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WEEKLY QUOTE
“It
is equally offensive to speed a guest who would like to stay and to detain
one who is anxious to leave.”
- Homer
WEEKLY TIP
The
start of the year is a nice time to calculate your net worth. Compile a list
of the assets you own and their value; then subtract liabilities (your debts)
to figure it out. You may be surprised to learn how wealthy you are.
WEEKLY RIDDLE
It
can be measured even though it lacks length, width or height. What is it?
Last week’s riddle:
All about but unseen, can be captured but can’t be held, has no
throat but can be heard. What is it?
Last week’s answer:
The wind.
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December 30,
2014
THE ECONOMY IS BOOMING
Looking
at two vital indicators, it becomes hard to draw any other conclusion. In its
final estimate, the Commerce Department put Q3 growth at 5.0% – the best
quarterly GDP since Q3 2003, following a 4.6% expansion in Q2. Consumer
spending was up 3.2% in the third quarter, business investment up 8.9%. Speaking
of personal spending, the latest Commerce Department figure on that was also
impressive – a November gain of 0.6%, complemented by a gain of 0.4% in
personal income. Growth and household spending may not be quite as notable in
December or Q4, but the recovery is definitely in full swing.1,2
GREAT GROWTH DOESN’T SPUR FALL
HOMEBUYING
Existing home sales fell for only the second time in eight
months in November, and the decline was sharp: the National Association of
Realtors announced a 6.1% slip. New home purchases fell 1.6% last month
according to the Census Bureau, marking their first down month since July.3
CONSUMER SENTIMENT HOLDS STEADY
At 93.6, the University of Michigan’s last consumer
sentiment index reading of 2014 was a tiny bit below expectations.
Economists polled by MarketWatch had forecast the final December index to
come in at 93.8, unchanged from a month earlier.2
THE DOW TAKES IT TO ANOTHER LEVEL
It cleared 18,000 during an abbreviated market week,
settling Friday at 18,053.71 thanks to a 1.55% gain across 3½ trading days.
Weekly advances also came for the Nasdaq (1.23% to 4,806.86) and S&P 500
(0.88% to 2,088.77). By Friday afternoon, oil prices had sunk under $55 in
after-hours trading on the NYMEX; crude lost 3.51% on the week. Gold rallied
Friday to trim its 5-day loss to 0.23%; on the COMEX, the yellow metal was at
$1,194.40 at week’s end.4
THIS WEEK: Nothing
major is scheduled on Monday. Tuesday, the Conference Board’s final consumer
confidence index of 2014 arrives along with the October edition of the
Case-Shiller home price index. On Wednesday, investors will parse the latest
initial claims figures and the November pending home sales report from the
NAR; U.S. bond markets should close at 2:00pm EST, but the NYSE and NASDAQ will
each have a full trading day. Wall Street closes Thursday for New Year’s Day,
along with most foreign financial markets; China, however, will present its
December factory PMI. Friday sees the release of ISM’s December manufacturing
PMI and two key foreign PMIs tracking the Chinese service sector and eurozone
manufacturing.
Sources: online.wsj.com, bigcharts.com, treasury.gov - 12/26/145,6,7,8
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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«RepresentativeDisclosure»
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/mg2sl49 [12/23/14]
2 - marketwatch.com/economy-politics/calendars/economic [12/23/14]
3 - investing.com/economic-calendar/ [12/23/14]
4 - markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp
[12/26/14]
5 - markets.wsj.com/us [12/26/14]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F26%2F13&x=0&y=0
[12/26/14]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F26%2F13&x=0&y=0
[12/26/14]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F26%2F13&x=0&y=0
[12/26/14]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F24%2F09&x=0&y=0
[12/26/14]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F24%2F09&x=0&y=0
[12/26/14]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F24%2F09&x=0&y=0
[12/26/14]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F27%2F04&x=0&y=0
[12/26/14]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F27%2F04&x=0&y=0
[12/26/14]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F27%2F04&x=0&y=0
[12/26/14]
7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield
[12/26/14]
8 -
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll
[12/26/14]
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Tuesday, December 30, 2014
Economic Update for the week of December 30th, 2014
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