Weekly Economic Report for the Week of June 13th

Dave Swan Presents:

 

WEEKLY ECONOMIC UPDATE
 

 

WEEKLY QUOTE

 

“Early to bed and early to rise makes a man healthy, wealthy, and wise.”

     

– Ben Franklin

      

   

WEEKLY TIP

 

Millennials should not fall for the myth that you need to carry a lot of consumer debt to build a good credit score. A positive payment history can be established while carrying relatively little debt.

  

   

WEEKLY RIDDLE

 

At the sound of it, you may dream, dance, laugh, weep, or even stamp your feet. What is it?

 

 

Last week’s riddle:

Three feet have I, yet not a single leg. What am I?

   

Last week’s answer:

A yardstick.

 

 

 

 

June 13, 2016

   

A LITTLE LESS OPTIMISM IN EARLY JUNE

On Friday, the University of Michigan’s initial June survey of consumer sentiment showed a slight retreat, with the index coming in at 94.3 versus its final May mark of 94.7. The survey’s chief economist, Richard Curtin, noted “consumers rated their current financial situation at the best levels since the 2007 cyclical peak largely due to wage gains” and also had “record low inflation expectations.” On the downside, consumers felt the economy was stronger a year ago.1

 

YELLEN OFFERS NO HINT OF SPRING RATE HIKE

Speaking in Philadelphia last week, Federal Reserve chair Janet Yellen said she felt “the current stance of monetary policy is generally appropriate,” adding “at the same time, I continue to think that the federal funds rate will probably need to rise gradually over time to ensure price stability and maximum sustainable employment in the longer run.” Investors interpreted her comments as a sign that the possibility of a June interest rate increase was very remote.2

 

BORROWING BECOMES CHEAPER FOR HOMEOWNERS

The average interest rate on a conventional home loan fell to 3.60% in Freddie Mac’s June 9 Primary Mortgage Market Survey. A week earlier, the average interest rate for a 30-year FRM was at 3.66%; a year ago, it was at 4.04%.3

 

BREXIT FEARS REIN IN BULLS

Concerns about the United Kingdom leaving the European Union sent bond yields falling worldwide late last week and hampered stocks, ending a 4-week win streak for the S&P 500. The 5-day performances: DJIA, +0.33% to 17,865.34; S&P, -0.15% to 2,096.07; NASDAQ, -0.97% to 4,894.55. Oil settled at $49.07 on the NYMEX Friday; gold, at a 3-week high of $1,275.90 on the COMEX.4,5

 

THIS WEEK: Nothing major is scheduled on Monday. May retail sales figures arrive Tuesday, plus Q1 results from Bob Evans. Wednesday, the Fed concludes a policy meeting (with a press conference to follow); the May Producer Price Index is released; and Jabil Circuit and Progressive present earnings. Thursday, the May Consumer Price Index appears, along with a new initial claims report and earnings from Kroger, Oracle, Red Hat, and Rite Aid. The Census Bureau releases its report on May groundbreaking and building permits on Friday.

 

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +2.53 -0.75 +9.90 +6.40
NASDAQ -2.25 -3.59 +17.03 +12.92
S&P 500 +2.55 -0.43 +12.98 +6.74
REAL YIELD 6/10 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.12% 0.63% 0.79% 2.45%

Sources: wsj.com, bigcharts.com, treasury.gov – 6/10/165,6,7,8

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

 

 

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.

 

Securities offered through Lion Street Financial, LLC. (LSF), Member FINRA & SIPC. Investment Advisory Services offered through Physician Investment Advisors, LLC. Physician Advisors and Physician Investment Advisors are not affiliated with LSF.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. 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. 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. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. 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 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 – sca.isr.umich.edu/ [6/10/16]

2 – cnbc.com/2016/06/07/european-stocks-shell-yellen-oil-prices.html [6/7/16]

3 – forbes.com/sites/redfin/2016/06/09/mortgage-rates-down-for-first-time-in-four-weeks/ [6/9/16]

4 – marketwatch.com/story/us-stock-futures-slammed-by-jitters-over-fed-and-brexit-2016-06-10 [6/10/16]

5 – markets.wsj.com/us [6/10/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F10%2F15&x=0&y=0 [6/10/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F10%2F15&x=0&y=0 [6/10/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F10%2F15&x=0&y=0 [6/10/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F10%2F11&x=0&y=0 [6/10/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F10%2F11&x=0&y=0 [6/10/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F10%2F11&x=0&y=0 [6/10/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F9%2F06&x=0&y=0 [6/10/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F9%2F06&x=0&y=0 [6/10/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F9%2F06&x=0&y=0 [6/10/16]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [6/10/16]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [6/10/16]

 

 

 

 


Weekly Economic Report for June 6th, 2016

Amber Nabity Stitt Presents:

 

WEEKLY ECONOMIC UPDATE

WEEKLY QUOTE

“All the world’s a stage and most of us are desperately unrehearsed.”

     

– Sean O’Casey

      

WEEKLY TIP

Self-employed? Note that you can deduct 100% of your health insurance premiums (for yourself and your family) as an adjustment to gross income.

 

WEEKLY RIDDLE

Three feet have I, yet not a single leg. What am I?

 

Last week’s riddle:

I descend softly, fade away gently, change the color of the ground, but I never go up the way I come down. What am I?

   

Last week’s answer:

Snow.

 

 

 

 

June 6, 2016

  

MAY SAW WEAKEST JOB GROWTH IN 5+ YEARS

Did any economist foresee payrolls expanding by just 38,000 jobs in May? The median forecast compiled by MarketWatch projected a gain of 155,000, not the worst number since September 2010. The Department of Labor reduced March and April payroll gains by 59,000 in its new report, meaning monthly job creation averaged 116,000 in the past three months. As labor force participation declined 0.6% in May, the headline jobless rate fell to 4.7%. Annualized wage growth was at 2.5%.1,2

 

CONSUMERS FLEX THEIR PURCHASING POWER

In better news, personal spending rose 1.0% in April according to the Department of Commerce. This was the biggest monthly spending gain since August 2009. Personal incomes were up 0.4% in April as well.2,3

 

ONE OF TWO ISM PMIS IMPROVE

Both of the purchasing manager indices maintained by the Institute for Supply Management were above the 50 level in May, indicating sector growth. The upside? The manufacturing PMI improved 0.5 points to 51.3. The downside? The service sector PMI slipped 2.8 points to 52.9.2

 

CONSUMER CONFIDENCE DIPS

Last month brought a decline in the Conference Board’s index of consumer confidence. Analysts surveyed by MarketWatch forecast a May reading of 96.7 for the index, yet it fell 2.1 points to 92.6 in its second straight monthly descent.2,3

 

NASDAQ ADVANCES, UNLIKE S&P & DOW

Immediately after the May jobs report, futures traders put the odds of a June interest rate hike under 10%. Even so, there was no rally at the end of a short trading week. While the Nasdaq rose 0.83% in four days, the S&P 500 was flat for the week (to be precise, it added 0.07 points) and the Dow lost 0.12%. The Friday settlements: DJIA, 17,807.06; S&P, 2,099.13; NASDAQ, 4,942.52.1,4

 

THIS WEEK: Federal Reserve chair Janet Yellen speaks on the economy and monetary policy Monday in Philadelphia; investors will also consider earnings from Casey’s General Stores and Thor Industries. Tuesday, Michaels and VeriFone report earnings. Wednesday, Lululemon Athletica presents Q1 results. Thursday offers quarterly results, plus the latest initial claims numbers, from H&R Block and J.M. Smucker. The University of Michigan’s preliminary June consumer sentiment index appears Friday.

