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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.



The Fed's policy making arm, the FOMC, will starts its sixth of eight meetings today. We do not expect a rate hike, but do expect to see the Fed announce the start of its balance sheet normalization program. Markets will be parsing the Fed statement, economic projections, and press conference comments for any sign of a shift in the Fed's inflation expectations and what that could mean for the future path of rate hikes. (LPL Research)

 

The Dow closed at a new high five consecutive days and was higher seven days in a row. Incredibly, the Dow had a 9-day new-high streak in July and August, and a 12-day new-high streak in February. The S&P 500, meanwhile, made new highs five of the past six days. (LPL Research)

 

The mining equipment market will grow next year boosting Caterpillar's business, according to UBS.  Caterpillar stock is up 33% year to date. 

 

The Wall Street Journal reports the damage from hurricanes Harvey and Irma stands to hinder US economic growth as August saw a 0.9% drop in industrial production and a 0.2% decline in spending at retailers. Americans’ perceptions of the economy which was highest before the storms since 2000 and are now 1.5% lower, according to the University of Michigan.

 

The S&P 500 is up 9 and the NASDAQ is flat.  The MSCI international index is higher.  

Oil is up 33 cents at $50.25 a barrel.

Gold is flat at $1311 a Troy ounce.



98 days till Christmas and Macy's will increase by 20% the number of workers it hires during the holiday shopping season to fill online orders.  They will hire 18,000 holiday workers to fulfill online orders, an increase of about 3,000 from last year. Total hiring for the holiday season will be 83,000 workers. Target said it will hire 43% more seasonal workers, or a total of 100,000, for the holiday season. Staffing firm Radial expects retailers, to hire 35% more workers this holiday season.

 

The Commerce Department says retail sales fell in August by 0.2%. The hurricanes put the brakes on shoppers as motor vehicle sales tumbled 1.6%. Consumer spending accounts for more than two-thirds of U.S. economic activity and has increased at a 3.3% rate through the second quarter. Sales at building material stores fell 0.5%, receipts at service stations increased 2.5%, sales at electronics and appliance stores fell 0.7% and receipts at clothing stores dropped 1.0%.

 

People are cutting the cord at a faster rate according to eMarketer. There will be 22.2 million cord cutters this year. That is up more than 33% over 2016. As a result, TV ad spend expectations for 2017 are expected to expand by only 0.5% to $71.65 billion.

 

The S&P 500 is up 4 and the NASDAQ is up 10.  The MSCI international index is higher.

Oil is down 30cents at $49.59 a barrel.

Gold is down $9 at $1316 a Troy ounce.

 



The Labor Department says consumer prices rose 0.4% in August. These gains are the largest in seven months and CPI is up 1.9% year-on-year. Gasoline prices surged 6.3%, the biggest gain since January. Food prices rose 0.1% and the cost of rental accommodation surged 0.4%. .

The Census Bureau says Oregon's median household income is $59,135. Oregon's poverty rate is 13.3%.

President Donald Trump has blocked the $1.3 billion sale of Lattice Semiconductor to Chinese investors over national security concerns. Founded in Oregon 34 years ago by veterans of Tektronix and Intel, Lattice makes a class of programmable computer chip used in consumer gadgets and industrial and networking equipment. (OregonLive)

Chinese economic data was weaker than expected. Retail sales were up 10.1% (year-over-year); while industrial production grew at 6%, both less than expectations and previous data. (LPL Research)

Join us this weekend for Financial Focus Radio, the truth in wealth building, when we will talk about if inflation is about to take off.

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



It was record closing highs for the Dow, S&P 500, and Nasdaq yesterday as the session marked the first time all three have closed at record highs on the same day since July 26th.

The Census Bureau reports middle-class income hit a record level in 2016. Median household income was $59,039, surpassing the previous record of $58,655 set in 1999. The poverty rate fell to 12.7%. Lowest since 2007.

