Tuesday, April 24, 2012

Economic Update for the week of April 23rd, 2012


WEEKLY ECONOMIC UPDATE


WEEKLY QUOTE
 
“The path to success is to take massive, determined action.”
 
- Tony Robbins


WEEKLY TIP
 
Take a look at your insurance policy and read the fine print about long-term or progressive illness in case you or a loved one are one day diagnosed with Alzheimer’s Disease, Parkinson’s Disease or other forms of neurological disease.


WEEKLY RIDDLE
 
They have no bodies, but you could say they have tails and heads. What are they?


Last week’s riddle:
What is the beginning of sorrow and the end of sickness? Something you cannot express happiness without? Something that is always in risk, but never in danger?


Last week’s answer:
The letter S.


April 23, 2012
  
WHAT HELD UP HOMEBUYING LAST MONTH?
The National Association of Realtors said existing home sales fell 2.6% for March. A 1.3% drop in inventory for the month might have been a factor, and mild weather in January and February may have helped homes that would have sold in March sell earlier. Warmer January and February temperatures may have also skewed the numbers for housing starts: the Commerce Department said they slipped 5.8% in March. Now for some good news: building permits rose 4.5% last month to the best pace since September 2008, and Freddie Mac had interest rates on 30-year fixed rate home loans averaging just 3.90% last week.1,2
    
RETAIL SALES UP 0.8% IN MARCH
This follows a 1.0% gain in the category in February. Did gas prices account for much of the increase? No. Minus gas and car sales, the March gain was 0.7%, and core retail sales (minus autos, gas, and home supplies) rose 0.5% last month.3
   
LEADING INDICATORS BACK TO MID-2008 LEVELS
The Conference Board’s index of leading indicators reached 95.7 in March, getting closer to the 100 mark that would imply a healthy economy. The index rose 0.3% for the month with seven of ten indicators positive; interest rate spreads, building permits, stock gains and credit availability were the biggest influences.4
  
DOW BREAKS LOSING STREAK, GOLD PULLS BACK
Across April 16-20, the Dow gained 1.40% to 13,029.26 (its first weekly advance in three weeks), the NASDAQ lost 0.36% to 3,000.45 and the S&P 500 gained 0.60% to 1,378.53. Gold futures fell $17.00 (1.02%) on the week, settling Friday at $1,642.10; oil ended the week at $103.05 after a 0.21% gain across five trading days.5,6,7
   
THIS WEEK: Monday, ConocoPhillips, Hasbro, Xerox, DR Horton, Netflix and Texas Instruments announce Q1 results. Tuesday, earnings from Apple, Baidu, AT&T, 3M, US Steel, Amgen and Aflac are out plus the latest Case-Shiller home price index and data on March’s new home sales. On Wednesday, earnings reports roll in from Sprint, Boeing, Caterpillar, Eli Lilly, AutoNation, Delta, Credit Suisse, Motorola Solutions, GlaxoSmithKline and Akamai, March durable goods data is out, and the Fed makes a policy statement. Thursday, the NAR gives us its latest pending home sales report, new initial claims figures are in, and results from Barclays, Pulte, Amazon.com, Bristol-Myers Squibb, Chrysler, ExxonMobil, PepsiCo, Royal Dutch Shell, Starbucks and Zynga round out the day. Friday, Chevron, Procter &Gamble and Merck offer Q1 results, and the BEA’s first estimate of Q1 GDP appears plus the final April consumer sentiment survey out of the University of Michigan.
  
% CHANGE
Y-T-D
1-YR CHG
5-YR AVG
10-YR AVG
DJIA
+6.64
+4.62
+0.10
+2.70
NASDAQ
+15.17
+7.06
+3.75
+6.70
S&P 500
+9.62
+3.62
-1.43
+2.25
REAL YIELD
4/20 RATE
1 YR AGO
5 YRS AGO
10 YRS AGO
10 YR TIPS
-0.24%
0.82%
2.27%
3.48%
 

Sources: online.wsj.com, bigcharts.com, treasury.gov, treasurydirect.gov - 4/20/125,8,9,10
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.


