Economic Update for the week of January 28th, 2013

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE            “We are what we repeatedly do; excellence, then, is not an act but a habit.”      - Aristotle       WEEKLY TIP              How financially literate are your children? Encourage them to read up on investing and money matters before they turn 18.       WEEKLY RIDDLE                I am gentle enough to soothe the skin, light enough to reflect the sky, yet hard enough to crack rocks. What am I?      Last week’s riddle: You can rearrange the letters in insatiable to make another ten-letter word that starts with the letter b. What is this ten-letter word?   Last week’s answer: Banalities.	January 28, 2013    HOMEBUYING DECREASES IN DECEMBER Last month, existing home sales slumped 1.0% and new home sales tumbled 7.3%. Year-over-year numbers, however, remain hugely positive. Residential resales improved 12.8% in 2012, with December’s median single-family home price up 11.5% from a year before to $180,300. New home sales rose 19.9% last year, representing the first annual increase since 2005 and the best year since 1983.1,2    HOUSE VOTES TO EXTEND DEBT CEILING The House of Representatives voted 285-144 last week to suspend the current limit on federal borrowing through May 18, in a measure demanding that both houses of Congress approve a budget by April 15 or work for free. The Senate  is expected to pass the bill this week, a formality en route to President Obama’s signature.3    LEADING INDEX RISES 0.5% The gain in the Conference Board’s Index of Leading Economic Indicators matched the expectations of analysts polled by Dow Jones Newswires. The 0.2% November retreat in the index was revised upward to show no change.4    S&P 500 SETTLES ABOVE 1,500 Rising 0.54% in five days, the index ended the week at 1,502.96, its highest close since December 2007. Friday afternoon, the blue chips were on track for their best January since 1989: the Dow rose 0.51% on the week to settle at 13,895.98 Friday. The NASDAQ went +0.62% last week to close Friday at 3,149.71. Oil ended the week at $95.88, gold at $1,656.60.5,6    THIS WEEK: NAR’s December pending home sales report arrives Monday, plus December durable goods orders data and earnings results from Caterpillar, Yahoo! and BMC Software. Tuesday, the November Case-Shiller Home Price Index and the Conference Board’s newest consumer confidence poll complement earnings from Broadcom, Valero, Ford, Nintendo, Eli Lilly, DR Horton, Corning and AK Steel. Results from Facebook, Qualcomm, Boeing, Marathon Petroleum, Phillips 66, ConocoPhillips and Electronic Arts appear Wednesday, plus a Fed policy statement, a new ADP employment report and the government’s first estimate of Q4 GDP. December’s consumer spending figures are in Thursday, plus earnings from Honda, Royal Dutch Shell, UPS, Aetna, Altria, AutoNation, Colgate-Palmolive, Pulte Group, Viacom, AstraZeneca, Deutsche Bank and MasterCard. Friday’s economic releases include January’s jobs report, auto sales figures and ISM manufacturing index, the University of Michigan’s final January consumer sentiment survey, and earnings from Merck, Mattel, Chevron, ExxonMobil and Tyson Foods.   % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +6.04 +8.93 +2.77 +7.09 NASDAQ +4.31 +11.76 +7.08 +13.47 S&P 500 +5.38 +13.34 +2.59 +7.45 REAL YIELD 1/25 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.56% -0.12% 1.34% 2.34%   Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov - 1/25/125,8,9,10 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.usatoday.com/story/money/business/2013/01/22/existing-home-sales-december/1854563/ [1/22/13] 2 - www.sfgate.com/business/bloomberg/article/New-Home-Sales-Decline-Blemishes-Best-Year-Since-4223610.php [1/25/13] 3 - thehill.com/blogs/floor-action/house/278835-house-passes-no-budget-no-pay-sends-to-the-senate [1/23/13] 4 - www.nasdaq.com/article/us-conference-board-december-leading-index-rises-05-as-expected-20130124-00822 [1/24/13]   5 - www.cnbc.com/id/100407825 [1/25/13] 6 - www.nasdaq.com/markets/commodities.aspx [1/25/13] 7 - montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [1/25/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F25%2F12&x=0&y=0 [1/25/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F25%2F12&x=0&y=0 [1/25/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F25%2F12&x=0&y=0 [1/25/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F25%2F08&x=0&y=0 [1/25/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F25%2F08&x=0&y=0 [1/25/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F25%2F08&x=0&y=0 [1/25/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F24%2F03&x=0&y=0 [1/25/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F24%2F03&x=0&y=0 [1/25/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F24%2F03&x=0&y=0 [1/25/13] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [1/25/13] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [1/25/13] 10 - treasurydirect.gov/instit/annceresult/press/preanre/2003/ofm010803.pdf [1/8/03]

