Weekly Economic Update January 16, 2012

WEEKLY QUOTE   “Sweet are the slumbers of the virtuous man.” – Joseph Addison     WEEKLY TIP   If your monthly bank statement comes with a fee disclosure, it may be a big hint that fee hikes are coming your way.     WEEKLY RIDDLE   Create a 13-letter word using all 13 of the following letters: O A I I S T T R R D N A M.     Last week’s riddle: What is worn by the foot and often bought by the yard?     Last week’s answer: Carpet.	January 16, 2012   AN UNDERWHELMING RETAIL SALES REPORT Holiday shopping was strong … or was it? The Census Bureau’s newest monthly retail sales data indicated only a 0.1% gain for December. Yet in the big picture, 2011 was the best year for retail sales since 1999. Total retail sales rose 7.7% last year, online and catalog sales were up 10.6% and overall sales have now improved about 20% from the depths hit during the Great Recession.1,2 CONSUMER SENTIMENT INDEX INCREASES The University of Michigan’s preliminary January consumer sentiment survey showed further improvement, with a gain from 69.9 to 74.0; the best reading since last May and better than the 71.5 economists polled by Reuters anticipated.3   NEW BEIGE BOOK NOTES IMPROVING ECONOMY The Federal Reserve’s new economic snapshot of its 12 banking districts showed 11 noting economic growth. The anecdotal survey noted improvement in auto and retail sales, manufacturing and consumer spending in the last six weeks of 2011.4   S&P CUTS CREDIT RATINGS OF 9 EU NATIONS After U.S. markets closed Friday, Standard & Poor’s downgraded a third of the European Union: it took France from AAA to AA+, cut ratings for Austria, Slovakia, Slovenia and Malta by a notch and booted the ratings of Italy, Portugal, Spain and Cyprus down two notches. S&P said the EU’s debt reduction plan lacks “sufficient size or scope”. Additionally, EU talks on restructuring Greek debt fell apart Friday.5   STOCKS ON A WINNING STREAK The S&P 500 posted its second straight weekly gain across January 9-13, rising 0.88% to 1,289.09. The DJIA rose 1.67% to 12,422.06 and the NASDAQ gained 1.36% to 2,710.67. Last week also saw gains for the U.S. Dollar Index (0.24%) and COMEX gold (0.87%).5,6   THIS WEEK: U.S. financial markets are closed Monday for the federal holiday honoring Martin Luther King, Jr. Tuesday, Wells Fargo, Citigroup and Charles Schwab issue earnings reports. Wednesday, the December PPI arrives and we will have Q4 earnings from eBay and assorted financial heavy hitters: Goldman Sachs, Bank of NY Mellon, State Street, Northern Trust, PNC Bank and US Bancorp. Thursday, we have December’s CPI, a new initial jobless claims report and Q4 results from more big names: Bank of America, Morgan Stanley, AmEx, IBM, Microsoft, Google, Sony Ericsson, UnitedHealth and Capital One. Friday, last month’s existing home sales figures will be released along with earnings from GE.   % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG   DJIA +1.67 +5.88 -0.21 +2.56   NASDAQ +4.05 -0.90 +1.66 +3.62   S&P 500 +2.50 +0.42 -1.98 +1.32   REAL YIELD 1/13 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO   10 YR TIPS -0.14% 0.97% 2.49% 3.48%   Sources: money.msn.com, bigcharts.com, treasury.gov, treasurydirect.gov – 1/13/121,5,7,8,9 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.
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This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.   Citations. 1 – http://www.census.gov/retail/marts/www/marts_current.pdf [1/12/12] 2 – http://www.chron.com/business/article/Retail-had-record-year-but-eased-in-December-2490293.php [1/12/12] 3 – http://www.nytimes.com/2012/01/14/business/economy/trade-deficit-and-consumer-sentiment-rise.html [1/14/12] 4 – http://www.usatoday.com/money/economy/fed/beigebook/story/2012-01-11/fed-beige-book-january/52500550/1 [1/11/12] 5 – money.msn.com/market-news/post.aspx?post=a677f0ec-38f9-432c-bbc1-fb98c5362013 [1/13/12] 6 – montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [1/13/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F13%2F11&x=0&y=0 [1/13/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F13%2F11&x=0&y=0 [1/13/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F13%2F11&x=0&y=0 [1/13/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F12%2F07&x=0&y=0 [1/13/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F12%2F07&x=0&y=0 [1/13/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F12%2F07&x=0&y=0 [1/13/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F14%2F02&x=0&y=0 [1/13/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F14%2F02&x=0&y=0 [1/13/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F14%2F02&x=0&y=0 [1/13/12] 8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [1/13/12] 8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [1/13/12] 9 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02]

