Economic Update for the week of May 27th, 2013

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE               “Let him who would enjoy a good future waste none of his present.”       - Roger Babson           WEEKLY TIP               What’s more important for a young couple: an emergency fund, or saving for a down payment on a home? The emergency fund gets the nod if your finances allow you to save toward only one of these two financial objectives.         WEEKLY RIDDLE             Rigid is my spine, my innards are mostly pale, yet I am always ready to tell a tale. What am I?       Last week’s riddle: What should the next number be in this series: 103, 107, 109, 113, 127 ...     Last week’s answer: 131, as the whole series is made up of prime numbers.	May 27, 2013      APRIL DATA AFFIRMS HOUSING REBOUND Last month brought a 2.3% gain in new home sales and an 0.6% increase in existing home sales. Distressed properties (short sales and foreclosures) represented only 18% of residential resales in April, the National Association of Realtors noted; compare that with 28% of sales in April 2012. NAR also announced that the median existing home price was $192,800 in April, 11.0% higher than a year ago. The pace of new home buying has improved 29.0% in the past 12 months, according to the Census Bureau.1,2    FED MINUTES DISCLOSE THOUGHTS OF TAPERING QE3 The May 1 Federal Open Market Committee minutes were released last Wednesday, shortly after Federal Reserve chairman Ben Bernanke mentioned the need to sustain the central bank’s current stimulus effort in Congress. The minutes, however, noted that “a number” of Fed officials were open to scaling down QE3 as soon as June if economic indicators sufficiently improved. Concern and confusion about these mixed messages put more volatility into the markets and factored into a 3-day losing streak for the S&P 500.3      DURABLE GOODS ORDERS UP 3.3% IN APRIL This contrasts with March’s 5.9% decrease. With transportation orders factored out, the April increase was still 1.3%. Census Bureau reports have noted improvements in hard goods orders in two of the past three months, even with the sequester.4     RUSSELL 2000 REACHES A MILESTONE While the small-cap benchmark fell 1.20% last week, it also made history on May 20: it attained the 1,000 level for the first time. The RUT settled Friday at 984.28. The S&P 500 (-1.07% to 1,649.61), DJIA (-0.33% to 15,303.10) and NASDAQ (-1.14% to 3,459.14) all slipped last week.4,5,6,7      THIS WEEK: U.S. financial markets are closed Monday in observance of Memorial Day. Tuesday sees the release of the March S&P/Case-Shiller Home Price Index, the Conference Board’s May consumer confidence survey and earnings from Tiffany & Co. and Wet Seal. DSW and Chico’s announce Q1 results on Wednesday. In addition to new initial jobless claims figures, Thursday offers NAR’s report on April pending home sales, the federal government’s second estimate of Q1 GDP, and earnings from Krispy Kreme, BigLots! and Costco. Friday, the Commerce Department issues its report on April personal spending and the University of Michigan’s final May consumer sentiment survey arrives.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +16.78 +22.13 +4.52 +7.79 NASDAQ +14.56 +21.83 +8.30 +12.91 S&P 500 +15.66 +24.91 +3.98 +7.68 REAL YIELD 5/24 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.26% -0.38% 1.36% 1.72%   Sources: usatoday.com, thestreet.com, bigcharts.com, treasury.gov - 5/24/134,7,8,9,10 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.
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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 - csmonitor.com/Business/new-economy/2013/0523/New-home-sales-rise-but-market-still-a-long-way-from-normal [5/23/13] 2 - realtor.org/news-releases/2013/05/april-existing-home-sales-up-but-constrained [5/22/13] 3 - reuters.com/article/2013/05/22/markets-usa-stocks-idUSL2N0E321R20130522 [5/22/13] 4 - thestreet.com/story/11933260/1/sp-poised-for-three-day-losing-streak-amid-qe-wind-down-chatter.html [5/24/13] 5 - marketwatch.com/story/russell-2000-index-breaks-above-1000-2013-05-20 [5/20/13] 6 - blogs.barrons.com/stockstowatchtoday/2013/05/24/dow-ekes-out-friday-gain-down-for-the-week/ [5/24/13] 7 - usatoday.idmanagedsolutions.com/stocks/overview.idms?index=SP500 [5/24/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F24%2F12&x=0&y=0 [5/24/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F24%2F12&x=0&y=0 [5/24/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F24%2F12&x=0&y=0 [5/24/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F23%2F08&x=0&y=0 [5/24/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F23%2F08&x=0&y=0 [5/24/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F23%2F08&x=0&y=0 [5/24/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F23%2F03&x=0&y=0 [5/24/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F23%2F03&x=0&y=0 [5/24/13] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F23%2F03&x=0&y=0 [5/24/13] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [5/24/13] 10 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [5/24/13]