Please feel free to forward this article to family, friends or colleagues.
If you would like us to add them to our distribution list, please reply with their address.
We will contact them first and request their permission to add them to our list.


«RepresentativeDisclosure»

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world's largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

Citations.
1 - www.omaha.com/article/20120419/AP/120419584 [4/19/12]
2 - www.cnbc.com/id/47072035 [4/17/12]
3 - www.businessweek.com/ap/2012-04/D9U6251O0.htm [4/20/12]
4 - www.foxnews.com/us/2012/04/19/gauge-us-economy-rose-03-percent-in-march/ [4/19/12]
5 - blogs.wsj.com/marketbeat/2012/04/20/data-points-u-s-markets-93/ [4/20/12]
6 - montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [4/20/12]
7 - blogs.wsj.com/marketbeat/2012/04/20/data-points-energy-metals-555/ [4/20/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F20%2F11&x=0&y=0 [4/20/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F20%2F11&x=0&y=0 [4/20/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F20%2F11&x=0&y=0 [4/20/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F20%2F07&x=0&y=0 [4/20/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F20%2F07&x=0&y=0 [4/20/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F20%2F07&x=0&y=0 [4/20/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F19%2F02&x=0&y=0 [4/20/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F19%2F02&x=0&y=0 [4/20/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F19%2F02&x=0&y=0 [4/20/12]
9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/20/12]
9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/20/12]
10 - treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02]



Tuesday, April 17, 2012

Economic Update for the week of April 16th, 2012


WEEKLY ECONOMIC UPDATE


WEEKLY QUOTE

“Physical fitness is not only one of the most important keys to a healthy body. It is the basis of dynamic and creative intellectual activity.”
 
- John F. Kennedy


WEEKLY TIP

Do you feel too financially pinched to contribute to an IRA? You could use your tax refund for that very purpose.


WEEKLY RIDDLE

What is the beginning of sorrow and the end of sickness? Something you cannot express happiness without? Something that is always in risk, but never in danger?


Last week’s riddle:
Karen is twice her brother’s age and half her father’s age. In 22 years, her brother will be half the father’s age. How old is Karen now?


Last week’s answer:
Karen is 22 years old.


April 16, 2012
  
CONSUMER PRICES ROSE 0.3% IN MARCH
Last month’s gain in the federal government’s Consumer Price Index matched the consensus forecast of economists polled by Briefing.com and followed gains of 0.4% in February and 0.2% in January. Gasoline prices were up 1.7% last month. Core CPI rose 0.2%, so that put annualized consumer inflation at 2.7%, less than the 2.9% recorded in February. Headline producer prices were flat in March, while the core Producer Price Index rose 0.3% (the fifth straight monthly rise in core PPI). Economists polled by Reuters had expected overall PPI to rise 0.2% last month.1,2,3
 
CONSUMER SENTIMENT WAVERS
April’s initial Reuters/University of Michigan consumer sentiment survey came in at 75.7, slightly below the Briefing.com consensus projection of 76.1 and down from the final March number of 76.2. Frustration over gas prices may have had an effect.2
  
BEIGE BOOK: RECOVERY PROCEEDING NICELY
The Federal Reserve’s latest snapshot of a dozen U.S. economic regions reported “modest to moderate” economic growth overall, with all 12 Fed districts anecdotally noting expansion. For the record, the Fed has described the recovery using the “modest to moderate” phrase in three consecutive Beige Books.4
  
OIL & GAS PRICES FALL; Gold RISES
Friday, AAA's Daily Fuel Gauge Report had regular unleaded averaging $3.90 a gallon, down $0.035 from last week. On the NYMEX, oil lost 0.46% on the week to settle at $102.83 Friday; gold settled at $1,660.20 after a 1.85% weekly gain.5
  
