The Profit Margin - March 13, 2017

Statistic of the Week: 
Investing in IPO’s can be tricky. The most publicized IPO in recent memory was that of Snapchat (SNAP). On its first trading day, shares rose a strong 44%; since then, they have fallen 16% - a decline in market value of about $5 billion… in just a few days. It was the third largest tech IPO since 2011.
Global Perspective: 
For the first time in three years, China had a trade deficit during the month of February. Imports rose 38% during the period compared to February of 2016. Higher commodity prices, coupled with the lunar new year being celebrated in the month, are being blamed for the shift.
Market Moving Events: 
Tuesday: Producer Price Index Wednesday: Consumer Price Index, Retail Sales, Empire State Manufacturing, Business Inventories, Housing Market, Petroleum Status, FOMC Meeting Announcement Thursday: Jobless Claims, Housing Starts, Philly Fed Friday: Industrial Production, Consumer Sentiment, Leading Indicators, Rig Count
Commentary: 
After six weeks of consecutive gains the S&P 500 declined during the week, as the DJIA fell below 21,000 (remember all the excitement about 20,000?).1 The S&P fell 0.4% and the DJIA retreated a little further, down 0.5%.2 Developed international markets did however put in a positive move for the week, with the MSCI EAFE rallying 0.4%.3 The bond market did not provide much relief for investors last week, as the yield on the 10-year Treasury rose to 2.58%.4 Also last week, the bull market turned eight years old, and is the longest since the bull market of 1987-2000.5 Some are questioning how much longer it can continue its rise. If the “Market Moving Events” box looks a little crowded this week, it’s because it is! There are many known data releases this week that have the ability to move prices – before we get to any surprises. Most notable is Wednesday’s FOMC meeting announcement. Investors are expecting the Federal Reserve to raise rates, as Fed Chair Yellen has indicated that “further adjustment” (read: “hikes”) would likely be “appropriate.”6 This meeting, coupled with several key announcements that center on the consumer, are likely to move markets. We may see more volatility than we have recently been experiencing. And that is before the Bank of Japan is expected to have a policy decision, the Dutch hold an election, the G-20 meets, and OPEC releases a monthly report which should show production cuts7 (assuming no one is cheating…). - Dan McElwee, CFP®
Chart of the Week: 
About Ventura Wealth Management: 
Ventura Wealth Management is an independent Registered Investment Advisor (RIA). Unparalleled service, objective advice, and comprehensive planning act as the central pillars of our client experience. We are dedicated to building long-term client relationships through diligent management, custom portfolios, client education, and ongoing financial review.
Sources: 

Statistic of the Week:

The Economist

 

Global Perspective:

The Economist

 

Market Moving Data:

Bloomberg.com

 

Chart of the Week:

Haver Analytics / Bureau of Labor Statistics

 

Commentary:

1.Bloomberg
2.Bloomberg
3.Bloomberg
4.Bloobmerg
5.John Hancock Asset Management
6.The Economist
7.Bloomberg.com
 
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