Economic Update for the week of October 29th, 2012

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE             “You can only perceive real beauty in a person as they get older.”       - Anouk Aimée        WEEKLY TIP             If you gift stock to help your student pay some college costs, be careful – if the gain is too large from the sale, your child’s unearned income could top $1,900 and you will be hit with the “kiddie tax” and pay 15% instead of 0% on the gain.       WEEKLY RIDDLE                A man tells you there are 12 seconds in a year. This sounds absurd, but in what sense is he correct?        Last week’s riddle: Holly finds herself in a room without windows, holes or even cracks in the walls. She doesn't have any tools and the door to the room is 4" thick and made of steel. Using only her hands, she manages to escape through the doorway. How does she do it?    Last week’s answer: The door is unlocked.	October 29, 2012      Q3 GDP READING SUGGESTS HEALTHIER ECONOMY The Commerce Department’s initial third quarter estimate of annualized growth – 2.0% – was better than expected. Still, it fell short of the 2.5% pace analysts feel is needed to reduce the unemployment rate. Consumer spending, defense spending and residential real estate investment were the key factors behind the third quarter improvement – in fact, spending on homebuilding and home improvement rose more than 14% in the quarter.1,2    NEW HOME SALES, HOME SALE CONTRACTS INCREASE September saw a 5.7% rise in new home buying, according to the Census Bureau. The annual projection of new home sales (389,000) paled in comparison to the 800,000+ pace of early 2007, but sales were still up 27.1% year-over-year to the highest level since April 2010. Elsewhere in the housing market, the National Association of Realtors reported an 0.3% gain in pending home sales last month.3,4     CONSUMER BAROMETER SEES October gain October’s final Thomson Reuters/University of Michigan consumer sentiment index came in at 82.6, the best monthly reading since September 2007. Across 2003-2007, the index averaged 89.0; during the last recession, it averaged 64.2.5    STOCKS RETREAT, ALONG WITH GAS PRICES   October may go in the books as the poorest month for stocks in some time.  As of Friday’s close, the S&P 500 was down 1.99% for the month. Major indices turned south last week – S&P 500, -1.48% to 1,411.94; NASDAQ, -0.59% to 2,987.95; DJIA, -1.77% to 13,107.21. Gas prices also dropped, however: AAA had the national average price per gallon at $3.58 Friday, down 3.8% for the week and 5.6% this month.1,6,7    THIS WEEK: September’s consumer spending report arrives Monday, along with earnings from Burger King and Baidu. Tuesday sees the release of a new Case-Shiller Home Price Index, the Conference Board’s October consumer confidence survey and Q3 earnings from BP, Pfizer, UBS, U.S. Steel, Valero Energy, Sirius XM, Take Two, Ford, Electronic Arts, Dreamworks and Shutterfly. On Wednesday, MetLife, GM, Time Warner Cable, Visa, Arcelor Mittal, GlaxoSmithKline, MasterCard, Allstate, Barclays, Clorox and Ralph Lauren report earnings. ISM’s October manufacturing index comes out Thursday in addition to new initial claims figures and Q3 results from Starbucks, ExxonMobil, Royal Dutch Shell, Cigna, Kellogg, AIG, Chesapeake Energy, Hartford Financial, Open Table, WebMD and Yelp. Friday sees the release of the October jobs report, the numbers on September factory orders and Q3 results from Chevron.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +7.28 +10.43 -1.01 +5.52 NASDAQ +14.69 +12.72 +1.31 +12.45 S&P 500 +12.27 +13.68 -1.61 +5.73 REAL YIELD 10/26 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.69% 0.15% 2.05% 3.10%   Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov - 10/26/127,8,9,10 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 - money.msn.com/market-news/post.aspx?post=8b58846a-7feb-420a-9551-e2324bbc9bc6 [10/26/12] 2 - www.suntimes.com/business/15973988-420/us-economy-accelerates-to-2-percent-growth-in-third-quarter.html [10/26/12] 3 - blogs.wsj.com/economics/2012/10/25/vital-signs-chart-new-home-sales/ [10/25/12] 4 - www.reuters.com/article/2012/10/25/usa-economy-homes-idUSL1E8LP59420121025 [10/25/12] 5 - www.bloomberg.com/news/2012-10-26/michigan-consumer-sentiment-index-increased-to-82-6-in-october.html [10/26/12] 6 - montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [10/26/12] 7 - www.cnbc.com/id/49567684 [10/26/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F26%2F11&x=0&y=0 [10/26/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F26%2F11&x=0&y=0 [10/26/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F26%2F11&x=0&y=0 [10/26/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F26%2F07&x=0&y=0 [10/26/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F26%2F07&x=0&y=0 [10/26/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F26%2F07&x=0&y=0 [10/26/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F25%2F02&x=0&y=0 [10/26/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F25%2F02&x=0&y=0 [10/26/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F25%2F02&x=0&y=0 [10/26/12] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [10/26/12] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [10/26/12] 10 - treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm71002.pdf [7/10/02]

