U.S. import prices fell for the first time in six months in August dropping by 0.2%. Import prices have been dampened by a strong dollar and cheap oil. The US continues to import deflation from China, with the cost of goods imported falling 0.2%. Chinese import prices have not posted a monthly increase since December 2014. August's decrease was led by a 1.0% decline in the price of imported communications equipment. The cost of imported goods from Canada, the European Union and Mexico also declined. Imported petroleum prices declined 2.8%. (Reuters)
What took so long? Federal prosecutors are finally investigating Wells Fargo for opening 1.5 million unauthorized accounts and over half a million credit cards without the client’s knowledge. U.S. attorneys have yet to decide whether they will pursue a civil or criminal charges. At least the ball is starting to roll. (Wall Street Journal)
Gasoline prices are a national average of $2.18 per gallon, that compares to $2.33 a year ago. Prices are expected to continue to drift lower, however, and surpass the lows of last year. The main reason gas is so cheap is because the glut of U.S. crude oil has turned into a glut of refined products. The latest weekly data showed a draw in oil inventories of 559,000 barrels, but a big build of 4.6 million barrels of diesel and 600,000 barrels of gasoline. (CNBC)
With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.