U.S. and World News
- For the first time since July of 2015, the state of Illinois has a budget after the House of Representatives overrode the governor’s vetoes. The state of Illinois’ unpaid bills reached $15 billion and the new budget is projected to bring that figure down by about $5 billion, however, according to Moody’s Investor Service this is likely not enough for Illinois to avoid being downgraded to junk status with the unpaid bill backlog and unfunded pension liability being so overwhelmingly high.
- The G-20 summit begins today in Hamburg, Germany where tens of thousands of protesters have already begun demonstrating a day in advance as sensitive topics such as terrorism, global trade, and climate change are on the agenda and a long awaited first meeting between President Trump and Vladimir Putin. The meeting between President Trump and Vladimir Putin is not expected to go without tension after sanctions, concerns over Ukraine and Syria, and accusations of meddling in the election have transpired in the past few months.
- Markets ended the week slightly higher. The S&P 500 rose 0.14% and closed at 2,425. The Dow Jones increased by 0.38% for the week and closed at 21,414. Year to date, the S&P is up 9.46% and the Dow is up 9.71%.
- Interest rates rose on both the short and long ends this week. The 5 year and 10 year U.S. Treasury Notes are now yielding 1.95% and 2.39%, respectively.
- The spot price of WTI Crude Oil fell 3.80% this week, closing at $44.29 per barrel. Year to date, Oil prices have fallen 17.55%.
- The spot price of Gold ended the week lower by 2.34%, closing at $1,212.60 per ounce. Year to date, Gold prices are up 5.67%.
- Initial jobless claims increased by 4,000 from last week, coming in at 248,000. The Labor Department noted no unusual factors affecting the data this week. The four week moving average for claims ticked up to 243,000.
- Nonfarm payrolls rose 222k in June which was higher than consensus expectations of 178k and prior months were revised up. The unemployment rate rose slightly to 4.4% and the labor force participation rate also increased to 62.8%. Average hourly earnings rose 0.15% and average weekly hours rose 0.1 to 34.5.
- The ISM non-manufacturing index rose 0.5 points to 57.4 in June against expectations of a slight decline.
- The ISM manufacturing index rose 2.9 points to 57.8 beating expectations with new orders, employment, and production all increasing for the month.
Fact of the Week
- The total amount of money owed by every single person and country in the world is US$199 trillion, but the world has only US$80.9 trillion in cash and bank deposits. (Source: Marketwatch)
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