Weekly Economic July 22, 2013

WEEKLY QUOTE “Learn from yesterday, live for today, hope for tomorrow.”       – Albert Einstein           WEEKLY TIP If you own a house and have children, you should at least have a will, and preferably an estate plan.        WEEKLY RIDDLE All around yet can’t be seen, has no throat but can be heard. What is it?      Last week’s riddle: This house attracts travelers with its brightness, yet it is often the loneliest home on the coast. What kind of house is this?     Last week’s answer: A lighthouse.	July 15, 2013      WILL THE EASING END SOONER, OR LATER? Last Wednesday, Federal Reserve chairman Ben Bernanke lifted stocks by noting that the U.S. economy needed “highly accommodative monetary policy for the foreseeable future,” adding that the current 7.6% jobless rate “overstates the health of the labor market.” Remarks like these didn’t exactly suggest the Fed would scale back its asset purchases soon. The June Fed policy meeting minutes showed 11 of 12 Fed officials agreeing to sustain the central bank’s bond-buying campaign, with “about half” of these 11 envisioning QE3 wrapping up late this year. On Friday, Philadelphia Fed president Charles Plosser emerged from that camp, calling for a “gradual and predictable” end to the program before 2014.1,2,3 HOUSEHOLD SENTIMENT DECLINES A BIT The initial July consumer sentiment index from the University of Michigan dipped mildly to 83.9. June’s final reading was 84.1, and economists polled by Reuters had expected the index to rise to 85.0.4 PRODUCER PRICES LEAP 0.8% Minus food and energy prices, wholesale inflation wasn’t so pronounced in June. The core PPI rose just 0.2% last month. Analysts surveyed by Briefing.com had projected an overall PPI gain of 0.3%.4,5   WALL STREET GETS A BERNANKE BOUNCE Dovish comments from the Fed chairman helped the S&P 500 to a new record close of 1,680.19 Friday. On the week, the S&P gained 2.96%. The NASDAQ rose 3.47% for the week to settle at 3,600.08 Friday. The Dow gained 2.17% last week and closed Friday at a fresh all-time peak of 15,464.30.4 THIS WEEK: Monday offers Q2 results from Citigroup, Census Bureau data on June retail sales and a Q2 GDP reading from China. The June CPI appears Tuesday, plus the latest NAHB housing market index, data on June industrial output and earnings from Goldman Sachs, Coca-Cola, Johnson & Johnson, Charles Schwab, Yahoo and CSX. Wednesday, Ben Bernanke begins two days of testimony in the Senate, a new Fed Beige Book arrives, and American Express, Bank of America, Bank of NY Mellon, Novartis, Abbott Labs, Mattel, eBay, IBM, Intel and SanDisk report earnings. Thursday offers earnings reports from Capital One, BlackRock, Morgan Stanley, United Health, Verizon, Nokia, Google, Microsoft, AMD and Chipotle, plus the latest initial claims figures and the Conference Board’s index of leading indicators. Friday, a G20 summit wraps up and Schlumberger, GE, Vodafone and Honeywell report Q2 results. % CHG Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +18.01 +22.99 +7.86 +6.96 NASDAQ +19.23 +25.61 +12.16 +10.76 S&P 500 +17.81 +25.88 +7.11 +6.83 REAL YIELD 7/12 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.55% -0.58% 1.48% 1.88%   Sources: cnbc.com, bigcharts.com, treasury.gov – 7/12/134,6,7,8 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. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Past performance is no guarantee of future results.  Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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 – cnbc.com/id/100877586 [7/10/13] 2 – cnbc.com/id/100757576 [7/12/13] 3 – blogs.barrons.com/incomeinvesting/2013/07/10/treasury-yields-creep-higher-amid-parsing-of-fed-minutes-bernanke-speech/ [7/10/13] 4 – cnbc.com/id/100882518 [7/12/13] 5 – briefing.com/investor/calendars/economic/2013/07/08-12 [7/12/13] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F12%2F12&x=0&y=0 [7/12/13] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F12%2F12&x=0&y=0 [7/12/13] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F12%2F12&x=0&y=0 [7/12/13] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F11%2F08&x=0&y=0 [7/12/13] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F11%2F08&x=0&y=0 [7/12/13] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F11%2F08&x=0&y=0 [7/12/13] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F11%2F03&x=0&y=0 [7/12/13] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F11%2F03&x=0&y=0 [7/12/13] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F11%2F03&x=0&y=0 [7/12/13] 7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [7/12/13] 8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [7/12/13]

 

 

