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Companies featured in this edition of the newsletter: None

This week the stock market saw another week of limited movement, but still managed to erase most of last week’s losses. This week saw the release of the Employment Situation Report, and the fed funds futures market’s initial reaction to it saw a dip in near term rate hike expectations. The implied likelihood of a rate hike in September trickled down to 21.0% from 24.0% while the probability of a December rate hike improved to 54.2% from 53.6% on Thursday. The Dow finished the week at 18,491 up 95 points or 0.5% from 18,396 last week, and it is up 6.1% for the year. The Nasdaq finished the week at 5,249 up 31 points or 0.6% from 5,218 last week, and it is up 4.8% for the year. The S&P 500 finished the week at 2,179 up 11 points or 0.5% from 2,169 last week, and it is up 6.7% for the year. Lastly, the Russell 2000 finished the week at 1,251 up 12 points or 1.0% from 1,238 last week, and it is up 10.2% for the year.

Personal income was up 0.4% after an upwardly revised 0.3% gain for June, and personal spending was up 0.3% after an upwardly revised 0.5% increase for June. The core PCE Price Index, which excludes food and energy, was up 0.1% after an unrevised 0.1% increase for June. The Conference Board’s Consumer Confidence Index for August checked in at 101.1 versus a downwardly revised 96.7 for July. The Chicago PMI dropped to 51.5 in August from 55.8 in July. The demarcation point between expansion and contraction for this report is 50.0. Initial claims increased by 2,000 to 263,000 for the week ending August 27, and the continuing claims for the week ending August 20 increased by 14,000 to 2.159 million. Second quarter productivity was revised down to a decline of 0.6% from a preliminary decline of 0.5%. Total construction spending was unchanged in July following an upwardly revised 0.9% increase for June. The ISM Manufacturing Index for August produced a big headline disappointment, falling to 49.4 from 52.6 in July.

U.S. light vehicle sales were at a seasonally adjusted annual rate of 17.00 million units in August versus an SAAR of 17.88 million units for July. The August run rate was 4.4% below the SAAR of 17.79 million units for August 2015. Total domestic sales declined to 13.44 million SAAR from 14.26 million SAAR in July. The August employment report showed a deceleration in the labor market from recent months. Nonfarm payrolls increased by 151,000, and over the past three months, job gains have averaged 232,000 per month. Private sector payrolls increased by 126,000. The unemployment rate was 4.9% versus 4.9% in July. August average hourly earnings were up 0.1% after being up 0.3% in July. The average workweek was 34.3 hours versus 34.4 hours in July, and the labor force participation rate was 62.8% versus 62.8% in July. The July Trade Balance Report showed a narrowing in the trade deficit to $39.5 billion from a downwardly revised $44.7 billion deficit for June. New orders for manufactured goods increased 1.9% in July following a downwardly revised 1.8% decline for June. Excluding transportation, orders were up 0.2% after a 0.4% increase for June.

No market movers reported earnings this week.

This week there are several conferences taking place throughout the week. To start things off, the Barclays CEO Energy Power Conference will take place on September 6-8, 2016 in New York. The Citi 2016 Global Technology Conference will take place on September 6-8, 2016 in New York. The Goldman Sachs 23rd Global Annual Retailing Conference will take place on September 7-8, 2016 in New York. The 11th Annual Wells Fargo Securities 2016 Healthcare Conference will take place on September 7-8, 2016 in Boston, MA. The Keefe Bruyette & Woods Annual Insurance Conference will take place on September 7-8, 2016 in New York. The Robert W. Baird & Company Global Healthcare Conference will take place on September 7-8, 2016 at The New York Palace. The Drexel Hamilton Telecom, Media and Technology Conference will take place on September 7-8, 2016 at The W Hotel in New York.

The RBC Capital Markets Global Industrials Conference will take place on September 7-8, 2016 in Las Vegas, NV. The Barrington Research 9th Annual Fall Investment Conference will take place on September 8, 2016 at the Four Seasons Hotel in Chicago. The Biocentury 23rd Annual Newsmakers in the Biotech Industry Conference will take place on September 9, 2016 in New York.

A profile, description, or other mention of a company in the newsletter is neither an offer nor solicitation to buy or sell any securities mentioned. While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein. THE READER SHOULD VERIFY ALL CLAIMS AND DO ITS OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. This publication accepts compensation from companies that it features. This newsletter should not be regarded as an independent publication. Our editors may, from time to time, acquire positions in the companies that they cover. This could represent a conflict of interest. The CEOcast newsletter shall be under no obligation to inform readers about its trading activities. CEOcast's editors reserve the right to buy or sell shares in these companies at any time.
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