level since February 1973. It marked the 150th straight week that claims remained below the 300,000, the longest such stretch since 1970, when the labor market was much smaller.

Join us this weekend for Financial Focus Radio on this great station, when we will take you through a wealth building boot camp.

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.
 



This could potentially upset the apple cart. Concerns over a potential government shutdown have some investors on edge. By midnight Friday, Congress must pass a spending bill, in order to prevent a government shutdown.

Department of Energy reported U.S. oil production climbed to a 43-year high of 9.566 million barrels per day this last week. On a monthly basis it is the highest production since May 1972.

The Federal Reserve said U.S. industrial production increased 0.9% in December. For 2017, industrial output rose 1.8%, the first and largest increase since 2014. Capacity utilization increased to 77.9% from 77.2% in November.

The National Association of Home Builders Builder sentiment fell to 72 just off the 18-year high of December. The index stood at 67 in January of 2017.

The Mortgage Bankers Association says total mortgage applications for the week rose 4.1% it is up 5.6% from a year ago. Applications to refinance rose 4% for the week. Mortgage applications to purchase a home rose 3% for the week and are 7% higher than one year ago. The average contract interest rate for 30-year fixed-rate is 4.33%.

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



The National Retail Federation says “retail sales during November and December increased 5.5% percent, to about $692 billion. That represents the largest increase in holiday sales since the recession of 2008.

Stock funds pulled in $24.4 billion last week. It was the sixth-biggest equity inflow total ever and the most in at least six months. (CNBC)

President Donald Trumps tax overhaul will save Oregon taxpayers nearly $1.5 billion a year, according to Legislative Revenue Office.

According to Americans for Tax Reform, “at least 2 million US workers had received bonuses, pay raises or other new benefits from more than 130 companies as a result of the tax cuts.”

Walmart announced it would add its “Scan & Go,” technology to 100 more stores, bringing the total up to 150. The technology allows customers to download an app and scan and bag items, with a smartphone, allowing customers to pay on their mobile and walk out without interacting with a cashier. Kroger, owners of Food 4 Less and Fred Myer’s, recently announced a similar technology.

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.
 



Earnings season is off and running. About 5% of the S&P 500's market cap reports this week. The focus for investors will be on company guidance on the impact of the new tax law. We look for upside in S&P 500 earnings for the quarter in the 14-16% range, while revenue growth may top 7%. The strong growth is expected to be driven mostly by a strong rebound in energy sector profits, as well as potential double-digit gains for the technology and financial sectors. (LPL)

The Labor Department said the Consumer Price Index, excluding the volatile food and energy, rose 0.3% in December.  Core CPI increased 1.8% in 2017. Rents increased 0.4%, the cost of medical care increased 0.3%, prescription medication surged 1% and hospital and doctor visits increased 0.3%.  

The Commerce Department said U.S. retail sales increased 0.4% in December. Retail sales in 2017 rose 5.4%, compared to 3.2% in 2016. Sales at electronics and appliance stores fell 0.2%, clothing store sales declined 0.3%, online retailers soared 1.2% and restaurants and bars rose 0.7%.

Wal-Mart is cutting 1,000 jobs mostly at its corporate headquarters, according to The Wall Street Journal.

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



Earnings growth is poised for double-digit increases in 2018, in both the U.S. as well as developed international and emerging markets. The credit for the increase in the U.S. is not surprisingly given to the new tax law. The U.S. earnings season begins today with reports from several big banks. Consensus is calling for a 12% year-over-year increase in S&P 500 earnings in the fourth quarter of 2017. (LPL)

The Labor Department said U.S. producer prices fell 0.1% December. That was the first drop since August 2016. In 2017 the PPI rose 2.6%.  Last month, the price of services fell 0.2%, wholesale food prices fell 0.7%, and energy prices were unchanged.

J.P. Morgan Chase reported Q4 earnings of $1.76 a share topping Wall Street’s expectations. Revenue was $25.45 billion. The company returned $6.7 billion in capital to shareholders during the fourth-quarter with $4.7 billion in net stock buybacks. The company’s stock is up 29% in the last 12 months. (Reuters)

Wells Fargo reported fourth-quarter earnings of $1.16 a share, or $6.2 billion, on revenue of $22.05 billion. The profit represents a 17 percent increase from the same period in 2016. (Reuters)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



The Labor Department said U.S. import prices edged up 0.1% in December, their smallest increase in five months.
In 2017 import prices increased 3.0% after advancing 1.9% percent in 2016. That was the biggest calendar year increase since 2011.

The Mortgage Bankers Association says total application volume rose 8.3% last week. Refinance applications were up 11% from the previous week. Mortgage applications to purchase a home rose 5% for the week but are 1% lower than one year ago. Rates were higher at the start of 2017 than they are now. The average interest rate for 30-year fixed-rate mortgage was 4.23%.

China may reduce or halt U.S. Treasury purchases. After building up its stake in U.S. Treasuries during 2017, China's central bank is rumored to be mulling over the idea of reducing or even halting purchases of U.S. government debt. The news helped push the yield on the benchmark 10-year note past 2.55% for the first time since March of 2017. (LPL)

Coca-Cola is releasing four new flavors of Diet Coke aimed at millennials -- Diet Coke Ginger Lime, Diet Coke Feisty Cherry, Diet Coke Zesty Blood Orange and Diet Coke Twisted Mango. (Washington Post)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.
 



The NFIB reports that its latest Small Business Optimism index remained in the stratosphere for all of 2017, making last year an all-time record setter. NFIB President and CEO Juanita Duggan said, “2017 was the most remarkable year in the 45-year history of the NFIB Optimism Index. ... With a massive tax cut this year, accompanied by significant regulatory relief, we expect very strong growth, millions more jobs, and higher pay for Americans.” December’s Optimism Index was “slightly lower than the near-record November report” at 104.9.

Columbia Sportswear will provide uniforms for ski teams from the U.S., Canada, Belarus, Ukraine, Brazil and Kazakhstan at the Olympic Winter Games in South Korea next month. (PBJ)

Visa is increasing its contribution to its 401(k)-match program to up to 5% of employee salary, due to the recent passage of a new GOP-backed tax code.  Visa contributes $2 for every $1 an employee contributes to the retirement savings of its U.S.-based employees. (FOX Business)

President Trump will attend the World Economic Forum in Davos, Switzerland later this month. Davos is seen as the ultimate meeting concerning globalization (CNBC)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



The S&P 500 closed higher for the fifth straight day to kick off 2018, with all five days also making new highs. This is the longest win streak to start a new year since six in a row in 2010, while it is closing in on the all-time record of new highs to start a year of six in 1964. Not to be outdone, the S&P 500 is up 2.6% after five days, the best start to a year since 2003. When the first five days of the year are up more than 2%, since 1950, the entire year has been higher 15 out of 15 times with an average return of 18.6%. (LPL)

The return of volatility? I noted many times how historically non-volatile 2017 was for stocks. From the S&P 500 not experiencing a single 3% pullback from peak to trough, to only having eight 1% daily changes all year. The first week of 2018 the S&P 500 gained 2.6%, which would have been the single largest weekly gain of 2017. Additionally, it snapped a 55-consecutive week streak without a 2% gain or loss. That was the longest such streak without a 2% change since the mid-1990s, and mid-1960s before that. Could this be the first clue that volatility is coming back in 2018? (LPL)

Kohl's same-store sales climbed nearly 7% for the 2017 holiday season when compared with a year ago. (CNBC)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



The Dow closed above the 25,000 level for the first time in history last week. It took only 23 trading days to go from 24,000 to 25,000--the fasted 1,000 point move ever. Of course, as you go higher the percentage needed to reach the next milestone is smaller, but this is still an impressive feat. (LPL)

Let’s drill into Fridays big jobs report. The retail sector posted job losses of roughly 20,000 in December. The downward trend in retail jobs is believed to be a result of an ongoing shift to e-commerce sales. Retail posted a net job loss in 2017 of 70,000. The construction industry posted a monthly gain of 30,000 jobs. Much of those increases came from specialty trade contractors, which added roughly 24,000 jobs. Manufacturing added 25,000 jobs during the month and 196,000 jobs last year. Wage growth at 0.3% month over month and 2.5% year over year. (CNBC)

Helen of Troy Ltd., makers of the brands Bedhead, Vicks, Brut, Dr. Scholl’s and Bend based Hydroflask, reported a quarterly loss of $30.4 million, after reporting a profit last year.  That is a loss of $1.12 per share. The company posted sales of $453 million.  Helen of Troy stock price has declined 0.5% in the first week of 2018 and has decreased slightly in the last 12 months. (AP)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



The Department of Labor says the economy added 148,000 jobs in December. The private sector added 146,000 and the government added 2,000 jobs.  The unemployment rate is 4.1%.

The S&P 500 closed at another new all-time high yesterday, making it three days in a row of new highs to start the year. The last time that happened was in 1964. The first three days this year gained 0.5%, or more which is how 2017 started as well. The best win streak to start a year ever is seven days in a row in 1976 and 1987. (LPL)

The global economy continues to surge. US ISM manufacturing rose in December, making the 2017 average of 57.6 the best in 13 years. In China, the December Services PMI rose to its highest level since August 2014. European data showed better than expected data as well, as the Eurozone December PMI came in at its best level since 2011. (LPL)

The Challenger report says U.S. employers plan to cut 32,423 jobs in December, bringing the year's total to a low not seen since 1990. Cuts in 2017 totaled 418,770, 20% below 2016. Last month saw 7.4% fewer job-cut announcements than November, and 3.6% fewer than in December 2016.

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



The Institute for Supply Management's manufacturing index climbed to 59.7 in December. That marks the 103rd consecutive month of growth for the manufacturing sector.

The Commerce Department said U.S. construction spending increased by 0.8% in November, to an all-time high of $1.257 trillion.