Weekly Economic Update July 8th

WEEKLY QUOTE “Don’t dwell on what went wrong. Instead, focus on what to do next. Spend your energies on moving forward toward finding the answer.”       – Denis Waitley           WEEKLY TIP A 30-day list can help you guard against impulse buying; place all nonessential purchases on the list and check again after 30 days. In many cases, the impulse will have passed.        WEEKLY RIDDLE This house attracts travelers with its brightness, yet it is often the loneliest home on the coast. What kind of house is this?      Last week’s riddle: At a stop sign on a rural road, there are two trucks in front of a truck, two trucks behind a truck, and one truck in the middle of two trucks. How many trucks are there in total?     Last week’s answer: Three.	July 8, 2013      AMERICA ADDS 195,000 JOBS IN JUNE Payroll growth in June matched that of May, according to the Labor Department (the May gain was revised upward). The private sector hired 202,000 new workers after adding 207,000 in May, offsetting reductions to government payrolls. Economists polled by Bloomberg had forecast net job growth of 165,000, so this was encouraging. Will it encourage the Federal Reserve to taper? The Fed’s next policy announcement occurs on July 31, but it will not revise its economic forecasts at that time and no press conference is scheduled afterward. Some economists think the Fed could start tapering QE3 as soon as September.1 ISM INDICES BOTH TOP 50 The June purchasing manager indices from the Institute for Supply Management both showed sector expansion. The pace of growth moderated in the service sector, with June’s reading of 52.2 down 1.5 points from May. ISM’s manufacturing index rebounded impressively from a 49.0 reading in May to 50.9 in June.2 1-YEAR DELAY FOR EMPLOYER HEALTH CARE MANDATE The Obama administration is postponing one of the key reforms of the Affordable Care Act – businesses with 50 or more full-time employees now won’t have to provide health insurance to workers until 2015. As around 85% of Americans already have health care coverage, the decision doesn’t impact a majority of individuals or businesses. Most uninsured individuals will still need to buy health coverage in 2014 and businesses with fewer than 50 FTEs won’t be required to sponsor health insurance plans next year. Still, the delay raises new questions about whether national health care reforms can proceed on schedule.3,4   ABBREVIATED TRADING WEEK SEES BIG GAINS Stocks started July well. The S&P 500 rose 1.59% in four days to settle at 1,631.89 Friday. The DJIA rose 1.52% to close at 15,135.84 at week’s end, and the NASDAQ advanced 2.24% to wrap up the week at 3,479.38. Oil settled at $103.22 Friday, with prices soaring 6.7% in a week on worries about political instability in Egypt.5,6 THIS WEEK: The Q2 earnings season begins Monday with results from Alcoa.  Nothing major is scheduled for Tuesday. Wednesday, the June 19 FOMC minutes are released along with data on May wholesale inventories; Yum! Brands and Family Dollar report earnings. Thursday brings the latest initial jobless claims report plus earnings from Progressive and TXI. Friday, JPMorgan Chase and Wells Fargo report quarterly results, June’s Producer Price Index arrives, and the University of Michigan publishes its initial July consumer sentiment survey. % CHGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +15.50 +17.36 +6.82 +6.69 NASDAQ +15.23 +16.91 +10.99 +10.92 S&P 500 +14.42 +19.33 +5.84 +6.56 REAL YIELD 7/5 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.66% -0.51% 1.42% 2.09% Sources: usatoday.com, bigcharts.com, treasury.gov – 7/5/137,8,9,10 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. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Past performance is no guarantee of future results.  Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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 – bloomberg.com/news/2013-07-05/payrolls-in-u-s-increased-195-000-in-june-unemployment-7-6-.html [7/5/13] 2 – briefing.com/investor/calendars/economic/2013/07/01-05 [7/5/13] 3 – nytimes.com/2013/07/03/us/politics/obama-administration-to-delay-health-law-requirement-until-2015.html [7/3/13] 4 – kansascity.com/2013/07/03/4328512/qa-on-impact-of-health-law-delay.html [7/3/13] 5 – markets.on.nytimes.com/research/markets/overview/overview.asp [7/5/13] 6 – reuters.com/article/2013/07/05/us-markets-oil-idUSBRE9640FE20130705 [7/5/13] 7 – usatoday.com/money/markets/overview/ [7/5/13] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F5%2F12&x=0&y=0 [7/5/13] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F5%2F12&x=0&y=0 [7/5/13] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F5%2F12&x=0&y=0 [7/5/13] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F3%2F08&x=0&y=0 [7/5/13] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F3%2F08&x=0&y=0 [7/5/13] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F3%2F08&x=0&y=0 [7/5/13] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F3%2F03&x=0&y=0 [7/5/13] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F3%2F03&x=0&y=0 [7/5/13] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F3%2F03&x=0&y=0 [7/5/13] 9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [7/5/13] 10 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [7/5/13]

