Economic Update for the week of Nov. 26th, 2012

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE             “An inventor is simply a fellow who doesn’t take his education too seriously.”       - Charles Kettering        WEEKLY TIP              Some people open a retirement account only to “set it and forget it,” leaving the asset allocation unchanged for years. As you get older, be sure to review your allocation choices in light of your risk tolerance and time horizon.       WEEKLY RIDDLE                Ray slipped off of a 30-foot escalator and landed on a sidewalk. He was embarrassed, yet uninjured. How could this be?        Last week’s riddle: Rhyming Riddle: My first is twice in apple but not once in tart. My second is in liver but not in heart. My third is in giant and also in ghost. Whole I'm best when I am roast. What am I?    Last week’s answer: A pig.	November 26, 2012        MORE GOOD NEWS FROM THE HOUSING MARKET Existing home sales rose 2.1% in October, according to the National Association of Realtors. NAR noted a 10.9% annual gain in the sales pace and an 11.1% year-over-year rise in the median sale price to $178,600. The National Association of Home Builders (NAHB) Housing Market Index came in at 46 for November, a six-and-a-half year peak. Housing starts increased 3.6% in October to a five-year high.1,2      DID CONSUMER SENTIMENT IMPROVE THIS MONTH? The University of Michigan’s bellwether consumer sentiment survey came in at a final mark of 82.7 for November, up 0.1 point from the final October reading. The index’s preliminary November reading had been 84.9.3       WILL HOLIDAY SHOPPING SURPASS FORECASTS? The National Retail Federation projects 5 million fewer Black Friday weekend shoppers this year, but also a 4.1% annual gain in holiday retail sales. A Reuters survey showed that 21% of shoppers think they will spend less this holiday season, while 11% think they will spend more.4   CHEAPEST HOME LOANS IN DECADES With a helping hand from QE3, the average interest rate on the 30-year FRM fell to 3.34%, a new record low, in Freddie Mac’s November 20 Primary Mortgage Market Survey. A year ago, interest rates on these loans were hovering near 4%.2    DOW CLOSES ABOVE 13,000 Congress took its Thanksgiving recess last week, and no discouraging news on the fiscal cliff talks amounted to relatively good news for Wall Street. The Dow (+3.35% to 13,009.68), S&P 500 (+3.62% to 1,409.15) and NASDAQ (+3.99% to 2,966.85) all advanced across three-and-a-half trading days. Gold settled Friday at $1,751.80 an ounce, oil at $88.36 a barrel.5,6,7    THIS WEEK: No major U.S. economic reports are scheduled for Monday. On Tuesday, September’s Case-Shiller Home Price Index is out plus the Conference Board’s latest consumer confidence poll, data on October hard goods orders and earnings from Green Mountain Coffee Roasters. Wednesday, TiVo, Aeropostale, Neiman Marcus, Ann and Fifth Street Finance issue earnings reports and a new Fed Beige Book appears plus data on October new home sales. Thursday, NAR’s report on October pending home sales, the second estimate of Q3 GDP and the latest initial claims complement earnings from Kroger, Tiffany, Barnes & Noble, Mitel and Cracker Barrel. Friday sees the release of the October personal spending report.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +6.48 +15.56 +0.04 +4.78 NASDAQ +13.88 +20.60 +2.85 +10.20 S&P 500 +12.05 +21.29 -0.44 +5.14 REAL YIELD 11/23 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.72% -0.01% 1.63% 3.10%   Sources: thestreet.com, bigcharts.com, treasury.gov, treasurydirect.gov - 11/23/125,8,9,10 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.
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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.latimes.com/business/money/la-fi-mo-existing-home-sales-homebuilder-confidence-20121119,0,207630.story [11/19/12] 2 - abcnews.go.com/blogs/business/2012/11/housing-starts-surged-3-6-pct-in-october/ [11/20/12] 3 - www.latimes.com/business/money/la-fi-mo-economy-consumer-20121121,0,596839.story [11/21/12] 4 - www.reuters.com/article/2012/11/23/usa-retail-holiday-blackfriday-idUSL1E8MN0D220121123 [11/23/12] 5 - www.thestreet.com/story/11774464/1/stock-market-story-nov-23.html [11/23/12] 6 - http://www.cnbc.com/id/49938926 [11/23/12] 7 - montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [11/23/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F23%2F11&x=0&y=0 [11/23/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F23%2F11&x=0&y=0 [11/23/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F23%2F11&x=0&y=0 [11/23/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F23%2F07&x=0&y=0 [11/23/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F23%2F07&x=0&y=0 [11/23/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F23%2F07&x=0&y=0 [11/23/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F22%2F02&x=0&y=0 [11/23/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F22%2F02&x=0&y=0 [11/23/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F22%2F02&x=0&y=0 [11/23/12] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/23/12] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/23/12] 10 - treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm71002.pdf [7/10/02]