 

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +2.19 -1.49 +9.31 +5.83
NASDAQ -1.30 -3.07 +16.17 +12.27
S&P 500 +2.70 -0.71 +12.29 +6.29
REAL YIELD 6/3 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.19% 0.55% 0.75% 2.37%

 
Sources: wsj.com, bigcharts.com, treasury.gov – 6/3/165,6,7,8

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

 

 

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.

 

 
Securities offered through Lion Street Financial, LLC. (LSF), Member FINRA & SIPC. Investment Advisory Services offered through Physician Investment Advisors, LLC. Physician Advisors and Physician Investment Advisors are not affiliated with LSF.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. 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. 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. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. 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 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 – forbes.com/sites/samanthasharf/2016/06/03/jobs-report-u-s-adds-just-38000-jobs-in-may-unemployment-rate-down-to-4-7/ [6/3/16]

2 – marketwatch.com/economy-politics/calendars/economic [6/3/16]

3 – usatoday.com/story/money/business/2016/05/31/economy-consumer-spending-personal-income/85182502/ [5/31/16]

4 – markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [6/3/16]

5 – markets.wsj.com/us [6/3/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F3%2F15&x=0&y=0 [6/3/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F3%2F15&x=0&y=0 [6/3/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F3%2F15&x=0&y=0 [6/3/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F3%2F11&x=0&y=0 [6/3/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F3%2F11&x=0&y=0 [6/3/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F3%2F11&x=0&y=0 [6/3/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F2%2F06&x=0&y=0 [6/3/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F2%2F06&x=0&y=0 [6/3/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F2%2F06&x=0&y=0 [6/3/16]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [6/3/16]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [6/3/16]

 

 

 

 


Weekly Economic Update for the Week of May 9, 2016

Justin Nabity Presents: 

WEEKLY ECONOMIC UPDATE

WEEKLY QUOTE

 

“He not busy being born is busy dying.”

     

– Bob Dylan

      

   

WEEKLY TIP

 

In your business budget, think of your marketing costs as a percentage of sales, somewhere between 2-10%. If you are building a brand, those costs might need to approach or exceed 20% of sales.

  

   

WEEKLY RIDDLE

 

I can easily be divided. Within me, you will notice 13 hearts, but no organs. What am I?

 

 

Last week’s riddle:

It cannot see and it feels no pain, despite matter constantly going through its eye. What is it?

   

Last week’s answer:

A sewing needle.

 

 

 

 

May 9, 2016

 APRIL JOBS REPORT RAISES QUESTIONS

Employers hired 160,000 more workers than they let go last month, and that net job gain was the smallest since September. Does this suggest a job market losing steam, or does it hint at an economy nearing full employment? The hiring number may make the Federal Reserve reconsider the possibility of a June interest rate hike. Average hourly wages improved to $25.53 in April, up 2.5% year-over-year. While the main jobless rate remained at 5.0%, the U-6 rate, counting both the unemployed and underemployed, declined 0.1% to 9.7%.1

 

MORE EXPANSION IN FACTORY & SERVICE SECTORS

Both of the Institute for Supply Management’s purchasing manager indices were above the critical 50 level (indicating growth) in April. ISM’s manufacturing index came in at 50.8, its non-manufacturing index at 55.7. Economists surveyed by MarketWatch expected a 51.4 reading for the factory PMI and a 54.7 reading for the services PMI.2

 

OIL SETTLES UNDER $45

Light sweet crude closed at $44.66 Friday on the NYMEX, down 2.7% for the week on perceptions that near-term supply was exceeding demand. Gold got a boost from the disappointing jobs data, settling at $1,294.00 Friday to go up 0.3% for the week.3,4

 

WALL STREET SEES A MINOR WEEKLY RETREAT

Across May 2-6, the S&P 500 lost 0.40% to 2,057.14; the Nasdaq Composite, 0.82% to 4,736.16; and the Dow Jones Industrial Average, 0.19% to 17,740.63. Headwinds included the underwhelming jobs report, the weaker-than-expected ISM factory PMI and the week’s dip in oil prices.5

 

THIS WEEK: On Monday, earnings from Chimerix, Hertz Global, Nautilus, Novatel Wireless, TeamHealth, and Tyson Foods arrive. Dean Foods, Electronic Arts, Norwegian Cruise Line, Planet Fitness, Tribune Media, and Walt Disney Co. present earnings Tuesday. Wednesday, the earnings parade includes announcements from Aramark, Jack in the Box, Macy’s, NetEase, Weibo, and Wendy’s. Thursday, the latest initial claims figures complement earnings news from Dillard’s, Kohl’s, Nordstrom, Ralph Lauren, Shake Shack, and Symantec. April retail sales data, the April Producer Price Index, and the initial May consumer sentiment index from the University of Michigan all appear Friday, along with Q1 results from J.C. Penney.

 

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +1.81 -0.57 +8.07 +5.32
NASDAQ -5.42 -3.73 +13.50 +10.22
S&P 500 +0.65 -1.11 +10.70 +5.52
REAL YIELD 5/6 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.18% 0.34% 0.71% 2.45%

 
Sources: wsj.com, bigcharts.com, treasury.gov – 5/6/166,7,8,9

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

 

 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.
 
 
Securities offered through Lion Street Financial, LLC. (LSF), Member FINRA & SIPC. Investment Advisory Services offered through Physician Investment Advisors, LLC. Physician Advisors and Physician Investment Advisors are not affiliated with LSF.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. 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. 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. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. 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 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 – forbes.com/sites/samanthasharf/2016/05/06/jobs-report-u-s-adds-160000-jobs-in-april-unemployment-rate-steady-at-5/ [5/6/16]

2 – marketwatch.com/economy-politics/calendars/economic [5/6/16]

3 – marketwatch.com/story/oil-prices-dip-as-focus-returns-to-global-supply-glut-2016-05-06/ [5/6/16]

4 – marketwatch.com/story/gold-stocks-step-higher-ahead-of-jobs-report-2016-05-06 [5/6/16]

5 – markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [5/6/16]

6 – markets.wsj.com/us [5/6/16]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F6%2F15&x=0&y=0 [5/6/16]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F6%2F15&x=0&y=0 [5/6/16]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F6%2F15&x=0&y=0 [5/6/16]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F6%2F11&x=0&y=0 [5/6/16]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F6%2F11&x=0&y=0 [5/6/16]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F6%2F11&x=0&y=0 [5/6/16]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F5%2F06&x=0&y=0 [5/6/16]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F5%2F06&x=0&y=0 [5/6/16]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F5%2F06&x=0&y=0 [5/6/16]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [5/6/16]

9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [5/6/16]


Female Doctor with Stethoscope Holding Piggy Bank

Monthly Economic Update for May 2016

Nick Schneider Presents:

MONTHLY ECONOMIC UPDATE

MONTHLY QUOTE

 

“If you have knowledge, let others light their candles at it.”
– Margaret Fuller

 

  

MONTHLY TIP

 

You may have “stray” retirement accounts at past employers. Rather than contend with multiple such accounts, think about rolling them into an IRA or into your current employer-sponsored retirement account, if permitted.