Weekly Economic Update July 1, 2013

WEEKLY QUOTE “Intelligence without ambition is a bird without wings.”       – Salvador Dalí           WEEKLY TIP Consolidating your stray IRAs can mean fewer account statements, fewer account fees and less paperwork.        WEEKLY RIDDLE At a stop sign on a rural road, there are two trucks in front of a truck, two trucks behind a truck, and one truck in the middle of two trucks. How many trucks are there in total?      Last week’s riddle: It can be told, made, cracked, and played. What is it?     Last week’s answer: A joke.	July 1, 2013      CHECKING IN ON THE CONSUMER According to the Commerce Department, consumer spending improved 0.3% in May as consumer incomes increased 0.5%. The latest household sentiment polls seemed to reflect the good news. The Conference Board’s consumer confidence gauge hit 81.4 in June, the best mark since January 2008; the University of Michigan’s final June survey came in at 84.1, up from a preliminary reading of 82.7.1,2 Q1 GDP REVISED SIGNIFICANTLY DOWNWARD The initial 2.4% estimate by the Bureau of Economic Analysis was scaled down to just 1.8% last week. Stocks advanced after the announcement, as less economic growth may give the Federal Reserve less incentive to taper QE3.3 IMPRESSIVE GAINS IN REAL ESTATE INDICATORS New home sales rose another 2.1% in May, taking the annualized increase to 29.0%. In addition to that news from the Census Bureau, the National Association of Realtors reported a 6.7% rise in pending home sales in May (and a 12.1% yearly improvement in the category). The Case-Shiller Home Price Index had its best month ever: a 2.5% April gain with prices rising 12.1% in 12 months. Not all the news from the housing sector was positive – Freddie Mac said that the average rate on a 30-year home loan hit 4.46% last week, the highest in almost two years.1,4,5,6 SOLID WEEK, SOLID QUARTER, SUPERB FIRST HALF The Dow advanced 0.74% for the week to 14,909.60, the S&P 500 rose 0.87% for the week to reach 1,606.28, and the NASDAQ wrapped up June at 3,403.25 after a 1.37% weekly gain. While the second quarter saw a 32.36% rise in the CBOE VIX, it also brought gains of 2.27% for the DJIA, 4.15% for the NASDAQ and 2.36% for the S&P, even as all three indices lost ground in June. The YTD gain below represents the DJIA’s best first half of a year since 1999.7 THIS WEEK: On Monday, ISM presents its manufacturing PMI for June and the Census Bureau offers data on May construction spending. Tuesday brings federal government reports on May factory orders and June auto buying, and earnings from Constellation Brands. Wednesday, ISM puts out its June service sector PMI, and the latest initial jobless claims figures, the June ADP employment report and the June Challenger job-cut report all arrive; the NYSE wraps up trading at 1:00pm EST. Thursday is July 4th; correspondingly, America’s financial markets are closed. The Labor Department presents its June jobs report Friday, which is also when the biggest U.S. banks provide midyear stress test results to the Federal Reserve. % CHGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +13.78 +18.31 +6.28 +6.59 NASDAQ +12.71 +19.43 +9.39 +10.94 S&P 500 +12.63 +20.86 +5.13 +6.45 REAL YIELD 6/28 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.53% -0.48% 1.48% 1.90% Sources: cnbc.com, bigcharts.com, treasury.gov – 6/28/137,8,9,10 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. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Past performance is no guarantee of future results.  Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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 – nytimes.com/2013/06/28/business/economy/consumer-spending-and-home-sales-were-up-in-may.html [6/28/13] 2 – reuters.com/article/2013/06/28/us-usa-economy-sentiment-idUSBRE95R0MA20130628 [6/28/13] 3 – marketwatch.com/story/us-first-quarter-gdp-cut-to-18-from-24-2013-06-26 [6/26/13] 4 – census.gov/construction/nrs/pdf/newressales.pdf [6/26/13] 5 – reuters.com/article/2013/06/25/us-usa-economy-homes-index-idUSBRE95O0PH20130625 [6/25/13] 6 – freddiemac.com/pmms/ [6/28/13] 7 – cnbc.com/id/100852152 [6/28/13] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F28%2F12&x=0&y=0 [6/28/13] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F28%2F12&x=0&y=0 [6/28/13] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F28%2F12&x=0&y=0 [6/28/13] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F27%2F08&x=0&y=0 [6/28/13] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F27%2F08&x=0&y=0 [6/28/13] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F27%2F08&x=0&y=0 [6/28/13] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F27%2F03&x=0&y=0 [6/28/13] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F27%2F03&x=0&y=0 [6/28/13] 8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F27%2F03&x=0&y=0 [6/28/13] 9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [6/28/13] 10 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [6/28/13]

Weekly Economic Update June 24, 2013

Phillip Statler Presents:
WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE “Quality is not an act, it is a habit.”       – Aristotle           WEEKLY TIP Give the quarterly investment statements you receive more than a glance. If there is a mistake, you have a chance to spot it now instead of having to find it later.       WEEKLY RIDDLE It can be told, made, cracked, and played. What is it?      Last week’s riddle: You hold a sheet of cellophane. Fully unfolded, it is 3 feet long by 2 feet wide. How can you get two people to stand on it (when it is fully unfolded) in such a way that they can’t touch or see each other?     Last week’s answer: Slide the fully unfolded sheet under a door (or a sufficiently large partition that is not transparent or opaque) and have each person stand on the sheet while on either side of the door or partition.	June 24, 2013      FED OUTLINES END FOR STIMULUS, STOCKS SLIP Last Wednesday, Federal Reserve Chairman Ben Bernanke shared the central bank’s vision for winding down its current aggressive easing effort – the potential tapering of QE3 by late 2013, and the end of the program by mid-2014 if economic conditions permit. Wall Street reacted abruptly – the Dow sank more than 550 points in less than two trading sessions. In the near term, the Fed will keep buying $85 billion in bonds per month and maintain interest rates at near-zero levels.1,2 INFLATION PRESSURE MINIMAL IN MAY The 0.1% rise in the Consumer Price Index last month put yearly inflation at 1.4%, well under the Fed’s 2.0% target. Energy prices rose 0.4% in May but fell 1.0% in a year; medical costs declined 0.1% for May, the first monthly decrease since 1975.3 EXISTING HOME SALES IMPROVE The National Association of Realtors reported a 4.2% jump in residential resales for May, with the annualized sales pace topping the 5 million mark for the first time in 3½ years. From May 2012 to May 2013, the median price of an existing home rose 15.4% to $208,000 as the number of listings on the market shrank 10.1%.4 LEADING INDICATORS EDGE NORTH 0.1% IN MAY Slight improvement was seen in the Conference Board’s latest barometer of the economic outlook for the next 3-6 months, but economists surveyed by Bloomberg thought it would rise 0.2%. April’s gain was revised up to 0.8%.4 A WILD RIDE FOR STOCKS Volatility was rampant last week on Wall Street, and so were losses. In five days, the S&P 500 slipped 2.11% to 1,592.43, the Dow lost 1.80% to 14,799.40 and the NASDAQ fell 1.94% to 3,357.25.5 THIS WEEK: Nothing major is scheduled for Monday. Tuesday brings the April Case-Shiller and FHFA home price indices, the Conference Board’s June consumer confidence poll, reports on May hard goods orders and new home sales and earnings from Lennar, Carnival, Walgreens and Barnes & Noble. Wednesday, the Bureau of Economic Analysis publishes its final estimate of Q1 GDP, and earnings arrive from Monsanto, Bed Bath & Beyond and General Mills. The latest initial jobless claims figures come in Thursday, along with NAR’s report on May pending home sales, the Commerce Department’s report on May consumer spending and earnings news from KBHome, ConAgra, Nike and Accenture. Friday brings the final June University of Michigan consumer sentiment survey and earnings from Blackberry. % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +12.94 +17.70 +4.99 +6.08 NASDAQ +11.19 +17.42 +7.91 +10.41 S&P 500 +11.66 +20.14 +4.17 +5.99 REAL YIELD 6/21 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.59% -0.47% 1.72% 1.77%   Sources: cnbc.com, usatoday.com, bigcharts.com, treasury.gov – 6/21/135,6,7,8,9 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. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Past performance is no guarantee of future results.  Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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 – cnbc.com/id/100831276 [6/20/13] 2 – foxbusiness.com/markets/2013/06/19/wall-street-pummeled-amid-fed-woes/ [6/19/13] 3 – online.wsj.com/article/SB10001424127887323566804578553151902340728.html [6/18/13] 4 – bloomberg.com/news/2013-06-20/sales-of-previously-owned-u-s-homes-rise-more-than-forecast.html [6/20/13] 5 – cnbc.com/id/100834381 [6/21/13] 6 – usatoday.com/money/markets/overview/ [6/21/13] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F21%2F12&x=0&y=0 [6/21/13] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F21%2F12&x=0&y=0 [6/21/13] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F21%2F12&x=0&y=0 [6/21/13] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F20%2F08&x=0&y=0 [6/21/13] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F20%2F08&x=0&y=0 [6/21/13] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F20%2F08&x=0&y=0 [6/21/13] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F20%2F03&x=0&y=0 [6/21/13] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F20%2F03&x=0&y=0 [6/21/13] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F20%2F03&x=0&y=0 [6/21/13] 8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [6/21/13] 9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [6/21/13]

