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SubscribeSign inShare this postWeekly Macro Summarywww.weeklymacro.comCopy linkTwitterFacebookEmailAug 30, 2020Share this postWeekly Macro Summarywww.weeklymacro.comCopy linkTwitterFacebookEmailTHIS IS NOT INVESTMENT ADVICE.&nbsp;Please speak with a registered investment advisor or other qualified financial professional before making any investment decisions.The dog days of summer are here but third quarter GDP probably received a significant boost this past week from a combination of the housing market and durable goods orders. The most important news of the week, however, was the Fed’s newly adopted goal of an average 2% inflation target. While the timing was a little earlier than expected, The Fed has been reviewing its monetary policy framework and how best to achieve its dual mandate for nearly two years. While the news had been well telegraphed, and the concept implicitly adopted in the recent past, the importance of the shift is the Fed’s formal commitment to the policy. The Fed has in effect admitted that they were too focused on inflation and not focused enough on the employment market. They may be conceding that the rate hike cycle from 2015 - 2019 may have been premature.&nbsp;Source: Bank of AmericaIf you would like to receive this macro summary directly to your mailbox every Sunday please subscribe. It’s free. Atlanta Fed GDP Now is currently tracking at 28.9% for Q3 up from&nbsp; 25.6% from last week.New York Fed GDP Now cast is currently at 15.3% up from 14.6% last week.Goldman Sachs: Reopening at a GlanceEconomic data released, relative to expectations, has been the strongest in at least 11 years!Source: Ed YardeniNew home sales in July +901k annualized, the best since Dec 2006. Up from 791k in June.Source: Wells Fargo&nbsp;Initial claims fell to 1.0mln down slightly from last week’s 1.1mln and in line with the consensus estimate.Durable goods order spike +11.2% in July versus expectations of +4.3%.&nbsp;Source: JP MorganConsumer spending: +1.9%Source: ChaseSource: Oxford EconomicsUS consumer confidence in August 84.8 vs 93 expected and 91.7 prior.Source: ScotiabankChinese Industrial profits +19.6% y/y in July up from 11.5% in June.&nbsp;Source: Macquarie&nbsp;Capital One Financial (COF) is cutting borrowing limits on credit cards.Source: Pictet Asset ManagementOn Wednesday (8/26) New York City issued a 10 Year municipal bond at a yield of 1.45%.Source: RefinitivGermany’s Treasury announced the issuance of green ‘twin bonds’, aimed at increasing investor participation in the&nbsp;sustainable finance market and to raise funds for emissions reduction projects.Brent Crude settled this week at a 5-month high of $45.81.Lumber has surged nearly 80% this year on the CME as home construction and renovation spending surges. It has been one of the year’s best performing commodities.&nbsp;Source: Chris Bennett, S&amp;P GlobalSource: Bank of America&nbsp;Source: BloombergFidelity Investments announced the launch of the first ever Bitcoin fund, through their new business unit Fidelity Digital Funds, led by Peter Jubber, head of Fidelity Consulting. The fund ‘Wise Origin Bitcoin Index Fund I, LP’ has yet to announce its investing approach and has not raised capital at this time but this announcement is good news for the crypto market as larger firms add to the legitimacy of the space.Source: BloombergWhile the S&amp;P 500 ascends to record highs, according to AAII less than a third of investors surveyed are bullishSource: Bespoke Investment GroupVia Bespoke Investment Group: “So far this year, the 50 largest stocks in the S&amp;P 500 are up an average of 11.3% YTD, and if we were to take an even narrower look at just the ten largest stocks heading into the year, the average YTD gain is over 27%!”Source: Bank of AmericaSource: Bank of America&nbsp;Source: Bank of AmericaAbbott Laboratories Salesforce.com, inc. (CRM)Workday, Inc. Dick’s Sporting Goods, Inc. Dollar General Corp. WalMart Inc. Exxon Mobil CorpShort positions in U.S. stocks dropped to their lowest level since Goldman began tracking back in 2004.Source: WSJAmerican AirlinesInteresting data point of the week:Source: YChartsAn important consideration: Source: Renaissance MacroOn Friday, news came out that Japan's longest ever serving Prime Minister, Shinzo Abe, would be stepping down due to health issues. His plan is to serve out the remainder of his term which has 12 months until completion.Turkey-Greece tensions escalate over Turkish Med drilling plans.U.S. Trade Representative Robert Lighthizer, U.S. Treasury Secretary Steven Mnuchin and Chinese Vice Premier Lui He reaffirmed their commitment to a Phase 1 trade deal, which has seen China lagging on its obligations to buy American goods.On Wednesday, the Trump administration added 24 Chinese companies to a trade blacklist for helping China build islands in the South China Sea, a construction program the U.S. has labeled an illegal attempt to control an important shipping route.What is LIBOR?What is SOFR?What is the difference?Why the transition?What is the potential impact?Do you know someone who would like to receive this publication? Please feel free to share the Weekly Macro Summary with them.This weekly summary expresses the views of the author as of the date indicated and such views are subject to change without notice. The author has no duty or obligation to update the information contained herein. Further, the author makes no representation, and it should not be assumed, that past investment performance is an indication of future results.Moreover, wherever there is the potential for profit there is also the possibility of loss.This weekly summary is being made available for educational purposes only and should not be used for any other purpose. The information contained herein does not constitute and should not be construed as an offering of advisory services or an offer to sell or solicitation to buy any securities or related financial instruments in any jurisdiction. Certain information contained herein concerning economic trends and performance is based on or derived from information provided by independent third-party sources.The author believes that the sources from which such information has been obtained are reliable; however, it cannot guarantee the accuracy of such information and has not independently verified the accuracy or completeness of such information or the assumptions on which such information is based.This weekly summary, including the information contained herein, may not be copied, reproduced, republished, or posted in whole or in part, in any form without the prior written consent of the author.Share this postWeekly Macro Summarywww.weeklymacro.comCopy linkTwitterFacebookEmailNo posts© 2022 Primary Dealer ∙ ∙ &nbsp;is the home for great writingThis site requires JavaScript to run correctly. Please or unblock scripts

SubscribeSign inShare this postWeekly Macro Summarywww.weeklymacro.comCopy linkTwitterFacebookEmailAug 30, 2020Share this postWeekly Macro Summarywww.weeklymacro.comCopy linkTwitterFacebookEmailTHIS IS NOT INVESTMENT ADVICE.&nbsp;Please speak with a registered investment advisor or other qualified financial professional before making any investment decisions.The dog days of summer are here but third quarter GDP probably received a significant boost this past week from a combination of the housing market and durable goods orders. The most important news of the week, however, was the Fed’s...

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