  

 

MONTHLY RIDDLE

This three-letter word signifies something you do each day; mix the letters around and you have a beverage you can drink. What word is this?

 

 

Last month’s riddle:
A woman walks into a cabin one afternoon in Florida. That evening, she walks out of the same cabin, yet she is now in New York. How is this possible?

 

 

Last month’s answer:

She steps into an airplane cabin in Florida in the afternoon and steps out of it a couple of hours later when the plane lands in New York.

 

May 2016

THE MONTH IN BRIEF
The S&P 500 managed to advance 0.27% in April as many companies beat earnings and revenue forecasts. Some important commodities posted remarkable monthly gains. Existing home sales rebounded, and manufacturing seemed to have recovered from its winter slump. Hiring continued to impress, but consumer spending figures and consumer confidence indices did not. All in all, it was a relatively calm month, absent of much of the volatility seen in the first quarter.1

 

DOMESTIC ECONOMIC HEALTH
In early April, the Labor Department reported a net gain of 215,000 jobs in March, placing the average monthly net job increase at 209,000 for the first quarter. Since the labor force participation rate rose slightly in March, the unemployment rate ticked up 0.1% to 5.0%. The U-6 rate, including the underemployed, also rose 0.1% to 9.8%. The average hourly wage was $25.43 in March, and that was 2.3% higher than in March 2015.2

 

By the initial estimate of the Bureau of Economic Analysis, the economy had grown only 0.5% in the opening quarter of 2016. That sluggish growth was underlined by the March personal spending number. The Commerce Department noted just a 0.1% rise in consumer spending in the year’s third month; consumer incomes did grow by 0.4%, however. So, continuing a recent trend, Americans saved more of what they earned. Retail sales fell 0.3% in March; core retail purchases were up 0.2%.3,4

 

Consumer prices rose just 0.1% in March, with the core Consumer Price Index making the same small advance as the headline CPI. (Inversely, both the headline and core Producer Price Index declined 0.1% for March.) The core CPI was up 2.2% on an annualized basis.4

 

The March numbers for the manufacturing and non-manufacturing purchasing manager indices maintained by the Institute for Supply Management were encouraging. While the BEA’s initial Q1 GDP estimate suggested an economy on stall speed, ISM’s factory PMI recaptured the 50 level in the third month of 2016, signaling growth for the factory sector. Its 51.8 mark was 2.3 points above its recessionary reading in February. ISM’s services PMI improved 1.1 points to 54.5 in March, its best reading since December. In other news related to industry, the Census Bureau reported capital goods orders rising 0.8% in March; although, they were down 0.2% with transportation orders factored out.3,5

 

Household sentiment declined last month. The University of Michigan’s consumer sentiment index slipped 1.3 points in its preliminary April reading to 89.7, then fell further to a final April mark of 89.0. As for the Conference Board’s consumer conference index, it lost 1.9 points in April and fell to 94.2.3,4

 

GLOBAL ECONOMIC HEALTH
As April drew to a close, the Bank of Japan decided not to bolster its economic stimulus. That decision disappointed investors, who figured on additional measures. With annualized deflation of 0.1% measured in March, the BofJ pushed its goal of achieving 2% inflation into 2017. Elsewhere in Asia, China’s central bank made its biggest yuan rate move in 11 years on April 28, sending the currency 0.56% higher in a day as the U.S. Dollar Index reach its lowest point since June 2015.6,7

 

According to Eurostat, the eurozone’s economy grew 0.6% in Q1. Data suggested that the long-beleaguered Spanish economy would expand 1.5% in the year’s opening quarter. France’s economy grew 0.5% in Q1; Italy’s economy 0.3%. As the eurozone unemployment rate dipped to 11.4% in March, Italy’s jobless rate hit a four-year low. Unemployment in Germany stayed at an all-time low of 6.2% in April.6,8

 

WORLD MARKETS
On the whole, European markets outperformed their Asia Pacific counterparts in April. The Europe Dow rose 2.97%; the DAX, 0.74%; the CAC 40, 1.00%; the STOXX 600, 1.17%; the FTSE MIB, 2.67%; the IBEX 35, 3.47%; and the RTS, a whopping 8.55%. Ireland’s ISEQ staged the only notable retreat, losing 2.34%.1

 

April winners in the Asia Pacific region included the KSE 100, +4.77%; the Hang Seng, +1.40%; the Sensex, +1.04%; the Asia Dow, +1.07%; and the S&P/ASX 200, which went +3.33%. Losers included the Shanghai Composite, -2.18%; the Nikkei 225, -0.55%; and the Kospi, -0.09%.1

 

Benchmarks in the Americas were largely positive, some quite so. To our south, the IPC All-Share fell 0.21%, but the Bovespa rose 7.70% and the Merval, 5.63%. To our north, the TSX Composite advanced 3.39%. The Dow Jones Americas gained 0.94%; the Global Dow, 2.69%; the MSCI World, 1.38%; and the MSCI Emerging Markets, 0.40%.1,9

 

COMMODITIES MARKETS

April brought some relief to beleaguered commodity investors. The energy sector was red hot in particular. Oil jumped 20.68%, settling at $45.99 on the NYMEX on April 29. Unleaded gas futures advanced 13.27%; natural gas futures, 9.02%; and heating oil futures, 17.38%.10

 

As for metals, gold rose 4.89% to close April at $1,294.90 on the COMEX, and silver ended the trading month at $17.89 thanks to a 15.71% surge. Copper prices improved 4.17%; platinum prices, 10.34%.10

 

Coffee was the only notable loser among crops, falling 5.56%. Other key crops posted gains across the board: cotton rose 9.12%; sugar, 6.45%; cocoa, 7.99%; wheat, 1.48%; soybeans, 12.12%; corn, 10.98%. How did the U.S. Dollar Index do in April? It logged an 0.61% gain, settling at 95.21 on April 29.10,11

 

REAL ESTATE
As temperatures warmed up, the residential real estate market heated up, as well. Existing home sales reversed some of their February decline in March when the National Association of Realtors announced a 5.1% rise in the pace of homebuying. The median sale price was at $222,700 in March, representing a 5.7% annualized improvement. NAR’s pending home sales index showed a 1.4% gain for March, which precisely matched its year-over-year advance. The yearly overall gain in the 20-city S&P/Case-Shiller home price index declined 0.3% to 5.4% in the February edition.3,12

 

Housing indicators at the Census Bureau were resoundingly negative. New home sales fell off 1.5% for March. Groundbreaking declined by 8.8%.3,12

 