Economic Update for the week of Nov. 19th, 2012

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE             “Life is like a ten-speed bicycle. Most of us have gears we never use.”       - Charles Schulz        WEEKLY TIP              If you are a new parent, you have 18 years to save for your child’s university tuition. Consider an opening an education account in which earnings can compound with tax deferral.       WEEKLY RIDDLE                Rhyming Riddle: My first is twice in apple but not once in tart. My second is in liver but not in heart. My third is in giant and also in ghost. Whole I'm best when I am roast. What am I?        Last week’s riddle: It has no body, but it has a copper head and copper tail. It can be found in the street and in just about any store. What is it?    Last week’s answer: A penny.	November 19, 2012      A FISCAL CLIFF DEAL SOONER RATHER THAN LATER? House Speaker John Boehner and Senate Majority Leader Harry Reid both called Friday’s fiscal cliff meeting with President Obama and the White House economic team “constructive”. Speaker Boehner noted that he had introduced a framework for tax reform, adding that tax increases might be accepted if “accompanied by serious spending cuts”. President Obama is in Asia this week; members of his senior team will continue talks with leaders of Congress. House Minority Leader Nancy Pelosi urged lawmakers to set “a deadline before Christmas” to resolve the dilemma, emphasizing the need to “send a message of confidence to consumers [and] the markets” in the coming weeks. Friday, the Wall Street Journal published reports of “advanced talks” at the White House about a deal to postpone January’s planned $100 billion in spending cuts for 6-12 months while smaller and more targeted cuts and tax increases are made in the interim.1,2    DID SUPERSTORM SANDY DENT RETAIL SALES? The storm may have had an effect. The Commerce Department noted a 0.3% overall drop in retail purchases for October, with core retail sales down 0.1%. This follows a (revised) 1.3% gain for September and a 1.0% advance in August.3     TAME INFLATION IN OCTOBER Consumer prices ticked up but 0.1% last month, compared to 0.6% in September. Wholesale inflation lessened for the first time in five months in October; the Producer Price Index retreated 0.2% after rising 1.1% in the prior month. Annual consumer inflation was running at 2.2% in October.4       STOCKS MOVE SOUTH The Dow lost 1.77% last week, while the NASDAQ and S&P 500 respectively lost 1.78% and 1.45%. On Friday, the Dow closed at 12,588.31, the NASDAQ at 2,853.13 and the S&P at 1,359.88. COMEX gold settled Friday at $1,712.30 per ounce; NYMEX crude ended the trading week at just $86.62 a barrel.5,6,7    THIS WEEK: Monday, earnings from Lowe’s, Jack in the Box, Tyson Foods and Urban Outfitters are released, plus NAR’s report on existing home sales. Tuesday, data on October housing starts arrives along with Q3 results from Hewlett-Packard, Best Buy, Chico’s and Campbell Soup; Fed Chairman Ben Bernanke speaks at the Economic Club of New York. November’s final University of Michigan consumer sentiment survey arrives Wednesday, and so do the latest initial jobless claims. Thanksgiving is Thursday; U.S. financial markets will be closed. Black Friday follows, with the NYSE closing for business at 1:00pm EST.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +3.03 +5.73 -0.89 +4.67 NASDAQ +9.52 +8.09 +1.64 +10.22 S&P 500 +8.13 +9.94 -1.36 +4.95 REAL YIELD 11/16 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.81% 0.05% 1.80% 3.10%   Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov - 11/16/125,8,9,10 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.
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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 - whitehouse.blogs.cnn.com/2012/11/16/congressional-leaders-strike-postive-tone-after-constructive-white-house-meeting/ [11/16/12] 2 - www.cnbc.com/id/49852886/ [11/16/12] 3 - blogs.wsj.com/economics/2012/11/14/worries-that-retail-weakness-extends-beyond-sandy/ [11/14/12] 4 - www.bloomberg.com/news/2012-11-15/consumer-prices-in-u-s-increased-at-a-slower-pace-in-october.html [11/15/12] 5 - www.cnbc.com/id/49853571 [11/16/12] 6 - markets.on.nytimes.com/research/markets/commodities/commodities.asp [11/16/12] 7 - montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [11/16/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F16%2F11&x=0&y=0 [11/16/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F16%2F11&x=0&y=0 [11/16/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F16%2F11&x=0&y=0 [11/16/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F16%2F07&x=0&y=0 [11/16/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F16%2F07&x=0&y=0 [11/16/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F16%2F07&x=0&y=0 [11/16/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F15%2F02&x=0&y=0 [11/16/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F15%2F02&x=0&y=0 [11/16/12] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F15%2F02&x=0&y=0 [11/16/12] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/16/12] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/16/12] 10 - treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm71002.pdf [7/10/02]