BULLS BATTLE BEARS
April 9-13 was a volatile stretch for the market. For the week, the DJIA went -1.61% to 12,849.59, the S&P 500 -1.99% to 1,370.26 and the NASDAQ -2.25% to 3,011.33. All S&P 500 sectors lost ground on the week as concerns about Spain’s debt and U.S. corporate earnings affected investor outlooks.6,7
  
THIS WEEK: Monday, Census Bureau data on March retail sales complements earnings from Mattel, Charles Schwab, Gannett and Citigroup. Tuesday, reports on March housing starts and factory output come in along with Q1 results from Yahoo!, Coca-Cola, IBM, Goldman Sachs, Johnson & Johnson and Intel. Wednesday offers earnings from Yum Brands, Bank of NY Mellon, eBay and Qualcomm. Thursday, Q1 results from Bank of America, DuPont, Morgan Stanley, Travelers, Verizon, Microsoft, Capital One and SanDisk come in plus March existing home sales data. Friday brings earnings from General Electric and McDonalds.

% CHANGE
Y-T-D
1-YR CHG
5-YR AVG
10-YR AVG
DJIA
+5.17
+4.72
+0.47
+2.61
NASDAQ
+15.59
+9.05
+4.28
+7.15
S&P 500
+8.96
+4.25
-1.07
+2.33
REAL YIELD
4/13 RATE
1 YR AGO
5 YRS AGO
10 YRS AGO
10 YR TIPS
-0.25%
0.88%
2.31%
3.48%


Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov - 4/13/127,8,9,10
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.


Please feel free to forward this article to family, friends or colleagues.
If you would like us to add them to our distribution list, please reply with their address.
We will contact them first and request their permission to add them to our list.


«RepresentativeDisclosure»

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world's largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

Citations.
1 - www.nytimes.com/2012/04/14/business/economy/consumer-inflation-up-modestly.html [4/13/12]
2 - briefing.com/investor/calendars/economic/2012/04/09-13 [4/13/12]
3 - www.cnbc.com/id/47027476 [4/12/12]
4 - www.marketwatch.com/story/modest-to-moderate-economic-growth-beige-book-2012-04-11-148140 [4/11/12]
5 - money.msn.com/market-news/post.aspx?post=fadc5c34-4c33-4af9-90e2-9c80bb50cbcb [4/13/12]
6 - montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [4/13/12]
7 - www.cnbc.com/id/47040305 [4/13/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F13%2F11&x=0&y=0 [4/13/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F13%2F11&x=0&y=0 [4/13/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F13%2F11&x=0&y=0 [4/13/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F12%2F07&x=0&y=0 [4/13/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F12%2F07&x=0&y=0 [4/13/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F12%2F07&x=0&y=0 [4/13/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F12%2F02&x=0&y=0 [4/13/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F12%2F02&x=0&y=0 [4/13/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F12%2F02&x=0&y=0 [4/13/12]
9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/13/12]
9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/13/12]
10 - treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02]



Tuesday, April 10, 2012

Economic Update for the week of April 9th, 2012


WEEKLY ECONOMIC UPDATE


WEEKLY QUOTE

“The more that you find out about the world, the more opportunities there are to laugh at it.”
 
- Bill Nye


WEEKLY TIP

A Roth IRA can be used to save for your future and your children's future. The money can help fund your retirement and it can optionally help to fund a child’s college education.


WEEKLY RIDDLE

Karen is twice her brother’s age and half her father’s age. In 22 years, her brother will be half the father’s age. How old is Karen now?

Last week’s riddle:
Take one letter out of a 7-letter word and it becomes longer. What is this word?


Last week’s answer:
Lounger.