Although they plunged in the middle of the month, mortgage interest rates rose as April ended. Freddie Mac’s April 28 Primary Mortgage Market Survey calculated the following averages: 30-year FRM, 3.66%; 15-year FRM, 2.89%; 5/1-year ARM, 2.86%. These were still all lower than the average interest rates reported by Freddie Mac on March 31: 30-year FRM, 3.71%; 15-year FRM, 2.98%; 5/1-year ARM, 2.90%.13

 

LOOKING BACK…LOOKING FORWARD
April ended with the Dow settling at 17,773.64, the Nasdaq at 4,775.36, and the S&P 500 at 2,065.30. As for the small caps and the so-called “fear index,” the Russell 2000 wrapped up the month at 1,130.84, the CBOE VIX at 15.70. For the month, the DJIA rose 0.50%; the S&P, 0.27%; the RUT, 1.51%; the VIX, 12.54%; the NASDAQ slipped 1.94%. Looking across the broad canvas of U.S. indices, the PHLX Gold/Silver index had another amazing month, rising 33.58% to reach 104.97% YTD. The Nasdaq Computer index brought up the rear, falling 6.26% in April.1

 

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +2.00 -1.45 +7.75 +5.64
NASDAQ -4.63 -4.94 +13.24 +10.56
S&P 500 +1.05 -1.97 +10.29 +5.76
REAL YIELD 4/29 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.12% 0.14% 0.75% 2.39%

 
Sources: wsj.com, bigcharts.com, treasury.gov – 4/29/161,14,15,16

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

 

At the end of April, the Q1 earnings season looked better than some analysts predicted. While some of the tech giants disappointed their shareholders during the month, only 15% of S&P 500 firms reporting missed earnings expectations (the historical norm is 24%). Additionally, 73% of S&P 500 firms reporting results surpassed earnings forecasts (66% is the historical average). Investors thinking of “selling in May and going away” might want to reconsider, given the recent climb of commodities, the rebound in manufacturing and the continued strength of the labor market. June could be a more tumultuous month than May: the United Kingdom will vote on whether or not to remain in the European Union, and the Fed could make a rate move. While Wall Street’s solid rally back from February lows has subsided, bearish sentiment has not yet cowed the bulls. Last May, stocks hit record highs; with some luck, they may approach them again.17

 

UPCOMING ECONOMIC RELEASES: Across May, the major U.S. economic news will appear on this timetable: the April ADP employment change report, ISM’s April service sector PMI and March factory orders (5/4), April’s Challenger job-cut report (5/5), the Labor Department’s April employment report (5/6), March wholesale inventories (5/10), April retail sales, the April PPI, April business inventories and the initial May University of Michigan consumer sentiment index (5/13), April housing starts and building permits, April industrial output and the April CPI (5/17), the minutes from the April Federal Reserve policy meeting (5/18), April existing home sales (5/20), April new home sales (5/24), April durable goods orders and April pending home sales (5/26), the University of Michigan’s final May consumer sentiment index and the BEA’s second estimate of Q1 growth (5/27), and then to wrap up May, a new consumer confidence index from the Conference Board, the March S&P/Case-Shiller home price index, and the April consumer spending report from the Commerce Department (5/31).

 

 

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Securities offered through Lion Street Financial, LLC. (LSF), Member FINRA & SIPC. Investment Advisory Services offered through Physician Investment Advisors, LLC. Physician Advisors and Physician Investment Advisors are not affiliated with LSF.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. MarketingPro, 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. This is not a solicitation or recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. 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. The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The CBOE Volatility Index® (VIX®) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. 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. The Europe Dow measures the European equity markets by tracking 30 leading blue-chip companies in the region. The DAX 30 is a Blue Chip stock market index consisting of the 30 major German companies trading on the Frankfurt Stock Exchange. The CAC-40 Index is a narrow-based, modified capitalization-weighted index of 40 companies listed on the Paris Bourse. The STOXX Europe 600 Index is derived from the STOXX Europe Total Market Index (TMI) and is a subset of the STOXX Global 1800 Index. The FTSE MIB (Milano Italia Borsa) is the benchmark stock market index for the Borsa Italiana, the Italian national stock exchange. The IBEX 35 is the benchmark stock market index of the Bolsa de Madrid, Spain’s principal stock exchange. The RTS Index (abbreviated: RTSI, Russian: Индекс РТС) is a free-float capitalization-weighted index of 50 Russian stocks traded on the Moscow Exchange. The ISEQ Overall Index is a capitalization-weighted index of all official list equities in the Irish Stock Exchange, excluding U.K.-registered companies. Karachi Stock Exchange 100 Index (KSE-100 Index) is a stock index acting as a benchmark to compare prices on the Karachi Stock Exchange (KSE) over a period. The Hang Seng Index is a freefloat-adjusted market capitalization-weighted stock market index that is the main indicator of the overall market performance in Hong Kong. The BSE SENSEX (Bombay Stock Exchange Sensitive Index), also-called the BSE 30 (BOMBAY STOCK EXCHANGE) or simply the SENSEX, is a free-float market capitalization-weighted stock market index of 30 well-established and financially sound companies listed on the Bombay Stock Exchange (BSE). The Asia Dow measures the Asia equity markets by tracking 30 leading blue-chip companies in the region. The S&P/ASX 200 index is a market-capitalization weighted and float-adjusted stock market index of Australian stocks listed on the Australian Securities Exchange from Standard & Poor’s. The SSE Composite Index is an index of all stocks (A shares and B shares) that are traded at the Shanghai Stock Exchange. Nikkei 225 (Ticker: ^N225) is a stock market index for the Tokyo Stock Exchange (TSE). The Nikkei average is the most watched index of Asian stocks. The Korea Composite Stock Price Index or KOSPI is the major stock market index of South Korea, representing all common stocks traded on the Korea Exchange. The Mexican IPC index (Indice de Precios y Cotizaciones) is a major stock market index which tracks the performance of leading companies listed on the Mexican Stock Exchange. The Bovespa Index is a gross total return index weighted by traded volume & is comprised of the most liquid stocks traded on the Sao Paulo Stock Exchange. The MERVAL Index (MERcado de VALores, literally Stock Exchange) is the most important index of the Buenos Aires Stock Exchange. The S&P/TSX Composite Index is an index of the stock (equity) prices of the largest companies on the Toronto Stock Exchange (TSX) as measured by market capitalization. The Dow Jones Americas Index measures the Latin American equity markets by tracking 30 leading blue-chip companies in the region. The Global Dow is a 150-stock index of corporations from around the world created by Dow Jones & Company. The MSCI World Index is a free-float weighted equity index that includes developed world markets, and does not include emerging markets. The MSCI Emerging Markets Index is a float-adjusted market capitalization index consisting of indices in more than 25 emerging economies. The US Dollar Index measures the performance of the U.S. dollar against a basket of six currencies. 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 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 – wsj.com/mdc/public/page/2_3023-monthly_gblstkidx.html [4/29/16]

2 – forbes.com/sites/samanthasharf/2016/04/01/jobs-report-215000-jobs-added-in-march-unemployment-rate-higher-at-5 [4/1/16]

