MARKET WEEK: MAY 29, 2018

Chart reflects price changes, not total return. Because it does not include dividends or splits, it should not be used to benchmark performance of specific investments.

Last Week’s Economic Headlines

• New home sales fell 1.5% in April from a downwardly revised March total. Inventory of available new homes for sale increased slightly from 5.3 months to 5.4 months. The median sales price of new houses sold in April 2018 was $312,400 ($335,400 in March). The average sales price was $407,300 ($366,000 in March).

• Sales of existing homes, like new home sales, fell in April. Total existing-home sales of all residential types fell 2.5% for the month and are 1.4% below their pace a year ago. A lack of available listings continues to hinder existing home sales. Total housing inventory at the end of April increased 9.8% to 1.80 million existing homes available for sale, but is still 6.3% lower than a year ago (1.92 million) and has fallen year-over-year for 35 consecutive months. Unsold inventory is at a 4.0-month supply at the current sales pace (4.2 months a year ago). The median existing-home price for all housing types in April was $257,900 ($250,400 in March), up 5.3% from April 2017 ($245,000).

• Orders for manufactured durable goods fell 1.7% in April following a 2.7% jump in March. But excluding transportation, which drove the April decrease, new orders increased 0.9% last month. Transportation equipment hindered shipments of durable goods, which decreased 0.1% in April. On the plus side, inventories (0.3%) and unfilled orders (0.5%) each posted gains last month.

• In the week ended May 19, there were 234,000 initial claims for unemployment insurance, an increase of 11,000 from the previous week’s level, which was revised up by 1,000. The advance insured unemployment rate remained at 1.2%. The advance number of those receiving unemployment insurance benefits during the week ended May 12 was 1,741,000, an increase of 29,000 from the prior week’s level, which was revised up by 5,000.

Eye on the Week Ahead

The final week of May brings with it the second release of the first-quarter gross domestic product, which grew at an annualized rate of 2.3% following the initial report in April. The personal income and outlays report for April should show continued gains in consumer income and spending, but only marginal increase in prices. The week closes with the May employment figures. Job growth has been steady, but not so much for wages.

Data sources: News items are based on reports from multiple commonly available international news sources (i.e. wire services) and are independently verified when necessary with secondary sources such as government agencies, corporate press releases, or trade organizations. Market data: Based on data reported in WSJ Market Data Center (indexes); U.S. Treasury (Treasury yields); U.S. Energy Information Administration/Bloomberg.com Market Data (oil spot price, WTI Cushing, OK); www.goldprice.org (spot gold/silver); Oanda/FX Street (currency exchange rates). All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Past performance is no guarantee of future results. All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.

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