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Federated Investors 3Q2016 Market Commentary

Posted by WrapManager's Investment Policy Committee
October 31, 2016

Federated Investors Stock Market CommentaryWith 2016’s all-important final quarter at the doorstep and third quarter data continuing to trickle in, hopes for a sharp second-half rebound have begun to fade.The Atlanta Fed’s closely watched GDP Now forecast for growth in the July-September quarter ended September at 2.4%, well below the 3.5% estimate at the end of August. At the same time, no one is seriously talking recession, just more of the same: muddling along while awaiting the key event of the year: the presidential and congressional elections.

Federated Investors 3Q 2016 Market Overview

  • Equity performance remained mixed in September as an agreement to cut OPEC production buoyed energy shares and news that the Fed would remain in a holding pattern helped fuel a rally off mid-September lows.

  • Economic data also provided a source of encouragement late in the quarter as forces that had been aiding U.S. growth—housing, auto sales and service-sector activity—lost some momentum but remained relatively robust.

  • Back-to-school sales disappointed, but consumer spending overall remained healthy, as did job and wage growth.

  • Manufacturing continued to struggle, although there were signs of a potential pickup late in the month.

  • Meanwhile, European financial stocks ended the quarter under a dark cloud, with the U.S. Department of Justice proposing a $14 billion settlement with Deutsche Bank related to the sale of mortgage securities from the mid-2000s.

To continue reading the commentary, including details on the performance of Federated Investor's Strategic Value Dividend portfolio, click here.  Or, review JP Morgan's 4Q 2016 Guide to the Markets.

To learn more about Federated Investors and other Money Managers, give us a call at 1-800-541-7774 or contact us here to speak with one of WrapManager's Wealth Managers.

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Economic/Market Outlook Federated Investors Inc