Major events such as hurricanes have both human and economic impacts. Reinsurers lost almost 2% in market cap last week and gained almost all that back this week. It appears that economic growth in the third quarter could see a hit of -0.5% to -1.0% to GDP, bringing growth down to ~2.0%, due to storm damage. The rebuilding process, though, will last for some time, boosting output by a similar magnitude in ensuing quarters. Material, energy, and home improvement retailers are among those poised to potentially benefit. (LPL Research)

It is not just the big boys that have security worries. Bright Wood, Jefferson County’s biggest employer, has notified its 915 workers of a security breach. Names, birthdates, addresses and Social Security numbers may have been compromised. (KTVZ)

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



...without a big weekly decline. The S&P 500 has now gone 52 straight weeks without closing lower by at least 2%. This is the longest such streak since 61 weeks in a row that ended in late 1995. The longest ever was 90 consecutive weeks ending in December 1958. (LPL Research)

Busy week of economic data ahead. Small business optimism, labor market turnover, inflation, industrial production, and retail sales. Overseas, a plethora of Chinese data is due out, including inflation, retail sales, industrial production, money supply, and new loan growth. (LPL Research)

The National Federation of Independent Business reported its small business optimism index for August rose 0.1% to 105.3, matching the year-to-date high posted in January. Some 28% of small business owners reported raising employees' pay in the past three months. Only 15% of small business owners are planning to raise wages in the next three months. Business owners said their single most important problem is taxes (20%), followed by quality of labor (19%). Government regulations and red tape (16%) and cost/availability of insurance (11%) were the third and fourth most-cited problems.

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



When I was a kid it was the go to place, but the Salishan Spa & Golf Resort on the Oregon Coast is up for auction. The minimum starting bid is $5.25 million. The resort underwent a $7 million remake over the past two years. The property is currently bank-owned. Built in 1965 Salishan sold in 1996 for $25.3 million and sold again in 2003 for $13 million. (PBJ)

Market leadership continues to shift as the healthcare sector hit new absolute and relative highs versus the S&P 500 Index. Biotechnology stocks are at their highest levels in over two years and small cap healthcare stocks are also working well for investors, which is one of the lone groups supporting small caps. (LPL Research)

Panasonic is eliminating 92 jobs as it closes its Salem solar energy operations. Layoffs will begin on November 4th. Panasonic bought the factory from Sanyo in 2012. Domestic solar producers have struggled to compete against less expensive Chinese imports. (Oregon Live)

The chairman of the House Ways and Means Committee, is floating the idea to provide relief for those suffering from the hurricanes by allowing affected residents to access their 401(k) retirement savings without paying a penalty, but pay taxes. Bad idea. (CNBC)

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



The Labor Department says worker productivity rose at a 1.5% annualized rate in the second quarter.  Compared to the second quarter of 2016, productivity increased at a 1.3% rate. That is the strongest performance in two years.
Wage growth has remained sluggish even as the labor market nears full employment as unit labor costs fell at a 0.2% rate.

CNBC is reporting Toys R Us has hired a law firm to help restructure its roughly $400 million in debt due in 2018, a move that could include the marquee toy store filing for bankruptcy protection.

Yesterday officially marked 10 consecutive months without so much as a 3% correction for the S&P 500. Dating back to 1928, this is now the second longest streak ever without a 3% correction, bested only by 11 months in the mid-1990s. (LPL Research)

American Outdoor Brands, the former Smith and Wesson saw a sharp drop in quarterly earnings and sales, and lowered its fiscal 2018 guidance, as the firearms business slows. (CNBC)

Join us this weekend for Financial Focus Radio when we will give you the truth in wealth building.

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



Portland-based helicopter operator Erickson has named Doug Kitani as their new CEO. Kitani is a West Point graduate who has worked in the defense contractor and aerospace industry for the past 14 years. For the past three years, he was CEO at IAP Worldwide Services. (Oregon Live)

Frozen concentrated orange juice futures are spiking higher as Hurricane Irma approaches Florida. In 2017 Florida was expected to produce more than half of the U.S. oranges and nearly half of the nation’s grapefruit. (CNBC)

Just 109 days till Christmas and Wal-Mart has started its holiday layaway plan. The program allows customers to put as little as $10 down to hold items with a minimum sales price of $50. (CNBC)

Nike has informed the State of Oregon it is terminating 490 workers. The reductions, all non-union workers, will take place by September 30th. Nike employs more than 70,000 workers world-wide and over 12,000 in Oregon. (PBJ)

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



...and traders are back at their desks. The S&P 500 closed higher by 0.6% in August to mark its fifth consecutive monthly gain. The Dow has also gained five months in a row, while the Nasdaq has been higher nine of the past 10 months. On a total return basis, including dividends, the S&P 500 gained for the tenth consecutive month. That is the longest streak since 10 in a row in 1995. (LPL Research)

Apple is getting closer to the $1 trillion valuation mark. Shares of the iPhone maker hit another all-time high last week. At about $163, they are just $30 a share away from making Apple the first U.S. company to cross the $1 trillion threshold in terms of market capitalization. (CNBC)

Costco saw a 6.1% increase in U.S. same-store sales, excluding gasoline, for August, topping the 3.7% percent consensus estimate. (Reuters)

A sign of the digital age. As the human attention span shortens, so do the efforts to capture it. For NFL games on FOX this season, the network will debut six-second commercials. They'll be used along with the more traditional 15-second and 30-second spots. (NBC Sports)

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



The Department of Labor says the US economy added 156,000 new jobs in August, 165,000 in the private sector and government cut 9,000 jobs.  The unemployment rate was up to 4.4%.