 

Weekly Economic Update June 10, 2013

WEEKLY QUOTE

“We are an impossibility in an impossible universe.”

– Ray Bradbury

 WEEKLY TIP

You can’t control what happens with interest rates or stocks in the future; you can control the amount you save for retirement. Boosting your personal savings ratio may bring you closer toward your retirement savings objective.

WEEKLY RIDDLE      

What runs around a field, but doesn’t move?

 Last week’s riddle:

There is a word that starts and ends with T, and contains “tea” as well. What word is this?

Last week’s answer:

Teapot.

June 10, 2013

A REASSURING JOBS REPORT

A jittery Wall Street liked the big picture it saw in the Labor Department’s May employment report. The economy added 175,000 jobs last month: decent hiring growth, not dismaying to investors, yet not impressive enough to signal the Federal Reserve to taper off QE3. Economists polled by Bloomberg forecast payrolls rising by 163,000. The jobless rate ticked up to 7.6% in May as more people started looking for work; the private sector hired 178,000 new employees and the number of discouraged job seekers hit a 52-month low. The Dow had its best day since January on Friday, rising 207.50 in response.1,2

FACTORY ACTIVITY CONTRACTS IN MAY

That was the message sent by the Institute for Supply Management’s latest manufacturing PMI. The May reading dropped 1.7 points to 49.0%. On the other hand, the ISM service sector PMI rose 0.6 points in May to 53.7.3

FED BEIGE BOOK HINTS AT SLOWER GROWTH

The central bank’s latest anecdotal survey of businesses, lenders and other segments of the private sector noted “modest to moderate” economic expansion, as opposed to the “moderate” growth referenced in the previous edition. It did report a “moderate to strong pace” of expansion in the real estate

STOCKS RISE, 10-YEAR TIPS REAL YIELD GOES POSITIVE

Volatility didn’t stop stocks from advancing last week – the Dow rose 0.88% to 15,248.12, the NASDAQ 0.38% to 3,469.22 and the S&P 500 0.78% to 1,643.38. NYMEX crude soared 4.4% for the week to settle at $96.03 Friday. Another factoid of interest: the real yield of the 10-year note went into positive territory this week for the first time since January 23, 2012.2,5,6

 THIS WEEK: The data stream looks to be fairly light this week. Monday offers earnings reports from Lululemon, Pep Boys and Annie’s. Nothing major is scheduled for Tuesday. Men’s Wearhouse and H&R Block announce quarterly results on Wednesday. Thursday, the Census Bureau provides its May retail sales report, Casey’s General Store reports earnings, and the latest initial jobless claims figures arrive. Friday sees the release of May’s Producer Price Index, the Federal Reserve’s report on May industrial output and the University of Michigan’s preliminary June consumer sentiment survey.

% CHANGE	Y-T-D	1-YR CHG	5-YR AVG	10-YR AVG
DJIA	+16.36	+22.37	+4.98	+6.82
NASDAQ	+14.89	+22.54	+8.04	+11.32
S&P 500	+15.23	+24.97	+4.16	+6.64
REAL YIELD	6/7 RATE	1 YR AGO	5 YRS AGO	10 YRS AGO
10 YR TIPS	0.03%	-0.49%	1.47%	1.76%

 

 

 

Sources: barrons.com, usatoday.com, bigcharts.com, treasury.gov – 6/7/135,6,7,8

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.