Weekly Economic Update January 9, 2012

WEEKLY QUOTE   “Being brilliant is no great feat if you respect nothing.” – Johann Wolfgang von Goethe     WEEKLY TIP   If you’re thinking about selling a business, consider contacting a business broker, one that represents companies similar to yours. It may make finding an appropriate buyer easier.     WEEKLY RIDDLE   What is worn by the foot and often bought by the yard?     Last week’s riddle: They can run side by side for thousands of miles; they are made of steel. While they constantly touch the ground, they seldom meet or touch each other. What are they?     Last week’s answer: Railroad tracks.	January 9, 2012   UNEMPLOYMENT DOWN TO 8.5% In December, the jobless rate declined for the fourth straight month to its lowest level since February 2009. The Labor Department announced that the economy added 200,000 net new jobs last month, topping the consensus forecast of analysts polled by Reuters who expected a gain of 155,000. Separately, payroll processing firm ADP reported private sector firms hiring 325,000 workers in December. Whether December’s boost reflects a seasonal hiring boom or not, Labor Department data indicates that private sector payrolls expanded by an average of 132,000 jobs per month during the second half of 2011.1,2 MANUFACTURING, SERVICE SECTOR GAUGES RISE According to the twin barometers of the Institute for Supply Management, the U.S. manufacturing and non-manufacturing sectors continued to expand last month. ISM’s service sector PMI came in at 52.6, up 0.6% from the November reading; its manufacturing PMI rose to 53.9 from November’s 52.7 mark.3   BIG GAINS OUT OF THE GATE FOR GOLD & CRUDE The first trading week of 2012 saw crude oil futures rise 2.73% to top $100 a barrel again; futures settled at $101.56 Friday on the NYMEX. Gold went back above the $1,600 level with a $50.30 weekly advance. Gold futures were up 3.21% for the week; Friday’s closing price on the COMEX was $1,616.10.4,5   STOCKS START 2012 WITH GAINS Across January 3-6, the Dow rose 1.17% to 12,359.92, the NASDAQ climbed 2.65% to 2,674.22 and the S&P 500 advanced 1.61% to 1,277.81. Optimism prevailed despite more woes from the Eurozone: Fitch Ratings lowered Hungary’s credit rating to “junk” status on Friday and the euro fell to a 16-month low versus the dollar.2   THIS WEEK: Monday, German chancellor Angela Merkel and French president Nicolas Sarkozy meet to discuss the EU’s new fiscal pact; Alcoa kicks off the Q4 earnings season. Tuesday, we get a report on November’s wholesale trade. Wednesday brings a new Beige Book from the Federal Reserve and Q4 results from Lennar. Thursday, the Census Bureau releases December retail sales figures, the latest initial jobless claims data arrives and the European Central Bank and Bank of England issue monetary policy statements. On Friday, the University of Michigan’s preliminary January consumer sentiment survey will be out, plus Q4 earnings from JPMorgan.   % CHG Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +1.17 +5.66 -0.0006 +2.12 NASDAQ +2.65 -1.32 +1.97 +3.13 S&P 500 +1.61 +0.31 -1.87 +0.97 REAL YIELD 1/6 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.11% 0.96% 2.39% 3.48%   Sources: online.wsj.com, bigcharts.com, treasury.gov, treasurydirect.gov – 1/6/122,7,8,9 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.
Please feel free to forward this article to family, friends or colleagues. If you would like us to add them to our distribution list, please reply with their address. We will contact them first and request their permission to add them to our list.
This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.   Citations. 1 – abcnews.go.com/Business/MadeInAmerica/december-jobless-rate-falls-85-percent/story?id=15300534 [1/6/12] 2 – http://www.cnbc.com/id/45899327 [1/6/12] 3 – http://www.ism.ws/ISMReport/NonMfgROB.cfm [1/6/12] 4 – blogs.wsj.com/marketbeat/2012/01/06/data-points-energy-metals-540/ [1/6/12] 5 – montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [1/6/12] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F6%2F11&x=0&y=0 [1/6/12] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F6%2F11&x=0&y=0 [1/6/12] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F6%2F11&x=0&y=0 [1/6/12] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F5%2F07&x=0&y=0 [1/6/12] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F5%2F07&x=0&y=0 [1/6/12] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F5%2F07&x=0&y=0 [1/6/12] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F7%2F02&x=0&y=0 [1/6/12] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F7%2F02&x=0&y=0 [1/6/12] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F7%2F02&x=0&y=0 [1/6/12] 7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [1/6/12] 7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [1/6/12] 8 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02]

 