3 – tradingeconomics.com/united-states/calendar [4/30/16]

4 – investing.com/economic-calendar/ [4/30/16]

5 – instituteforsupplymanagement.org/ISMReport/NonMfgROB.cfm? [4/5/16]

6 – seekingalpha.com/article/3968857-wall-street-breakfast-boj-roils-markets-expanding-stimulus [4/28/16]

7 – blogs.barrons.com/asiastocks/2016/04/28/the-dollar-index-falls-to-8-month-low-pboc-raises-yuan-fix-most-since-2005/ [4/28/16]

8 – seekingalpha.com/article/3969447-wall-street-breakfast-china-pulls-big-yuan-move [4/29/16]

9 – msci.com/end-of-day-data-search [4/29/16]

10 – money.cnn.com/data/commodities/ [4/30/16]

11 – marketwatch.com/investing/index/dxy/historical [4/29/16]

12 – investors.com/news/economy/existing-home-sales-rise-in-march-as-tight-supply-lifts-prices/ [4/20/16]

13 – freddiemac.com/pmms/archive.html?year=2016l [4/28/16]

14 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F29%2F15&x=0&y=0 [4/29/16]

14 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F29%2F15&x=0&y=0 [4/29/16]

14 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F29%2F15&x=0&y=0 [4/29/16]

14 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F29%2F11&x=0&y=0 [4/29/16]

14 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F29%2F11&x=0&y=0 [4/29/16]

14 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F29%2F11&x=0&y=0 [4/29/16]

14 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F28%2F06&x=0&y=0 [4/29/16]

14 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F28%2F06&x=0&y=0 [4/29/16]

14 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F28%2F06&x=0&y=0 [4/29/16]        

15 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/29/16]

16 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/29/16]

17 – usatoday.com/story/money/columnist/krantz/2016/04/28/ask-matt-earnings-season-bad-seems/83602994/ [4/28/16]

 

 

 

 


taxes

Weekly Economic Report for May 2, 2016

Nick Schneider Presents:

 

WEEKLY ECONOMIC UPDATE

WEEKLY QUOTE

 

“He who lives little, changes little.”

                                                                                                                                

– Anatole France

      

   

WEEKLY TIP

 

Starting your career? Beware of spending money to maintain an image. If you are tempted to “fake it ‘til you make it,” you may soon be awash in consumer debt.

  

   

WEEKLY RIDDLE

 

It cannot see and it feels no pain, despite matter constantly going through its eye. What is it?

 

 

Last week’s riddle:

Sandra is running in a half-marathon and she passes the second person in the race. What position is she in?

   

Last week’s answer:

Second place.

 

 

 

May 2, 2016

INCOME OUTDISTANCES SPENDING

Personal income rose 0.4% in March, yet the Commerce Department reported personal spending up just 0.1%. That mild uptick contributed to a poor first quarter for GDP; last week, the Bureau of Economic Analysis estimated Q1 growth at 0.5%.1

CONSUMER OPTIMISM declineS

The Conference Board’s consumer confidence index dipped 1.9 points in April to 94.2. Also descending was the University of Michigan’s consumer sentiment index, which ended April at 89.0 after concluding March at 91.0.1,2

 

A ROUNDUP OF HOUSING NEWS

New home sales fell 1.5% in March according to the Census Bureau, after a 0.4% retreat in February. The (just-released) February S&P/Case-Shiller home price index shows a 5.4% overall rise in home values across 12 months, down from 5.7% in the January edition. Lastly, the National Association of Realtors reported a 1.4% March gain in its pending home sales index.1

 

MAJOR INDICES RETREAT

The Nasdaq was the benchmark that stumbled hardest last week on Wall Street, falling 2.67% to settle at 4,775.36 Friday. April ended with the S&P 500 at 2,065.30 and the Dow at 17,773.64; the S&P lost 1.26% for the week; the Dow, 1.28%.3

 

THIS WEEK: Monday, April’s ISM manufacturing PMI appears plus earnings from AmeriGas, Anadarko Petroleum, Del Taco, Denny’s, Ferrari, Fossil, Loews Corp., and Sysco. Tuesday earnings include results from Archer Daniels Midland, Avis Budget, Boise Cascade, CBS, Clorox, Cummins, CVS Health, Duke Energy, Estee Lauder, Etsy, GrubHub, Hyatt, Macerich, Molson Coors, Papa John’s, Pfizer, Pitney Bowes, Smart & Final, Sprint, Starwood Hotels & Resorts, Valero Energy, Vulcan Materials, and Western Union. On Wednesday, the Street looks at the April ISM services PMI, ADP’s April job-change report and earnings from Allstate, Chubb, Fitbit, GoDaddy, Green Dot, Humana, iHeart Media, Marathon Oil, Mosaic, Noble Energy, Priceline, Prudential Financial, Sempra Energy, Sunoco, Tesla, Tesoro, Time Warner, Transocean, TripAdvisor, Whole Foods, and Zynga. Thursday, an initial claims report and a new Challenger job-cut report appear, plus earnings announcements from Acadia Pharmaceuticals, Activision Blizzard, Alibaba, El Pollo Loco, Fluor, GoPro, Icahn Enterprises, Jamba, Kellogg, Kemper, Kraft Heinz, Merck, MGM Resorts, Motorola Solutions, Nvidia, Occidental Petroleum, Shell Midstream Partners, Wingstop, and Yelp. The Labor Department’s April jobs report arrives Friday, plus earnings from Allergan, Cigna, Exelon, Revlon, and Weyerhaeuser.

 

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +2.00 -1.45 +7.75 +5.64
NASDAQ -4.63 -4.94 +13.24 +10.56
S&P 500 +1.05 -1.97 +10.29 +5.76
REAL YIELD 4/29 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.12% 0.14% 0.75% 2.39%

 
Sources: wsj.com, bigcharts.com, treasury.gov – 4/29/164,5,6,7

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

 

 

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.

 

 
Securities offered through Lion Street Financial, LLC. (LSF), Member FINRA & SIPC. Investment Advisory Services offered through Physician Investment Advisors, LLC. Physician Advisors and Physician Investment Advisors are not affiliated with LSF.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. 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. 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. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. 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 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 – tradingeconomics.com/united-states/calendar [4/29/16]

2 – foxbusiness.com/markets/2016/04/29/consumer-sentiment-slips-in-april.html [4/29/16]

3 – markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [4/29/16]

4 – markets.wsj.com/us [4/29/16]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F29%2F15&x=0&y=0 [4/29/16]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F29%2F15&x=0&y=0 [4/29/16]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F29%2F15&x=0&y=0 [4/29/16]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F29%2F11&x=0&y=0 [4/29/16]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F29%2F11&x=0&y=0 [4/29/16]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F29%2F11&x=0&y=0 [4/29/16]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F28%2F06&x=0&y=0 [4/29/16]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F28%2F06&x=0&y=0 [4/29/16]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F28%2F06&x=0&y=0 [4/29/16]         

6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/29/16]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/29/16]

 

 

 


Weekly Economic Update for April 25, 2016

WEEKLY ECONOMIC UPDATE

WEEKLY QUOTE

 

“The wisest mind has something yet to learn.”