The Mortgage Bankers Association says applications to refinance fell 7% but were up 1.8% for 2017. Mortgage applications to purchase a home, increased 1% for the week and was 3% higher in 2017. The average interest rate for 30-year fixed-rate mortgage was 4.25% to end 2017.  

J.C. Penney says same-store sales climbed more than 3% during the holiday shopping season.

Oil prices hit new highs yesterday as West Texas crude closed yesterday up $1.26, or 2.1%, at $61.63, marking its best closing price since December 2014. International benchmark Brent crude closed up $1.27, or 1.9% at $67.84, also a closing high going back to December 2014. (CNBC)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



Now that  the first trading day of the new year is in the books, what does the first day really matter? Of course one day doesn’t make a full year, but it is quite interesting how much the first day of a new year can signal things to come. Over the past 20 years, the S&P 500 Index has been up 10 times and down 10 times; when the first day is green the full-year return has been up +14.2% on average, while a lower first day has resulted in the full-year return being in the red. (LPL)

Yesterday stocks were up about 0.80% making it a record-breaking start to the year. The S&P 500 and Nasdaq both closed at record highs. The Nasdaq closed above 7000 for the first time ever. (CNBC)

Year-end holiday retail sales rose 4.9% compared to last year, according to the Mastercard SpendingPulse report.  In addition, year-end bargain hunters were expected to spend another $69 billion last week.  

Argentina's peso fell 15% in 2017 and was down 34% in 2015 and 18% in 2016. Inflation rose 21% in 2017. (CNN)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.
 



Could this be the death rattles? According to The Wall Street Journal Sears has not run a paid national television commercial since late November. That compares to $8.4 million it spent a year earlier for the Sears brand and $6.5 million for Kmart.

Nordstrom stock was upgraded to "neutral" from "underweight" at JPMorgan Chase.  It says Nordstrom's had a strong finish to 2017 and the best holiday season in three years.

Today marked the first time since January 2014 that both West Texas crude and Brent Oil opened the year above $60 a barrel. The price of oil collapsed from almost $120 a barrel in June 2014 due to weak demand, a strong dollar and booming U.S. shale production. (CNBC)

The Nasdaq was up nearly 30% in 2017 and has posted 14 months of essentially uninterrupted gains. But there's one more record to add to the books: the technology-heavy index posted its sixth straight positive year, its longest annual string of gains since its six-year streak ended in 1980. (CNBC)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



Investors are reflecting back on the big market events of 2017. The Highlights: Brexit negotiations, the future of U.S. trade, the unraveling of Dodd-Frank, the tax overhaul, U.S. economic growth finally above 3%, persistently higher stock index records, crypto-currency mania, media company M&A, OPEC output cuts, the Paris accord pullout, GE's restructuring, Korean Peninsula tensions, the EU's war on tax avoidance and new Fed leadership. Traders will also remember the bruising year for the dollar and the go-slow approach toward monetary-stimulus withdrawal in major economies.

It's still the most valuable U.S. startup, but Mitsuyushi Son's SoftBank has succeeded in its bid to buy a large stake in UBER at a steep discount, the WSJ reports. Investors and employees of the ride-hailing service tendered shares equal to about 18% of the company in an offer that values Uber at $48B - a roughly 30% discount to its most recent valuation of about $68B. (WSJ)

U.S. oil prices have reached their highest since mid-2015 due to an unexpected fall in American output and commercial inventories. Crude futures are currently edging higher to just over $60 a barrel. Since the start of the year, WTI has climbed around 12%, although the price rise from mid-2017 is much stronger, at nearly 50%.

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.
 



During the last few days of 2016, the talk on Wall Street centered upon when the Dow Jones Industrial Average would top 20,000. A year on, the discussion has shifted to when the blue-chip index will hit 25,000, with only two more days in 2017 to claim the milestone. Dow futures are currently up 34 points in premarket trade, making the goal a real possibility. At that level, the DJIA's gain would total about 25% YTD. (SA)

Worldwide mergers and acquisitions activity has exceeded $3tn for the fourth consecutive year, extending a multi-year wave of deal-making that bankers say is set to accelerate in 2018.  The total volume of dealmaking hit $3.5tn this year, a 1 per cent drop from a year ago and the lowest figure since 2014, but it also marked the fourth straight year that deal levels surpassed $3tn, a record streak. (FT)

Copper prices continued their march higher this morning, rallying to their highest level in almost four years and putting the metal on track for its best year since 2010.  The red metal (aka Doctor Copper) is looked to as a powerful macroeconomic indicator, with price swings seen as leading indicators of economic shifts because of its widespread application in most sectors of the economy.  (FT)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.
 



U.S. stocks traded lower yesterday, as investors returned from the long holiday break, with technology stocks coming under pressure as shares of Apple declined.

Shares of retailers were broadly higher yesterday, with a key sector tracker surging toward a one-year high, after a report that holiday spending rose more than expected to record levels.  A SpendingPulse report on national retail sales, across all payment types, said retail sales during the holiday season increased 4.9% from a year ago, the fastest pace of growth since 2011. Dollars spent this season set a record, helped by an 18.1% jump in online shopping and heavy early-season promotions.

The S&P/Case-Shiller national home price index rose a seasonally adjusted 0.7% in the three-month period ending in October. It was up 6.2% compared to the same period a year ago. The 20-city index also rose a seasonally adjusted 0.7% for the month and it’s up 6.4% for the year.  The cities with the largest home price appreciation over the last year were Seattle up 12.7% and Las Vegas up 10.2%.

The e-commerce giant Amazon said yesterday morning that customers were shopping on its website at "record levels" throughout November and December, and over the course of one week, more than 4 million people became Prime members or started a free trial, sending Amazon's membership count to new highs.

And Oil prices touched two-and-a-half year highs in light volume, boosted by an explosion on a crude pipeline in Libya and voluntary OPEC-led supply cuts.

With Northwest Quadrant Wealth Management I’m Tyler Simones



The Dow, S&P 500, and Nasdaq closed higher on Thursday for the first time in three days. The Dow is up 25% this year, the S&P is up 20% and the Nasdaq is up 29%. (CNBC)

Today kicks off the well-known Santa Claus Rally, which refers to a rise in stock prices during the last five trading days of the year and the first two trading days of the following year. Sure enough, these seven days are up +1.35% on average and higher 77.6% of the time--making it hands down one of the most bullish times of the year. (LPL)

According to Recode Walmart is rolling out new services aimed at high-end consumers. The report says the worlds largest retailer is working on stores without checkout lines or cashiers, like Amazon's Amazon Go stores.

The Minneapolis Star Tribune reported demand for grass-fed beef has risen due to “rising scrutiny from environmentalists, animal rights activists and consumers,” who are “looking for healthier, more environmentally friendly options.” “Sales of fresh grass-fed beef soared from $17 million in 2012 to $272 million just four years later,”.

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



News out of Europe, along with tax reform in the United States, has caused global yields to move higher. The 10-year Treasury yield jumped from 2.39% on Tuesday to 2.49% today, its highest level since late October. (LPL)

According to the National Association of Realtors existing-home sales surged for the third straight month in November and reached their strongest pace in almost 11 years. Total existing-home sales jumped 5.6% in November. The median existing-home price $248,000, up 5.8% from November 2016. November’s price increase marks the 69th straight month of year-over-year gains. Total housing inventory dropped 7.2% and is now 9.7% lower than a year ago and has fallen year-over-year for 30 consecutive months. Unsold inventory is at a 3.4-month supply which is down from 4 months a year ago. Matching the highest share since May, all-cash sales were 22% of transactions in November.

Bed Bath & Beyond reported a quarterly profit of 44 cents per share, beating estimates. Sales were slightly above expectations. Same store sales fell by 0.3%, a smaller drop than the 2.4% expected. (Yahoo)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



The Commerce Department says single-family homebuilding climbed 5.3% to highest level since September 2007. Single-family home permits rose 1.4%.

The S&P 500 is officially up 20% for the year. Although you might think a big gain one year might mean weakness the next, that isn't usually the case. In fact, since 1950, the S&P 500 has logged an annual gain of 20% or more 18 times and was higher the next year 16 times, with 10 of those up double digits. Compare that to the 19 times it closed down for the year and one could argue there's about the same chance as a 20% gain versus a negative year. (LPL)

According to the Mortgage Bankers Association total mortgage application volume dropped 4.9% this week.  Applications are now 8% percent lower than one year ago.
Mortgage applications to purchase a home fell 6% for the week and are up 1% from a year ago. Applications to refinance were down 3% for the week.

Michael Saltsman, with the Employment Policies Institute, wrote in Forbes that California is raising the minimum wage to $15 per hour statewide by 2022 for large businesses. His recently released study says “California will lose approximately 400,000 jobs by 2022 when the $15 rate is phased in.

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



The Dow has closed at new all-time high 70 times so far, this year, busting the previous record from 1995. The Dow started trading in 1896. (LPL)

Hood River Distillers is selling its Pendleton Whisky brand to the Mexican liquor conglomerate who is the parent company of the Jose Cuervo tequilas.  Purchase price is $205 million. Pendleton Whisky was started in 2003 and sells 3 million liters a year. The Pendleton Round-Up rodeo made $1.7 million in royalties in 2016. Hood River Distillers will continue to bottle Pendleton on behalf of Proximo. (Eastern Oregonian)

The National Association of Home Builders' Confidence index in December rose 5 points to 74. This is the highest reading since 1999. Sentiment stood at 69 in December 2016. Of the index's three components, buyer traffic jumped 8 points to 58. Current sales conditions rose 4 points to 81. Sales expectations in the next six months increased 3 points to 79.