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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. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Past performance is no guarantee of future results.  Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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 – bloomberg.com/news/2013-06-07/payrolls-in-u-s-increased-175-000-in-may-unemployment-at-7-6-.html [6/7/13]

2 – blogs.barrons.com/stockstowatchtoday/2013/06/07/market-snaps-two-week-losing-streak-on-solid-jobs-report/ [6/7/13]

3 – ism.ws/ISMReport/NonMfgROB.cfm [6/7/13]

4 – articles.chicagotribune.com/2013-06-05/business/chi-fed-beigebook-20130605_1_u-s-economy-federal-reserve-most-districts [6/5/13]

5 – usatoday.com/money/markets/overview/ [6/7/13]

6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [6/7/13]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F7%2F12&x=0&y=0 [6/7/13]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F7%2F12&x=0&y=0 [6/7/13]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F7%2F12&x=0&y=0 [6/7/13]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F6%2F08&x=0&y=0 [6/7/13]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F6%2F08&x=0&y=0 [6/7/13]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F6%2F08&x=0&y=0 [6/7/13]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F6%2F03&x=0&y=0 [6/7/13]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F6%2F03&x=0&y=0 [6/7/13]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F6%2F03&x=0&y=0 [6/7/13]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [6/7/13]

Weekly Economic Update June 3, 2013

WEEKLY QUOTE“It is not fair to ask of others what you are unwilling to do yourself.”       – Eleanor Roosevelt           WEEKLY TIP Remember that a major life event may mean a change in your retirement, tax or estate planning approach.       WEEKLY RIDDLE There is a word that starts and ends with T, and contains “tea” as well. What word is this?      Last week’s riddle: Rigid is my spine, my innards are mostly pale, yet I am always ready to tell a tale. What am I?     Last week’s answer: A book.	June 3, 2013      CONSUMERS UPBEAT IN MAY, SPEND LESS IN APRIL Consumer spending slipped 0.2% in April, with a 4.4% drop in purchases of gas, electricity and other energy goods and services being a major influence. In better news, the Commerce Department noted a 3.4% rise in personal spending in Q1, and the two most-watched consumer confidence gauges beat consensus forecasts last week. The Conference Board’s May survey came in at 76.2, topping the 72.5 projected by analysts polled by Briefing.com. The final May consumer sentiment survey from the University of Michigan rose to 84.5; the same group of forecasters had projected it at 82.5.1,2 HOME PRICES GAIN NEARLY 11% IN A YEAR To be precise, 10.9%: that was the 12-month improvement across 20 cities noted in the March edition of the S&P/Case-Shiller Home Price Index. In other housing news, the National Association of Realtors announced a 1.5% rise in pending home sales for April, bringing the annualized gain to 7.0%.3 AN UPDATE ON MEDICARE’S LONG-TERM HEALTH Last week saw the release of the 2013 Medicare and Social Security trustee reports. While Social Security is still projected for a shortfall in 2033, Medicare’s board now forecasts that the program can run until 2026 without depleting its trust fund, citing projected savings from the Affordable Care Act. That is two years longer than previously projected. Friday, Health & Human Services secretary Kathleen Sebelius said she did not foresee an increase in Medicare Part B premiums in 2014.4 S&P 500 NOTCHES 7-MONTH WINNING STREAK Even though it sank 1.14% for the week, the broad U.S. benchmark gained 2.08% for May, ending the month at 1,630.74. While the Dow (-1.23% to 15,115.57) and NASDAQ (-0.09% to 3,455.91) didn’t advance last week either, they respectively gained 1.86% and 3.82% last month.5 THIS WEEK: ISM’s May manufacturing PMI arrives Monday, plus Commerce Department figures on May auto sales. Tuesday, Dollar General announces Q1 earnings. Wednesday, ISM’s May service sector index comes out along with the May ADP employment report, a new Federal Reserve Beige Book and data on April factory orders; Q1 results arrive from Hovnanian and VeriFone. On Thursday, the Bank of England and European Central Bank wrap up policy meetings, and the May Challenger job cuts report comes out along with initial unemployment claims data and earnings from Ann and JM Smucker. Friday, the Labor Department releases the May employment report. % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +15.35 +21.96 +3.92 +7.08 NASDAQ +14.45 +22.23 +7.40 +11.65 S&P 500 +14.34 +24.45 +3.29 +6.92 REAL YIELD 5/31 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.05% -0.50% 1.58% 1.77% Sources: cnbc.com, bigcharts.com, treasury.gov – 5/31/135,6,7,8 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. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Past performance is no guarantee of future results.  Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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 – latimes.com/business/money/la-fi-mo-personal-income-consumer-spending-economy-20130531,0,3433990.story [5/31/13] 2 – briefing.com/investor/calendars/economic/2013/05/27-31 [5/31/13] 3 – foxbusiness.com/news/2013/05/28/case-shiller-us-home-prices-rise-again-in-march/ [5/28/13] 4 – money.usnews.com/money/blogs/the-best-life/2013/05/31/social-security-deficit-outlook-remains-unchanged [5/31/13] 5 – cnbc.com/id/100779852 [5/31/13] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F31%2F12&x=0&y=0 [5/31/13] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F31%2F12&x=0&y=0 [5/31/13] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F31%2F12&x=0&y=0 [5/31/13] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F30%2F08&x=0&y=0 [5/31/13] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F30%2F08&x=0&y=0 [5/31/13] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F30%2F08&x=0&y=0 [5/31/13] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F30%2F03&x=0&y=0 [5/31/13] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F30%2F03&x=0&y=0 [5/31/13] 6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F30%2F03&x=0&y=0 [5/31/13] 7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [5/31/13] 8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [5/31/13]

Weekly Economic Update May 27, 2013

May 27, 2013

 

 

WEEKLY QUOTE

“Let him who would enjoy a good future waste none of his present.”