Economic Update for the week of January 21st, 2013

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE             “Never mistake a clear view for a short distance.”       - Paul Saffo         WEEKLY TIP              See if you can keep your essential expenses down to about 50% of your after-tax income.       WEEKLY RIDDLE                You can rearrange the letters in insatiable to make another ten-letter word that starts with the letter b. What is this ten-letter word?        Last week’s riddle: It has avenues, rivers and parks – but no grass, water or asphalt. What is it?    Last week’s answer: A map.	January 21, 2013     WILL THE DEBT LIMIT BE LIFTED SHORTLY? Friday, House GOP leaders announced a new proposal to authorize a three-month extension of federal government borrowing authority. House Majority Leader Eric Cantor (R-VA) summed up the plan in four words: “No budget, no pay.” Under the terms of the proposed legislation, members of Congress would end up working for free if they failed to approve a federal budget by April 15. The GOP still wants major spending cuts as a condition of any long-term debt limit increase.1    NO MONTHLY CHANGE IN CONSUMER PRICE INDEX December’s CPI was flat, with core CPI rising only 0.1%. A 2.3% dip in gas prices helped, even as food prices rose 0.2%. The overall Producer Price Index posted a 0.2% decline for a third straight month. Inflation was tame in 2012: the CPI advanced only 1.7% last year compared to 3.0% for 2011, while the PPI rose just 1.3% for its smallest annual increase since 2008.2,3    RETAIL SALES STRONG IN DECEMBER The Census Bureau notes that they increased 0.5% last month, bringing the yearly advance to 4.7%. Purchases made through non-store retailers rose 12.6% in 2012.3,4     CONSUMER SENTIMENT DECLINES The University of Michigan’s preliminary January consumer sentiment index came in at 71.3 Friday, well under the 75.0 consensus forecast of economists surveyed by Reuters. This represents a 13-month low.5    STOCKS REACH A 5-YEAR PEAK After a 0.95% weekly advance, the S&P 500 settled at 1,485.98 Friday.  The DJIA (+1.20% to 13,649.70) and NASDAQ (+0.29% to 3,134.71) also extended their win streaks. On the COMEX Friday, gold settled at $1,687.00, oil at $95.56.5,6    THIS WEEK: All U.S. markets will be closed Monday as the nation observes Martin Luther King Jr. Day; the Presidential Inauguration will also be held in Washington, D.C. Tuesday, data on December’s existing home sales arrives plus earnings from Verizon, DuPont, Texas Instruments, Johnson & Johnson, Travelers, Google, IBM and AMD. Wednesday is another big earnings day, with Apple, McDonald's, United Tech, Abbott Labs, Coach, WellPoint, Amgen, Netflix, SanDisk, Symantec and Western Digital all reporting results. On Thursday, Microsoft, 3M, Bristol-Myers, Nokia, Xerox, AT&T, E-Trade and Starbucks offer earnings reports. The Census Bureau releases December new home sales figures Friday, and earnings will be announced at Kimberly-Clark, P&G, Halliburton and Honeywell.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +4.16 +8.51 +2.56 +5.90 NASDAQ +3.82 +13.18 +6.79 +12.78 S&P 500 +4.19 +13.60 +2.43 +6.48 REAL YIELD 1/18 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.66% -0.15% 1.42% 2.34%   Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov - 1/18/125,8,9,10 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.reuters.com/article/2013/01/18/us-usa-fiscal-budget-idUSBRE90H11H20130118 [1/18/13] 2 - www.usatoday.com/story/money/business/2013/01/16/consumer-price-index-december/1838907/ [1/16/13] 3 - news.morningstar.com/articlenet/article.aspx?id=581091 [1/15/13] 4 - www.census.gov/retail/marts/www/marts_current.pdf [1/15/13] 5 - www.cnbc.com/id/100390628 [1/18/13] 6 - www.bloomberg.com/news/2013-01-18/natural-gas-rises-on-cold-weather-forecast-commodities-at-close.html [1/18/13] 7 - montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [1/18/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F18%2F12&x=0&y=0 [1/18/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F18%2F12&x=0&y=0 [1/18/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F18%2F12&x=0&y=0 [1/18/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F18%2F08&x=0&y=0 [1/18/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F18%2F08&x=0&y=0 [1/18/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F18%2F08&x=0&y=0 [1/18/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F17%2F03&x=0&y=0 [1/18/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F17%2F03&x=0&y=0 [1/18/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F17%2F03&x=0&y=0 [1/18/13] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [1/18/13] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [1/18/13] 10 - treasurydirect.gov/instit/annceresult/press/preanre/2003/ofm010803.pdf [1/8/03]