Warren Buffett’s Berkshire Hathaway Class A shares touched $300,000 for the first time on Monday. The shares have never split. Shares are up about 23% this year. Buffett, 87, started accumulating the stock at $7.50 a share in December 1962. (Yahoo)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



The Federal Reserve said U.S. industrial production rose 0.2% in November. Mining activity, led by oil and gas, climbed 2%, production at utilities fell 1.9% and manufacturing activity rose 0.2%. Over the past 12 months, total industrial production is up 3.4%. Factories are using more of their capacity and added 189,000 manufacturing jobs over the past year.

 

Chocolate maker Hershey is acquiring SkinnyPop parent Amplify Snack Brands for about $1.6 billion. Amplify's stock is up by 70% on news of the deal. (CNBC)

 

The consumer products giant Procter & Gamble has appointed Nelson Peltz to its board of directors after a big proxy fight. The company said it held discussions with Peltz about a board seat because the shareholder vote was very close and that a large number of shareholders had voted for Peltz to be appointed. (CNBC)

 

Campbell Soup is buying  snack maker Snyder's-Lance, in a deal worth nearly $4.9 billion. Snyder's-Lance is the maker of Cape Cod brands; Snack Factory Pretzel Crisps; Pop Secret; and Kettle Brand; KETTLE Chips. (Yahoo)

 

Business software giant Oracle paid $1.2 billion deal to buy Australia-based project management software maker Aconex. (AP)

 

The S&P 500 is up 16 and the NASDAQ is up 47. The MSCI international index is higher.

Oil is up 31 cents at $57.61 a barrel.

Gold is up $5 at $1262 a Troy ounce.

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



The Commerce Department said U.S. retail sales increased 0.8% in November. That is almost three times expectations as the holiday shopping season got off to a brisk start.

The Labor Department said U.S. import prices climbed in November by 0.7%. Imported petroleum products had their largest year-on-year increase in seven months. In the last 12 months import prices are up 3.1%.

Costco had a profit of $1.36 per share for the quarter.  Sales came in slightly above forecasts. Same-store sales jumped a super-sized 10.5% and e-commerce sales surged a gigantic 43.5%. The stock is moving higher by 3% in early trading – those prices are all time highs, (AP)

Wells Fargo is cutting 60 jobs in its mortgage unit, according to The Wall Street Journal, as it continues to revamp its business following increased scrutiny by federal regulators. (CNBC)

Staring today select Regal Cinemas will offer Cheetos-flavored popcorn mixed with crunchy Cheetos pieces. Of course, the Beaver-like bright-orange, puffed corn snack will comes in a giant 32-ounce container. (TODAY)

Join us this weekend for Financial Focus Radio when we will talk about a Santa Claus rally.

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



The Labor Department said the Consumer Price Index increased 0.4% in November. The CPI is up 2.2% year-on-year. Gas prices climbed 7.3%, food prices were unchanged, and the cost of rental accommodation rose 0.3%.

Eugene-based Ninkasi Brewing will start putting three of its beers in cans starting in 2018. Ninkasi has 96 employees, with 80 of those in Eugene. The company is the 33rd largest craft brewery in the United States. Ninkasi is distributed in Alaska, Arizona, California, Colorado, Idaho, Maryland, Nevada, New York, Oregon, Utah, Virginia and Washington and Canada. (ERG)

Twenty-First Century Fox is selling its film and TV assets to Walt Disney for $52.4 billion in stock. The companies expect the transaction to close by mid-2018. (CNBC)

The IEA said that the rise in U.S. crude oil supply was likely to continue into 2018. The IEA says that non-OPEC supply will climb by 600,000 barrels a day in 2017, and 1.6 million barrels a day in 2018. It also noted that global oil supply rose 200,000 barrels a day in November to 97.8 million barrels a day. Good news for drivers.

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



94.6% said they were positive about their own company's outlook.  Almost 63% of CEO’s said comprehensive business tax reform would encourage their company to increase capital spending. 54% said they would hire more workers, and 49% said they would increase employee wages and benefits.

The Labor Department says producer prices jumped 0.4% in November. In the last 12 months the PPI is up 3.1%. That is the biggest gain since January 2012. Gas prices surged 15.8%, wholesale food prices rose 0.3% and prices for services increased 0.2%.

Facebook will grow its Prineville facilities by more than 80% by adding 1 million sq. ft. of data center facilities by 2021. Construction on a fourth data center will begin this month and a fifth building next year. The three existing data centers employ over 200 workers and represent more than $1 billion in construction investments. (PBJ)

The President of Toyota says he wants electric cars and hybrids to account for 50% by 2030. He made his statement at a news conference announcing an expansion of Toyota's battery partnership with Panasonic. (CNBC)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



Central banks will dominate the news cycle this week. The Federal Reserve is expected to implement a quarter point interest rate hike tomorrow. The European Central Bank and Bank of England will meet on Thursday. (LPL)

The Hispanic unemployment rate dropped to 4.7% - the lowest in the history of the United States. The manufacturing sector added 31,000 jobs, while its unemployment rate fell to a record-low 2.6%. The unemployment rate remained near a 17-year low of 4.1%. (BLS)

The S&P 500 has officially gone 52 consecutive weeks without a 2% weekly change higher or lower. This is only the second time in history it has gone a full year without a 2% weekly change. The longest streak ever was 79 consecutive weeks without a 2% change in the mid-'60s. (LPL)

Can the S&P 500 go 12 for 12? Incredibly, the S&P 500 has been up on a total return basis all 11 months so far this year. There have been streaks of 12 consecutively higher months before, but never have all 12 months of one calendar year been higher. (LPL)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



A bit of news from abroad to start the morning:
"We have made the breakthrough we needed," said European Commission President Jean-Claude Juncker, declaring a long-awaited Brexit deal and the opportunity to now discuss trade arrangements. A financial settlement was agreed that was "fair to the British taxpayer" and enshrined the "special rights of EU nationals," announced Theresa May, the British PM, adding a guarantee that there would be "no hard border" with Ireland. (SA)

Chinese trade unexpectedly accelerated last month in an encouraging sign for the world's second-largest economy. November exports rose 12.3% from a year earlier, while imports expanded 17.7%, resulting in a trade surplus of over $40b. Iron ore and copper imports also enjoyed a stellar rebound, which could help stem a recent pullback in commodity prices.  (FT)

Job creation exceeded expectations in November and wage growth gathered steam.  Employment rose by 228,000 jobs last month, the Labor Department said this morning, topping estimates of 200,000.  Friday's report reflected normalization in the labor market after a string of hurricanes battered the US earlier this year.  The report also showed the unemployment rate remained unchanged at 4.1 per cent, while average hourly earnings grew at pace of 2.5 per cent year-on-year.  (FT)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.



The U.S. government is urging a federal judge to reject the February court date sought by AT&T and Time Warner in a dispute over the firms' proposed merger, which the DOJ feels could raise prices and hamper the development of online video. It has requested that proceedings start on May 7, but AT&T will have to pay Time Warner $500M if the deal is not consummated by April 22. (SA)

Ford is expected to sign a deal tomorrow that may allow it to test selling cars in China through Alibaba's online retail arm Tmall, Reuters reports. The partnership would also include a new retail concept called the "Automotive Vending Machine" - a multi-story parking garage that partly resembles a giant vending machine - to cars sell directly to Chinese consumers. (SA)


Private sector employment increased by 190,000 jobs last month, slightly ahead of estimates, according to today's report by payroll processor ADP.  The data compared with expectations of a gain of 185,000 - and set an optimistic tone ahead of the closely watched monthly jobs report from the Labor Department, due to be issued tomorrow (FT).

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.
 



The Commerce Department says new orders for U.S.-made goods for non-defense capital goods excluding aircraft, grew 0.3% in October. Business spending on equipment has increased strongly this year as corporations anticipated hefty tax cuts from the Trump administration. Business spending on equipment increased at its fastest pace in three years in the third quarter.

Global oil market is near balance, but U.S. Department of Energy forecasts call for a small surplus of about 1.1 million barrels per day of production in 2018. For comparison, in 2015 the surplus was approximately 6 million barrels per day. U.S. petroleum inventories are down about 100 million barrels from last year and have fallen within the 5-year range for the first time since 2014. But watch out for the likely supply response by U.S. producers at higher prices. (LPL)

In the 1987 movie Wall Street, Gordon Gekko is shown with his Motorola DynaTac 8000x cellphone. It weighed 2 lbs. and cost $3,995 ($9,835 in today's money). In 1989, just 1.4% of Americans had a cellphone. (Human Progress)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



November was another green month for equities, with the S&P 500 up 2.8%, the Dow up 3.8%, and the Nasdaq up 2.2%. The Dow has closed green eight consecutive months, the longest streak since in 22 years. The S&P 500 is also up eight in a row, the longest since 2007.  On a total return basis, the S&P 500 is up 13 months in a row--the longest monthly win streak in history. (LPL)

The Dow closed at another new all-time last Thursday, along the way closing above 24,000 for the first time ever. It took only 30 trading days to go from 23,000 to 24,000--the third fastest 1,000-point milestone ever. Additionally, this was a record fifth 1,000-point milestone this year, with two being the previous record.

The Institute for Supply Management's manufacturing index decreased to 58.2 in November. Fourteen out of 18 manufacturing industries reported growth in November, including paper products, machinery and transportation equipment.

The Commerce Department says that construction spending increased 1.4% to $1.24 trillion in November. Public construction projects jumped 3.9%. Private construction projects increased 0.6%.

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



Get ready for December. Historically, December is a good month for the S&P 500. In fact, since 1950, no month is up more often than the 75% of the time December finishes in the green, and the +1.6% average return is also the best out of the 12 months. The month of December has never finished as the worst month of the year.

The Commerce Department said consumer spending rose 0.3% in October.  Consumer spending grew at a 2.3% annualized rate in the third quarter.

The personal consumption expenditures (PCE) price index excluding food and energy, rose 0.2%. The core PCE increased 1.4% in the last 12 months.