– George Santayana

 

 WEEKLY TIP

If your parent has cognitive issues that make bill paying difficult, ask them if they might want to consider arranging automatic payments, or having their mail delivered to your address or a P.O. Box, so that you may review their bills and statements.

WEEKLY RIDDLE

Sandra is running in a half-marathon and she passes the second person in the race. What position is she in?

Last week’s riddle:

It may contain a thousand wheels, yet it never moves despite spending all day in the sun. What is it?

Last week’s answer:

A parking lot.

 

 

 

April 25, 2016

HOME SALES REBOUND

Bouncing back from a drop of 7.3% in February, existing home sales improved 5.1% last month. In its March report, the National Association of Realtors announced a median sale price of $222,700, 5.7% higher than a year ago.1,2

BUILDERS BREAK GROUND ON FEWER PROJECTS

While home sales increased last month, the pace of both housing starts and building permits declined. Census Bureau data shows an 8.8% reduction in groundbreaking for March. Building permits were down 7.7% for the month.1,2

OIL PRICES RISE FOR A THIRD STRAIGHt WEEK

WTI crude settled at $43.73 on the NYMEX Friday. Expectations of declining production helped oil gain 4.8% in five trading days. Gasoline futures were also up 4.8% on the week.3

DOW CLOSES ABOVE 18,000

For the week, the DJIA rose 0.59% to a Friday settlement of 18,003.75. The S&P 500 advanced 0.52% in five days to close at 2,091.58 as the trading week ended. The Nasdaq retreated 0.65% for the week to 4,906.23.4

THIS WEEK: March new home sales figures appear Monday, plus earnings from Express Scripts, Halliburton, and Xerox. Tuesday features the Conference Board’s April consumer confidence index, February’s Case-Shiller home price index, and earnings from 3M, Aflac, Akamai, Apple, AT&T, Capital One, Chipotle, Coach, Corning, eBay, Eli Lilly, Freeport-McMoRan, HealthSouth, Hershey, Ingersoll-Rand, JetBlue, Office Depot, Panera, Procter & Gamble, Public Storage, T-Mobile, Twitter, U.S. Steel, Whirlpool, and Wynn Resorts. Wednesday, a new Federal Reserve policy statement and NAR’s March pending home sales index complement earnings from Ameriprise, Anthem, Blackrock, Boeing, Cheesecake Factory, Comcast, Facebook, Dr. Pepper Snapple, Garmin, GlaxoSmithKline, Goodyear, Hilton, Lear, Marriott, O’Reilly, PayPal, and Texas Instruments. The BEA’s first estimate of Q1 GDP arrives Thursday, plus initial claims and earnings from Aetna, Altria, Amazon, Amgen, Baidu, Beazer, Bristol-Myers Squibb, Coca-Cola, Colgate-Palmolive, ConocoPhillips, Dow Chemical, Dunkin’ Brands, Domino’s, Expedia, Ford Motor Co., LinkedIn, MasterCard, Pandora, Raytheon, Time Warner Cable, UPS, Waste Management, and Western Digital. Friday sees the release of the University of Michigan’s final April consumer sentiment index, March personal spending figures, and earnings from AMC, Chevron, ExxonMobil, Philipps 66, Praxair, and Royal Caribbean Cruises.

 

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +3.32 -0.19 +8.79 +5.87
NASDAQ -2.02 -2.56 +14.79 +10.77
S&P 500 +2.33 -0.78 +11.28 +5.95
REAL YIELD 4/22 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.25% 0.12% 0.83% 2.39%

Sources: wsj.com, bigcharts.com, treasury.gov – 4/22/165,6,7,8

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

 

 

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.

 

Securities offered through Lion Street Financial, LLC. (LSF), Member FINRA & SIPC. Investment Advisory Services offered through Physician Investment Advisors, LLC. Physician Advisors and Physician Investment Advisors are not affiliated with LSF.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. 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. 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. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. 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 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 – investors.com/news/economy/existing-home-sales-rise-in-march-as-tight-supply-lifts-prices/ [4/20/16]

2 – investing.com/economic-calendar/ [4/22/16]

3 – marketwatch.com/story/oil-rises-on-weaker-greenback-signs-of-slowing-production-2016-04-22 [4/22/16]

4 – markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [4/22/16]

5 – markets.wsj.com/us [4/22/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F22%2F15&x=0&y=0 [4/22/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F22%2F15&x=0&y=0 [4/22/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F22%2F15&x=0&y=0 [4/22/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F21%2F11&x=0&y=0 [4/22/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F21%2F11&x=0&y=0 [4/22/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F21%2F11&x=0&y=0 [4/22/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F20%2F06&x=0&y=0 [4/22/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F20%2F06&x=0&y=0 [4/22/16]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F20%2F06&x=0&y=0 [4/22/16]            

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/22/16]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/22/16]


Weekly Economic Update for April 11-17

 Justin Nabity Presents:

 

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE

“True friends are those who really know you but love you anyway.”

– Edna Buchanan

WEEKLY TIP

Own a business? Think about having an accountant look at your books several times a year. Having a professional opinion on your books can be valuable at any time, not just tax time.

  

   

WEEKLY RIDDLE

 

Three women each have two daughters.

They are all having dinner at a cafe.

The café has but seven chairs. All the women are seated. How is this possible?

 

 

Last week’s riddle:

You have 7 onions in a bag, and you will distribute them to 7 people. As you finish handing them out, there is still 1 onion left in the bag. How is this possible?

   

Last week’s answer:

As you hand out the last onion, you leave it inside the bag.

 

 

 

April 11, 2016

FED: APRIL MIGHT BE TOO SOON FOR A RATE HIKE

That was the message Wall Street gleaned from the Federal Reserve’s March policy meeting minutes. Several Fed officials, the minutes stated, felt that “raising the target range as soon as April would signal a sense of urgency” that would be untimely. Another passage noted broad support for “a lower path of the federal funds rate relative to December” (in other words, a shallower ascent for the benchmark interest rate across 2016). Still, some officials saw merit in an April rate move should economic indicators show significant upside.1

PACE OF GROWTH PICKS UP IN THE SERVICE SECTOR

In March, the Institute for Supply Management’s non-manufacturing PMI rose 1.1 points to 54.5. It was the first gain for that PMI in five months. The index had a reading of 56 or higher during most of 2015.2

OIL JUMPs 8% IN A WEEK; GOLD, SILVER ALSO RISE

West Texas Intermediate crude settled at $39.72 a barrel Friday, its weekly ascent aided by a 6.6% Friday gain helped by an announcement of declining rig count. Gasoline futures were up 4.4% for the week. April 4-8 also represented the best week for gold and silver since mid-March (in fact, it was silver’s finest week in over a month). Gold advanced 1.7% in five days on the COMEX, closing Friday at $1,243.80 an ounce. Silver futures rose 2.0% in the same interval, settling Friday in New York at $15.38 per ounce.3,4

STOCKS LOSE SOME GROUND

A rocky week ended with 5-day losses for each of the major indices: the S&P 500 fell 1.21% to 2,047.60; the Nasdaq Composite, 1.30% to 4,850.69; and the Dow Jones Industrial Average, 1.21% to 17,576.96. Even so, all three benchmarks were up at least 3.4% month-over-month at Friday’s closing bell.5

THIS WEEK: Earnings season starts Monday as Alcoa presents Q1 results. On Tuesday, earnings emerge from CSX Corporation and Fastenal. Wednesday, investors consider March retail sales numbers, a new Fed Beige Book, the March PPI, and Q1 results from JPMorgan Chase and Pier 1. New initial claims figures and the March CPI arrive Thursday, plus earnings news from Bank of America, BlackRock, Delta Air Lines, Progressive, and Wells Fargo. Friday offers the preliminary edition of the University of Michigan’s April consumer sentiment index, a report on March industrial output and earnings announcements from Charles Schwab, Citigroup, Regions Financial, and Seagate Technology.