– Roger Babson

WEEKLY TIP 

What’s more important for a young couple: an emergency fund, or saving for a down payment on a home? The emergency fund gets the nod if your finances allow you to save toward only one of these two financial objectives.

 

WEEKLY RIDDLE

Rigid is my spine, my innards are mostly pale, yet I am always ready to tell a tale. What am I?

Last week’s riddle:

What should the next number be in this series: 103, 107, 109, 113, 127 …

Last week’s answer:

131, as the whole series is made up of prime numbers.

APRIL DATA AFFIRMS HOUSING REBOUND

Last month brought a 2.3% gain in new home sales and an 0.6% increase in existing home sales. Distressed properties (short sales and foreclosures) represented only 18% of residential resales in April, the National Association of Realtors noted; compare that with 28% of sales in April 2012. NAR also announced that the median existing home price was $192,800 in April, 11.0% higher than a year ago. The pace of new home buying has improved 29.0% in the past 12 months, according to the Census Bureau.1,2

FED MINUTES DISCLOSE THOUGHTS OF TAPERING QE3

The May 1 Federal Open Market Committee minutes were released last Wednesday, shortly after Federal Reserve chairman Ben Bernanke mentioned the need to sustain the central bank’s current stimulus effort in Congress. The minutes, however, noted that “a number” of Fed officials were open to scaling down QE3 as soon as June if economic indicators sufficiently improved. Concern and confusion about these mixed messages put more volatility into the markets and factored into a 3-day losing streak for the S&P 500.3

DURABLE GOODS ORDERS UP 3.3% IN APRIL

This contrasts with March’s 5.9% decrease. With transportation orders factored out, the April increase was still 1.3%. Census Bureau reports have noted improvements in hard goods orders in two of the past three months, even with the sequester.4

RUSSELL 2000 REACHES A MILESTONE

While the small-cap benchmark fell 1.20% last week, it also made history on May 20: it attained the 1,000 level for the first time. The RUT settled Friday at 984.28. The S&P 500 (-1.07% to 1,649.61), DJIA (-0.33% to 15,303.10) and NASDAQ (-1.14% to 3,459.14) all slipped last week.4,5,6,7

THIS WEEK: U.S. financial markets are closed Monday in observance of Memorial Day. Tuesday sees the release of the March S&P/Case-Shiller Home Price Index, the Conference Board’s May consumer confidence survey and earnings from Tiffany & Co. and Wet Seal. DSW and Chico’s announce Q1 results on Wednesday. In addition to new initial jobless claims figures, Thursday offers NAR’s report on April pending home sales, the federal government’s second estimate of Q1 GDP, and earnings from Krispy Kreme, BigLots! and Costco. Friday, the Commerce Department issues its report on April personal spending and the University of Michigan’s final May consumer sentiment survey arrives.

 

% CHG	Y-T-D	1-YR CHG	5-YR AVG	10-YR AVG
DJIA	+16.78	+22.13	+4.52	+7.79
NASDAQ	+14.56	+21.83	+8.30	+12.91
S&P 500	+15.66	+24.91	+3.98	+7.68
REAL YIELD	5/24 RATE	1 YR AGO	5 YRS AGO	10 YRS AGO
10 YR TIPS	-0.26%	-0.38%	1.36%	1.72%

 

 

 

 

Sources: usatoday.com, thestreet.com, bigcharts.com, treasury.gov – 5/24/134,7,8,9,10

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.

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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. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Past performance is no guarantee of future results.  Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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 – csmonitor.com/Business/new-economy/2013/0523/New-home-sales-rise-but-market-still-a-long-way-from-normal [5/23/13]

2 – realtor.org/news-releases/2013/05/april-existing-home-sales-up-but-constrained [5/22/13]

3 – reuters.com/article/2013/05/22/markets-usa-stocks-idUSL2N0E321R20130522 [5/22/13]

4 – thestreet.com/story/11933260/1/sp-poised-for-three-day-losing-streak-amid-qe-wind-down-chatter.html [5/24/13]

5 – marketwatch.com/story/russell-2000-index-breaks-above-1000-2013-05-20 [5/20/13]

6 – blogs.barrons.com/stockstowatchtoday/2013/05/24/dow-ekes-out-friday-gain-down-for-the-week/ [5/24/13]

7 – usatoday.idmanagedsolutions.com/stocks/overview.idms?index=SP500 [5/24/13]

8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F24%2F12&x=0&y=0 [5/24/13]

8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F24%2F12&x=0&y=0 [5/24/13]

8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F24%2F12&x=0&y=0 [5/24/13]

8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F23%2F08&x=0&y=0 [5/24/13]

8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F23%2F08&x=0&y=0 [5/24/13]

8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F23%2F08&x=0&y=0 [5/24/13]

8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F23%2F03&x=0&y=0 [5/24/13]

8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F23%2F03&x=0&y=0 [5/24/13]

8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F23%2F03&x=0&y=0 [5/24/13]

9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [5/24/13]

10 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [5/24/13]

 

Weekly Economic Update May 20, 2013

WEEKLY QUOTE “How wonderful it is that nobody need wait a single moment before starting to improve the world.”       – Anne Frank           WEEKLY TIP Set aside a half-hour to organize your financial documents. It makes sense for tax season, and it makes sense all year.       WEEKLY RIDDLE What should the next number be in this series: 103, 107, 109, 113, 127 …      Last week’s riddle: I can’t be captured or held, and I certainly am not seen … yet I can occasionally be heard, and I am often all around you. What am I?     Last week’s answer: The wind.