Personal income rose 0.4% in October. Wages rose 0.3%.  Savings increased to $457.3 billion or 3.2% increase.  

This weeks positive GDP revision to 3.3% was driven by business equipment spending, state and local government spending, and private inventory accumulation.

Join us this weekend for Financial Focus Radio when we will talk about how to set yourself up for a potential Santa Claus rally.

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



The National Association of Realtors pending existing home sales index rose 3.5% in November. That is the highest level since June. Existing inventory has decreased every month on an annual basis for 29 consecutive months, and the number of homes for sale at the end of October was the lowest for the month since 1999.

The former CEO and CFO of the Bank of Oswego were convicted of a conspiracy to conceal the bank's bad financial condition. A jury found them guilty of 12 counts of making false entries in the bank's books to hide bad loans. (PBJ)

The Municipal Bond Index is down 0.3% over the past month, while the high-quality U.S. Aggregate Bond Index has gained 0.5%. The main reason for the divergence in these two indexes is the ongoing tax reform debate. Language in the House tax reform proposal would remove tax exemption from private activity, tax credit, and advance refunding bonds that are issued after December 31, 2017.  This has led issuers to push to get new offerings in ahead of the December 31 deadline, which will likely lead to a increased supply through year end, which has put pressure on prices. (LPL)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.
 



The Conference Board's measure of consumer confidence hit 129.5 in November its highest level in nearly 17 years. That is much stronger than expected. The index takes into account Americans' views of current economic conditions and their expectations for the next six months.

 

For the week ending November 18, new claims for unemployment insurance dropped by 13,000 to 239,000.

The less volatile four-week average rose slightly to 239,750. Jobless claims have now held below 300,000 for 142 weeks, or nearly three years, the longest such streak since 1970. Analysts say, however, that the levels in fact represent an absolute low, given the increase in the population in the last 47 years. (AFP)

 

The S&P CoreLogic Case-Shiller home price index rose in September at a 6.2% annual rate. 

 

The Organization for Economic Cooperation and Development updated its gross domestic product growth forecast to 3.6% from 3.5%, supported by policy stimulus and being accompanied by solid employment gains, a moderate upturn in investment, and a pick-up in trade growth. It also noted that the global economy is now growing at its fastest pace since 2010. (LPL)

 

The S&P 500 is up 3 and the NASDAQ is down 0. The MSCI international index is lower.

Oil is down 10 cents at $57.86 a barrel.

Gold is down $2 at $1298 a Troy ounce.

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.

 



The Commerce Department said new home sales in October rose 6.2%. That marks the third straight monthly gain and the best sales since October 2007. There is a shrinking supply of existing homes for sale. There is only 4.9 months' supply of newly-built homes on the market, the lowest reading since July 2016. The number of sales listings for existing homes has tumbled 10.4% from a year ago to just 1.8 million, according to the National Association of Realtors. That's the fewest number of homes on the market for any October since the Realtors began tracking the data in 1999. The average sales price of a new home jumped 13.6% over the past 12 months to $400,200. (FBN)

According to Adobe Analytics, online sales on Thanksgiving Day and Black Friday rose 17.9% to $7.9B. Online sales on Black Friday alone increased nearly 16% to a record $5B. Cyber Monday sales are estimated up 16.5% to a record $6.6B. According to ShopperTrak, Black Friday traffic at retailers was down by <1%. According to price-tracking firm Market Track, the average Black Friday advertised discount across 17 categories was 45% this year compared with 48% last year. Only three of eight major retailers offered deeper discounts than they did a year ago. (LPL)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.
 



The Commerce Department said new orders for capital goods unexpectedly fell 0.5% in October. That was the biggest drop since September 2016. Strong business spending on equipment boosted manufacturing, orders for machinery increased 0.6%. Manufacturing accounts for 12% of the U.S. economy. Last month orders for electrical equipment, appliances and components climbed 0.8%.

The University of Michigan's survey of consumer attitudes for November rose to 98.5 in November. Expected changes in inflation rates for the following year, also tracked in the survey, are expected to creep up to 2.6 after landing at a 10-month low at 2.4 in October.

The Chicago Fed National Activity Index, an aggregate of over 80 economic indicators that attempts to paint an overall picture of the economy each month, posted its best number in October since January 2012. Strong data over the last month is also reflected in the Citi Economic Surprise Index, which measures the performance of economic data versus economist consensus expectations, which hit a multi-year high Wednesday, reaching its strongest level since early 2014.

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.
 



Stocks posted record highs yesterday. The S&P 500 gained 0.7% to finish at 2,599. The index broke above 2,600 for the first time ever during the session. The tech-laden Nasdaq rose 1.1% to 6,862. Markets are closed tomorrow and will hold an abbreviated session on Friday.

According to the National Association of Home Builders home builder sentiment rose to 70, up two points in November. This number is the highest since March of this year and the second highest on record. The index stood at 63 in November of last year.

Smucker, owners of Jif peanut butter, jams, Folgers and Dunkin Donuts-branded coffee, Meow Mix and 9 Lives hiked prices on Jif and Smucker's-brand jellies 6% last January. That pushed sales up 1% last quarter, and profits in its consumer food division was up 10%. (CNNMoney)

Mrs. Reinhart did not get the memo.  A survey of 1,000 PNW residents conducted by Washington State University's Carson College of Business said 64% aren't planning to partake in Black Friday 2017 by going out. 65% say they will likely shop online instead.

Join us this weekend for Financial Focus Radio when we will host a post-Thanksgiving wealth building feast.

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



As we head into Thanksgiving week, investors have many things for which to be thankful; from a global bull market in equities, to very few signs of a recession starting over the next 12-18 months. In honor of everyone’s favorite Thanksgiving Day bird, did you know that the size of your average turkey has grown substantially over the past 50 years? That’s right; the average turkey was 17 pounds in 1960 and was more than 30 pounds last year. (LPL)

S&P 500 earnings and revenue growth each ticked 0.1% higher over the past week and are now tracking to 8.2% and 5.4% year-over-year increases, respectively. Overall earnings growth is tracking to a more than 11% year-over-year increase. (LPL)

Leading economic indicators rose by 1.2% in October. The index "suggests that solid growth in the US economy will continue through the holiday season and into the new year," Conference Board research director Ataman Ozyildirim said in a statement. The index is a closely followed indicator for how healthy the U.S. economy is. The Conference Board tracks 10 components, including manufacturers' new orders, stock prices and average weekly initial claims for unemployment insurance. (CNBC)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



The Labor Department said import prices rose 0.2% in October, less than expected. In the last 12 months import prices increased 2.5%. Imported petroleum increased 1.7%, imported capital goods prices rose 0.2% and imported food fell 0.2%. Export prices were unchanged last month. October as the biggest monthly increase in the price of agricultural exports in nearly 1-1/2 years. Export prices are up 2.7% year-over-year. (CNBC)

The Federal Reserve says U.S. industrial production leapt 0.9% in October. Manufacturing activity surged 1.3%. Mining activity slipped 1.3%. October hurricanes caused a decline in oil and gas drilling. Production at utilities rose 2%. Over the past year, industrial production has increased 2.9%. Over the past 12 months, manufacturers have added 156,000 jobs. That's the strongest annual growth since the middle of 2015.

The Georgia-Pacific Camas, Washington paper mill is eliminating 300 jobs. The mill opened in 1885 and employed about 2,400 workers in the 1980s. After the partial closure just 120 to 140 jobs will remain. (The Columbian)

Join us this weekend for Financial Focus Radio where we will talk taxes.

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



The Commerce Department said retail sales rose in October by 0.2%. An increase in car purchases offset a decline in demand for building materials. Retail sales were up 4.6% on an annual basis. Consumer spending accounts for more than two-thirds of U.S. economic activity. Sales at online retailers fell 0.3%. (CNBC)

The Labor Department said consumer prices rose 0.1% in October. That is a year-on-year increase in the CPI of 2.0%. Gas prices fell 2.4% and food prices were unchanged. (CNBC)

The New York Times reports the Trump Administration is encouraging Obamacare marketplace consumers to use “insurance agents and brokers. Advocates say this “could provide a lifeline for consumers in a confusing and troubled marketplace,” and could be better than nonprofit guides because agents are able to recommend specific health insurance plans.

Wal-Mart earned $1 per share in the third quarter up 2%. Revenue was $123.2 billion, up 4.2% year over year. U.S. same-store sales rose 2.7%. (CNBC)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



The S&P 500 Index has now gone 50 consecutive days without a 0.5% close lower, the longest streak since 57 in 1968. Additionally, with the 0.1% gain Monday, the S&P 500 avoided its first three-day losing streak in three months or 66 trading sessions. This is the longest streak without a three-day losing streak in 7-plus years. (LPL)

The Labor Department says producer prices rose 0.4% in September and in the last 12 months is up 2.8%. That is the biggest annual increase in wholesale inflation in over 5-1/2 years. Prices for services climbed 0.5%, and gasoline dropped 4.6%.

According to the NFIB’s latest Small Business Optimism Index, small business owners expect higher sales and view the present as a favorable time to expand. The 103.8 October Index, an increase from the previous month’s 103, continues a months-long positive streak dating to last November. Four of the Index components rose, five saw a slight decline, and one was unchanged.