Economic Update for the week of May 20th, 2013

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE               “How wonderful it is that nobody need wait a single moment before starting to improve the world.”       - Anne Frank           WEEKLY TIP               Set aside a half-hour to organize your financial documents. It makes sense for tax season, and it makes sense all year.         WEEKLY RIDDLE             What should the next number be in this series: 103, 107, 109, 113, 127 ...      Last week’s riddle: I can’t be captured or held, and I certainly am not seen ... yet I can occasionally be heard, and I am often all around you. What am I?     Last week’s answer: The wind.	May 20, 2013      SUBDUED INFLATION IN APRIL Consumer and producer prices retreated last month. The federal government’s Consumer Price Index fell 0.4%, a monthly descent unseen since December 2008; the Producer Price Index declined 0.7%, its biggest monthly drop in three years. Consumer prices also fell for a second straight month; the last time that happened was in late 2008. The core CPI did rise 0.1% in April; the yearly gain in the overall CPI was just 1.1%.1    THREE MORE POSITIVE SIGNS FOR THE ECONOMY The University of Michigan’s initial May consumer sentiment survey came in at 83.7 – its highest level since July 2007, 7.3 points above the final April mark. After falling 0.2% for March, the Conference Board’s index of U.S. leading indicators rose 0.6% for April. Census Bureau data showed retail sales ticking up 0.1% in April and 3.7% in the past year.2,3      HOUSING STARTS PLUNGE, BUILDING PERMITS SOAR While the year-over-year increase was 13.1%, housing starts plummeted 16.5% in April, largely due to a 37.8% drop in apartment starts. On the other hand,  last month brought a 14.3% rise in building permits ... marked by a 40.6% jump in permits for apartment construction.4     BULLS KEEP RUNNING The S&P 500 is now on a 4-week winning streak. It rose another 1.98% last week to settle at 1,666.12 Friday. Complementing that 5-day gain, the NASDAQ went +1.82% last week while the DJIA went +1.56%; at Friday’s closing bell, the NASDAQ settled at 3,498.97 and the Dow at 15,354.40. A truly impressive factoid: the NASDAQ and S&P have gained 1% or more in each of the past four weeks.5      THIS WEEK: Monday brings earnings from Campbell Soup, TiVo and Urban Outfitters. On Tuesday, Best Buy, Home Depot, Medtronic, Vodafone, Saks, TJX and NetApp announce quarterly results. Wednesday, NAR releases its report on April existing home sales, the Federal Reserve releases the May 1 FOMC minutes, and Fed chairman Ben Bernanke testifies before Congress; Staples, L Brands, PetSmart, Toll Brothers, Target, Lowe’s and Hewlett-Packard post earnings. The Census Bureau report on April new home sales appears Thursday, along with the March FHFA housing price index and earnings from Dollar Tree, Gamestop, Ralph Lauren, Sears Holdings, Gap, Ross Stores, Aeropostale and Pandora. Friday offers the April durable goods orders report and Q1 results from Abercrombie & Fitch.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +17.17 +23.40 +3.65 +7.69 NASDAQ +15.88 +24.36 +7.67 +12.74 S&P 500 +16.82 +27.69 +3.38 +7.64 REAL YIELD 5/17 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.31% -0.35% 1.41% 1.84%   Sources: cnbc.com, bigcharts.com, treasury.gov - 5/17/135,6,7,8 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. 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 - businessweek.com/news/2013-05-16/consumer-prices-in-u-dot-s-dot-dropped-more-than-forecast-in-april [5/16/13] 2 - bloomberg.com/news/2013-05-17/u-s-stock-futures-rise-before-leading-indicators-data.html [5/17/13] 3 - census.gov/retail/marts/www/marts_current.pdf [5/13/13] 4 - latimes.com/business/money/la-fi-mo-housing-starts-construction-building-permits-economy-20130516,0,7678305.story [5/16/13] 5 - cnbc.com/id/100746158 [5/17/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F17%2F12&x=0&y=0 [5/17/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F17%2F12&x=0&y=0 [5/17/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F17%2F12&x=0&y=0 [5/17/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F16%2F08&x=0&y=0 [5/17/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F16%2F08&x=0&y=0 [5/17/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F16%2F08&x=0&y=0 [5/17/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F16%2F03&x=0&y=0 [5/17/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F16%2F03&x=0&y=0 [5/17/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F16%2F03&x=0&y=0 [5/17/13] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [5/17/13] 8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [5/17/13]