Reuters and Bloomberg report Oregon’s largest tech company, Lattice Semiconductor, is making a direct appeal to President Trump to salvage its sale to Chinese firm Canyon Bridge Capital Partners. The company, backed by the Chinese government, has made an offer for Lattice of $1.3 billion, or $8.30 a share.

Wilsonville based Flir Systems, says their new CEO is reorganizing.  Flir COO Tom Surran will resign effective September 30th. Flir is a manufacturer of night-vision and thermal imaging cameras. Flir reported $1.66 billion in revenue last year, and profits of $167 million.

The Commerce Department said U.S. consumer spending rose 0.3% in July and inflation increased at a 1.4% annualized rate, its slowest pace since late 2015.
Personal income increased 0.4% last month. Wages and salaries advanced 0.5%.

Join us this weekend for Financial Focus Radio when we will talk about – is it better after 50?

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

 



ADP says that private sector payrolls in August grew at its fastest pace in five months as companies added 237,000 positions. Service-related industries gained 204,000 jobs, construction 18,000 and manufacturing 16,000.

The Commerce Department says economy grew faster than initially thought in the second quarter with gross domestic product growing at a 3% annual rate.

A homeowner lawsuit accuses Wells Fargo of improperly charging thousands of customers nationwide to lock in interest rates when their mortgage applications were delayed. (Reuters)

Last week the S&P 500 Index posted its 50th consecutive week without posting a weekly decline of at least 2%. How meaningful is a streak of 50 consecutive weeks without a 2% drop? Well, for starters, this is only the sixth time in history it has happened. 2017 has been a very unvolatile year as far as markets are concerned. (LPL Research)

Gas prices could rise 25 cents a gallon or more for several weeks as the energy industry recovers from hurricane Harvey according to GasBuddy.  The flooding has shut down 13 refineries, erasing more than 10% of U.S. gasoline production capacity.

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



The Wall Street Journal reports that America’s retailers and manufacturers are adding inventories, resulting in near-record levels of shipments of goods through US ports. Some 1.72 million 20-foot containers worth of goods arrived at US ports in July.  Automobile parts, furniture, and goods related to back-to-school needs were seen to have the largest growth.

Amazon will open a fulfillment center in Salem, its second in Oregon. The $90 million, 1 million-square-foot facility will be completed in fall of 2018. (OBN)

The Commerce Department said U.S. goods trade deficit increased 1.7% in July as exports fell 1.3%. Exports were weighed down by an 8.0% drop in shipments of motor vehicles. Imports fell 0.3%.

The Commerce Department also reported that wholesale inventories increased 0.4% in July. Retail inventories fell 0.2%.

The Consumer Confidence Index rose in August to 122.9
Consumer confidence is at its second best level this year. Those saying business conditions are "good" increased to 34.5%, while those who said business conditions were bad was 13.1%.  (CNBC)

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



As August winds down the S&P 500 is up 10% this year. But gold, is up about 12% in 2017 to nearly $1,330 an ounce, putting it on track for the best performance since 2010. It has been a great year for emerging markets, as the MSCI Emerging Markets Index is up more than 25%, more than double the 10% gain for the S&P 500. This shows why portfolio diversification is important. (CNN)

The hazelnut crop in Oregon is predicted to produce 36,000 tons of hazelnuts this year, down 18% from 2016. There are less nuts per tree, and the nuts were smaller than usual. Most of the decline has been to blight. Oregon produces 99% of the U.S. hazelnut crop, but only about 5% of the world crop, according to the Oregon Hazelnut Industry Office. (Oregon Live)

Do you still have to tip? Ford and Domino's are doing research trial that will see Ford cars equipped with self-driving technology deliver pizzas, as a way of figuring out how everyday people will react to, and interact with, autonomous service vehicles in the future. (TechCrunch)

Small-business hiring showed a slowdown for the sixth consecutive month in August says a report from Paychex.
Small-business wages continue to rise, reaching a 3%, or 76 cents, annual growth rate in August.  