Target reported third quarter profits of 91 cents per share on revenue of $16.67 billion. Same-store sales climbed 0.9%. Higher compensation costs including an increase in employee incentives and wage rates drove expenses higher. AP)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



Stocks' eight-week winning streak--longest in four years--ended last Friday. Small caps lagged for the week, partly due to tax reform challenges, with Russell 2000 losing 1.3%; Dow -0.5%, S&P 500 -0.2%, Nasdaq -0.2%. (Yahoo Finance)

After a year and a half of no sea going container service at the Port of Portland it will return in 2017. Swire Shipping will make monthly port calls with shipments of Daimler Trucks’ Western Star trucks to Australia, export containers going to Australia and New Zealand, and import containers coming from Asia. (PBJ)

Oregon based Roseburg Forest Products has sold its California timberlands to a New Forests. The transaction includes 170,000 acres. Founded in 2005, New Forests manages more than 2 million acres of land and forests around the world, with assets under management of more than $3 billion. They are headquartered in Sydney, Australia. (Building Material News)

Dick's Sporting Goods reported a third-quarter profit of $36.9 million. The sporting goods retailer had sales of $1.94 billion. Dick's shares are down 50% in 2017 and down 56% in the last 12 months. (AP)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.
 



The University of Michigan's index of consumer sentiment fell in November, but remains at its second-highest level of the year. The index stands at 97.8 which is off from October which was 101.1, the highest level since 2004. The report supports a forecast of personal consumption spending rising 2.7% in 2018.

 

Nordstrom had a third quarter profit of 67 cents per share, and revenue came in slightly above forecast. Same store sales were down a 1%, with Nordstrom pointing too negative impacts caused by hurricanes. (CNBC)

 

In November 2016 Columbia Sportswear relocated 50 employees to their new downtown Portland offices. Now the company is mulling the idea of closing that office. Confrontations with transients and frequent car break-ins are to blame.  (Oregon Live)

 

There were approximately 2.9 million nonfatal workplace injuries and illnesses reported by private industry employers in 2016, a rate of 2.9 cases per 100 full-time equivalent workers, according to the U.S. Bureau of Labor Statistics.

 

GE is cutting their dividend in half from 24 to 12 cents per share.

 

The S&P 500 is down 6 and the NASDAQ is down 19. The MSCI international index is lower.

Oil is up 10 cents at $56.83 a barrel.

Gold is up $5 at $1279 a Troy ounce.

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



Google is adding 8,000 sf to the 18,000 sf they already occupy in downtown Portland. The tech giant opened the location in 2010. Google now employs 60 people at the location. (OregonLive)

Summit Bank, with headquarters in Eugene and an office in Bend, reported profits of $955,000 in Q3. That is a 13.7% increase year over year. Total assets were up 24.5%. Net loans totaled $268.3 million up $57.9 million in the first three quarters. Deposits increased by $60.3 million in the same period. “This quarter marked our 13th consecutive quarter of year-over-year loan growth exceeding 15%,” said Craig Wanichek, Summit Bank president and CEO. (AP)

US small companies with open jobs in October was the second-highest on record and more businesses owners plan to raise worker wages. Thirty-five percent of small-business owners said they had jobs to fill and 21% said they plan to raise pay in coming months, the largest share since December 2015. (National Federation of Independent Businesses)

Ad Age reports online sales are up 21% vs. flat for brick-and-mortar stores. However, the segment remains small accounting for only 5% of household-product sales.

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



The Dow and S&P 500 are riding eight straight weekly gains. The Nasdaq has notched six positive weeks in a row. This year, the Dow closed at 57 all-time highs, the S&P at 52, and the Nasdaq at 64. That is an all-time record for the Nasdaq. (CNBC)

The largest solar power plant in Oregon has begun operation. The power will be sold to Apple through a long-term power purchase agreement. The farm is outside Prineville.  The plant can produce 56 megawatts and will produce 140,000 megawatt-hours of electricity annually, equal to what 13,000 Oregon households use in a year. The capital expenditure for the plant is pegged at $120 million. (PBJ)

According to the think tank HumanProgress.org the world consumes some 50 million tons of beef a year. Unfortunately, cows need to roam (land), eat (corn) and evacuate (green-house gases). And then, of course, there is the killing of the poor creatures themselves. A solution to the ethical, economic and environmental problems may be around the corner. Thanks to human ingenuity, we may soon be able to enjoy an affordable lab-grown meat that will taste and nourish just like the real thing.  

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.
 



Digging in a little deeper into Fridays big job report, October saw a 261,000 increase in nonfarm payrolls. September's initially reported loss of 33,000 jobs was adjusted to an 18,000 gain. The unemployment rate ticked down to 4.1% from 4.2%. But the major driver of the move lower was a decrease in the labor participation rate, from 63.1% to 62.7%. Average hourly earnings were flat month over month. The underemployment rate, arguably a bigger factor in today's economy than the unemployment rate, saw a significant drop from 8.3% in September to 7.9% in October. This number has been trending lower since the financial crisis, but this was the biggest month-over-month drop since January 2014, and it is now at its lowest level since 2006. (BLS)

 

The tax proposal has been released, but is still just a proposal. Broadly, the reforms were in line with expectations--a corporate tax rate of 20%, fewer individual brackets, and a phase out of the estate tax. Surprises included decrease in the cap on the mortgage interest deduction (from $1 million to $500,000), and no changes to limits on pre-tax 401(k) contributions which had been widely discussed. There are likely to be many changes (and the potential for market-moving headlines) as the bill works its way through Congress. (FBN)

 

The S&P 500 is down 3 and the NASDAQ is down 2. The MSCI international index is lower.

Oil is up 36 cents at $56.00 a barrel.

Gold is up $3 at $1272 a Troy ounce.

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



The Department of Labor says the US economy added 261,000 new jobs in October rebounding from the hurricanes. The private sector accounted for 252,000 of the increase. The unemployment rate stands at 4.1%.

Bank of England raised interest rates for the first time in a decade yesterday to 0.5% from 0.25%. (Bloomberg)

The Labor Department said on Thursday worker productivity rose at a 3.0% rate. That is the fastest pace in three years.

Oregon’s Electro Scientific Industries reported sales growth in the quarter of 139% posting sales of $71 million. Profits were $4.3 million half what they saw a year ago.
ESI is Oregon's oldest technology company starting in 1944. It currently makes laser tools for electronics manufacturers. (OregonLive)

New York headquartered glass, ceramics and fiber-optics  manufacturer Corning is the buyer of the old Hynix computer chip factory in Eugene. The Eugene Register-Guard reported the 300-acre property's $13.4 million sale on Tuesday. Corning reported $9.4 billion in revenue last year and profits of $3.7 billion.

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



We've noted many times how the action so far this year is like nothing we've seen for decades, as it is a bull market amid historically low volatility. Well, here's another way to show that. The Dow has officially gone 52 consecutive trading days without a 1% intraday move--the longest such streak using data back to the 1930s. Additionally, the S&P 500 hasn't closed down so much as 0.5% for 40 trading sessions, the longest since 44 in 1995. Couple that with the usually volatile months of September and October that were historically dull in 2017 and this year continues to rewrite the history books. (LPL Research)

The ADP National Employment report says the private-sector added 235,000 jobs in September. The service sector accounted for the bulk of the job creation, adding 150,000 jobs. Professional and business services added the most positions, up 109,000. Job losses were seen in the trade, transportation, and information sectors, as well as education.

The Manufacturing ISM Report shows economic activity in the manufacturing sector expanded in October, and the overall economy grew for the 101st consecutive month. Manufacturing PMI in October 58.7 a decrease of 2.1 points from September. (ISM Report)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.
 



With the S&P 500 Index closing higher in October it is the longest monthly total return win streak ever going back to 1950. The S&P 500 has been higher an incredible 12 consecutive months on a total return basis, topping the streaks of 11 months in 1954 and 1959. The S&P 500 is up 23% over the past 12 months, which is a lot, but by no means extremely stretched. In fact, going back since 1950, this would rank in the top 76% for all 12-month returns. Again, this has been a solid 12 months, but when putting things in perspective, the past 12 months haven't been what we'd classify as an extreme blow off move; it has been more like slow and steady. It is important to remember that markets don't peak when things are calm, we tend to see more volatility near ultimate market peaks. (LPL Research)

The S&P CoreLogic Case-Shiller U.S. National Price Index was up 6.1% in August. The index posted a 5.9% year-over-year gain. Atlanta was the only major city to record a decline in prices. (Yahoo Finance)

According to the Conference Board Consumer confidence rose to 125.9 in October. That is the highest level in almost 17 years when in December 2000 the index stood at 128.6.

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.
 



The Commerce Department says consumer spending jumped 1.0%, its biggest increase in more than eight years. Consumer spending, which accounts for more than two-thirds of U.S. economic activity. Consumer spending in September was lifted by motor vehicles, as hurricane victims replaced destroyed automobiles.  

The Federal Reserve's inflation measure, the personal consumption expenditures (PCE) price index, was up 0.1%. The PCE is up 1.3% in the last 12 months.  

Personal income rose 0.4% in September. Wages were up 0.4%. Savings fell to $441.9 billion in September from $521.4 billion in the prior month. (CNBC)

The first half of earnings season has been good relative to expectations. Earnings are tracking near a 7% year-over-year increase, 2% above prior expectations, with a solid 74% of companies having beaten estimates. Growth has slowed from the last two quarters, due partly to the impact of insured hurricane losses. Strong upside and big increases in technology and energy earnings have offset financials weakness. Solid earnings outlook continues to support U.S. stocks even at elevated valuations. This week 135 S&P 500 Index companies will report results. (LPL Research)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



U.S. stocks are slightly lower as we await the latest batch of corporate earnings and economic data. Earnings season continues in full swing, with a number of major brands gearing up to publish their latest financial figures. Mondel?z International, AvalonBay, Texas Roadhouse and Dominion are some of the names set to issue their latest earnings reports.
 