May 20, 2013      SUBDUED INFLATION IN APRIL Consumer and producer prices retreated last month. The federal government’s Consumer Price Index fell 0.4%, a monthly descent unseen since December 2008; the Producer Price Index declined 0.7%, its biggest monthly drop in three years. Consumer prices also fell for a second straight month; the last time that happened was in late 2008. The core CPI did rise 0.1% in April; the yearly gain in the overall CPI was just 1.1%.1 THREE MORE POSITIVE SIGNS FOR THE ECONOMY The University of Michigan’s initial May consumer sentiment survey came in at 83.7 – its highest level since July 2007, 7.3 points above the final April mark. After falling 0.2% for March, the Conference Board’s index of U.S. leading indicators rose 0.6% for April. Census Bureau data showed retail sales ticking up 0.1% in April and 3.7% in the past year.2,3 HOUSING STARTS PLUNGE, BUILDING PERMITS SOAR While the year-over-year increase was 13.1%, housing starts plummeted 16.5% in April, largely due to a 37.8% drop in apartment starts. On the other hand,  last month brought a 14.3% rise in building permits … marked by a 40.6% jump in permits for apartment construction.4 BULLS KEEP RUNNING The S&P 500 is now on a 4-week winning streak. It rose another 1.98% last week to settle at 1,666.12 Friday. Complementing that 5-day gain, the NASDAQ went +1.82% last week while the DJIA went +1.56%; at Friday’s closing bell, the NASDAQ settled at 3,498.97 and the Dow at 15,354.40. A truly impressive factoid: the NASDAQ and S&P have gained 1% or more in each of the past four weeks.5 THIS WEEK: Monday brings earnings from Campbell Soup, TiVo and Urban Outfitters. On Tuesday, Best Buy, Home Depot, Medtronic, Vodafone, Saks, TJX and NetApp announce quarterly results. Wednesday, NAR releases its report on April existing home sales, the Federal Reserve releases the May 1 FOMC minutes, and Fed chairman Ben Bernanke testifies before Congress; Staples, L Brands, PetSmart, Toll Brothers, Target, Lowe’s and Hewlett-Packard post earnings. The Census Bureau report on April new home sales appears Thursday, along with the March FHFA housing price index and earnings from Dollar Tree, Gamestop, Ralph Lauren, Sears Holdings, Gap, Ross Stores, Aeropostale and Pandora. Friday offers the April durable goods orders report and Q1 results from Abercrombie & Fitch. % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +17.17 +23.40 +3.65 +7.69 NASDAQ +15.88 +24.36 +7.67 +12.74 S&P 500 +16.82 +27.69 +3.38 +7.64 REAL YIELD 5/17 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.31% -0.35% 1.41% 1.84%   Sources: cnbc.com, bigcharts.com, treasury.gov – 5/17/135,6,7,8 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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Weekly Economic Update May 13, 2013

WEEKLY QUOTE “Always laugh when you can. It is cheap medicine.”       – Lord Byron           WEEKLY TIP While no one likes to think about their funeral, preplanned or prepaid funeral arrangements may be a financially smart move and may relieve your heirs of some stress when the time comes.       WEEKLY RIDDLE I can’t be captured or held, and I certainly am not seen … yet I can occasionally be heard, and I am often all around you. What am I?        Last week’s riddle: I protect you. I sit on a bridge. You can see through me. People walking by might wonder what I hide. What am I?     Last week’s answer: A pair of sunglasses.	May 13, 2013      HOW IS THIS EARNINGS SEASON TURNING OUT? At the closing bell on May 10, 90% of S&P 500 firms had reported quarterly results. According to Reuters, 67% of them have surpassed earnings forecasts and 24% have fallen short of projections. Should the remaining 50 components report results matching estimates, earnings will be up 5.3% on last year. Sales gains are another story: just 46% of companies reporting so far have beaten their revenue forecasts.1,2 FED RAMPS UP ITS FINANCIAL SCRUTINY Federal Reserve chairman Ben Bernanke said Friday that the central bank was now keeping close tabs on the “shadow banking” sector that bred the toxic assets associated with the last credit crisis. At the Chicago Fed’s banking conference, he noted that “careful monitoring for signs of emerging vulnerabilities” constituted “probably our best defense against complacency during extended periods of calm”. In widening its oversight, the Fed is also watching asset markets, consumers and businesses for signs of systemic risk in addition to banks.3 OIL MOVES HIGHER, GOLD LOSES GROUND COMEX gold retreated 1.76% last week, and that was mirrored by silver’s 1.25% weekly loss; the dollar gained 1.25% across five days. NYMEX crude rose 0.45% for the week. At Friday’s close, oil settled at $96.04 and gold at $1,443.30.4 ANOTHER WEEK OF GAINS, MORE ALL-TIME HIGHS The Dow went +0.97% last week to close at 15,118.49 Friday – a record high. The S&P 500 gained 1.19% last week to settle at another all-time peak of 1,633.70 Friday. After a 1.72% weekly gain, the NASDAQ ended Friday’s trading session at 3,436.58.1 THIS WEEK: The Commerce Department issues its April retail sales report Monday, and Anglogold Ashanti and Take Two Interactive announce Q1 results. Nothing major is scheduled for Tuesday. Wednesday, the April PPI comes out plus the May NAHB housing index and data on April industrial output; earnings from Macy’s, Cisco and Deere & Co. also appear. Thursday, April’s CPI arrives along with the latest initial claims figures, data on April housing starts and building permits, and a wave of earnings mostly from major retailers (Kohl’s, Wal-Mart, Nordstrom, JCPenney, Autodesk, Marvell Tech and Applied Materials). Friday brings the preliminary May consumer sentiment index from the University of Michigan and the Conference Board’s April leading indicators index. % CHG Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +15.37 +17.61 +3.73 +7.57 NASDAQ +13.81 +17.14 +8.11 +12.61 S&P 500 +14.55 +20.30 +3.54 +7.50 REAL YIELD 5/10 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.45% -0.25% 1.39% 2.00%   Sources: cnbc.com, bigcharts.com, treasury.gov – 5/10/131,5,6,7 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. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Past performance is no guarantee of future results.  Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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 – cnbc.com/id/100727118 [5/10/13] 2 – chicagotribune.com/business/sns-rt-us-usa-earnings-trendbre9490np-20130510,0,1017540.story [5/10/13] 3 – suntimes.com/business/20022861-420/bernanke-fed-increasing-financial-monitoring.html [5/10/13] 4 – news.goldseek.com/GoldSeeker/1368217251.php [5/10/13] 5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F10%2F12&x=0&y=0 [5/10/13] 5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F10%2F12&x=0&y=0 [5/10/13] 5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F10%2F12&x=0&y=0 [5/10/13] 5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F9%2F08&x=0&y=0 [5/10/13] 5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F9%2F08&x=0&y=0 [5/10/13] 5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F9%2F08&x=0&y=0 [5/10/13] 5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F9%2F03&x=0&y=0 [5/10/13] 5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F9%2F03&x=0&y=0 [5/10/13] 5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F9%2F03&x=0&y=0 [5/10/13] 6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [5/10/13] 7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [5/10/13]

