EQUITY MARKETS

US

S&P500 +0.06%(2,433.15); NASDAQ -0.90% (6,151.76); DJIA +0.53% (21,384.28)

This week’s reports:

May’s CPI was 1.9% y/y versus 2.2% y/y in April. CPI Ex Food & Energy was 1.7% y/y vs. April’s 1.9% y/y.
May’s Retail Sales fell 0.3% from April’s +0.4%.
June’s Michigan Consumer Sentiment Index (prelim.) fell to 94.5 from May’s 97.1. Philadelphia Fed Manufacturing Index fell to 27.6 from May’s 38.8.
May’s Housing Starts fell 5.5% from April’s -2.8%. Building Permits fell 4.9% from April’s -2.5%.
June’s Empire State Manufacturing Index surged to 19.8 from May’s -1.0.
May’s Industrial Production was flat from April’s +1.1%. Capacity Utilization fell to 76.6% from April’s 76.7%.
Initial Jobless Claims for the week ending June 9^th fell by 8K to 237K. Continuing Jobless Claims for the week ending June 2^nd rose by 6K to 1,935K.

US stocks eked out a small gain after poor housing data and a slump in consumer sentiment added to signs the American economy’s growth rate may be slower than forecast. Equities largely weathered a week that saw the Federal Reserve hike rates and renewed tumult in Washington that continues to delay the Trump administration’s policy agenda. Retail stocks were rattled by Amazon’s acquisition of Whole Foods.
Federal Reserve raised its benchmark lending rate for the third time in six months, maintaining its outlook for one more hike in 2017. The increase of 0.25% to 1%-1.25% range was widely anticipated by the markets.