It is merger Monday. Big homebuilder Lennar agreed to buy homebuilder CatAtlantic for $9.3 billion, creating the largest U.S. homebuilder. For-profit colleges Strayer and Capella agreed to merge in a stock-swap deal. (CNBC)
 
Climbing oil exports from Iraq are dampening gains in oil prices. But there are expectations that the OPEC production cuts will be extended past its deadline of March 2018. (Reuters)
 
Platinum is down 0.2% to $912.70 an ounce, while palladium is up 0.4% to $969.22 an ounce. (CNBC)
 
Apple moved to stop concerns of low demand for its iPhone X, saying pre-orders for the 10th anniversary phone were "off the charts." (Reuters)
 
With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



The Nasdaq is in rally mode following solid results from Amazon, Alphabet aka Google, and Microsoft. The booming growth from three of the world's biggest companies will surely further enthuse investors. The tech giants added a combined $80B in market value in AH trading, with Alphabet and Amazon's stocks both surging past $1,000 on strong 3Q results. (SA)

 

In other earnings news, AbbVie, the maker of the world's top-grossing drug, Humira, posted third quarter earnings that beat Wall Street expectations and announced bullish financial targets.  Meanwhile, pharmaceutical giant Merck blamed an international cyber attack that shut down parts of its operation as it reported third quarter sales that were short of estimates from the Street. (FT)

 

Shares of pharmaceutical chains and drug wholesalers are looking sickly after the President's declaration that opioids are a public health emergency and a report that Amazon has secured wholesale pharmacy licenses.  Shares of health insurer Aetna jumped on Thursday, following a report that it was in talks about a possible deal to sell itself to pharmacy chain CVS. (WSJ)

 

Finally, third quarter GDP numbers are just out, and the US economy continued to grow at a steady clip during the third quarter, exceeding expectations despite the disruptions caused by hurricanes Harvey and Irma.  Gross domestic product grew at a 3 per cent annual rate in the July to September period, that was above economists' estimates for growth of 2.5 per cent (FT).

 

The S&P 500 is up 6 and the NASDAQ is up 44. The MSCI international index is down 7/100 of a percent

Oil is down 26 cents at $52.38 a barrel.

Gold is down $4 at $1265 a Troy ounce.

 

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.



The European Central Bank has unveiled plans to reduce the pace of its mass bond-buying program next year, announcing that it will buy €30bn-worth of assets a month for at least the first nine months of 2018 to keep the Euro area’s recovery on track.  The eagerly-awaited decision marks a retrenchment from the region’s bond markets, where the ECB has been the most active investor since the program, known as quantitative easing, began.  (FT)

 

A couple more earnings reports from this morning and after yesterday’s close:  AB InBev, the brewer of Budweiser, Stella Artois, Corona, and 10 Barrel reported higher profit in the third quarter despite lower beer volumes as hurricanes hit the US market. (WSJ)  Bristol-Myers Squibb, a leading maker of cancer immunotherapies, narrowly missed Wall Street forecasts for third quarter earnings, but posted revenues ahead of expectations. (SA)

 

Asia is now home to more of the world’s billionaires than the US for the first time in history, according to research published on Thursday.  Powered by the rise of super-wealthy Chinese entrepreneurs, the number of Asian billionaires rose by 117 to 637 last year, while membership of the US billionaires club reached 563 after gaining 25 net new joiners, according to the report by UBS. (FT)

 

S&P 500 futures are up 2 and NASDAQ futures are down 3. The MSCI international index is up 7/100 of a percent.

Oil is up 4 cents at $52.22 a barrel.

Gold is down $3 at $1276 a Troy ounce.

 

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.



After yesterday's big day on the Dow, we've got a slew of new earnings reports this morning:  Visa grew its revenues and profits at a more rapid clip than Wall Street forecast in its latest fiscal quarter, driven by growth in payment processing and the purchase of Visa Europe that closed last June.  The $250bn credit card processor said its fourth quarter net revenues climbed 13.9% to $4.9bn. (FT)

 

Defence group Northrop Grumman posted upbeat quarterly results driven by higher demand for its manned aircrafts and lifted its earnings outlook again. (WSJ)

 

Coca-Cola shares were flat in premarket trading, as the company reported sales dropped less than feared in its latest quarter.  The world's largest maker of fizzy drinks said sales fell 15 per cent to $9.1bn in the three months to the end of September (FT)

 

Finally, Boeing has raised its earnings and cashflow guidance for the second time in six months after beating market expectations in the third quarter.  Boeing is lifting its forecast for full-year cashflow to $12.5bn as a result of "improved performance" on the back of cost reductions in its aircraft programs and higher production rates. (SA)

 

The prospect of a more hawkish US central bank is setting the pace in the US debt market for a second successive day.  The yield on the 10-year Treasury is up almost 3 basis points at 2.45 per cent today, its highest since March . The yield, which rises when the price of the bond falls, is an important benchmark for global financial markets. Late yesterday, the yield broke through an important psychological threshold of 2.4 per cent that has been treated as a "line in the sand" for much of the year. (FT)

 

S&P 500 futures down 4 and NASDAQ futures are down 13. The MSCI international index is up 1/100 of a percent.

Oil is down 18 cents at $52.29 a barrel.

Gold is down $4 at $1274 a Troy ounce.

 

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.



We're in the thick of earnings season this morning:

 

GM handily beat earnings expectations before the bell, but the Detroit automaker also reported production down 26 per cent for the third quarter, reflecting factory shutdowns due to model changeovers, but also softer demand in the US market which GM predicted could have its weakest year since the 2008-09 recession (FT).

 

Caterpillar shares rallied in pre-market trading this morning after the maker of construction and mining equipment lifted its full-year outlook and posted upbeat quarterly results citing strength in North American on-shore oil and gas markets, Chinese construction and investments by miners. (FT)

 

McDonald's global same-store sales climbed 6 per cent in the three months to the end of September, eclipsing analyst forecasts and reaffirming that the world's largest burger chain's turnround is on track. (FT)

 

In other earnings news this morning, 3M, United Technologies, and Eli Lily all topped estimates and raised guidance, while Lockheed Martin missed slightly, but still revised guidance higher (FT). 

 

Over in the debt markets, Venezuela has now missed $586M in payments tied to the debt of the government, state oil giant PDVSA, and utility Electricidad de Caracas, just days before the first of two can't-miss debt deadlines.  Sovereign debt investors will be a keeping a close eye on that one this week (SA).

 

S&P 500 futures up 5 and the NASDAQ futures are up 7. The MSCI international index is up 4/100 of a percent

Oil is up 29 cents at $52.19 a barrel.

Gold is down $3 at $1278 a Troy ounce.

 

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.



Investors will hear Q3 results from 189 members of the S&P 500 in the coming days, marking the biggest week of earnings season and one that is sure to move markets. The group also includes 12 of the 30 companies that make up the Dow industrials. As the market rambles on, October is shaping up to be one of the best months of the year. The Dow is up about 4% for the month, suggesting that stocks could end the year with some serious momentum. (SA)

 

Shinzo Abe's convincing election victory lifted Japanese stocks to their highest in 21 years, with the prime minister on track to become Japan's longest-serving leader. The super majority will extend the lifespan of "Abenomics," allowing the BOJ to continue with massive monetary easing, even as the Fed seems determined to hike rates again in December. (FT)

 

Saudi Aramco CEO Amin Nasser has sad the oil giant's initial public offering remains on track for the second half of 2018.Saudi Aramco, the world's largest oil company, plans to list its shares on the Saudi domestic stock market, as well as one or more foreign exchanges. However, it has yet to choose the overseas market, fueling continued speculation about the kingdom's plans. (CNBC)

 

S&P 500 futures are up 2 and NASDAQ futures are up 11. The MSCI international index is down 3/100 of a percent.

Oil is up 19 cents at $52.03 a barrel.

Gold is down $5 at $1276 a Troy ounce.

 

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Josh Fenili.



With 52 S&P 500 Index companies having reported, beat rates for earnings (82%) and revenue (73%) are excellent so far, with the average company reporting a 5% upside earnings surprise. While the pace of earnings gains is slowing--largely hurricane driven--we are encouraged by the slight increase over recent weeks of S&P 500 consensus earnings estimates and expect re-acceleration in Q4. (LPL Research)

The Dow closed above 23,000 for the first time in history this week. Along the way it was the 51st new all-time high of the year; only one away from the 52 new highs made in 2013. Looking at milestone 1,000 point intervals, the Dow has now cracked 20,000, 21,000, 22,000, and 23,000 so far in 2017. No other year ever made more than two milestones, making the four this year a new record. Of course, as the Dow goes higher the percentage move needed to make new highs gets smaller. (LPL Research)

The Labor Department said initial claims for unemployment benefits fell to 222,000 for the week. A level not seen since 1973. It marked the 137th consecutive week that claims remained below the 300,000 level. Continuing claims have been below the 2 million mark for 27 straight weeks, the lowest level since January 1974. (CNBC)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.
 



October 19, 1987, 30 years ago today, the Dow plunged 508 points or about 23% in one day. An equivalent Black Monday drop today would push the Dow down about 5,000 points. (CNBC)

The Financial Industry Regulatory Authority (Finra) has ordered Wells Fargo to pay more than $3.4 million in restitution for selling customers “unsuitable” volatility-linked exchange-traded products and for failure to supervise its reps. (ETF Advisor)

The Commerce Department reported homebuilding fell to a one-year low in September as housing starts decreased 4.7%. Building permits fell 4.5%. Single-family home starts fell 4.6%. Multi-family housing starts fell 5.1%.

This could impact markets. President Trump will announce his choice for chair of the Federal Reserve on November 3rd before departing for an 11-day trip to Asia. (LPL Research)

WD-40 Company declared a quarterly dividend of $0.49 per share, payable October 31st. The company will release quarterly results after the closing bell. (PR News Wire)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



The Labor Department says U.S. import prices for September jumped 0.7%. In the last 12 months import prices climbed 2.7%. Prices for imported oil increased 4.5% and food prices surged 1.8%. Export prices rose 0.8%. Export prices increased 2.9% year-on-year.