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



Orders for non-defense capital goods increased 0.4% in July. Shipments of capital goods jumped 1%. Business spending on equipment added 0.4% to the economy's 2.6% annualized growth pace in Q2, the most in nearly two years. Orders for machinery fell 1.4%, the biggest drop since May 2016. Orders for motor vehicles and parts fell 1.2%.  (Commerce Department)

Quintiles an integrated information and technology solutions healthcare provider will join the S&P 500 prior to the open on Tuesday replacing Whole Foods. (CNBC)

Hurricane Harvey will be impacting oil and gas prices. Oil prices initially rose on this news, but have since given back some of those gains. Gasoline prices are up, but this hurricane has hit the heart of U.S. refining; and as these refiners are shut down and this will result in a build-up of oil inventories, which will lead to lower oil prices. This is unusual, but not unheard of. How long any additional oil glut will last will be a function of how long refiners are closed, which is impossible to predict at this point. (LPL Research)

Remember you can also check out our blog at FinancialFocusRadio.com .

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



Debt ceiling negotiations may be difficult and cause some market volatility. Some of us have painful memories of 2011 when we first learned of an arcane piece of federal legislation that led to Standard & Poor's decision to cut the U.S. credit rating from AAA. Those events drove the S&P 500 Index down 19.4% peak to trough between April and October of that year. The deadline to raise the debt ceiling is October 1st. (LPL Research)

The National Association of Realtors says existing home sales fell 1.3% last month. Home supply was down 9.0% from a year ago. Housing inventory has declined for 26 consecutive months. The median house price is $258,300, a 6.2% rise from one year ago. The number of days homes were on the market in July was 30.

Sears posted a $251 million loss and a 11.5% decline in sales for Q2. They also plan to close 28 more Kmart stores this year. That's in addition to the 180 Sears and Kmart stores it has shuttered this year, and the 150 stores it plans to close by the end of this quarter. Sears stock has fallen more than 40% over the past 12 months. (CNBC)

Join us this weekend for Financial Focus Radio when we will answer your questions – with the truth in wealth building.

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



PacificSource Health Plans posted a profit of $22 million on sales of $687 million in the first half of the year. That is much than profits of $5.2 million on sales of $620 million last year. In 2016, Portland-based Legacy Health bought 50% of the Springfield-based PacificSource for $100 million. PacificSource insures more than 300,000 people and has 3,900 employer clients in Oregon, Idaho and Montana. It employs more than 900 people, including 472 in Springfield and Eugene. (Eugene Register)

As interest rates rise and refinancing falls this could become a trend. Wells Fargo has laid off 72 people at its Vancouver call center due to fewer home foreclosures.  
Employees received a 60-day notice on August 10th. They will receive pay and benefits through Oct. 9. The call center will be closed. (PBJ)

New single-family home sales fell 9.4% in July, their lowest level in seven months. The housing market is being constrained by a shortage of properties, land and labor, which are driving up home prices. The inventory of new homes on the market rose 1.5%, its highest level since June 2009. At July's sales pace, it would take 5.8 months to clear the supply of houses on the market, up from 5.2 months in June. A six-month supply is viewed as a healthy balance between supply and demand. (Reuters)

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



We're starting to enter a slower period of news flow, which along with weak August seasonals could make markets more susceptible to volatility from things like political discussions, geopolitical factors, or other unexpected events in the near term. Earnings season is over and the economic calendar is slow. (LPL Research)

Beware of this potential bomb in your portfolio. Despite year-to-date returns of 4.79% according to the Bloomberg Barclays High Yield Corporate Index, the sector is underperforming the Bloomberg Barclays Aggregate Index. Pressure in the lower rated credit spreads is leading to underperformance this month. (LPL Research)

Second quarter earnings season is over, and it was a good one. The S&P 500 has produced a solid 12% year-over-year growth rate. Energy, financials, and technology shared the load in making the biggest contributions to earnings growth. (LPL Research)

The SEC has approved Arcimoto, the Eugene-based electric vehicle maker, to start selling shares to the public. The stock will be listed on the Nasdaq. The company looks to raise $30 million to pay debts, set up a Eugene factory and start up production. (The Register Guard)