Economic Update for the week of October 22nd, 2012

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE             “Never worry about numbers. Help one person at a time and always start with the person nearest you.”       - Mother Teresa        WEEKLY TIP             If you need to upgrade business equipment, consider making such capital purchases now to exploit the generous 2012 Section 179 deduction limit and first-year bonus depreciation allowance.       WEEKLY RIDDLE            Holly finds herself in a room without windows, holes or even cracks in the walls. She doesn't have any tools and the door to the room is 4” thick and made of steel. Using only her hands, she manages to escape through the doorway. How does she do it?        Last week’s riddle: What word describes a man who does not have all his fingers on one hand?    Last week’s answer: Normal. A normal man does not have all ten of his fingers on one hand.	October 22, 2012      HOME SALES DECLINE, BUT HOUSING STARTS RISE 15% The National Association of Realtors recorded a 1.7% decrease in existing home sales in September. Reduced inventory might have played a role. The amount of homes on the market fell to a 5.9-month supply, a low unseen since March 2006. The median home price was $183,900 in September, up 11.3% from a year ago; it hasn’t been so high since 2005. September’s 15.0% leap in homebuilding took housing starts to an annual rate of 872,000 units, the best pace since July 2008 and a 34.8% increase since September 2012.1,2    PUMP PRICES DRIVE UP CPI Thanks largely to a 7% jump in gas prices, the federal government’s Consumer Price Index rose 0.6% in September. Still, the core CPI rose just 0.1% for the third straight month, and food prices rose only 0.1%. Annualized inflation came in at 2.0%.3     RETAIL SALES IMPROVE 1.1% While the overall September gain announced by the Commerce Department was strong, the really notable number was the 0.9% rise in sales aside from gasoline, autos, and building materials. Electronics sales alone rose 4.5%.4    AFTER FRIDAY DIVE, STOCKS STILL LOG WEEKLY GAIN Thanks mostly to earnings disappointments, the 25th anniversary of Black Monday turned out to be a harsh day for Wall Street. The Dow sank 205.43 Friday, yet the week was mixed – S&P 500, +0.32% to 1,433.19; NASDAQ, -1.26% to 3,005.62; DJIA, +0.11% to 13,343.51. NYMEX crude settled at $90.05 Friday, down 1.97% for the week; COMEX gold settled at $1,724.00 Friday after a 2.03% weekly descent. That put oil down 8.88% YTD and gold up 10.03% YTD.1,5    THIS WEEK: Hasbro, Caterpillar, Yahoo!, Peabody Energy and Texas Instruments all offer Q3 results on Monday. Tuesday, earnings reports from DuPont, Amgen, 3M, Xerox, Netflix, Facebook and UPS arrive. Wednesday, the Census Bureau has numbers on September new home sales, the Fed wraps up a policy meeting, the August FHFA home price index appears and AT&T, Boeing, Akamai, Zynga, Symantec, Eli Lilly and Bristol-Myers all report earnings. On Thursday, we learn about September pending home sales and hard goods orders, new initial jobless claims number are out, and AstraZeneca, ConocoPhillips, P&G, Aetna, AutoNation, Credit Suisse, Dow Chemical, Pulte, Sprint, Apple, Altria, Amazon.com, and Coinstar issue Q3 results. Friday brings the first estimate of Q3 GDP, the final University of Michigan consumer sentiment survey for the month, and earnings from Merck and Comcast.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +9.22 +15.98 -0.26 +6.03 NASDAQ +15.37 +15.42 +2.06 +13.34 S&P 500 +13.96 +18.46 -0.90 +6.21 REAL YIELD 10/19 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.71% 0.23% 2.09% 3.10%   Sources: money.msn.com, bigcharts.com, treasury.gov, treasurydirect.gov - 10/19/121,6,7,8 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.
Please feel free to forward this article to family, friends or colleagues. If you would like us to add them to our distribution list, please reply with their address. We will contact them first and request their permission to add them to our list.
«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=8e931d01-f2df-44d5-b3e3-0b133a0ac6dd [10/19/12] 2 - www.inman.com/news/2012/10/17/housing-starts-82-percent-2009-trough [10/17/19] 3 - articles.latimes.com/2012/oct/17/business/la-fi-inflation-20121017 [10/17/12] 4 - www.reuters.com/article/2012/10/15/us-usa-economy-idUSBRE89E0RI20121015 [10/15/12] 5 - montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [10/19/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F19%2F11&x=0&y=0 [10/19/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F19%2F11&x=0&y=0 [10/19/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F19%2F11&x=0&y=0 [10/19/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F19%2F07&x=0&y=0 [10/19/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F19%2F07&x=0&y=0 [10/19/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F19%2F07&x=0&y=0 [10/19/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F18%2F02&x=0&y=0 [10/19/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F18%2F02&x=0&y=0 [10/19/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F18%2F02&x=0&y=0 [10/19/12] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [10/19/12] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [10/19/12] 8 - treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm71002.pdf [7/10/02]