Economic Update for the week of May 13th, 2013

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE               “Always laugh when you can. It is cheap medicine.”       - Lord Byron           WEEKLY TIP               While no one likes to think about their funeral, preplanned or prepaid funeral arrangements may be a financially smart move and may relieve your heirs of some stress when the time comes.       WEEKLY RIDDLE             I can’t be captured or held, and I certainly am not seen ... yet I can occasionally be heard, and I am often all around you. What am I?        Last week’s riddle: I protect you. I sit on a bridge. You can see through me. People walking by might wonder what I hide. What am I?     Last week’s answer: A pair of sunglasses.	May 13, 2013      HOW IS THIS EARNINGS SEASON TURNING OUT? At the closing bell on May 10, 90% of S&P 500 firms had reported quarterly results. According to Reuters, 67% of them have surpassed earnings forecasts and 24% have fallen short of projections. Should the remaining 50 components report results matching estimates, earnings will be up 5.3% on last year. Sales gains are another story: just 46% of companies reporting so far have beaten their revenue forecasts.1,2    FED RAMPS UP ITS FINANCIAL SCRUTINY Federal Reserve chairman Ben Bernanke said Friday that the central bank was now keeping close tabs on the “shadow banking” sector that bred the toxic assets associated with the last credit crisis. At the Chicago Fed’s banking conference, he noted that “careful monitoring for signs of emerging vulnerabilities” constituted “probably our best defense against complacency during extended periods of calm”. In widening its oversight, the Fed is also watching asset markets, consumers and businesses for signs of systemic risk in addition to banks.3      OIL MOVES HIGHER, GOLD LOSES GROUND COMEX gold retreated 1.76% last week, and that was mirrored by silver’s 1.25% weekly loss; the dollar gained 1.25% across five days. NYMEX crude rose 0.45% for the week. At Friday’s close, oil settled at $96.04 and gold at $1,443.30.4     ANOTHER WEEK OF GAINS, MORE ALL-TIME HIGHS The Dow went +0.97% last week to close at 15,118.49 Friday – a record high. The S&P 500 gained 1.19% last week to settle at another all-time peak of 1,633.70 Friday. After a 1.72% weekly gain, the NASDAQ ended Friday’s trading session at 3,436.58.1      THIS WEEK: The Commerce Department issues its April retail sales report Monday, and Anglogold Ashanti and Take Two Interactive announce Q1 results. Nothing major is scheduled for Tuesday. Wednesday, the April PPI comes out plus the May NAHB housing index and data on April industrial output; earnings from Macy's, Cisco and Deere & Co. also appear. Thursday, April’s CPI arrives along with the latest initial claims figures, data on April housing starts and building permits, and a wave of earnings mostly from major retailers (Kohl's, Wal-Mart, Nordstrom, JCPenney, Autodesk, Marvell Tech and Applied Materials). Friday brings the preliminary May consumer sentiment index from the University of Michigan and the Conference Board’s April leading indicators index.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +15.37 +17.61 +3.73 +7.57 NASDAQ +13.81 +17.14 +8.11 +12.61 S&P 500 +14.55 +20.30 +3.54 +7.50 REAL YIELD 5/10 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.45% -0.25% 1.39% 2.00%   Sources: cnbc.com, bigcharts.com, treasury.gov - 5/10/131,5,6,7 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 - cnbc.com/id/100727118 [5/10/13] 2 - chicagotribune.com/business/sns-rt-us-usa-earnings-trendbre9490np-20130510,0,1017540.story [5/10/13] 3 - suntimes.com/business/20022861-420/bernanke-fed-increasing-financial-monitoring.html [5/10/13] 4 - news.goldseek.com/GoldSeeker/1368217251.php [5/10/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F10%2F12&x=0&y=0 [5/10/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F10%2F12&x=0&y=0 [5/10/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F10%2F12&x=0&y=0 [5/10/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F9%2F08&x=0&y=0 [5/10/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F9%2F08&x=0&y=0 [5/10/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F9%2F08&x=0&y=0 [5/10/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F9%2F03&x=0&y=0 [5/10/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F9%2F03&x=0&y=0 [5/10/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F9%2F03&x=0&y=0 [5/10/13] 6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [5/10/13] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [5/10/13]