Economic Update for the week of March 25th, 2013

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE               “There are three ways to ultimate success. The first way is to be kind. The second way is to be kind. The third way is to be kind.”       - Fred Rogers           WEEKLY TIP               While a divorced parent may want to keep paying the mortgage on a large home for the sake of the kids, it is often financially wiser to move into a smaller home with a smaller mortgage payment.       WEEKLY RIDDLE            The letters in the words meter, man and uses may be rearranged to make a 12-letter word. What is this word?        Last week’s riddle: The 22nd and 24th U.S. presidents had the exact same parents – and yet, the 22nd and 24th U.S. presidents were not siblings. Why?     Last week’s answer: The 22nd and 24th U.S. presidents were both the same person - Grover Cleveland.	March 25, 2013     WINTER DOESN’T DETER HOMEBUYERS   According to the National Association of Realtors, existing home sales rose 0.8% in February. The sales pace hit 4.98 million units, a 39-month high. The inventory of homes for sale increased 9.6% last month, recovering from a six-and-a-half-year low reached the month before. In related news, housing starts were also up 0.8% in February, with the Census Bureau putting the 12-month increase at 27.7%. As for projects in the pipeline, building permits rose 4.6% last month, part of a 33.8% year-over-year climb. The latest Federal Housing Finance Agency index showed a 6.5% yearly advance in house prices.1,2,3    ANOTHER GAIN FOR THE CONFERENCE BOARD LEI Seemingly reflective of the economy’s momentum, the Conference Board’s Leading Economic Index advanced for a third straight month. Its 0.5% February gain comes on the heels of an 0.5% rise in January and an 0.4% improvement in December.4   FED WILL KEEP EASING FOR THE NEAR FUTURE Last week, Federal Reserve Chairman Ben Bernanke said that the central bank would keep up its monthly bond-buying effort until the economy showed more than “temporary improvement,” while noting that it might soon vary the size of those purchases in response to the pace of job growth. Bernanke reaffirmed that interest rates will stay at historic lows unless the jobless rate dips below 6.5%.5   RALLY WANES AS CYPRUS CRISIS BUILDS On March 19, the Cypriot government turned down a European Central Bank offer to rescue its banking system. (The plan would have taxed depositors.) So the Dow lost 0.01% last week, the S&P 500 0.24% and the NASDAQ 0.13%. Friday, the Dow closed at 14,512.03, the S&P at 1,556.89 and the NASDAQ at 3,245.00. On the NYMEX, gold wrapped up the week at $1,607.10 and oil at $93.91.6,7    THIS WEEK: Cyprus must arrange or agree to a bailout deal by Monday or face suspended ECB aid; Dollar General reports Q4 results, and Ben Bernanke speaks in London. Tuesday, NAR posts February new home sales figures, data arrives on February hard goods orders, and a new Conference Board consumer confidence poll and January’s Case-Shiller Home Price Index appear. Wednesday, NAR reports February pending home sales; Red Hat and Paychex announce earnings. Blackberry, Accenture, Mosaic and GameStop report earnings Thursday, and the BEA makes its final estimate of Q4 GDP. March 29 is Good Friday, with U.S. financial markets closed (and banks open); March’s final University of Michigan consumer sentiment survey and the Commerce Department’s February consumer spending report arrive.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +10.74 +11.24 +3.48 +7.03 NASDAQ +7.47 +5.93 +8.74 +12.82 S&P 500 +9.16 +11.78 +3.42 +7.38 REAL YIELD 3/22 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.60% -0.08% 1.02% 2.29%   Sources: cnbc.com, bigcharts.com, treasury.gov - 3/22/136,8,9,10 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.marketwatch.com/story/home-sales-reach-highest-rate-since-2009-2013-03-21 [3/21/13] 2 - www.census.gov/construction/nrc/pdf/newresconst.pdf [3/22/13] 3 - www.foxbusiness.com/news/2013/03/21/us-home-prices-rise-06-in-january/ [3/21/13] 4 - www.conference-board.org/data/bcicountry.cfm?cid=1 [3/21/13] 5 - www.sfgate.com/news/article/Bernanke-Stimulus-hinges-on-sustained-improvement-4370751.php [3/20/13] 6 - www.cnbc.com/id/100582032 [3/22/13] 7 - online.wsj.com/mdc/public/page/mdc_commodities.html [3/22/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F22%2F12&x=0&y=0 [3/22/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F22%2F12&x=0&y=0 [3/22/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F22%2F12&x=0&y=0 [3/22/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F20%2F08&x=0&y=0 [3/22/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F20%2F08&x=0&y=0 [3/22/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F20%2F08&x=0&y=0 [3/22/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F21%2F03&x=0&y=0 [3/22/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F21%2F03&x=0&y=0 [3/22/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F21%2F03&x=0&y=0 [3/22/13] 9 - www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [3/22/13] 10 - www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [3/22/13]