Economic Update for the week of Nov. 12th, 2012

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE             “Like a welcome summer rain, humor may suddenly cleanse and cool the earth, the air and you.”       - Langston Hughes        WEEKLY TIP             Donations of clothing and other household items in good condition can be deducted on your federal tax return if made to a 501c(3) organization. Be sure to get a written acknowledgment from the charity.       WEEKLY RIDDLE                It has no body, but it has a copper head and copper tail. It can be found in the street and in just about any store. What is it?        Last week’s riddle: Einstein’s Riddle: A man meets a bear in a wasteland. Both are startled. The man runs north and the bear runs west. Suddenly, the man aims his gun south and shoots the bear. What color is the bear?    Last week’s answer: White; for the man to do what is described, he must be standing exactly on the North Pole, so the bear has to be a polar bear.	November 12, 2012      HANDSHAKE OR STALEMATE AT THE FISCAL CLIFF? President Obama addressed the dilemma of the fiscal cliff, saying Friday that he was “open to compromise” but noting that he would not accept “any approach that isn't balanced.” Earlier, House Speaker John Boehner told ABC News that a deal including tax increases would be “unacceptable,” noting that tax code reform would be necessary for any movement. While negotiations between the President and Congressional leaders start this week, Obama and  Boehner have held to their stances on the Bush-era tax cuts: on Friday, the President asked Congress to preserve the cuts for the middle class and raise taxes for the wealthiest 2% of Americans, while Speaker Boehner said that the cuts should be extended into 2013 in their entirety.1    SERVICE SECTOR GROWTH SLOWS The Institute for Supply Management’s latest non-manufacturing index showed a 0.9% decline for October. The 54.2 reading reflected strong but slightly less robust expansion in the service sector. ISM’s non-manufacturing employment index rose for the third straight month, however.2     CONSUMER SENTIMENT METER CONTINUES ITS RISE November’s initial University of Michigan consumer sentiment survey showed more improvement with a reading of 84.9, up from 82.6 in the final October survey. That surpassed the 82.9 consensus forecast of economists polled by Bloomberg.3       WORRIES HINDER STOCKS Anxieties over the fiscal cliff prompted a flurry of selling on Wall Street last week. The Dow (-2.12% to 12,815.39), S&P 500 (-2.43% to 1,379.85) and NASDAQ (-2.59% to 2,904.87) retreated severely. NYMEX crude rose 1.43% across five days to settle at $86.07 Friday; COMEX gold gained 3.32% to conclude the week at $1,730.90.4,5    THIS WEEK: Most banks will be closed Monday in observance of Veterans Day; the stock market will be open, with earnings reports arriving from D.R. Horton and Beazer. Tuesday, Cisco, Dick’s Sporting Goods, Saks, Home Depot and TJX all issue earnings. Wednesday, the Census Bureau informs us about October retail sales and October’s PPI comes out along with the October 24 FOMC minutes; Q3 results come in from PetSmart, Abercrombie & Fitch, Staples, Tyco and Williams-Sonoma. In addition to initial claims reports, Thursday brings the October CPI and Q3 results from Sears, Ross, Gap, Dole Foods, GameStop, Intuit, Wal-Mart, Target, Viacom and Dell. Friday, the Federal Reserve issues its report on October industrial output and earnings are in from J.M. Smucker and Foot Locker.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +4.89 +8.78 -0.35 +5.01 NASDAQ +11.50 +10.80 +2.11 +11.37 S&P 500 +9.72 +12.27 -1.02 +5.42 REAL YIELD 11/9 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.83% -0.04% 1.82% 3.10%   Sources: money.msn.com, bigcharts.com, treasury.gov, treasurydirect.gov - 11/9/124,6,7,8 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 - abcnews.go.com/Politics/OTUS/boehner-grips-deficit-2013/story?id=17679762 [11/9/12] 2 - www.ism.ws/ISMReport/NonMfgROB.cfm [11/5/12] 3 - www.sfgate.com/business/bloomberg/article/Michigan-Consumer-Sentiment-Index-Increased-More-4023708.php [11/9/12] 4 - money.msn.com/market-news/post.aspx?post=782e76c9-c90c-4ab2-8fff-26b13b3b7d89 [11/9/12] 5 - montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [11/9/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F9%2F11&x=0&y=0 [11/9/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F9%2F11&x=0&y=0 [11/9/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F9%2F11&x=0&y=0 [11/9/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F9%2F07&x=0&y=0 [11/9/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F9%2F07&x=0&y=0 [11/9/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F9%2F07&x=0&y=0 [11/9/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F8%2F02&x=0&y=0 [11/9/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F8%2F02&x=0&y=0 [11/9/12] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F8%2F02&x=0&y=0 [11/9/12] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/9/12] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/9/12] 8 - treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm71002.pdf [7/10/02]