Industrial production rebounded in September rising 0.3%.
Capacity utilization rose to 76%. Industrial production fell at a 1.5% annual rate in Q3, but the index would have risen at least 0.5% if not for the hurricanes. (Market Watch)

The National Association of Home Builders sentiment index rose 4 points to 68, the highest level since May. Homebuilders cited the labor shortage nationwide as their greatest barrier. Builders are also seeing more demand stemming from the very short supply of existing homes for sale. (NAHB)

When the most recent recession began in December 2007, the number of unemployed people per job opening was 1.9. When the recession ended in June 2009, there were 6.1 unemployed people per job opening. The ratio peaked at 6.6 unemployed people per job opening in July 2009 and trended downward until reaching now historic lows of 1.2 unemployed per job opening. (BLS)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



Thursday will mark the 30th anniversary of Black Monday when the stock market lost almost 25% of its value in one day. Could the 1987 crash happen again? Conditions are very different today than they were in the days leading up to the 1987 crash. The stock market is on a much stronger fundamental foundation today, making another crash extremely unlikely. The latest rally has not been nearly as steep as 1985-1987, interest rates are much lower today, and sentiment is not as frothy. (LPL Research)

Earnings season is off to a good start, though early stats are a bit misleading. The beat rates for both earnings and revenue are very strong so far, both at over 80%. Since October 1, energy has produced the most upside to third quarter estimates, while financials have produced the most downside. This week 55 S&P 500 companies will report. (LPL Research)

Nordstrom has suspended attempts to take the U.S. department store private because of difficulties in arranging debt financing. (Reuters)

Drive-in restaurant chain Sonic reported quarterly profits of 45 cents per share, beating estimates by 2 cents. Same-restaurant sales declined due to the impact of Hurricane Harvey. (CNBC)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



The S&P 500 has posted five straight weekly gains and is on track for a seventh straight positive month. The Nasdaq posted a record closing high Friday. 10% of the S&P 500 reports earnings this week. (CNBC)

Oil is sharply higher as Iraqi forced entered the oil city of Kirkuk, taking territory from Kurdish fighters and raising concerns over exports from OPEC's second-largest producer. (Reuters)

The University of Michigan consumer sentiment index rose to 101.1 in October. That is its highest level since the start of 2004.

The Commerce Department says U.S. retail sales rose 1.6%. It was the biggest increase in 2 1/2 years.

The Labor Department says the Consumer Price Index jumped 0.5% in September. It was the biggest increase since January.  Year-on-year gain of the CPI is 2.2%. Gas prices surged 13.1% accounting for 75% of the CPI increase. Last month, food prices rose 0.1%, rental accommodations rose 0.2% and new car prices fell 0.4%.

70 days till Christmas and Macy's stores will open at 5 p.m. on Thanksgiving like last year. (CNBC)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.
 



Well we have kicked off earnings season. There are several reasons to be optimistic about third quarter earnings season, including healthy manufacturing activity globally, resilient estimates, the relatively low proportion of negative pre-announcements, and U.S. dollar weakness. Consensus is now calling for a 9% year-over-year drop in bank earnings for the quarter, making this week's big bank results particularly important. (LPL Research)

The Labor Department said prices at the wholesale level climbed as the PPI rose 0.4% in September. The index has risen 2.6% over the past 12 months. September's burst of inflation is likely the result of oil refineries curtailing due to Hurricane Harvey. Gasoline prices surged 10.9% in September. For producers, food costs were unchanged last month, motor vehicle costs rose and computer chips fell in price.

The Fed released the minutes of its September Federal Open Market Committee meeting. The minutes showed a continued debate among members on below-target inflation, but the majority opinion continues to be that with unemployment so low, it may be more dangerous to wait to hike rates. A rate hike is expected in December. (LPL Research)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.
 



The Japanese stock market closed at its highest level since December 5, 1996 on Tuesday. Driving the recent gains have been strong earnings, an improving economy, and loose monetary policy. This is yet another global equity market that is breaking out to multi-year highs, further supporting our view that the global bull market is alive and well. For some stock market trivia, December 5, 1996 is the same day as Alan Greenspan's "irrational exuberance" speech. (LPL Research)

JPMorgan Chase reported Q3 profits well above Wall Street estimates, but the stocks is down as investors focused on a big drop in trading revenue. (CNBC)

AT&T third quarter results were negatively impacted by the hurricanes and earthquake in Mexico. They said the impact was two cents per share. AT&T also lost 90,000 video subscribers during the quarter, due to heavy competition. (CNBC)

Citigroup reported better-than-expected quarterly results with EPS of $1.42 and sales of $18.173 billion. Both were better than expected. A decline in fixed-income trading was offset by an increase in equity trading revenue.  (Reuters)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.
 



The NFIB reported that its Index of Small Business Optimism fell from 105.3 in August to 103 in September. The decline was prompted by a sharp dip in expected sales. The percentage of small business owners expecting improved sales over the next three months fell from 27% in August to 15% in September, while the number of owners who believe the present is favorable for expansion fell by 10 points.

MediaPost reports their data shows that digital ads have finally “overtaken TV” as the largest ad medium, although “offline” non-digital ads still have the largest spend. Digital ads should command $84 billion this year, up 16% from 2016. Trend line data suggests digital ad sales will hit nearly $101 billion by 2019, passing offline sales expected to be around $93.5 billion that year.

Wal-Mart forecasts U.S. online sales will increase by 40% and overall sales by 3% in 2018. It will buy back $20 billion of its shares over the next two years. (Reuters)

Delta Air Lines, the number two U.S. airline, reported earnings per share of $1.57, about 8% lower than a year earlier. The had quarterly revenue of $11.06 billion. Delta's passenger revenue per available seat mile rose 1.9%.  (Reuters)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.
 



Third quarter earnings season kicks off this week as several big banks are slated to report. We expect another solid quarter of earnings growth, but a third straight double-digit increase for S&P 500 profits appears unlikely due to hurricane impacts, tougher comparisons, and a lack of contribution beyond technology and energy. (LPL Research)

According to the Seattle Times Horizon Air canceled more than 700 flights in September. Horizon has a pilot shortage and cut its schedule from September through at least January. Horizon Air serves 45 cities in Oregon, Washington, Alaska, California, Colorado, Idaho, Montana and Utah, as well as Alberta and British Columbia.

Nordstrom was considering a sale of the company, but that deal may be falling apart. It appears the Nordstrom family is having trouble getting financing for the deal. (CNNMoney)

The U.S. dollar is near the low end of its three-year range, but we believe there are reasons to expect the greenback to begin to bounce back. The Federal Reserve is increasing rates faster than most other major banks, which could provide a fundamental reason to expect a stronger currency. (LPL Research)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.

 



The S&P 500 Index hasn't had a single month of negative returns in 2017. That's NEVER happened through a full calendar year. If history tells us anything, this probably won't keep up. (Hartford)

For fiscal 2017 Costco earned $5.89 per share on sales of $129 billion, up almost 9% year over year. Same-store sales rose 3.8%. E-commerce sales were up 13%. Next year, Costco plans to open 25 net new stores, about two-thirds of which will be located in the United States. Costco shares are up about 4% year to date. (Seeking Alpha)

A little more on that September jobs report. Hurricane impact leads to first monthly job loss since 2010. U.S. payrolls fell 33,000. At the same time, the unemployment rate dropped from 4.4% to 4.2%, the lowest level since February of 2001. Wage gains accelerated, rising 0.5% month over month and 2.9% year over year. The hurricane impacts are clear with 1.47 million people reportedly unable to work due to bad weather (worst in more than 20 years), we also saw a sharp 100,000 decline in restaurants and bars employment. (LPL Research)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.
 



Labor Department says the economy lost 33,000 jobs in September.  Unemployment rate fell to 4.2%.

The S&P 500 has closed at record highs six straight days, its longest run since 1997. It is also on an eight-session win streak, its longest in more than four years. If it rises for a ninth straight day, it would be the longest win streak since November 2004. (CNBC)

Beneficial State Bank is merging with Portland-based Albina Community Bank.  Beneficial State has owned a majority share of Albina since 2013. Beneficial State Bank is based in Oakland, Calif. with branches in California, Oregon and Washington and a second administrative office in Portland. It is a certified B Corporation, who’s goals are to promote social justice and environmental sustainability. (PBJ)

U.S. factory orders increased by 1.2% in August, driven by strong gains in aluminum and other metals, industrial machinery and autos. U.S. manufacturing is benefiting from a stronger dollar and an improving global economy. Orders for metals rose 1.2% and industrial machinery orders rose 11.5%. (FBN)

Join us this weekend for Financial Focus Radio on this great station.

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.

 



Here comes the fourth quarter. Q4, is historically a strong time for equities. Going back to 1950, this quarter has been up 3.9% on average and higher nearly 80% of the time--both are far and away the best out of the four quarters. (LPL Research)

United Parcel Service (UPS) and FedEx  stock prices are sharply lower in early trading as Bloomberg reports say Amazon is experimenting with a new delivery service, which will directly compete with the two delivery service companies.

A new study by the firm David Gardiner and Associates shows U.S. manufacturers want more renewable energy and are willing to push for policies that support it. Among the major companies surveyed, General Motors, Dow Chemical, Anheuser-Busch InBev, Owens Corning, P&G and Mars are among the companies that over the past decade have bought more renewable energy than before.

This is an interesting protest -- a person dressed as the Monopoly guy, complete with a top hat, bushy white mustache, monocle and dabbing his forehead sweat with giant paper money, sat in the audience of the Senate Banking Committee hearing on the Equifax data breach yesterday. (CNBC)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.
 