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



The Federal Reserve's annual Jackson Hole Symposium begins later this week, taking place from August 24-26. This gathering of central bankers has taken place annually since 1978 and tends to be closely watched by markets. (LPL Research)

Macy's has named eBay executive Hal Lawton as its new president.  He will report to CEO Jeff Gennette. Lawton will join Macy's on September 8th. Macy's is restructuring its management ranks, cutting about 100 jobs. (CNBC)

The U.S., Mexico, and Canada have completed the opening round of renegotiations of the North American Free Trade Agreement. However, tensions remain over certain areas, including the cars, signaling tough bargaining ahead. (WSJ)

Former General Electric chairman Jeff Immelt has become the front-runner candidate to become CEO of car-hailing company Uber. (Recode)

Goldman Sachs has received approval for a license to trade stocks in Saudi Arabia. The Saudi government eased restrictions last year on foreign ownership in its stock market. (CNBC)

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



Amazon sold $16 billion in bonds this week and they had demand equivalent to the gross domestic product of the country Belarus. The money will be used to fund its acquisition of Whole Foods. (CNBC)

Factory output fell 0.1% in July, as auto production slowed. Overall industrial production, which adds output by mines and utilities, rose 0.2%. Mining output rose 0.5% and utility production rose 1.6%. (AP)

Americans filing for unemployment benefits fell to 232,000 near a six-month low. That is the lowest level since the week ending Feb. 25th when claims fell to 227,000, which was the best reading since March 1973. It was the 128th week that claims remained below 300,000. That is the longest such stretch since 1970, when the labor market was much smaller. (Reuters)

After five months of either stagnation or decline, NFIB’s Small Business Optimism Index finally showed increased optimism. In July, the Index increased by 1.6 points to 105.2—due to a surge in the labor market with job creation and more hiring.

Join us this weekend for Financial Focus Radio when we will answer the question – Is the Trump Trade Dead?

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



U.S. home building fell unexpectedly by 4.8% in July. Single-family home building slipped 0.5%. Despite strong demand for housing, groundbreaking on single-family homes has slowed since posting 9-1/2-year highs in February. Homebuilders say they cannot find skilled labor, especially framers, and that buildable lots remain in short supply. Multi-family housing fell 15.3%. (CNBC)

Do transports matter? The weak action lately in transports has many wondering if this is a potential warning sign for the broader markets. The big worry stems from August 1, when the Dow closed at a new 52-week high and transports closed at a new 52-week low relative to the Dow. This rare combination also took place ahead of the 1973-1974 bear market, the 1987 crash, and the tech bubble in 2000. Keep your eyes peeled. (LPL Research)

Business inventories rose 0.5% their biggest increase in seven months as retailers accumulated stock. Car inventories increased 0.7%. At the current sales pace, it would take 1.38 months for businesses to clear shelves. (Reuters)

Wal-Mart beat the street as online purchases grew 60%. Same-store sales for U.S. stores climbed 1.7%. (CNBC)

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



Retail sales jumped 0.6% in July, the biggest increase in seven months. June was upwardly revised to a 0.3%. Consumer spending accounts for more than two-thirds of U.S. economic activity, is climbing at a 2.8% annualized rate in the second quarter. The savings rate dropped to 3.8% in the second quarter of this year from a rate of 6.2% in the second quarter of 2015. Car sales climbed 1.2%, service stations sales fell 0.4%, sales at clothing stores fell 0.2% and sales at online retailers jumped 1.3%.  (Commerce Department)

A federal judge says Costco owes Tiffany $19.4 million in damages over the sale of counterfeit Tiffany diamond engagement rings. Costco said it will appeal. (CNBC)

Reuters is reporting that a poll of economists says the majority believe that “the U.S. economic expansion will last at least another two years.”  The U.S. expansion has more than two years to go, according to 34 of 57 economists. Of those economists, 21 said it would last two to three years and 13 said more than three years.