April 9, 2012
  
UNEMPLOYMENT FALLS TO 8.2%
That good news was tempered by some disappointments. The U.S. economy only managed a net gain of 120,000 non-farm jobs in March; analysts were hoping for a gain of at least 200,000. The private sector added 121,000 positions in March; ADP had projected an increase of 209,000. However, the underemployment rate declined again last month (to 14.5%) and the manufacturing sector grew by 37,000 jobs.1
   
ONE PMI TOPS EXPECTATIONS; ANOTHER DOESN’T
The start of each month brings the latest surveys of purchasing managers from the Institute for Supply Management. ISM’s March service sector PMI came in at 56.0 and its March manufacturing PMI came in at 53.4. Economists polled by Briefing.com thought the manufacturing PMI would reach 53.0 and the service sector PMI would reach 56.7.2
   
A GREAT MARCH FOR AUTOMAKERS
Warm weather fostered greater car and truck buying. The following firms reported the following monthly sales increases last week: General Motors, 12%; Chrysler Group, 34%, Toyota, 15%; Ford, 5%; Volkswagen, 35%; Nissan, 12.5%.3
   
OIL ADVANCES, GOLD SLIPS
Oil prices rose 0.28% last week to settle at $103.31 a barrel on the NYMEX, while retail unleaded gas prices averaged $3.94 a gallon nationally on Friday. Gold futures fell 2.50% on the COMEX to wrap up last week at $1,630.10 an ounce.1
   
STOCKS RETREAT IN SHORT TRADING WEEK
Across four market days, the Dow lost 1.15% to 13,060.14, the S&P 500 fell 0.74% to 1,398.08 and the NASDAQ dipped 0.36% to 3,080.50. So the worst week for stocks so far in 2012 wasn’t that bad. A contributing factor: the minutes from the March 13 FOMC meeting signaled that the Federal Reserve might not attempt further stimulus efforts. However, the March jobs report could help to alter the Fed’s outlook.1
  
THIS WEEK: Monday evening, Fed chairman Ben Bernanke speaks at the Atlanta Fed’s Financial Markets Conference. Tuesday, Alcoa offers Q1 results. Wednesday, the Fed puts out a new Beige Book and earnings arrive from Progressive. Thursday, the March PPI is out to complement weekly initial claims numbers and earnings from Google and Rite Aid. Friday brings the March CPI, the initial April consumer sentiment survey from the University of Michigan, and earnings reports from Wells Fargo and J.P. Morgan; also, Ben Bernanke speaks in New York about the federal policy response to the Great Recession.

% CHANGE
Y-T-D
1-YR CHG
5-YR AVG
10-YR AVG
DJIA
+6.90
+5.10
+0.80
+2.71
NASDAQ
+18.25
+10.02
+4.93
+7.40
S&P 500
+11.17
+4.68
-0.63
+2.45
REAL YIELD
4/6 RATE
1 YR AGO
5 YRS AGO
10 YRS AGO
10 YR TIPS
-0.16%
0.99%
2.27%
3.48%


Sources: msn.money.com, bigcharts.com, treasury.gov, treasurydirect.gov - 4/6/121,5,6,7
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.


Please feel free to forward this article to family, friends or colleagues.
If you would like us to add them to our distribution list, please reply with their address.
We will contact them first and request their permission to add them to our list.


«RepresentativeDisclosure»

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world's largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

Citations.
1 - money.msn.com/market-news/post.aspx?post=98ca0651-75b8-4c7e-afb9-3e390da03ecf/ [4/6/12]
2 - briefing.com/investor/calendars/economic/2012/04/02-06 [4/6/12]
3 - www.businessweek.com/ap/2012-04/D9TTICGO2.htm [4/3/12]
4 - montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [4/6/12]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F6%2F11&x=0&y=0 [4/6/12]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F6%2F11&x=0&y=0 [4/6/12]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F6%2F11&x=0&y=0 [4/6/12]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F5%2F07&x=0&y=0 [4/6/12]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F5%2F07&x=0&y=0 [4/6/12]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F5%2F07&x=0&y=0 [4/6/12]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F5%2F02&x=0&y=0 [4/6/12]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F5%2F02&x=0&y=0 [4/6/12]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F5%2F02&x=0&y=0 [4/6/12]
6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/6/12]
6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/6/12]
7 - treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02]