Economic Update for the week of January 14th, 2013

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE             “Always forgive your enemies. Nothing annoys them so much.”       - Oscar Wilde         WEEKLY TIP              Divorcing spouses should check to see if they will have sufficient insurance coverage after the end of their marriage. This detail is too often overlooked.       WEEKLY RIDDLE                It has avenues, rivers and parks – but no grass, water or asphalt. What is it?        Last week’s riddle: You serve it, but you can’t eat it. You hold it, only to smash it. Sometimes love is involved when you use it. What is it?    Last week’s answer: A tennis ball.	January 14, 2013     NEW YEAR, NEW LAWS AFFECTING YOU  Singles earning more than $200,000 and couples earning more than $250,000 will face a 3.8% Medicare surtax and a 0.9% increase in Medicare payroll tax. Tax rates on dividends and long-term capital gains remain at 15% for most, but have risen to 20% for the wealthiest. A scheduled 2% cut to Medicare spending has been delayed until at least March. Social Security recipients will see benefits rise 1.7% this year.1,2,3    HUGE CHANGES AHEAD FOR HOME LOANS Last week, the Consumer Financial Protection Bureau presented new rules for the mortgage industry – rules that will ban teaser-rate mortgages and “liar loans” in 2014. Next year, no legal protection will be available for banks offering interest-only or negative-amortization loans, and restrictions will prevent lenders from originating mortgages with balloon payments and severe upfront points and fees. Banks will also be barred from offering mortgages with a payment-to-income ratio exceeding 43%, though FHA/VA loans or mortgages backed by Fannie Mae or Freddie Mac could be exempt from this restriction.4     JACK LEW NOMINATED FOR TREASURY SECRETARY The former hedge fund manager and current White House chief of staff has strong ties to Wall Street, which worries some members of Congress. Still, opposition to the nomination does not seem to be widespread. If confirmed, Lew could start his new job in late January, when Timothy Geithner is slated to leave the post.5    A SECOND STRAIGHT WINNING WEEK The S&P 500 settled at 1,472.05 Friday, up 0.38% in five trading days. The Dow rose 0.40% last week to 13,488.43, while the NASDAQ gained 0.77% to settle at 3,125.63. The CBOE VIX fell 3.33% on the week to go -25.80% YTD.6,7    THIS WEEK: Fed Chairman Ben Bernanke speaks at the University of Michigan Monday; the Detroit Auto Show also begins. Tuesday, the December PPI and December retail sales figures are out; Lennar offers Q4 results. Wednesday brings December’s CPI, a Fed Beige Book, a report on December industrial output and earnings from Goldman Sachs, eBay, JPMorgan and Bank of NY Mellon. Thursday, December housing starts data arrives plus earnings from Bank of America, BB&T, BlackRock, Capital One, Citigroup, UnitedHealth, American Express and Intel. Friday, earnings are in from Morgan Stanley and General Electric.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +2.93 +8.35 +1.40 +5.35 NASDAQ +3.51 +15.30 +5.62 +11.59 S&P 500 +3.22 +13.89 +1.01 +5.87 REAL YIELD 1/11 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.63% -0.10% 1.56% 2.34%   Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov - 1/11/126,8,9,10 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/tax-tips/post.aspx?post=0788a6e0-58d0-4a46-81d2-309089bbc1ac [1/11/13] 2 - www.fidelity.com/viewpoints/personal-finance/new-medicare-taxes [1/4/13] 3 - www.ssa.gov/pressoffice/pr/2013cola-pr.html [10/16/12]   4 - www.nytimes.com/2013/01/10/business/consumers-win-some-mortgage-safety-in-new-rules.html [1/10/13] 5 - www.cbsnews.com/8301-250_162-57563329/jack-lew-accepts-treasury-secretary-nomination/ [1/10/13] 6 - www.cnbc.com/id/100372685 [1/11/13] 7 - montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [1/11/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F11%2F12&x=0&y=0 [1/11/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F11%2F12&x=0&y=0 [1/11/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F11%2F12&x=0&y=0 [1/11/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F11%2F08&x=0&y=0 [1/11/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F11%2F08&x=0&y=0 [1/11/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F11%2F08&x=0&y=0 [1/11/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F10%2F03&x=0&y=0 [1/11/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F10%2F03&x=0&y=0 [1/11/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F10%2F03&x=0&y=0 [1/11/13] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [1/11/13] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [1/11/13] 10 - treasurydirect.gov/instit/annceresult/press/preanre/2003/ofm010803.pdf [1/8/03]