U.S. and foreign stocks rebounded sharply this week with emerging markets posting the biggest gains as the volatility index declined.  The ten-year treasury yield rose to 2.88%.  Commodity prices rose slightly while the U.S. dollar declined.

In the numbers this week:

• The Commerce Department Reported:
  • Housing starts rose 9.7% in January.  While single family housing starts rose 3.7%, multifamily housing starts rose 24%.
  • Housing permits and indication of future housing starts rose 7.4%.
• Japan gross domestic product grew at a 0.5% annual pace in the fourth quarter, following third quarter growth at a 2.2% annual pace.
• The Federal Reserve reported that industrial production fell 0.1% in January.   From a year ago, industrial production has risen 3.7%.
• The Labor Department reported
  • First time claims for unemployment rose 7,000 to a seasonally adjusted 230,000 in the prior week.  The four week moving average of claims rose 3,500 to a seasonally adjusted 228,500.
  • Consumer price index rose 0.5% in January, following a 0.2% increase in December.  Core prices, excluding food and energy rose 0.35% in January.  From 12 months earlier consumer prices rose 2.1% and core prices were up 1.8%.
  • Producer prices rose 0.4% in January.  From a year earlier producer prices were up 2.7%.
  • The Commerce Department reported retail sales fell a seasonally adjusted 0.3% in January.  From a year earlier January retail sales were up 3.6%.  Auto sales were down 1.3%.  Gasoline sales were up 1.6% based on higher prices.
  • Import prices rose 1.0% in January.  Excluding petroleum, import prices rose 0.5%.  The weakening dollar was a major factor in the increase.
• The Energy Information Administration weekly report is here wpsrsummary (4).  Also the EIA reported:
  • Weekly field production of crude oil increased 20 thousand barrels per day.
  • Storage of Natural Gas fell 194BN cubic feet.
  • According to Baker Hughes, In the past week the number of active oil rigs rose 7 to 798 and the number of active gas rigs fell 7 to 177.
• According to Factset, with 80% of the S&P 500 companies reporting, the blended Q4 earnings growth rate is 15.2%.

Please call us if you have any questions or concerns.

Best Regards,

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

President                                                                                                 Managing 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  866-381-2301

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.