The European Commission has moved to refer Ireland to the European Court of Justice for failing to recover up to €13B of illegal state aid from Apple.  In a parallel case, Europe's competition chief said Luxembourg must collect around €250M of back taxes from Amazon, adding to a growing list of scalps for Margrethe in an EU crackdown on tax loopholes. The Commission has currently turned its attention towards McDonald's. (SA)

The pace of hiring in the private sector slowed to its weakest pace in 13 months during August, as Hurricane Irma and Harvey disrupted businesses across a large swath of the southeastern US.  Non-farm private employers added 135,000 jobs from August to September, according to a report from payroll processor ADP. That is less than market expectations for a gain of 140,000 jobs; and significantly lower than last month‘s reading of 236,000 new jobs. (FT)

Uber will accept an investment from Japan's SoftBank joining a growing portfolio of U.S. technology deals made by the intrepid Japanese mogul Masayoshi Son. The investment will add just over $1bn to Uber’s cash horde. The company’s last-reported valuation is just shy of $70bn. UBER's board has also agreed to governance changes that limit the influence of former CEO Travis Kalanick, and an IPO deadline in 2019. (SA)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor, I am Josh Fenili.
 



Wall Street looks to post its first positive September since 2013. On the final trading day of the month and the quarter, the Dow, S&P 500, and Nasdaq look to post a third straight week of gains. The S&P 500 is at a record high. (CNBC)

The shuttered Hynix memory chip factory in Eugene sold at auction for $12.75 million. The buyer was not identified. Hynix spent $1.5 billion to build and the 1.2 million sq. ft. factory in 1998. It employed 1,400 people. (Oregonian)

Mortgage Bankers Association says mortgage application volume fell 0.5% last week and is now 21.5% lower than a year ago. Applications to refinance fell 4%for the week and are 36% lower than a year ago. The average 30-year fixed-rate mortgage stands at 4.11%.

Small caps and micro caps had big days Wednesday on the release of potential tax reform. The Russell 2000 Index gained 1.9% and closed at a new high for the fourth day in a row. In the process, it outperformed the S&P 500 by 1.5%, which was the largest one-day outperformance since November 2016. Micro caps did even better, as the Russell Microcap Index closed at its seventh all-time high over the past eight days and gained 2.2% for its largest one-day spike since November 2016.

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



This month has been calm by historical standards, which is similar to what we've been seeing all year in 2017. The average daily intraday closing range on the S&P 500 (from high to low) has been less than 0.4%. Should this average hold over the next couple days, it would be the least volatile September on record; however, it is important to remember that October has historically been the most volatile month. (LPL Research)

Crude is in a bull market. It is official, earlier this week WTI crude oil moved into a bull market - up 20% from the summer lows. Increased optimism over global supply and demand has sparked much of the rally. This has helped energy stocks, which in turn has helped value stocks outperform growth so far in September. The International Energy Agency said global demand growth was very strong in Q2, up 2.4% year over year. (LPL Research)

The Commerce Department says new orders for capital goods increased 0.9%, more than expected, in August.  Orders for machinery rose 0.3%. Overall orders for durable goods surged 1.7% as bookings for transportation equipment jumped 4.9%.

With Northwest Quadrant Wealth Management, a
Registered Investment Advisor I am Troy Reinhart.



The S&P CoreLogic Case-Shiller U.S. National Home Price reported a 5.9% annual gain through July. Seattle, Portland, and Las Vegas reported the highest year-over-year gains. Seattle led the way with a 13.5% year-over-year price increase, followed by Portland with a 7.6% increase, and Las Vegas with a 7.4% increase. The National Index posted a month-over-month gain of 0.7% in July.

The Conference Board Consumer Confidence Index, which had improved marginally in August, declined slightly in September. The Index now stands at 119.8, down from 120.4 in August. The Present Situation Index decreased from 148.4 to 146.1, while the Expectations Index rose marginally from 101.7 last month to 102.2.

Nike had its slowest quarterly sales growth in nearly seven years as competition intensified by Adidas. Beaverton, Oregon-based Nike also said it expects its second-quarter revenue to grow in the low single-digit percentage range. Nike's gross margins fell 1.8%, while inventory was up 6%. Revenue from North America, the company's largest revenue contributor, fell 3% percent - its first decline in more than 10 quarters. Total revenue rose marginally to $9.07 billion, while Nike said it earned 57 cents per share. (Reuters)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.




 



Stocks are higher this morning following yesterday's tech-driven drop. The Nasdaq is coming off its biggest one-day decline since August 17th, even as the small-cap Russell 2000 posted a record closing high. The Dow is riding a three-day losing streak, and a decline today would give it its first four-day decline since late June. (CNBC)

Highlighting this week's calendar, a more detailed tax framework will be released by the Big Six (key Republican tax policy players), and details are already trickling out. The path to an agreement was always going to be difficult, but we have seen nothing so far that suggests a deal cannot be reached. The biggest stumbling block remains getting a 2018 budget deal done, without which tax law changes become virtually impossible. (LPL Research)

Welders at Precision Castparts in the Portland have voted to join the International Association of Machinists and Aerospace Workers. The vote impacts about 100 employees. 54 voted to join the union, and 38 voted against. (OregonLive)

Nestle set an operating profit margin target of 18.5% by 2020 and also will speed up stock buybacks. The company has been under pressure from activist investor Third Point to improve its performance. (FT)

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



General Electric has sold its Industrial Solutions unit to Swiss power grid maker ABB for $2.6 billion. (AP)

Striking a blow for consumer choice, General Mills, the producer of the multi-colored cereal Trix, will be bringing back the original, artificially-colored version after customers complained. "Classic Trix," which is colored artificially, will sit on store shelves alongside the new, natural-flavor version. (CNBC)

Walmart is testing a service to deliver groceries straight to customers' refrigerators. It is partnering with August Home, a provider of smart locks and smart home accessories, to test the service. The delivery person would get access to the customer's house using a pre-authorized one-time passcode and would put away groceries. (Reuters)

According to a Bloomberg Shake Shack, Chipotle, and Wingstop will be added to Amazon.com's delivery service through its partnership with mobile ordering and pay platform Olo.

Check our blog at www.FinancialFocusRadio.com .

With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.



Walgreens has approval to buy Rite Aid.  They will buy 1,932 Rite Aid stores for $4.38 billion. With the addition of the Rite Aid stores, Walgreens will have about 10,000 locations in the U.S.. Integration will begin in October and be completed in the spring of 2018. The remaining 1,200 Rite Aid stores will go to another buyer. (OregonLive)

 

The National Association of Realtors said existing home sales fell 1.7% in August.  That is the fourth decline in five months. To blame is a lack of available homes to buy. The median existing-home price in August was $253,500, up 5.6%. Total housing inventory in August declined 2.1% and is 6.5% lower than a year ago.

 

Supermarket chain Albertsons, is buying meal-kit delivery service Plated. Financial terms of the deal were not disclosed. Albertsons says Plated meal kits will be offered at its stores, online, and through other distribution options. (Reuters)

 

The index of leading economic indicators increased 0.4% in August, more-than-expected. The index projects the economy in 6 to 12 months. It tracks 10 components, including manufacturers' new orders, stock prices and average weekly initial claims for unemployment insurance. (CNBC)

 

The S&P 500 is down 2 and the NASDAQ is down 14.  The MSCI international index is lower.

Oil is down 12 cents at $50.43 a barrel.

Gold is up $4 at $1298 a Troy ounce.



Amazon will open another fulfillment center in North Portland in 2018, creating 1,000 full-time jobs. That is in addition to the opening of fulfillment centers in Troutdale and Salem next year along with another 2,500 jobs. The Portland facility will be 918,400-square-feet. (OregonLive)

 

NORPAC Foods officially notified Oregon employment officials the company will close its Hermiston Foods plant in November and eliminate 199 jobs. The closure is tied to NORPAC's decision to sell its canning operations to Seneca Foods. (OBN)

 

Last week, the bull market that started in March 2009 moved ahead of the bull market from 1949 to 1956 to officially make it the second largest bull market gain since World War II. The current gain of 270% is second only to the 417% gain seen during the bull market of the 1990s. (LPL Research)

 

Communications chipmaker Qorvo, the combination in 2015 of Hillsboro-based TriQuint Semiconductor and North Carolina, RF Micro Devices, plans to eliminate an unspecified number of jobs. Qorvo's employs about 1,000 at a factory and administrative office in Hillsboro. Qorvo did not specify when the cuts will take place, or how large they will be. (Oregon Live)

 

The S&P 500 is down 2 and the NASDAQ is down 4.  The MSCI international index is higher.

Oil is down 53 cents at $50.16 a barrel.

Gold is down $21 at $1296 a Troy ounce.



Toys 'R' Us, has filed for Chapter 11 bankruptcy protection. They have 1,600 stores and 64,000 employees. Stores and online sites remain open. The company has debt from a $6.6 billion buyout in 2005 by private equity firms. It's the second-largest retail bankruptcy, trailing the filing in 2002 by Kmart. (Reuters)

 

The Commerce Department says housing starts slipped 0.8% in August. Single-family home permits fell 1.5%, while permits for the construction of multi-family homes soared 19.6%.

 

The Labor Department says import prices rose 0.6% in August. In the last 12 months import prices have surged 2.1%. The report also showed export prices rose 0.6% in August. They have increased 2.3% year-on-year.

 

FedEx will raise shipping rates in January. FedEx Express, Ground and Home Delivery will go up about 5%. The One Rate shipping, which offers a simple flat price, will increase 3.5% (CNBC) 

 

Gun stocks rose yesterday as President Trump prepares to ease rules for overseas sales of US guns. Strum Ruger stock was up 13% and American Outdoors was up 10%.     (Yahoo Finance)

 

The S&P 500 is up 1 and the NASDAQ is flat. The MSCI international index is higher. 

Oil is up 57 cents at $50.05 a barrel.

Gold is up $7 at $1318 a Troy ounce.


Traffic

 

 

  • Click on the link for the latest conditions on the mountain passes.