 

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +0.87 -1.82 +8.40 +5.81
NASDAQ -3.13 -2.02 +14.89 +10.74
S&P 500 +0.18 -1.65 +10.83 +5.81
REAL YIELD 4/8 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.14% 0.08% 0.95% 2.43%

Sources: wsj.com, bigcharts.com, treasury.gov – 4/8/166,7,8,9

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

 

 

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.

 

Securities offered through Lion Street Financial, LLC. (LSF), Member FINRA & SIPC. Investment Advisory Services offered through Physician Investment Advisors, LLC. Physician Advisors and Physician Investment Advisors are not affiliated with LSF. Physician Advisors is not an accounting or law firm, and the employees of Physician Advisors are not acting as your attorney or tax advisor. Services provided by Physician Advisors are not a substitute for the advice of an attorney or CPA, and by using Physician Advisors’ services no attorney-client or tax advisor relationship will be created with Physician Advisors or any of its employees. Please consult with the appropriate professional regarding your individual circumstance.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. 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. 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. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. 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 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 – tinyurl.com/jsu4hrx [4/7/16]

2 – businessinsider.com/ism-non-manufacturing-and-markit-services-pmi-2016-4 [4/5/16]

3 – marketwatch.com/story/oil-rebounds-but-doha-meeting-remains-a-cloud-on-the-horizon-2016-04-08 [4/8/16]

4 – marketwatch.com/story/gold-snubbed-for-riskier-assets-clings-to-weekly-gain-2016-04-08 [4/8/16]

5 – markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [4/8/16]

6 – markets.wsj.com/us [4/8/16]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F8%2F15&x=0&y=0 [4/8/16]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F8%2F15&x=0&y=0 [4/8/16]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F8%2F15&x=0&y=0 [4/8/16]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F8%2F11&x=0&y=0 [4/8/16]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F8%2F11&x=0&y=0 [4/8/16]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F8%2F11&x=0&y=0 [4/8/16]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F7%2F06&x=0&y=0 [4/8/16]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F7%2F06&x=0&y=0 [4/8/16]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F7%2F06&x=0&y=0 [4/8/16]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/8/16]

9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/8/16]

 

 


A Holiday (Economic) Wrap-Up: Your Look at 2015

holiday

Presented by Justin Nabity

The year in brief. While the S&P 500 surprised to the upside in 2014 versus the projections of many analysts, it has performed below expectations so far in 2015. As this year began, not many Wall Street pros thought the index would tread water. The consensus forecast among 13 top analysts (their opinions compiled by Business Insider) called for the benchmark to finish this year at 2,213. At Thanksgiving, the S&P was hovering near 2,100. Three major headwinds buffeted Wall Street this year: a global manufacturing slowdown, and reduced demand for oil and other key commodities, and the presumption that the Federal Reserve would soon begin to raise interest rates. Dollar strength was also a factor, and the financial crisis in Greece and plunging shares in China also kept bulls in check (the S&P corrected in the wake of the swoon in Chinese equities). Hiring really picked up, though wage growth lagged; the real estate market stayed hot.1,2 Continue reading…


WEEKLY ECONOMIC UPDATE for 11/16-11/20

Amber Stitt Presents:

WEEKLY ECONOMIC UPDATE

WEEKLY QUOTE

“It pays to be obvious, especially if you have a reputation for subtlety.”

     

– Isaac Asimov

      

   

WEEKLY TIP

 

Are your investment allocations still in agreement with your investing goals? An annual review can help you find that out, and determine whether rebalancing is necessary.

  

   

WEEKLY RIDDLE

 

5 letters have I, I start in E and end in Y. Take away my first, third and last letter and the 2 letters left will sound the same as when you started with me. I am a 5-letter word; what word am I?

 

   

Last week’s riddle:

When you shop for clothes, XL is always larger than L…but clothing sizes aside, in what numerical context is L larger than XL?

   

Last week’s answer:

In Roman numerals. The Roman numeral L = 50. However, X placed before L means “ten less” than L, so the Roman numeral XL = 40.

 

 

 

November 16, 2015

RETAIL PURCHASES UP JUST 0.1% IN OCTOBER

The tiny increase was actually an improvement, as retail sales were flat in both August and September. Gas station sales tailed off 0.9% in October, car sales 0.5%; offsetting those declines, online retail purchases were up 1.4% last month, spending at restaurants and bars up 0.5%. The Commerce Department’s latest report notwithstanding, the National Retail Federation projects holiday season retail sales to rise 3.7% this year to $630.5 billion.1

HOUSEHOLDS THINK POSITIVE

Economists polled by Bloomberg expected the preliminary November University of Michigan consumer sentiment index to rise 2.0 points to 92.0. It surpassed that forecast, reaching 93.1 thanks in large part to consumer expectations of low inflation and larger wage gains in 2016. Twelve months ago, the index was at 88.8.2

 

PRODUCER PRICE INDEX DECREASES AGAIN

The Labor Department’s barometer of wholesale inflation declined 0.4% in October. September saw the index fall 0.5%. Through October, the PPI was down 1.6% year-over-year, even though wholesale gasoline prices rose 3.8% last month. Core producer prices have risen but 0.1% in 12 months.1,3

 

STOCKS RETREAT ON SOFT DATA, LOW OIL PRICES

Negative wholesale inflation, tepid retail sales and light sweet crude ending the week at $40.74 on the NYMEX, its lowest close since August 26 – that was enough to snap Wall Street’s winning streak. The S&P 500 lost 3.63% on the week to fall to 2,023.04 Friday. The Dow (-3.71%) and Nasdaq (-4.26%) made similar descents, wrapping up the week at respective closes of 17,245.24 and 4,927.88.4,5

 

THIS WEEK: Monday offers quarterly results from Agilent Technologies and Dillard’s. Tuesday, October’s CPI and a report on October industrial output complement earnings from Dick’s Sporting Goods, Home Depot, Jack-in-the-Box, La-Z-Boy, TJX and Walmart. Minutes from the October Federal Reserve policy meeting appear on Wednesday, along with October’s housing starts report and earnings from Aramark, Keurig Green Mountain, L Brands, Lowe’s, NetApp, Staples, Target, The Children’s Place and Weibo. Thursday brings the Conference Board’s latest leading indicator index, a new initial claims report and earnings from America’s Car-Mart, Best Buy, Fresh Market, Gap, Intuit, J.M. Smucker, Kirkland’s, Ross, Stein Mart and Williams-Sonoma. Abercrombie & Fitch and Foot Locker report Q3 results on Friday.