The National Association of Home Builders sentiment index rose 4 points to the highest level since May and now stands at 68. Anything above 50 is considered positive sentiment. The index was at 59 last August. (CNBC)

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



Eugene-headquartered Papé Group, has purchased Rowand Machinery of Spokane. Terms of the deal were not disclosed. Rowand Machinery is a John Deere dealer and has been in operation for 55 years. Papé now has 23 locations in Oregon, Washington, Idaho, California and Nevada. (Spokane Tribune)

Data related to economic activity remains largely supportive of slow and steady growth. Inflationary pressures remain elusive. Globalization, aging demographics, technological innovation, slow wage growth, and less than desired productivity gains have all combined to dim potential price increases, especially on the services side. Productivity continues to lag the average annual pace of +2.1% since WWII. Weakness in output-per-hour-worked has weighed on economic growth and living standards, and if it persists, will have a critical effect on the future trajectory of wages, prices, gross domestic product, tax receipts, and federal budget balances. This suggests a lack of urgency for the Fed to increase interest rates from current levels. (LPL Research)

Dick's Sporting Goods shares are down almost 16% as Q2 profits rose to $112.4 million, from $91.4 million a year ago. Sales rose 9.6% to $2.2 billion. Both fell short of street expectations.  Same-store sales for the year are now expected to be between flat to down. (CNBC)

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



It was the calmest three weeks ever for stocks. You would never know it by reading the headlines, but the S&P 500 was in the midst of the calmest three-week period ever. In fact, during the past 15 trading sessions, ending 8/9/17, it had closed between 0.3% and -0.3% every single time. That has never happened in the history of the S&P 500 and the previous record was 10 back in 1969. The S&P 500 was down 1.45% yesterday. (LPL Research)

Producer prices fell in July by 0.1%, the biggest drop in 11 months. In the last 12 months PPI increased 1.9%. Last month, prices for services fell 0.2%. That accounted for more than 80% of the decrease in the PPI. Energy prices fell 0.3%, declining for a third straight month. Food prices were unchanged in July. (AP)

Jack In The Box reported a quarterly profit of $36.4 million. The burger chain had sales of $357.8 million in the period. Jack In The Box shares have declined 15% since the beginning of the year. (AP)

Portland, Oregon-based Electro Scientific Industries reported quarterly profits of $2.9 million, after reporting a loss a year earlier. The semiconductor testing equipment maker posted sales of $72.7 million in the quarter. Electro Scientific Industries shares are up 43% since the beginning of the year. (AP)

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



Oregon headquartered Craft Brew Alliance is building a new $23 million, 30,000-square-foot factory for its Kona Brewing brand in Kona, Hawaii. The new brewery is designed to produce up to 100,000 barrels of beer per year. (PBJ)

Nautilus, the Vancouver, Washington-based fitness equipment maker reported a second-quarter profit of $2.5 million or 8 cents per-share. The results did not meet Wall Street expectations. The company posted revenue of $77 million. Nautilus shares have dropped slightly more than 5% in the last 12 months. (AP)

RadiSys, the Hillsboro, Oregon-based provider of wireless infrastructure systems reported a loss of $7.6 million or 19 cents per-share. They had revenue of $35.1 million in the period. For the third quarter, RadiSys expects to lose 13 cents per share. Shares are down more than 50% from a year ago. (AP)

President Trump is a drag on the gun industry. Industry leader Sturm Ruger saw gun sales plunged 21% last quarter and profit was cut in half. (Money)

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



The US economy added 209,000 new jobs in July.  The unemployment rate holds steady at 4.3% (Labor Department)

In the slew of earnings results here are some regional companies you may have missed.

Alaska Air and its regional Horizon Air subsidiary reported quarterly earnings topping $2 billion for the first time ever and a profit of $296 million, or $2.38 per share. That's up nearly 14% from Alaska's profit a year ago. Horizon Air accounted for just 1% percent of the company's overall profit in 2016. So far, this year, flight cancellations have been mounting since January as Horizon has lost $16 million. (Oregon Live)

Columbia Sportswear had record second-quarter sales of $398.9 million, but lost $11.5 million, or 17 cents a share. The company lost $8.2 million, 12 cents per share, in the same period last year. The company's flagship Columbia brand saw sales increase 2 %, the Sorel brand of footwear sales climbed 71% from the prior year. The company said most of the 2017 sales growth will come from its own direct-to-consumer sales. (Oregon Live)

Join us this weekend for Financial Focus Radio when we will talk about these record markets.

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



U.S. factory goods climbed 6.5% in June, the biggest gain in nearly three years. The bulk of the increase came from a 131.2% surge in orders for civilian aircraft. Excluding orders of transportation equipment, which rose 19% overall, durable goods orders edged up 0.2% last month. (Commerce Department)

With lumber prices at $405 it has broken $400/MBF for only the 2nd time in the last 12 years.  So, why are lumber prices surging beyond already-healthy levels in mid-summer?  The answer as always is supply and demand.  This month the new boost in lumber prices is caused by extensive wildfires in British Columbia, accompanied by Canadian mill closures. (Sohn Report)

Coca-Cola plans to stop selling Coke Zero in the US in August, replacing it with a beverage with a different recipe, design, and name: Coca-Cola Zero Sugar. Coca-Cola Zero Sugar is already a hit outside the US, with growth figures reaching the teens. In the US, Coke Zero sales grew 3.5% in 2016, compared with Diet Coke's drop of 1.9%. (Yahoo)

Join us this weekend for Financial Focus Radio when we will talk about these record markets.

