US Stocks ended the week little changed after a sharp drop on Wednesday and Thursday was followed by a strong rally on Friday.  International stocks performed better than US Stocks.  Treasury prices fell and yields rose.  Commodity prices were little changed and the US dollar plunged after the ECB stimulus came in below expectations.  The main drivers of the market this week was an announcement from the European Central Bank that disappointed investors on Thursday.  While the ECB cut its deposit rate to -0.3% from -0.2% and extended its bond buying program until March 2017, investors had expected it would increase the size of its monthly bond purchases which didn’t happen.  On Friday OPEC’s surprise announcement of a production cap increase shook up the energy markets but comments from Mario Draghi that the ECB could expand the size of its stimulus increased hopes for more robust stimulus.  Black Friday retail sales came in below last year but cyber Monday sales rose sharply. In economic news this week:

• The National Association of Realtors reported that pending home sales rose a seasonally adjusted 0.2% in October.
• The Institute for Supply Management reported
  • Its index for manufacturing declined to 48.6 in November from 50.1 in October. Anything below 50 represents contraction.  This was the weakest reading since June 2009.  The strong dollar and weak overseas demand was blamed for the contraction.
  • Its services index fell from 59.1 in October to 55.9 in November. Keep in mind that anything over 50 represents expansion, albeit at a slower pace.
• The Labor Department reported:
  • The productivity of non-farm workers increased at a seasonally adjusted annual rate of 2.2% in the third quarter. Output and pay increased while hours worked fell.  This was revised from an earlier estimate of 1.6%.
• The Eurozone gross domestic product growth slowed in Q3 to 0.3% or 1.2% annually down from 0.4% or 1.6% in the second quarter.
• New car sales in November were 1.4% above last year. Year to date US Car sales were 15.82 million.
• The Labor Department reported:
  • First time claims for unemployment rose 9,000 to a seasonally adjusted 269,000 in the prior week. The four week moving average of claims fell by 1,750 to 269,250.
  • The US created 211,000 jobs in November, above expectations.

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.