Economic Update for the week of December 23rd, 2013

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “A man with ambition and love for his blessings here on earth is ever so alive.”       - Pearl Bailey           WEEKLY TIP               Some retirees don’t realize that a portion of Social Security income may be taxable. If you receive income from other sources, some of your Social Security benefits may be taxed if your modified adjusted gross income (MAGI) exceeds a certain amount.        WEEKLY RIDDLE             It is in seconds, seasons, centuries and minutes, but you won’t find in years, decades or days. What is it?         Last week’s riddle: I have a bank, yet no cash. I can run, but can’t walk. I have a bed, but never sleep. I have a mouth, but ingest no meals. What am I?     Last week’s answer: A river.	December 23, 2013      FED MAKES ITS MOVE, STOCKS MOVE NORTH In a 9-1 vote last Wednesday, Federal Reserve officials elected to taper the central bank’s monthly economic stimulus beginning in January. The taper was relatively minor – a cut of $10 billion to $75 billion – and the surprise announcement set off a major rally on Wall Street, with the Dow closing 292 points higher on the day. Both the Fed and investors seemed to think the move was warranted; it certainly removed a degree of uncertainty from the market. The Fed’s December 18 policy statement also noted its intention to keep the benchmark interest rate at the present historic lows “well past the time” the jobless rate reaches the central bank’s 6.5% target.1,2   FEWER HOMES SOLD, MORE GROUND BROKEN Existing home sales fell 4.3% last month, and there was no annualized gain in home buying last month for the first time in more than two years. Was the November report from the National Association of Realtors an anomaly, or a sign that a red-hot housing market is cooling off a bit? NAR’s December and January reports may offer further clues. New construction certainly heated up in November: housing starts soared 22.7%, the best monthly advance since January 1990.3     CPI FLAT IN NOVEMBER; Q3 GDP REVISED UPWARD Economists polled by Briefing.com thought the Consumer Price Index would tick up 0.1% in November; instead, it didn’t budge. (The core CPI did rise 0.2%.) Another important economic indicator communicated a welcome gain: the economy grew 4.1% in the third quarter, according to the final estimate of the Bureau of Economic Analysis. The BEA’s previous estimate put Q3 GDP at 3.6%.3,4      S&P 500 HAS BEST WEEK SINCE MID-OCTOBER The broad benchmark closed at 1,818.55 Friday, gaining 2.44% in five days. Weekly gains for the DJIA (2.96%) and NASDAQ (2.59%) were even greater. The NASDAQ wrapped up the week at 4,104.74, the DJIA at 16,221.72.5    THIS WEEK: The University of Michigan’s final consumer sentiment index for December appears Monday, and so does the Commerce Department’s report on November personal spending. Reports on November new home sales, November hard goods orders and the October FHFA Housing Price Index arrive Tuesday, which is also Christmas Eve (the NYSE and NASDAQ will close at 1:00pm EST). All U.S. financial markets will be closed Wednesday in observance of the Christmas holiday. Markets resume trading Thursday, with the latest initial jobless claims data being released. Nothing major is slated for Friday.        % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +23.79 +21.86 +17.82 +5.78 NASDAQ +35.94 +34.56 +32.48 +11.04 S&P 500 +27.49 +25.97 +20.96 +6.70 REAL YIELD 12/20 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.73% -0.69% 1.98% 1.95%   Sources: USATODAY.com, bigcharts.com, treasury.gov - 12/20/136,7,8,9 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. 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 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 - nj.com/business/index.ssf/2013/12/stocks_surge_after_fed_announc.html [12/18/13] 2 - marketwatch.com/story/fed-cuts-bond-buying-program-to-75-billion-2013-12-18 [12/18/13] 3 - investorplace.com/2013/12/gdp-inflation-housing-economic-data/#.UrTDwOJljs8 [12/20/13] 4 - briefing.com/investor/calendars/economic/2013/12/16-20 [12/20/13] 5 - thestreet.com/story/12162639/1/stocks-gain-us-growth-hints-at-santa-claus-rally.html [12/20/13] 6 - usatoday.com/money/markets/overview/ [12/20/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F20%2F12&x=0&y=0 [12/20/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F20%2F12&x=0&y=0 [12/20/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F20%2F12&x=0&y=0 [12/20/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F19%2F08&x=0&y=0 [12/20/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F19%2F08&x=0&y=0 [12/20/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F19%2F08&x=0&y=0 [12/20/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F19%2F03&x=0&y=0 [12/20/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F19%2F03&x=0&y=0 [12/20/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F19%2F03&x=0&y=0 [12/20/13] 8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [12/20/13] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [12/20/13]