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



The declining U.S. dollar is beginning to negatively impact foreign stocks. Since last Thursday, when the European Central Bank issued what was perceived to be somewhat hawkish comments, the euro has increased 1.5% bring foreign markets lower.  The US dollar has declined 8.2%, as measured by the DXY index, since the beginning of the year. This has benefited investors who have held international assets, as the value of the holdings in dollar terms has increased. (LPL Research)

 

Financials and tech strength drive solid earnings upside. With over 50% of S&P 500 companies having reported results, second quarter 2017 earnings are tracking +9.6% year over year, 1.6% ahead of estimates. Beat rates for both earnings (74%) and revenue (70%) are above average. The majority of the upside has been driven by financials and technology, although energy is still expected to make the biggest contribution to growth for the quarter. (LPL Research)

 

Procter & Gamble, maker of Pampers diapers and Crest toothpaste, reported quarterly results of earnings per share of 85 cents on sales of $16.08 billion. Cincinnati-based P&G managed to drive costs lower, which aided in boosting its profit. (CNBC)

 

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

 



This week the focus will likely be on earnings. Corporate earnings are likely to overshadow the Federal Reserve amid the busiest week of earnings season with nearly 40% of the S&P 500 reporting. The Fed holds their two-day monetary policy meeting with no rate hike expected. The U.S. economic calendar includes housing, manufacturing, durable goods, and second quarter gross domestic product. (LPL Research)

36.6% percent of household in 2016 rented, about the 1965 number of 37%.  That according to a report by the Pew Research Center.  U.S. households grew by 7.6 million over the past decade, but the number of households headed by owners remained relatively flat, while households headed by renters grew by nearly 10%.

Summit Bank expanding its current Bend branch by 745 sq ft and adding four new staff members. (Bulletin)

Hasbro makers of Star Wars, My Little Pony and Transformer toys saw sales rise 11% in Q2. U.S. and Canadian revenue grew 16% to 494.4M. The companies operating margin rate grew 60 bps to 10.3%. (Seeking Alpha)

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



Portland’s ban on new bulk fossil-fuel terminals has been rejected by the state Land Use Board of Appeals. LUBA said the zoning ordinance was an unconstitutional restraint on interstate commerce. The ordinance banned new storage facilities with capacities greater than 2 million gallons and prohibited existing terminals from expanding. (PBJ)

Sears announced the launch of Kenmore products on Amazon, as well as the integration of the full line of Kenmore Smart appliances with Alexa. (CNBC)

Oregon’s largest employer, Intel, has eliminated most of its health wearables division. (CNBC)

Leading economic indicators increased 0.6% in June, beating expectations and pointing to an improving economic outlook. (AP)

It took more than 17 years, but the S&P 500 Information Technology sector finally closed at a new all-time high yesterday. The previous record was set on March 27, 2000 and it took 4,354 trading days until that peak was bested yesterday. One thing to remember is: Adjusted for inflation, tech is still 29.8% away from an all-time high. (LPL Research)

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



Chinese gross domestic product came in at +6.9% year over year, above expectations, while industrial production and retail sales came in at +7.6% and 11.0%, respectively. (LPL Research)

It’s the Summer doldrums.  Trading volume has been very light lately. It was the second-lowest volume day of the year in the U.S. on Monday, as just 5 billion shares traded on the NYSE and Nasdaq. (LPL Research)

Housing starts jumped 8.3% to an annual rate of 1.22 million units, the highest level since February. Single-family homes, which accounts for the largest share of the residential housing market, surged 6.3%.  Starts for multi-family housing increased 13.3%.  Building permits surged 7.4%.  (Reuters).