 

Weekly Economic Update May 6, 2013

WEEKLY QUOTE “Everything you can imagine is real.”       – Pablo Picasso           WEEKLY TIP Retiring in the near future? A monthly retirement budget is a good idea – and so is a current budget that establishes a schedule for paying down debts and reducing costs before you enter into a new phase of life.       WEEKLY RIDDLE I protect you. I sit on a bridge. You can see through me. People walking by might wonder what I hide. What am I?        Last week’s riddle: How can you name three consecutive days without mentioning the words Monday, Tuesday, Wednesday, Thursday, Friday, Saturday or Sunday?     Last week’s answer: Yesterday, today and tomorrow.

May 6, 2013      UNEMPLOYMENT EDGES DOWN TO 7.5% April brought a rebound in hiring. Employers added 165,000 jobs, and so the unemployment rate reached a four-year low. (The Labor Department also revised March’s job gains upward to 138,000.) Payrolls have now expanded by an average of 189,000 jobs a month during the last six months.1 CONSUMER SPENDING, OUTLOOK IMPROVE Household spending increased 0.2% in March, the Commerce Department noted – part of a broader 3.2% advance for the first quarter. The Conference Board’s April consumer confidence index soared 6.2 points to 69.1, far exceeding the 61.0 consensus forecast of economists polled by Bloomberg.2 STRONG SIGNALS OF A HOUSING COMEBACK Home equity is definitely being restored: the latest 20-city S&P/Case-Shiller Home Price Index (February) shows a 9.3% year-over-year increase, the largest annual gain recorded in six years. The National Association of Realtors reported a 1.5% March gain in its pending home sales index, with the yearly gain at 7.0%.2,3 IS MANUFACTURING COOLING DOWN? The Institute for Supply Management’s April factory index came in at 50.7 last week, the weakest reading in nine months and down from 0.6 from March. ISM’s April service sector index also declined 1.3 points off the March reading of 53.1.4 S&P TOPS 1,600, FED REASSURES INVESTORS Last week brought major gains for the Dow (+1.78% to 14,973.96), S&P 500 (+2.03% to 1,614.42) and NASDAQ (+3.03% to 3,378.63). On May 1, the Federal Reserve said it would keep buying $85 billion in bonds per month for the near future, noting that the pace of asset purchases could even increase if needed.5 THIS WEEK: Tyson Foods, Sysco, Anadarko and First Solar report quarterly results Monday. Tuesday, the market awaits earnings from WholeFoods, Walt Disney, Trip Advisor, HSBC, DirecTV, Electronic Arts, Marathon Oil, Symantec, Live Nation, WebMD and Zillow. Wednesday, earnings are in from Liberty Interactive, Green Mountain Coffee, Activision Blizzard, AOL, Sodastream, Wendy’s, Toyota, Liberty Media, Groupon, Monster Beverage, NewsCorp, Tesla Motors and Transocean. Thursday brings a report on March wholesale inventories, the latest initial jobless claims figures, and quarterly results from Sony, Nvidia, Dish Network, Priceline.com and Dean Foods. On Friday, Fed chairman Ben Bernanke speaks at a Chicago banking conference and ArcelorMittal and GoldFields announce earnings. % CHG Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +14.27 +13.38 +2.93 +7.45 NASDAQ +11.89 +11.72 +7.28 +12.48 S&P 500 +13.20 +16.01 +2.84 +7.36 REAL YIELD 5/3 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.53% -0.27% 1.53% 2.19% Sources: cnbc.com, bigcharts.com, treasury.gov – 5/3/135,6,7,8 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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