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Weekly Economic Update
March 12, 2018
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The Markets (as of market close March 9, 2018)
Last week’s jobs report appears to have quelled investor fears, at least for the time being. The Major indexes posted impressive weekly gains, led by the tech-heavy Nasdaq and the small-cap Russell 2000, each of which gained over 4.0%. While the February employment figures saw over 300,000 new jobs added, meager wage growth didn’t support accelerating inflation. Last week’s rebound also pushed the major indexes ahead of their 2017 year-end values.
The price of crude oil (WTI) rose last week, closing at $62.12 per barrel early Fridayevening, ahead of the prior week’s closing price of $61.45 per barrel. The price of gold (COMEX) climbed to $1,324.00 by early Friday evening, up from the prior week’s price of $1,323.70.
Last Week’s Economic Headlines
- February saw 313,000 new jobs added, according to the latest employment report from the Bureau of Labor Statistics. Notable job gains occurred in construction (61,000), retail trade (50,000), professional and business services (50,000), and manufacturing (31,000). The unemployment rate remained at 4.1% for the fifth consecutive month. The average workweek for all employees rose by 0.1 hour to 34.5 hours in February. Average hourly earnings for all employees rose by $0.04 to $26.75, following a $0.07 gain in January. Over the year, average hourly earnings have increased by $0.68, or 2.6%. Overall, the number of significant new jobs added is a positive, while wages increased by only 0.1% for the month. The year-over-year gain slowed in February (2.6%) compared to January (2.9%), which was the largest gain since 2009. This should be positive news for investors who shunned the market for fear of rising inflation and interest rates.
- The non-manufacturing (services) sector of the economy expanded in February, but at a slightly slower pace than the previous month, according to the latest report from the Institute for Supply Management. Supply managers indicated that manufacturing business activity, and new orders expanded, while employment and prices decreased last month. According to the report, the majority of respondents remain positive about business conditions and the economy.
- A report that could bolster U.S. trade policy of increasing tariffs on imports, January’s goods and services trade deficit expanded sharply to $56.6 billion, up $2.7 billion from the $53.9 billion December revised deficit. In January, exports narrowed by $2.7 billion, while imports remained relatively the same, down less than $0.1 billion from December’s imports. Year-over-year, the goods and services deficit increased $7.9 billion, or 16.2%, from January 2017. Exports increased $9.7 billion, or 5.1%. Imports increased $17.6 billion, or 7.4%.
- In the week ended March 3, there were 231,000 initial claims for unemployment insurance, an increase of 21,000 from the previous week’s level. The advance insured unemployment rate dipped to 1.3% for the week ended February 24. The advance number of those receiving unemployment insurance benefits during the week ended February 24 was 1,870,000, a decrease of 64,000 from the prior week’s level, which was revised up by 3,000.
Eye on the Week Ahead
The important monthly employment report for February is out this week. BWFA will pay close attention to wage appreciation as another sign of building inflationary pressure-a key harbinger for upcoming market movement both short and long term. Also, the international trade report for January is out. It is expected to reveal an expanding goods and services trade deficit.
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Assisted Living
Guest Speaker: Steve Elville
Tuesday, March 13, 2018
11:45 AM – 1:00 PM
Lunch to be provided
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Presented by:
Steve Elville, Esq.
Principal
Elville and Associates
Managing Director,
Wealth Management
Only a few seats remain!
SIGN UP TODAY!!
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Baltimore-Washington Financial Advisors invites you to an interactive workshop on “Selecting an Assisted Living Facility/Community.”
Topics to include:
- Broad overview of assisted living options
- Challenges associated with downsizing
- Cost, amenities, financial stability and quality of care
- Reputation, resident’s rights, estate planning considerations
- Long-term care skilled nursing concerns
- Estate planning considerations
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Roth vs. Traditional IRA
Tuesday, March 20, 2018
11:45 AM – 1:00 PM
Lunch to be provide
Roth IRAs and 401(k)s can be extremely beneficial for retirement investors. This BWFA workshop will show you how to take advantage of both of them.
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Managing Director,
Wealth Management
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Baltimore-Washington Financial Advisors invite you to a discussion on:
- Positioning your assets before you retire
- Reducing your taxes during retirement
- Extending the life of your financial assets
- Creating tax planning flexibility during retirement
Please join us as we discuss these topics and more.
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When a Loved One Passes
Guest Speaker:
Gary Greenwald Esq.
Tuesday, March, 27 2018
11:45 AM – 1:00 PM
Lunch to be provided
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Managing Director,
Wealth Management
Register today!!!
Limited Seating Available!
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Baltimore-Washington Financial Advisors and Gary Greenwald, Esq. invite you to this interactive workshop on, “What to do when a loved one passes away.”
At this workshop, you will learn to:
- What are the first things we should do?
- What happens if he/she has done no estate planning?
- What do you do with his/her trust or will?
- Whould I continue to pay his/her bills?
- What should you do with his/her home?
- What is involved in settling a will or trust?
- Can a will or trust be contested?
Please join us as we discuss these topics and more.
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Estate Planning:
Planning for Your Loved One with Special Needs
Guest Speaker: Steve Elville
Tuesday, April 10, 2018
11:30 AM – 1:00 PM
Lunch to be provided
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Presented by:
Steve Elville, Esq.
Principal
Elville and Associates
Managing Director,
Wealth Management
Reserve your spot!
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Baltimore-Washington Financial Advisors and Elville and Associates invite you to a discussion about planning for your loved one with special needs. Attendees will come to understand what is involved in the planning process for a special needs family and the importance of preserving the loved one’s financial security and quality of life.
Topics to include:
- Understand what is involved in the planning process for a special needs family and the and the importance of preserving the loved one’s financial security and quality of life
- Key issues involved in special needs planning to be discussed – the role of public benefits, the ABLE Act, and using estate planning and trusts to protect assets (along with a discussion about the types of special needs trusts to consider)
- The importance of the “planning team concept” – how your planning team (financial advisor, attorney, CPA) can work together with you to provide your family peace of mind during the planning process
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Estate Planning:
Protecting Your Assets Upon Your Death
Guest Speaker:
Gary Greenwald Esq.
Thursday, April 12, 2018
11:45 AM – 1:00 PM
Lunch to be provided
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Managing Director,
Wealth Management
Register today!!!
Limited Seating Available!
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Baltimore-Washington Financial Advisors and Gary Greenwald, Esq. invite you to this interactive workshop on, “How to protect your bloodline.”
At this workshop, you will learn to:
- If you die first, how you can make sure that the assets you leave your spouse are beyond the reach of his or her creditors?
- If you die first and your surviving spouse remarries, how can you make sure that the assets you leave your spouse do not end up in the hands of his or her next spouse?
- After you and your spouse die, how can you make sure that your assets do not get distributed to your no good son in law or daughter in law (a crowd favorite)!
- How can you make sure thatthe assets you leave your children are managed in such a away that there is something left for your grandchildren?
Please join us as we discuss these topics and more.
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