Economic Update for the week of December 17th, 2013

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “I learned that courage was not the absence of fear, but the triumph over it.”       - Nelson Mandela           WEEKLY TIP               If you marry before the end of 2013, the IRS will consider you married for the entire tax year. So when you send in your 2013 federal return, you will either have to file as married filing jointly or married filing separately.        WEEKLY RIDDLE             I have a bank, yet no cash. I can run, but can’t walk. I have a bed, but never sleep. I have a mouth, but ingest no meals. What am I?         Last week’s riddle: What has one eye and yet can’t see?     Last week’s answer: A sewing needle.	December 17, 2013      “MINI-BARGAIN” PASSES HOUSE, HEADS FOR SENATE Last week, the congressional budget committee headed by Rep. Paul Ryan (R-WI) and Sen. Patty Murray (D-WA) succeeded where its 2011 predecessor had failed – it reached a deal, albeit a small-scale one. The House passed its budget bill by a 332-94 vote Thursday night; the legislation heads for the Senate this week. If made law, it will reduce the federal deficit by $23 billion during the next 10 years while halving 2014 sequestration cuts to defense spending and non-defense discretionary spending. (Other scheduled cuts in mandatory federal spending will proceed.) This deal doesn’t raise taxes, and it doesn’t extend unemployment insurance, which could expire on December 28 for 1.3 million Americans. Federal spending would increase by $45 billion next year as a result of the agreement.1,2   FALL BRINGS BETTER RETAIL SALES The 0.7% November gain was the biggest recorded by the Commerce Department in five months and brought the year-over-year improvement to 4.7%. Minus auto sales, the gain was still 0.4%. October’s retail sales gain was revised up to 0.6%.3   PRODUCER PRICES RETREAT AGAIN The Producer Price Index declined 0.1% in November following its 0.2% dip for October. Economists polled by Bloomberg thought the headline PPI would be flat for November, instead of retreating for a third consecutive month. November did bring a 0.1% rise in the core PPI.4      ROUGH SLEDDING FOR STOCKS SO FAR IN DECEMBER Signals of an improving economy also brought worries about a December taper by the Federal Reserve. As a consequence, the S&P 500 (-1.65% to 1,775.32), NASDAQ (-1.51% to 4,000.98) and Dow (-1.65% to 15,755.36) all staged 5-day retreats.5    THIS WEEK: Monday brings the Federal Reserve’s report on November industrial output; also, Ben Bernanke speaks briefly at the Fed’s Centennial Commemoration. Tuesday, the November CPI comes out along with the December NAHB Housing Market Index. On Wednesday, financial markets around the world will be waiting for the Fed’s latest policy statement; reports on November building permits and September, October and November housing starts will arrive from the Census Bureau. Thursday, NAR puts out its existing home sales report for November, the Conference Board issues its November leading indicator index and new initial jobless claims figures appear; Nike, ConAgra Foods and Pier 1 offer earnings news. Friday, the Bureau of Economic Analysis makes its final estimate of Q3 GDP.      % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +20.23 +19.62 +16.51 +5.69 NASDAQ +32.50 +33.72 +31.94 +10.53 S&P 500 +24.48 +25.07 +20.36 +6.53 REAL YIELD 12/13 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.72% -0.73% 2.43% 1.91%   Sources: USATODAY.com, bigcharts.com, treasury.gov - 12/13/136,7,8,9 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.
«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. 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 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 - swampland.time.com/2013/12/12/house-passes-budget-bill-to-increase-spending-reverse-some-automatic-cuts/ [12/12/13] 2 - washingtonpost.com/blogs/wonkblog/wp/2013/12/10/heres-whats-in-paul-ryan-and-patty-murrays-mini-budget-deal/ [12/10/13] 3 - marketwatch.com/story/us-retail-sales-rise-07-in-november-2013-12-12-8913022 [12/12/13] 4 - reuters.com/article/2013/12/13/us-producerprices-idUSBRE9BC0HJ20131213 [12/13/13] 5 - fxstreet.com/news/forex-news/article.aspx?storyid=c9057f47-0e42-42ab-b939-e66c8ff9f833 [12/13/13] 6 - usatoday.com/money/markets/overview/ [12/13/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F13%2F12&x=0&y=0 [12/13/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F13%2F12&x=0&y=0 [12/13/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F13%2F12&x=0&y=0 [12/13/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F12%2F08&x=0&y=0 [12/13/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F12%2F08&x=0&y=0 [12/13/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F12%2F08&x=0&y=0 [12/13/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F12%2F03&x=0&y=0 [12/13/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F12%2F03&x=0&y=0 [12/13/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F12%2F03&x=0&y=0 [12/13/13] 8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [12/13/13] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [12/13/13]