Weekly Economic Update January 2, 2012

WEEKLY QUOTE “You must do the thing you think you cannot do.” – Eleanor Roosevelt     WEEKLY TIP It may be a good idea to make your 2012 IRA contribution at the start of the year, rather than waiting until the tax filing deadline of the following year. That way the contributed assets will have more time to compound.     WEEKLY RIDDLE They can run side by side for thousands of miles; they are made of steel. While they constantly touch the ground, they seldom meet or touch each other. What are they?     Last week’s riddle: They are sometimes stomped on, yet they can also be very tasty and sweet. What are they?     Last week’s answer: Grapes.	January 2, 2012   STOCKS IN 2011: DJIA +5.5%, S&P 500 ENDS FLAT The Dow Jones Industrial Average bucked a global trend and advanced in 2011. The index rose 11.95% in the fourth quarter, a move that separated it from a pack of overseas benchmarks that finished the year with double-digit percentage losses. In terms of price return, the S&P 500 recorded its smallest annual change since 1947 (see below). The S&P’s total return for 2011 was +2.11%. With all the fears about Europe and the Federal Reserve keeping interest rates incredibly low, long-term Treasuries had their best year since 2008 with a total return of 33%.1,2,3 CONSUMER CONFIDENCE BAROMETER RISES The Conference Board’s index of consumer confidence saw a big jump north in December, soaring 9.3 points to 64.5. Economists surveyed by Reuters had expected it to come in at 58.3.4 HOME SALE PRICES DOWN, HOME SALE CONTRACTS UP The good news? The National Association of Realtors said its pending home sales index reached a 19-month peak in November, moving to 100.1 for a 5.9% annual gain. The bad news? The October edition of the S&P/Case-Shiller Home Price Index slipped 1.2% from its September level.4,5 HIGHS & LOWS IN KEY COMMODITIES FOR 2011 Gold lost 10.48% for the month but went +10.23% for the year, in contrast to copper (-22.73%) and silver (-9.77%). Crude oil advanced 8.15% in 2011, while retail gas prices rose 6.41%. Notable yearly dives were made by natural gas (-32.15%) and cotton (-36.69%). The U.S. Dollar Index gained 1.56% on the year.2   A MINOR RETREAT TO END THE YEAR All three major U.S. stock indices lost ground in the last trading week of 2011. The four-day performances across December 27-30: DJIA, -0.62% to 12,217.56; NASDAQ, -0.52% to 2,605.15; S&P 500, -0.61% to 1,257.60.1,6 THIS WEEK: The NYSE is closed Monday in celebration of the New Year’s Day holiday. Tuesday, the ISM manufacturing index for December is released, plus the most recent FOMC minutes. No major economic releases are scheduled on Wednesday. On Thursday, Monsanto, Amgen and Family Dollar announce earnings, ISM issues its December service sector PMI and new initial claims figures arrive. Friday brings the December jobs report from the Labor Department. % CHANGE 2011 1-YR CHG 5-YR AVG 10-YR AVG DJIA +5.53 +5.53 -0.39 +2.19 NASDAQ -1.80 -1.80 +1.57 +3.36 S&P 500 -0.003 -0.003 -2.27 +0.95 REAL YIELD 12/30 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.07% 1.08% 2.41% 3.50% Sources: online.wsj.com, bigcharts.com, treasury.gov, treasurydirect.gov – 12/30/111,7,8,9 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.
Please feel free to forward this article to family, friends or colleagues. If you would like us to add them to our distribution list, please reply with their address. We will contact them first and request their permission to add them to our list.
This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. Citations. 1 – blogs.wsj.com/marketbeat/2011/12/30/data-points-u-s-markets-71/ [12/30/11] 2 – money.msn.com/market-news/post.aspx?post=7a929e98-4d99-44cb-98c9-a0ef1c3151c4 [12/30/11] 3 – blogs.wsj.com/marketbeat/2011/12/30/for-the-sp-500-2011-bascially-never-happened/ [12/30/11] 4 – http://www.reuters.com/article/2011/12/27/us-economy-idUSTRE7BE12S20111227 [12/27/11] 5 – http://www.realtor.org/press_room/news_releases/2011/12/phs_nov [12/29/11] 6 – montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [12/30/11] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F29%2F06&x=0&y=0 [12/30/11] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F29%2F06&x=0&y=0 [12/30/11] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F29%2F06&x=0&y=0 [12/30/11] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F31%2F01&x=0&y=0 [12/30/11] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F31%2F01&x=0&y=0 [12/30/11] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F31%2F01&x=0&y=0 [12/30/11] 8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [12/30/11] 8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [12/30/11] 9 – treasurydirect.gov/instit/annceresult/press/preanre/2001/ofm71101.pdf [7/11/01]