Economic Update for the week of October 15th, 2012

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE             “No rational argument will have a rational effect on a man who does not want to adopt a rational attitude.”       - Karl Popper        WEEKLY TIP             This is the time of year to get your “tax file” ready. Start a file in which you can compile your W-2s, assorted 1099s and important receipts reflecting business and health care expenses and charitable gifts.       WEEKLY RIDDLE            What word describes a man who does not have all his fingers on one hand?        Last week’s riddle: Strange but true: the letters in the phrase “bad credit” can be rearranged to spell something most of us probably have in our wallets or handbags. Find the anagram.    Last week’s answer: Debit card.	October 15, 2012      OUTLOOK OF CONSUMERS BRIGHTENS AGAIN Economists weren’t expecting the University of Michigan’s preliminary October consumer sentiment survey to show a major advance – but it did. The index came in at 83.1, notably better than September’s final 78.3 mark. While the much-watched consumer gauge is still well below a “normal” reading of 100, this was the highest reading since September 2007.1    GAS PRICES DRIVE PPI HIGHER Wholesale inflation rose 1.1% for September, according to the federal government’s Producer Price Index. The major influence: a 4.7% spike in energy prices.  The core PPI (minus food and energy prices) was flat last month. In the past 12 months, the PPI has advanced 2.1%. Annualized wholesale inflation hasn’t been that pronounced since March.2     NEW BEIGE BOOK REPORTS MILD ECONOMIC GROWTH The Federal Reserve’s latest survey of current economic conditions in its 12 districts noted that consumer spending “was generally reported to be flat to up slightly since the last report” while overall economic activity had “generally expanded modestly.” On the heels of the final 1.3% estimate of Q2 GDP, all this was hardly surprising.3,4    TOUGH WEEK SEES PLENTY OF SELLING The Q3 earnings season got off to an unimpressive start, and the major indices reacted with their worst weekly performances since late May: the Dow lost 2.07%, the NASDAQ 2.94% and the S&P 500 2.21%. Gold slipped 1.18% as well; oil, on the other hand, managed a 2.20% advance. Where did everything settle Friday? Oil ended the week at $91.86 per barrel and gold at $1,759.70 an ounce; the Dow closed at 13,328.85, the S&P at 1,428.59 and the NASDAQ at 3,044.11.1,5    THIS WEEK: Monday brings Q3 results from Citigroup and September retail sales figures from the Census Bureau. IBM, Intel, Coca-Cola, Goldman Sachs, Johnson & Johnson, United Health, Mattel, PNC Financial and State Street report earnings Tuesday; the September CPI also appears. Wednesday, Q3 results come in from Northern Trust, US Bancorp, American Express, Bank of America, PepsiCo, Bank of NY Mellon, Blackrock and eBay; data on September housing starts also arrives. Thursday, earnings are in from Morgan Stanley, Phillip Morris, Nokia, Google, Microsoft, Travelers, Union Pacific, Verizon, Fifth Third, Huntington AMD, Capital One, Chipotle and E-Trade, plus new initial claims figures and the Conference Board’s September leading indicators index. Friday, we get the numbers on existing home sales in September along with earnings from GE, Honeywell and McDonald's.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +9.10 +15.71 -1.08 +6.98 NASDAQ +16.85 +16.87 +1.70 +15.15 S&P 500 +13.60 +18.33 -1.71 +7.10 REAL YIELD 10/12 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.78% 0.26% 2.36% 3.10%   Sources: money.msn.com, bigcharts.com, treasury.gov, treasurydirect.gov - 10/12/121,6,7,8 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.
Please feel free to forward this article to family, friends or colleagues. If you would like us to add them to our distribution list, please reply with their address. We will contact them first and request their permission to add them to our list.
«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=bc2367f2-d20e-4178-ba68-c8bf60b299d9 [10/12/12] 2 - www.nasdaq.com/article/us-producer-prices-rise-11-core-ppi-flat-20121012-00342#.UHh9YaCMLHp [10/12/12] 3 - www.hispanicbusiness.com/2012/10/10/fed_beige_book_report_calls_spending.htm [10/10/12] 4 - www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm [9/27/12] 5 - montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [10/12/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F12%2F11&x=0&y=0 [10/12/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F12%2F11&x=0&y=0 [10/12/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F12%2F11&x=0&y=0 [10/12/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F12%2F07&x=0&y=0 [10/12/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F12%2F07&x=0&y=0 [10/12/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F12%2F07&x=0&y=0 [10/12/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F11%2F02&x=0&y=0 [10/12/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F11%2F02&x=0&y=0 [10/12/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F11%2F02&x=0&y=0 [10/12/12] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [10/12/12] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [10/12/12] 8 - treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm71002.pdf [7/10/02]