US Stocks ended an extremely volatile week with modest gains.  The Dow saw its biggest ever point decline shortly after opening on Monday.  There were 1300 instances of “circuit breakers” exchange imposed trading halts on Monday.  China lowered interest rates again and reduced bank’s reserve requirements to strengthen its economy.  That coupled with better than expected US Growth caused a reprieve from the steep selloff the previous week.  This coming week we will have the August jobs number, the PMI Manufacturing Index, July’s trade figures, productivity growth and others.  We will continue to monitor the situation and look for opportunities.  In economic news this week:

• The Commerce Department reported:
  • New home sales rose a seasonally adjusted 5.4% in July after falling 7.7% in June.
  • Durable Goods Orders rose a seasonally adjusted 2.0% in July, much better than expectations.  Non-defense capital goods rose 2.2% showing strong business investment.  However, year to date through July durable goods orders are 5.1% lower than the same period last year.
  • The gross domestic product was revised from an initially reported 2.3% in the second quarter to 3.7%.  The strongest growth came in home building and home improvement.  Exports rose only 0.23%.  Growth for the first half was 2.2%.  One area of concern in the GDP growth is rising inventories which usually lead to slower growth in future quarters.
  • Gross domestic income rose only 0.6% in the second quarter.  As wages grew slowly and profits were nearly flat.
• The seasonally adjusted S&P/Case-Shiller home price index was unchanged in June.  From a year ago home prices were up 4.5%, more than the 4.4% year over year in May.
• The non-partisan congressional budget office lowered its forecast for US growth this year to 2.0%.  In January the CBO had forecast 2.9% growth.
• The US Energy Information Administration reported that total supplies of crude oil and refined products rose by 2.9 million barrels in the week ended August 21.  Consumption of gasoline and other fuels surprisingly dropped 2 million barrels.
• The Labor Department reported that first time claims for unemployment fell 6,000 to 271,000, better than expectations.  The four week moving average of claims rose 1,000 to 272,500.

Please call us if you have any questions,

Loren C. Rex, CFP^®, AIF^®                                                                               Erik Smith

President                                                                                                           Partner

Generations Financial Planning & Wealth Management                269-441-4143

77 E. Michigan Ave, Suite 140

Battle Creek, MI  49017

Tel  269-441-4090

Carrie Fuce, Assistant 269-441-4091

Toll Free: 800-513-8180

Fax  269-441-4093

Visit our Website:  www.genfinplan.com

Registered Representative of and securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC.  Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor.  Cambridge and Generations Financial Planning & Wealth Management are separate companies and are not affiliated.

These are the opinions of Loren Rex and Erik Smith and are not necessarily those of Cambridge, are for informational purposes only, and should not be construed or acted upon as individualized investment advice.