Cascades Company from Canada has opened a $64 million factory in Scappoose. The facility employs 70 persons in the manufacturing of toilet paper and paper towels. (OregonLive)

Summit Bank with a branch in Bend and HQ in Eugene reported a 40% jump in Q2 profits of $960,000. The Summit loan portfolio grew by almost 24%. Deposits rose by $44.9 million, or 19% year-over-year. (Eug Reg Grd)

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



Don Tykeson, a pioneer in Oregon’s broadcasting industry, was 90. At one time he was the owner of Liberty Broadcasting in Eugene and until three years ago owned Bend Broad Band in Bend. Tykeson, was also a founding director of C-Span and grew up on a farm near Newberg. (Bend Bulletin)

With the first 30 company results in, S&P 500 companies are tracking to an 8.1% year-over-year increase, marginally above the 8.0% growth rate expected.  Following Friday's big bank reports, financials have produced a 6.6% upside surprise, above last quarter's 5.5% upside surprise. (LPL Research)

Millions of Americans on Social Security are projected to receive a 2.2% increase or about $28 a month for the average recipient in 2018. This year Social Security recipients received an increase of 0.3%, after getting nothing in 2016. The last time they got a bigger increase was in 2012, when the hike was 3.6%. (SSA)

Goldman Sachs posted a profit of $3.95 per share in the second quarter, on revenue of $7.89 billion. Shares are off over 1% in early trading. (CNBC)

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



Microsoft is closing its Wilsonville Oregon facility where it builds giant touch-screen computers. The company will eliminate 61 jobs in September and another 63 in the following months. (OregonLive)

The Consumer Price Index was unchanged in June as the cost of gasoline and mobile phone services declined. In the last 12 months, the CPI is up 1.6%. (Labor Depart.)

Retail sales fell in June by 0.2%. Down for a second straight month. The number was pushed down by declines in spending at service stations, clothing stores, supermarkets, restaurants and bars and hobbies. Retail sales are up 2.8% year-on-year. (Commerce Department)

Industrial production rose in June by 0.4%. Up for a fifth straight month. Mining output which includes oil and gas increased 1.6% led coal mining and in drilling and support activities. Utilities output was unchanged. Capacity utilization, which measures how fully companies are deploying their resources, rose to 76.6% in June. (Reuters)

U.S. consumer sentiment fell to 93.1. In the July survey, a reading of current U.S. economic conditions is at 113.2. (University of Michigan)

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



Producer prices rose 0.1% in June as increases in the cost of services offset declining energy prices. In the last 12 months, the PPI increased 2.0%.  Energy prices fell 0.5% and food prices jumped 0.6% in June. (Reuters)

Chinese trade data, both imports and exports, were greater than forecast. In general, we look to exports as a sign of global economic health, whereas imports tend to tell us more about the country in question. Chinese exports to other emerging markets were steady, with greater improvement in shipments to developed markets. Exports were led by electronics, while steel exports declined. Chinese imports of oil by volume increased again, suggesting some strength in the Chinese industrial economy. (LPL Financial)

The two hallmarks of 2017 have been a steady climb higher for stock prices amid historically low volatility. The CBOE Volatility Index (VIX) just marked the 45th time this year it has closed between 10.0 and 11.0. This is already a record, topping the 32 times it closed in the 10s in 2006. The VIX has averaged 11.54 so far, this year the lowest annual average ever. The current low record is 12.42 in 1995. (LPL Financial)

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



Research Indicates Obamacare May Have Cost 250,000 Small-Business Jobs. Casey Mulligan, author of “Side Effects: Economic Consequences of Health-Care Reform,” wrote in the Wall Street Journal that according to research he commissioned from Hanover Research, the costs of Obamacare have cost roughly 250,000 small-business jobs, even though two-thirds of those businesses offered health coverage even before Obamacare was passed. (NFIB)

Springfield based Roseburg Forest Products will build a $200 million engineered wood products plant in South Carolina. The 450,000-square-foot plant will be constructed in 2018 on 200 acres near Chester, S.C. The facility is expected to create 148 full-time jobs. Roseburg has more than 3,000 employees, in plants in Oregon, California, Montana, Louisiana and Mississippi. (Eugene Register)

The S&P 500 has officially gone more than one-year without a 5% correction (using closing prices). This is only the sixth time since 1950 and the first time since 1995 this has occurred. The longest streak ever was a nearly 20-month streak ending in July 1996. (LPL Research)

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


Traffic

 

 

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

 

  • Purcell Boulevard Northbound lane between Neff Road and Full Moon Drive (West side of the hospital) is closed until December 20th.

 

  • Nels Anderson Road between Nels Anderson Place and Brandis Court, single northbound shoulder closure will be in effect, two-way traffic to be maintained. Project completion expected December 2017.