Economic Update for the week of March 18th, 2013

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE               “Every choice you make has an end result.”       - Zig Ziglar           WEEKLY TIP               Doctors often try to manage debt by themselves. An experienced financial services professional can help a physician assess the long-term impact of loans and develop a strategy to pay them off.       WEEKLY RIDDLE            The 22nd and 24th U.S. presidents had the exact same parents – and yet, the 22nd and 24th U.S. presidents were not siblings. Why?        Last week’s riddle: You can’t outrun it or hide from it. You only notice it when there is light, but it shows only darkness. What is it?     Last week’s answer: Your shadow.	March 18, 2013     RETAILERS RECEIVE A MAJOR BOOST   Higher payroll taxes don’t seem to have hurt shopping or driving: the Commerce Department noted a 1.1% improvement in retail sales for February. As gas station receipts increased 5.0% and auto sales 1.1% last month, there was also a 0.4% gain in core retail sales and a 0.5% rise in department store and discount store sales.1    NO SURPRISE: HIGHER GAS PRICES PROMPT CPI GAIN February’s 0.7% gain in the Consumer Price Index was heavily influenced by the rising cost of fuel – minus food and energy costs, the core CPI rose just 0.2%. The Labor Department also reported a 0.7% rise in the Producer Price Index last month, compared with 0.2% for January.2,3   MORTGAGE RATES HIT A 7-MONTH PEAK In its March 14 national survey, Freddie Mac estimated the average interest rate on a conventional 30-year home loan at 3.63% (the highest since August). Average rates for 15-year fixed mortgages were at 2.79%.4   HOUSEHOLD CONFIDENCE FLAGS The University of Michigan’s preliminary March survey of consumer sentiment fell to 71.8, down 5.8 points from its final February mark. This was the lowest reading since December 2011.2   DOW LOGS FOURTH STRAIGHT WEEKLY ADVANCE The DJIA rose 0.81% from March 11-15, settling Friday at 14,514.11. (A down Friday broke a 10-day winning streak for the index.) The S&P 500 (+0.61% to 1,560.70) posted its third straight weekly gain, as did the NASDAQ (+0.14% to 3,249.07). Gold settled Friday at $1,591.30 on the COMEX, oil at $93.58 on the NYMEX.5,6    THIS WEEK: The March NAHB housing market index appears Monday. Tuesday brings earnings from Adobe and DSW and data on February housing starts and building permits. The Federal Reserve concludes its March policy meeting Wednesday; also, quarterly results arrive from FedEx, Oracle and General Mills. Lululemon, Ross Stores, and Nike announce earnings on Thursday, which is also when NAR notes February existing home sales; the Conference Board’s February index of leading indicators and the FHFA housing price index for January also appear. Friday brings earnings from Darden Restaurants, Tiffany and KBHome.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +10.76 +9.52 +4.29 +8.47 NASDAQ +7.60 +6.30 +9.37 +14.25 S&P 500 +9.43 +11.27 +4.23 +8.73 REAL YIELD 3/15 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.55% -0.08% 1.01% 1.89%   Sources: cnbc.com, bigcharts.com, treasury.gov - 3/15/135,7,8,9 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.
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«RepresentativeDisclosure» This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world's largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. Citations. 1 - www.csmonitor.com/Business/2013/0313/Retail-sales-rise.-Shoppers-unfazed-by-payroll-tax-hike [3/13/13] 2 - www.nytimes.com/2013/03/16/business/economy/consumer-inflation-jumps.html [3/15/13] 3 - www.nasdaq.com/article/stock-market-news-for-march-15-2013-market-news-cm227573#.UUOIDVdXqXk [3/15/13] 4 - www.usatoday.com/story/money/business/2013/03/14/30-year-fixed-mortgage-rates/1987243/ [3/14/13] 5 - www.cnbc.com/id/100557676 [3/15/13] 6 - online.wsj.com/mdc/public/page/mdc_commodities.html [3/15/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F15%2F12&x=0&y=0 [3/15/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F15%2F12&x=0&y=0 [3/15/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F15%2F12&x=0&y=0 [3/15/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F14%2F08&x=0&y=0 [3/15/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F14%2F08&x=0&y=0 [3/15/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F14%2F08&x=0&y=0 [3/15/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F14%2F03&x=0&y=0 [3/15/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F14%2F03&x=0&y=0 [3/15/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F14%2F03&x=0&y=0 [3/15/13] 8 - www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [3/15/13] 9 - www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [3/15/13]

