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WEEKLY QUOTE
“All
right, I am corny. But I think there are about 140 million people in this
country just as corny as I am.”
- Walt Disney
WEEKLY TIP
If
you are expecting a child, take a moment to calculate the amount left on your
mortgage and to roughly estimate the future cost of his or her college
education. Besides defining some financial goals, this will also help you
determine how much life insurance you may need.
WEEKLY RIDDLE
I
may be red, green or yellow. Eat me, and you may stay a healthy fellow. My
interior is white; I don’t give off light. What am I?
Last week’s riddle:
Two sailors stand at opposite sides of a boat. One looks west and
the other looks east, and yet they are both able to see each other clearly.
How can this be?
Last week’s answer:
The
sailors are looking inward (into the boat) while standing with their backs
against the sides of the ship.
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July 9,
2012
WEAK JOB MARKET PERSISTS IN JUNE
America’s
unemployment rate remained at 8.2% in June with non-farm payrolls expanding
by just 80,000 positions. The underemployment rate rose to 14.9%. The Labor
Department report offered a troubling big-picture detail: our economy has generated
fewer than 100,000 new jobs for four straight months, in what seems like a
replay of May-August 2011 (when monthly job gains averaged just 80,000). Does
this signal another “soft patch”? Maybe not. For example, January-May job
growth has exceeded June-September job growth regularly since 1987. Two
sobering facts remain: between January 2008 and February 2010, the economy shed
almost 8.8 million jobs, and since then it has regained less than 44% of them.1,2
ISM GAUGES DROP
FOR INDUSTRY & SERVICE SECTORS
The
Institute for Supply Management’s closely watched manufacturing sector index
dipped to 49.7 in June from May’s 53.5 mark (meaning sector contraction).
ISM’s service sector index also saw a June descent to 52.1 from May’s 53.7
reading. Factory orders did rise 0.7% in June, far above the 0.2% expected by
analysts polled by Reuters.3,4
AUTO SALES UP;
CHAIN-STORE SALES DISAPPOINT
Big
automakers announced nice 12-month sales gains for June: Toyota, +60%; Nissan,
+28%; Chrysler, +20%; General Motors, +16%. The International Council of
Shopping Centers gauged a 0.2% annualized increase in same-store sales in
June, as opposed to a 1.7% yearly gain for May.4,5
A MIXED WEEK ON WALL STREET
While
the NASDAQ advanced 0.08% last week to close at 2,937.33 Friday, the DJIA (-0.84%
to 12,772.47) and the S&P 500 (-0.55% to 1,354.68) both staged weekly
retreats. Bulls interpreted the European Central Bank’s July 5 interest rate
cut as a token gesture, and last week’s encouraging ADP jobs report was not
affirmed by the Labor Department’s numbers. Oil ended the week at $84.45 on
the NYMEX (-0.60% for the week) while gold lost 1.58% last week to settle at $1,578.90
on the COMEX.2,6
THIS WEEK: Another earnings
season is here: as usual, Alcoa leads the way on Monday. Tuesday brings
earnings from Levi Strauss. Wednesday, we have reports on the U.S. trade deficit
and wholesale inventories, Q2 results from Marriott and the June 20 FOMC
minutes. Thursday, earnings from Fastenal and Progressive arrive along with
new weekly jobless claims figures. On Friday, Wells Fargo and JPMorgan Chase
issue Q2 results, and we get June’s Producer Price Index and the preliminary
July consumer sentiment survey from the University of Michigan.
Sources: money.msn.com, bigcharts.com, treasury.gov, treasurydirect.gov - 7/6/122,7,8,9
Indices are unmanaged, do not
incur fees or expenses, and cannot be invested into directly.
These returns do not include
dividends.
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«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.boston.com/business/news/2012/07/06/employers-add-jobs-economy-struggles/xTVUZOt6lNJZGi1aBhxrGL/story.html
[7/6/12]
2 - money.msn.com/market-news/post.aspx?post=96140b67-efa5-49c8-9ffc-85cd17eaea41
[7/6/12]
3 - www.ism.ws/ISMReport/NonMfgROB.cfm [7/5/12]
4 - money.msn.com/market-news/post.aspx?post=ac939968-c8f5-4806-909b-3d029be476e1
[7/6/12]
5 - finance.yahoo.com/news/retailers-report-tepid-june-sales-175710325.html
[7/5/12]
6 - montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29
[7/6/12]
7 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F6%2F11&x=0&y=0
[7/6/12]
7 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F6%2F11&x=0&y=0
[7/6/12]
7 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F6%2F11&x=0&y=0
[7/6/12]
7 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F6%2F07&x=0&y=0
[7/6/12]
7 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F6%2F07&x=0&y=0
[7/6/12]
7 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F6%2F07&x=0&y=0
[7/6/12]
7 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F5%2F02&x=0&y=0
[7/6/12]
7 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F5%2F02&x=0&y=0
[7/6/12]
7 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F5%2F02&x=0&y=0
[7/6/12]
8 -
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield
[7/6/12]
8 -
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll
[7/6/12]
9 - treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf
[1/9/02]
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Tuesday, July 10, 2012
Economic Update for the week of July 9th, 2012
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