Economic Update for the week of December 10th, 2013

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “Imagination is more important than knowledge. For knowledge is limited, whereas imagination embraces the entire world, stimulating progress, giving birth to evolution.”       - Albert Einstein           WEEKLY TIP               If you are close to retirement age, think twice about financing major purchases with debt. The less debt you retire with, the better.        WEEKLY RIDDLE             What has one eye and yet can’t see?         Last week’s riddle: A palindrome is any word, phrase, or number that reads the same either forward or backward. Can you think of a palindrome word that, when spelled in all capitals, looks the same backwards, forwards, or upside down?     Last week’s answer: NOON.	December 10, 2013      GOOD NEWS ON MAIN STREET Unemployment declined to a 5-year low of 7.0% in November, according to the Labor Department; underemployment also reached its lowest level in five years. The economy added 203,000 new jobs last month, far better than the 180,000 forecast by economists surveyed by Thomson Reuters. October also brought a 0.3% rise in consumer spending, even with the Bureau of Economic Analysis noting a 0.1% slip in consumer income. Finally, the University of Michigan’s consumer sentiment index jumped 7.4%. The initial December reading of 82.5 was the best in five months.1,2   NEW HOME BUYING HITS 33-YEAR PEAK Surprising news from the Census Bureau: in October, the pace of new home sales was the strongest since 1980 thanks to a 25.4% boost. Even though sales slipped 6.6% for September, the annualized sales pace reached 444,000 units in October, putting the year-over-year increase in new home purchases at 21.6%.3   ISM RECORDS ADDITIONAL SECTOR GROWTH According to the Institute for Supply Management’s purchasing manager indices, America’s service sector expanded for a forty-seventh consecutive month in November. The downside? ISM’s service sector PMI dropped 1.5 points for the month to 53.9. Its manufacturing PMI rose 0.9% in November to 57.3.4      STOCKS PULL OUT OF A SLUMP After strong employment and personal spending data arrived Friday, the S&P 500 snapped a 5-day losing streak. The Dow gained 198.69 Friday. The week was not as terrific. While the NASDAQ rose 0.06% in five days to settle at 4,062.52 Friday, the S&P lost 0.04% to close the week at 1,805.09 and the Dow lost 0.41% to wrap up the week at 16,020.20.5,6,7    THIS WEEK: The data stream is light. No major releases are scheduled for Monday, but Fed officials Jeffrey Lacker, James Bullard and Richard Fisher will all speak at different conferences. Tuesday brings earnings from H&R Block and AutoZone, plus the October wholesale inventories report from the Census Bureau. Nothing major is scheduled for Wednesday. On Thursday, the Census Bureau provides retail sales figures for November and an October business inventories report; new initial jobless claims numbers will also arrive. Friday sees the release of November’s Producer Price Index.      % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +22.25 +22.53 +17.10 +6.24 NASDAQ +34.54 +35.90 +33.83 +10.96 S&P 500 +26.57 +27.66 +21.21 +7.01 REAL YIELD 12/6 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.77% -0.87% 2.23% 1.92%   Sources: CNNMoney.com, bigcharts.com, treasury.gov - 12/6/135,6,7,8,9,10 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. 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 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 - reuters.com/article/2013/12/06/us-usa-economy-idUSBRE9B40KJ20131206 [12/6/13] 2 - thestreet.com/story/12140200/1/markets-rebound-as-unemployment-hits-five-year-low.html [12/6/13] 3 - tinyurl.com/lfb8os9 [12/4/13] 4 - ism.ws/ISMReport/NonMfgROB.cfm [12/4/13] 5 - money.cnn.com/data/markets/dow/ [12/6/13] 6 - money.cnn.com/data/markets/nasdaq/ [12/6/13] 7 - money.cnn.com/data/markets/sandp/ [12/6/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F6%2F12&x=0&y=0 [12/6/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F6%2F12&x=0&y=0 [12/6/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F6%2F12&x=0&y=0 [12/6/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F5%2F08&x=0&y=0 [12/6/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F5%2F08&x=0&y=0 [12/6/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F5%2F08&x=0&y=0 [12/6/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F5%2F03&x=0&y=0 [12/6/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F5%2F03&x=0&y=0 [12/6/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F5%2F03&x=0&y=0 [12/6/13] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [12/6/13] 10 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [12/6/13]