Weekly Economic Update February 13, 2012

WEEKLY QUOTE   “A successful person is one who can lay a firm foundation with the bricks that others throw at him or her.” – David Brinkley     WEEKLY TIP   When it comes to couples and money, a plan is better than an assumption. Discuss your financial goals together and stick to the strategy you make to pursue them.     WEEKLY RIDDLE   A train moving as fast as it can go strikes a man’s hand, yet he is uninjured and the train goes off its tracks. Under what circumstances could this happen?     Last week’s riddle: The wind is blowing east through the mountains. A lone pine tree stands on a cliff. Which way do its leaves blow?     Last week’s answer: A pine tree has needles, not leaves. So no leaves are blowing in the first place.	February 13, 2012   WILL THE MORTGAGE ACCORD BRING MUCH RELIEF? While the $25+ billion settlement reached last week between five large mortgage servicers and 49 states was momentous, it may not help many borrowers in trouble. Only about 1 million of the estimated 11 million underwater homeowners will see relief as loans sold to Fannie Mae and Freddie Mac aren’t included in the deal. Much of the settlement money will go toward mortgage modification. Roughly 750,000 homeowners are slated to receive financial compensation from the accord (an average of about $2,000 per household). The lenders involved are JPMorgan Chase, Bank of America, Ally Financial, Citigroup and Wells Fargo; other banks could join them. (The state of Oklahoma forged its own agreement with the five lenders.)1,2 CONSUMER CONFIDENCE TAKES A DIP The University of Michigan’s initial February consumer sentiment survey fell to 72.5 from its one-year peak of 75.0 at the end of January. Economists polled by Bloomberg News had expected a 74.8 reading. However, the percentage of consumers who felt the jobless rate would fall in future months was at the highest level the survey had seen in 28 years.3   GOLD SLIPS, OIL GAINS Gold futures pulled back $14.60 last week, settling at $1,723.30 on the COMEX Friday; that left gold up 10.06% YTD. Oil is still hovering around $100: NYMEX crude finished Friday at $98.67, advancing 0.85% for the week.4   STOCKS RETREAT FOR THE WEEK ON FRIDAY LOSSES When the Dow’s worst day of 2012 brings only an 89-point loss, it seems the year is off to a good start. That loss occurred Friday after another stall in the Greek debt negotiations. On the week, the major U.S. indices pulled back a bit: DJIA, -0.47% to 12,801.23; S&P 500, -0.17% to 1,342.64; NASDAQ, -0.06% to 2,903.88.5,6   THIS WEEK: Monday, President Obama submits his 2013 fiscal budget proposal to Congress. Tuesday, the Census Bureau publishes January retail sales figures and MetLife issues Q4 earnings. Wednesday, the Fed issues the 1/25 FOMC minutes, the federal government comes out with figures on January industrial output and Q4 results arrive from Comcast, Deere, CBS, Abercrombie & Fitch and Nvidia. On Thursday, General Motors, Nordstrom and Baidu come out with earnings and new initial jobless claims are announced; January’s PPI is also released plus data on January housing starts, and Fed chairman Ben Bernanke speaks at an FDIC hearing. Friday, January’s CPI comes out along with the Conference Board’s newest leading economic indicator index; Q4 results come in from Heinz and Campbell’s Soup.   % CHG Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +4.78 +4.68 +0.35 +2.95 NASDAQ +11.47 +4.06 +3.61 +5.73 S&P 500 +6.76 +1.57 -1.33 +2.07 REAL YIELD 2/10 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.24% 1.39% 2.43% 3.48%   Sources: online.wsj.com, bigcharts.com, treasury.gov, treasurydirect.gov – 2/10/126,7,8,9 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 – abcnews.go.com/Business/feds-announce-25b-foreclosure-deal/story?id=15545458#.TzWEzOSX1c4 [2/9/12] 2 – http://www.thefiscaltimes.com/Articles/2012/02/10/What-the-$26-Billion-Bank-Deal-Means-to-You.aspx#page1 [2/10/12] 3 – http://www.businessweek.com/news/2012-02-10/consumer-sentiment-in-u-s-falls-more-than-forecast-economy.html [2/10/12] 4 – blogs.wsj.com/marketbeat/2012/02/10/data-points-energy-metals-546/ [2/10/12] 5 – montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [2/10/12] 6 – blogs.wsj.com/marketbeat/2012/02/10/data-points-u-s-markets-79/ [2/10/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F10%2F11&x=0&y=0 [2/10/12] 7 -bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F10%2F11&x=0&y=0 [2/10/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F10%2F11&x=0&y=0 [2/10/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F9%2F07&x=0&y=0 [2/10/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F9%2F07&x=0&y=0 [2/10/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F9%2F07&x=0&y=0 [2/10/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F11%2F02&x=0&y=0 [2/10/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F11%2F02&x=0&y=0 [2/10/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F11%2F02&x=0&y=0 [2/10/12] 8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [2/10/12] 8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [2/10/12] 9 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02]

