U.S. and World News
- Saudi Arabia announced that it has raised oil output to 10.3 million barrels a day in March, the highest in 12 years. Oil minister Ali al-Naimi said the country intends to keep producing at least 10 million barrels per day despite low crude prices. He also added in comments that he believes that oil will rise in the near future, but even if it doesn’t, it is expected that Saudi Arabia will hold production levels high until the slump in crude prices forces U.S. shale companies out of business.
- Minutes released from the March Fed meeting gave insight to the central bank’s potential timing of an interest rate hike. While several participants supported a June hike, other favored waiting until later in the year, noting downward pressures on inflation due to lower energy prices and the stronger dollar. These statements, combined with last week’s weaker than expected jobs number seem to point to a September rate hike at the very earliest.
- Equity markets closed on a positive note this week. The S&P 500 came up 1.70%, closing at 2,102, while the Dow Jones increased by 1.66% and closed at 18,058. Year to date, the S&P is up 2.10% and the Dow is up 1.32%.
- Yields in the Treasury climbed up slightly this week. The 10 year Treasury bond now yields 1.95% and the 5 year Treasury bond yields 1.40 %.
- The spot price of WTI Crude Oil continued its rise this week climbing up 5.23% and closing at $51.71 per barrel. In 2015, WTI Oil prices have fallen 5.91%.
- The spot price of Gold rose by 0.05% this week and closed at $1,207.51 per ounce. Year to date, gold prices are up 1.95%.
- Initial jobless claims rose from last week, coming in at 281,000 vs. an average forecast of 283,000. The Labor Department noted that no special factors affected claims this week.
Fact of the Week
- According to American Consumer Credit Counseling, a July 2014 survey found that 31% of U.S. households are providing financial assistance to adult children, a larger proportion than the 21% of households that are providing financial assistance to elderly parents.
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