 

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA -3.24 -2.31 +10.82 +6.12
NASDAQ +4.05 +5.29 +19.14 +12.40
S&P 500 -1.74 -0.80 +13.74 +6.40
REAL YIELD 11/13 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.76% 0.47% 0.71% 2.14%

 
Sources: wsj.com, bigcharts.com, treasury.gov – 11/13/156,7,8,9

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

 

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 MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. 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. 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. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. 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 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 – nbcnews.com/business/economy/online-purchases-eating-out-help-october-retail-sales-edge-higher-n462846 [11/13/15] 

2 – 247wallst.com/economy/2015/11/13/consumer-sentiment-climbs-again/ [11/13/15]

3 – usnews.com/news/business/articles/2015/11/13/us-producer-prices-drop-in-latest-sign-of-tame-inflation [11/13/15]

4 – markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [11/13/15]

5 – marketwatch.com/story/oil-settles-lower-down-8-on-week-2015-11-13 [11/13/15]

6 – markets.wsj.com/us [11/13/15]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F13%2F14&x=0&y=0 [11/13/15]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F13%2F14&x=0&y=0 [11/13/15]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F13%2F14&x=0&y=0 [11/13/15]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F12%2F10&x=0&y=0 [11/13/15]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F12%2F10&x=0&y=0 [11/13/15]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F12%2F10&x=0&y=0 [11/13/15]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F14%2F05&x=0&y=0 [11/13/15]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F14%2F05&x=0&y=0 [11/13/15]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F14%2F05&x=0&y=0 [11/13/15]          

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/13/15]

9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/13/15]

 


Weekly Economic Report 10/30

Justin Nabity Presents:

 

WEEKLY ECONOMIC UPDATE

 

 

WEEKLY QUOTE

 

“Rules too soft are seldomly followed; rules too harsh are seldomly executed.”

     

– Ben Franklin

      

   

WEEKLY TIP

 

In retirement, one of your goals should be to grow your assets faster than inflation devalues them. You must sustain your purchasing power.

  

   

WEEKLY RIDDLE

 

Robert will paint unit numbers on 100 storage units today. In the course of painting a number from 1 to 100 on the door of each unit, how many times will he have to paint the numeral 3 today?

 

   

Last week’s riddle:

Until it is measured it is not accurately known, yet you may miss it when it has flown. What is it?

   

Last week’s answer:

Time.

 

 

 

 

October 26, 2015

   

EXISTING HOME SALES ACCELERATE

The National Association of Realtors measured a 4.7% gain in residential resales for September, and the annualized sales pace of 5.55 million units was the second best seen since February 2007. Over the past 12 months, existing home sales are up 8.8% with the average sale price up 6.1% (September’s median sale price was $221,900).1

 

MORE HOUSING STARTS IN SEPTEMBER

Last month saw a 6.5% increase in groundbreaking according to the Census Bureau. That brought the 12-month increase in housing starts to 17.5%. The rate of building permits issued fell by 5.0% in September, but that still left a 4.7% yearly gain.2

 

OIL & GOLD RETREAT

On the COMEX, gold settled at $1,162.80 Friday, marking a 1.7% weekly loss. WTI crude dropped 5.6% last week, settling Friday at $44.60 on the NYMEX.3

 

S&P TURNS POSITIVE YTD; NASDAQ BACK ABOVE 5,000

More easing by China’s central bank and strong earnings from tech giants helped equities. The Nasdaq rose 2.97% for the week to a Friday close of 5,031.86. The Dow rose 2.50% on the week to 17,646.70, the S&P 500 2.07% to 2,075.15.3,4

 

THIS WEEK: September new home sales figures arrive Monday, plus earnings from Cheesecake Factory, MGM Resorts and Xerox. Tuesday brings September’s durable goods report, August’s Case-Shiller home price index, the latest Conference Board consumer confidence index and earnings from Airgas, Anadarko Petroleum, Alibaba, Apple, Big 5, Bristol-Myers Squibb, Coach, Comcast, Corning, Cummins, Express Scripts, Ford Motor Co., Edison International, JetBlue, Lexmark, Macerich, Magellan Health, Merck, NCR, Panera, Pfizer, Revlon, Spirit Airlines, T-Mobile, Twitter and Waste Management. A new Federal Reserve policy statement appears Wednesday plus earnings from Amgen, Anthem, AutoNation, Buffalo Wild Wings, Ferrari, General Dynamics, Garmin, GoPro, IMAX, Hanesbrands, HealthSouth, Hershey, Hilton Worldwide, LifeLock, Marriott, PG&E, Norfolk Southern, O’Reilly, Public Storage, Starwood Hotels & Resorts, Tesoro, Valero, Western Digital and Yelp. Thursday offers the first estimate of Q3 GDP, a new initial claims report, and earnings from Aetna, Altria, Baidu, Coca-Cola, ConocoPhillips, Electronic Arts, Expedia, Fluor, LinkedIn, Live Nation, MasterCard, Starbucks, Sherwin-Williams, Time Warner Cable, Virgin America and Western Union. Friday, new personal spending figures and October’s final University of Michigan consumer sentiment index are out, plus earnings from Chevron, Colgate-Palmolive, CVS Health, ExxonMobil, Phillips 66, Seagate and Weyerhaeuser.

 

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA -0.99 +5.81 +11.70 +6.99
NASDAQ +6.25 +13.00 +20.59 +13.78
S&P 500 +0.79 +6.37 +15.08 +7.30
REAL YIELD 10/23 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.58% 0.38% 0.50% 1.93%

Sources: wsj.com, bigcharts.com, treasury.gov – 10/23/155,6,7,8

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

 

 

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«Disclosure»

 

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. 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. 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. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. 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 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/2015/10/22/existing-home-sales-hit-555m-units-in-sept-vs-expectations-of-538m.html [10/22/15]

2 – 247wallst.com/housing/2015/10/20/housing-starts-rose-less-than-expected-in-september/ [10/20/15]

3 – 247wallst.com/investing/2015/10/23/the-4-stocks-that-dominated-the-dow-on-friday/ [10/23/15]

4 – markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [10/23/15]

5 – markets.wsj.com/us [10/23/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F23%2F14&x=0&y=0 [10/23/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F23%2F14&x=0&y=0 [10/23/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F23%2F14&x=0&y=0 [10/23/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F22%2F10&x=0&y=0 [10/23/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F22%2F10&x=0&y=0 [10/23/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F22%2F10&x=0&y=0 [10/23/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F24%2F05&x=0&y=0 [10/23/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F24%2F05&x=0&y=0 [10/23/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F24%2F05&x=0&y=0 [10/23/15]        

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [10/23/15]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [10/23/15]