Weekly Economic Update December 26, 2011

WEEKLY QUOTE “Life is an adventure in forgiveness.” – Norman Cousins     WEEKLY TIP If 2012 is a year in which you start a business, remember three essentials to have on hand: an emergency fund, a year’s worth of operating capital and the support of your spouse or partner.     WEEKLY RIDDLE They are sometimes stomped on, yet they can also be very tasty and sweet. What are they?     Last week’s riddle: A man leaves home and makes three left turns. He comes home again and sees two masked men waiting for him, but he jogs straight toward them with a smile as others cheer. Why is this man so unafraid?     Last week’s answer: He is a baseball player who has just hit a home run. The masked men are the umpire and the other team’s catcher.	December 26, 2011   PAYROLL TAX HOLIDAY EXTENDED FOR 2 MONTHS Friday, President Obama signed an extension of the payroll tax cut lasting through February 29. The stopgap legislation also extends long-term unemployment benefits through that date and postpones a 27% reduction in Medicare payments to doctors. The federal government will pay for the extenders by having Fannie Mae and Freddie Mac hike guarantee fees on new mortgages, a cost that will be passed on to those buying or refinancing a home in 2012.1 GAINS IN HARD GOODS ORDERS, CONSUMER SPENDING November’s consumer spending increase was tiny: 0.1%. Wages advanced just 0.1% as well. However, last month also saw a 3.8% rise in durable goods orders (the best month for that indicator since July).2,3 IMPROVED HOME SALES, HOUSING STARTS The Census Bureau reported a 1.6% increase in new home purchases in November, with the new home inventory at its smallest since March 2006. Housing starts hit a 19-month peak in November, soaring 9.3% on the month. Existing home sales also improved notably in November, rising 4.0%; according to the National Association of Realtors, that was the best month since January.3 CONSUMERS FEELING MERRIER December’s final Thomson Reuters/University of Michigan consumer sentiment survey came in at 69.9 compared with November’s final 64.1 mark. That also beat the 68.0 estimate forecast by economists Reuters had surveyed.4   A YEAR-END RALLY GETS ROLLING Stocks showed definite momentum last week. The 5-day performances: DJIA, +3.60% to 12,294.00: NASDAQ, +2.48% to 2,618.64; S&P 500, +3.74% to 1,265.33. At the close on Friday, oil settled at $99.68 on the NYMEX, gold closed at $1,606.00 on the COMEX, retail gasoline prices had fallen 2.15% in the past 30 days and natural gas futures were at lows unseen in four years.2,5 THIS WEEK: No major economic releases are on tap for Monday, Wednesday or Friday. Tuesday, the October edition of the S&P/Case-Shiller home price index arrives plus the Conference Board’s newest consumer confidence poll. Thursday, the National Association of Realtors issues its November report on pending home sales and we get the latest initial claims figures. % CHG Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +6.19 +6.23 -0.0008 +2.25 NASDAQ -1.29 -1.76 +1.81 +3.47 S&P 500 +0.61 +0.68 -2.06 +1.05 REAL YIELD 12/23 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.04% 1.08% 2.35% 3.50% Sources: money.msn.com, bigcharts.com, treasury.gov, treasurydirect.gov – 12/23/112,6,7,8 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.
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This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.Citations. 1 – money.cnn.com/2011/12/23/news/economy/payroll_tax_cut_deal/ [12/23/11] 2 – money.msn.com/market-news/post.aspx?post=ef94fe40-0c3a-4fc1-bbe6-e6f3f7345f37 [12/23/11] 3 – http://www.businessweek.com/news/2011-12-23/sales-of-u-s-new-homes-in-november-rise-to-315-000-rate.html [12/23/11] 4 – http://www.reuters.com/article/2011/12/22/us-usa-economy-sentiment-idUSTRE7BL0YR20111222 [12/13/11] 5 – montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [12/23/11] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F23%2F10&x=0&y=0 [12/23/11] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F23F2%2F10&x=10&y=18 [12/23/11] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F23%2F10&x=0&y=0 [12/23/11] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F22%2F06&x=0&y=0 [12/23/11] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F22%2F06&x=0&y=0 [12/23/11] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F22%2F06&x=0&y=0 [12/23/11] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F24%2F01&x=0&y=0 [12/23/11] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F24%2F01&x=0&y=0 [12/23/11] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F24%2F01&x=0&y=0 [12/23/11] 7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [12/23/11] 7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [12/23/11] 8 – treasurydirect.gov/instit/annceresult/press/preanre/2001/ofm71101.pdf [7/11/01]