Weekly Economic Update February 6, 2012

WEEKLY QUOTE“If you would be loved, love and be lovable.”– Benjamin Franklin     WEEKLY TIP As your retirement progresses, your retirement strategy should be reviewed in light of budgeting and inflation concerns and the current financial climate.     WEEKLY RIDDLE A lone pine tree stands on a cliff. The wind is blowing from the east through the mountains. Which way do the tree’s leaves blow?     Last week’s riddle: It has no crown, yet when the chips are down it is more powerful than a king or queen. What is it?     Last week’s answer: An ace in a deck of cards.	February 3, 2012   JOBLESS RATE DOWN TO 8.3% Are we seeing a trend here? The unemployment rate has now fallen 0.8% in the last six months. We haven’t seen a descent this sharp and swift since 1984. January hiring blew away forecasts: the Labor Department said the economy added 243,000 jobs last month, while economists polled by Briefing.com expected non-farm payrolls to grow by 155,000 positions. The labor force hasn’t grown so much in a month since last April, and the numbers are making analysts wonder if the Federal Reserve will tinker with interest rates months ahead of expectations.1,2 HOUSEHOLDS SAVE FIRST, SPEND SECOND Consumer spending was flat in December after gains of just 0.1% in November and October. More significantly, consumer incomes rose 0.5% for December and so did the personal savings rate. People essentially put the extra money in the bank. In related news, the federal government estimated 2011 GDP at 1.7%, about half of the economic growth seen in 2010.3 BOTH ISM INDEXES RISE The Institute for Supply Management’s closely watched purchasing manager indexes signaled expanding service and manufacturing sectors in January. ISM’s service sector PMI improved 3.8% to 56.8. Its manufacturing PMI advanced 1.0% to 54.1.4 CASE-SHILLER INDEX DECLINES AGAIN This was the third straight monthly dip for the 20-city roundup of residential home prices. The latest available edition (November) showed a 1.3% monthly retreat in prices with a 3.7% year-over-year drop.5 NASDAQ TOPS 2,900 The tech-heavy index closed at an 11-year high Friday: 2,905.66. The Dow settled at 12, 862.23 at week’s end, its best close since May 2008. The S&P 500 finished Friday at 1,344.90. The weekly gains: DJIA, 1.59%; S&P, 2.17%; NASDAQ, 3.16%.1,6 THIS WEEK: Earnings take center stage in a stretch without much economic data. Monday brings Q4 results from Yum Brands, Humana and Hasbro. Tuesday, earnings arrive from Disney, UBS, Toyota, BP, Coca-Cola and Hartford Financial. Wednesday, Groupon, VISA, CVS, Sprint Nextel, Time Warner and Cisco join in. Thursday, the Bank of England and ECB wrap up policy meetings; new initial claims figures complement earnings reports from Expedia, PepsiCo, Dunkin’ Brands, Sirius XM Radio, Rio Tinto and Credit Suisse. Friday, the University of Michigan’s initial February consumer sentiment survey comes out plus Q4 results from Barclays. % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +5.28 +6.63 +0.33 +3.28 NASDAQ +11.54 +5.51 +3.47 +5.66 S&P 500 +6.94 +2.89 -1.43 +2.29 REAL YIELD 2/3 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.21% 1.23% 2.42% 3.48% Sources: money.msn.com, bigcharts.com, treasury.gov, treasurydirect.gov – 2/3/121,7,8,9 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 – money.msn.com/market-news/post.aspx?post=7c25b3c1-0028-46a6-a114-77f785c12529 [2/3/12]2 – http://www.briefing.com/investor/calendars/economic/2012/01/30-03 [2/3/12] 3 – http://www.mercurynews.com/breaking-news/ci_19853130 [1/30/12] 4 – http://www.ism.ws/ISMReport/NonMfgROB.cfm [2/3/12] 5 – http://www.latimes.com/business/money/la-fi-mo-home-prices-decline-20120131,0,3490723.story [1/31/12] 6 – montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [2/3/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F3%2F11&x=0&y=0 [2/3/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F3%2F11&x=0&y=0 [2/3/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F3%2F11&x=0&y=0 [2/3/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F2%2F07&x=0&y=0 [2/3/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F2%2F07&x=0&y=0 [2/3/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F2%2F07&x=0&y=0 [2/3/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F4%2F02&x=0&y=0 [2/3/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F4%2F02&x=0&y=0 [2/3/12] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F4%2F02&x=0&y=0 [2/3/12] 8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [2/3/12] 8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [2/3/12] 9 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02]