Economic Update for the week of March 11th, 2013

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE               “Simplicity is the key to brilliance.”       - Bruce Lee           WEEKLY TIP               If you paid an au pair, maid or other domestic employee more than $1,800 in 2012, you are looking at the “nanny tax”. See IRS Publication 926 and talk with your tax advisor.           WEEKLY RIDDLE            You can’t outrun it or hide from it. You only notice it when there is light, but it shows only darkness. What is it?        Last week’s riddle: Kristi and David live at opposite ends of a metro area but attend the same college. David left for campus 30 minutes before Kristi and they met at a coffee house. Who was closer to campus when they met?     Last week’s answer: They were both at the same distance from campus when they met each other, as they met at the same location.	March 11, 2013     HIRING HAS REALLY PICKED UP During June-August 2012, non-farm payrolls grew by an average of 135,000 jobs a month. Across September-November, that average improved to 181,000 per month. From December-February, the economy added an average of 191,000 jobs a month. The icing on the cake: the latest monthly report from the Labor Department showed 236,000 new jobs generated in February, including the biggest monthly surge of hiring in the construction industry in six years. Unemployment fell to a four-year low of 7.7% in February, but the percentage of Americans either working or looking for work hit a 30-year low – 130,000 people dropped out of the job hunt.1    KEY INDEX SHOWS HEALTHY SERVICE SECTOR The Institute for Supply Management’s non-manufacturing PMI came in at 56.0 for February – the best reading in 12 months, up from 55.2 in January. ISM noted a 3.8% increase in new orders, a 5.5% rise in backlogs of orders and a 3.7% gain in prices last month.2   BEIGE BOOK ENCOURAGES, BUT FACTORY ORDERS DIP The Federal Reserve’s latest “Beige Book” survey of economic conditions noted modest growth in most of its 12 districts since January, with increased hiring a major factor. Last week, the Commerce Department reported a 1.2% rise in wholesale inventories and a 2.0% drop in factory orders for January.3,4    MORE HISTORY IS MADE A 2.18% weekly gain brought the DJIA to a new record close of 14,397.07 Friday. The S&P 500 (+2.17% to 1,551.18), NASDAQ (+2.35% to 3,244.37) and Russell 2000 (+3.04% to 942.50) also had terrific weeks. As for the CBOE VIX, it dropped 17.84% in five days to finish last week at 12.62. Gold ended the week at $1,577.7o per ounce on the COMEX, oil at $91.88 a barrel on the NYMEX.4,5    THIS WEEK: On Monday, earnings reports arrive from Urban Outfitters and Dick’s Sporting Goods. Costco reports earnings on Tuesday. Wednesday, the Census Bureau gives us retail sales figures for February, the Commerce Department notes January business inventories, and Express, Inc. announces quarterly results. February’s PPI arrives Thursday, plus Q4 results from Aeropostale. Friday is a quadruple witching day that also sees the release of the February CPI, data on February industrial output, and the preliminary March consumer sentiment survey from the University of Michigan.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +9.87 +11.54 +4.21 +8.60 NASDAQ +7.45 +9.22 +9.33 +14.86 S&P 500 +8.76 +13.56 +3.99 +8.71 REAL YIELD 3/8 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.50% -0.21% 1.01% 1.72%   Sources: cnbc.com, bigcharts.com, treasury.gov - 3/8/134,6,7,8 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 - www.mercurynews.com/business/ci_22746707/us-adds-236k-jobs-unemployment-falls-7-7 [3/8/13] 2 - www.ism.ws/ISMReport/NonMfgROB.cfm [3/5/13] 3 - online.wsj.com/article/SB10001424127887324178904578343432769615600.html [3/6/13] 4 - www.cnbc.com/id/100537377 [3/8/13] 5 - online.wsj.com/mdc/public/page/mdc_commodities.html [3/8/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F8%2F12&x=0&y=0 [3/8/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F8%2F12&x=0&y=0 [3/8/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F8%2F12&x=0&y=0 [3/8/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F7%2F08&x=0&y=0 [3/8/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F7%2F08&x=0&y=0 [3/8/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F7%2F08&x=0&y=0 [3/8/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F7%2F03&x=0&y=0 [3/8/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F7%2F03&x=0&y=0 [3/8/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F7%2F03&x=0&y=0 [3/8/13] 7 - www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [3/8/13] 8 - www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [3/8/13]