Weekly Economic Update January 30, 2012

WEEKLY QUOTE   “Judge each day not by the harvest you reap but by the seeds you plant.” – Robert Louis Stevenson     WEEKLY TIP   Spending and value should go hand in hand. Reduce or forego spending money on things that don’t bring you much value.     WEEKLY RIDDLE   It has no crown, yet when the chips are down it is more powerful than a king or queen. What is it?     Last week’s riddle: I’m usually standing on a city sidewalk, and I’ll always stand by your car. But if you don’t feed me, you may get into trouble. What am I?     Last week’s answer: A parking meter.	January 30, 2012   ECONOMY GROWS 2.8% in Q4 While this is the best GDP reading since Q2 2010, the initial estimate from the Bureau of Economic Analysis still disappointed the markets. Many economists and investors were looking for growth of 3.0% or better. The majority of the growth actually came from increased inventories. Consumer spending rose 2.0% last quarter, with auto sales being the biggest factor. Durable goods orders did see 3.0% growth in December, putting them 45% above the recession low hit in April 2009.1,2,3 DIPS IN New & PENDING HOME SALES The number of signed home sale contracts fell 3.5% in December, according to the National Association of Realtors. Separately, a Census Bureau report showed that new home sales declined 2.2% in December.4,5   MARQUEE sentiment INDEX at 11-MONTH PEAK The Thomson Reuters/University of Michigan consumer sentiment index ended January at 75.0. This was way up from December’s 69.9 mark, and it beat the 74.1 reading forecast by economists surveyed by Reuters.6,7   PRECIOUS METALS GAIN ALLURE At Friday’s COMEX close, gold was +10.56% YTD, copper +13.18% YTD and silver +21.05% YTD. Crude futures finished last week at $99.56 per barrel on the NYMEX, putting oil merely at +0.74% YTD. (Retail gas prices were +3.67% for the month as of Friday.)2   A STRONG MONTH COMES TO A CLOSE With just a couple of trading days left, January is shaping up to be the best month for U.S. equities since October (see the YTD numbers below). Across last week, the S&P 500 rose 0.07% to 1,316.33 and the NASDAQ gained 1.07% to 2,816.55; the Dow slipped 0.47% to fall to 12,660.46.1   THIS WEEK: The December consumer spending report comes out Monday. On Tuesday, earnings reports arrive from Amazon.com, Broadcom, ExxonMobil, UPS, Pfizer and Eli Lilly – and we also get the latest S&P/Case-Shiller home price index and the Conference Board’s January consumer confidence poll. Wednesday, Q4 results roll in from Qualcomm, Electronic Arts, Aetna and Marathon Oil and the latest ISM manufacturing index appears. Besides new initial claims figures, Thursday brings Q4 results from Unilever, Sony, Deutsche Bank, Merck and Beazer Homes. Friday, the January unemployment report is out along with ISM’s service sector index and data on December factory orders; Clorox also issues Q4 results.   % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +3.63 +5.59 +0.28 +2.83 NASDAQ +8.11 +2.22 +3.13 +4.49 S&P 500 +4.67 +1.29 -1.49 +1.62 REAL YIELD 1/27 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.18% 1.16% 2.48% 3.48%   Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov – 1/27/121,8,9,10 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 – http://www.cnbc.com/id/46162429 [1/27/12] 2 – money.msn.com/market-news/post.aspx?post=6e802a2f-f50a-4ae4-948b-7bc9555ff5f6&_nwpt=1 [1/27/12] 3 – http://www.npr.org/2012/01/26/145895744/durable-goods-orders-signal-business-investment [1/26/12] 4 – http://www.reuters.com/article/2012/01/25/us-usa-economy-idUSTRE7BM0AB20120125 [1/25/12] 5 – http://www.startribune.com/business/138174364.html [1/26/12] 6 – montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [1/27/12] 7 – http://www.cnbc.com/id/46162624/ [1/27/12] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F27%2F11&x=0&y=0 [1/27/12] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F27%2F11&x=0&y=0 [1/27/12] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F27%2F11&x=0&y=0 [1/27/12] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F26%2F07&x=0&y=0 [1/27/12] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F26%2F07&x=0&y=0 [1/27/12] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F26%2F07&x=0&y=0 [1/27/12] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F28%2F02&x=0&y=0 [1/27/12] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F28%2F02&x=0&y=0 [1/27/12] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F28%2F02&x=0&y=0 [1/27/12] 9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [1/27/12] 9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [1/27/12] 10 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02]