Economic Update for the week of June 24th, 2013

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE               “Quality is not an act, it is a habit.”       - Aristotle           WEEKLY TIP               Give the quarterly investment statements you receive more than a glance. If there is a mistake, you have a chance to spot it now instead of having to find it later.        WEEKLY RIDDLE             It can be told, made, cracked, and played. What is it?      Last week’s riddle: You hold a sheet of cellophane. Fully unfolded, it is 3 feet long by 2 feet wide. How can you get two people to stand on it (when it is fully unfolded) in such a way that they can't touch or see each other?     Last week’s answer: Slide the fully unfolded sheet under a door (or a sufficiently large partition that is not transparent or opaque) and have each person stand on the sheet while on either side of the door or partition.	June 24, 2013      FED OUTLINES END FOR STIMULUS, STOCKS SLIP Last Wednesday, Federal Reserve Chairman Ben Bernanke shared the central bank’s vision for winding down its current aggressive easing effort – the potential tapering of QE3 by late 2013, and the end of the program by mid-2014 if economic conditions permit. Wall Street reacted abruptly – the Dow sank more than 550 points in less than two trading sessions. In the near term, the Fed will keep buying $85 billion in bonds per month and maintain interest rates at near-zero levels.1,2    INFLATION PRESSURE MINIMAL IN MAY The 0.1% rise in the Consumer Price Index last month put yearly inflation at 1.4%, well under the Fed’s 2.0% target. Energy prices rose 0.4% in May but fell 1.0% in a year; medical costs declined 0.1% for May, the first monthly decrease since 1975.3      EXISTING HOME SALES IMPROVE The National Association of Realtors reported a 4.2% jump in residential resales for May, with the annualized sales pace topping the 5 million mark for the first time in 3½ years. From May 2012 to May 2013, the median price of an existing home rose 15.4% to $208,000 as the number of listings on the market shrank 10.1%.4       LEADING INDICATORS EDGE NORTH 0.1% IN MAY Slight improvement was seen in the Conference Board’s latest barometer of the economic outlook for the next 3-6 months, but economists surveyed by Bloomberg thought it would rise 0.2%. April’s gain was revised up to 0.8%.4     A WILD RIDE FOR STOCKS Volatility was rampant last week on Wall Street, and so were losses. In five days, the S&P 500 slipped 2.11% to 1,592.43, the Dow lost 1.80% to 14,799.40 and the NASDAQ fell 1.94% to 3,357.25.5      THIS WEEK: Nothing major is scheduled for Monday. Tuesday brings the April Case-Shiller and FHFA home price indices, the Conference Board’s June consumer confidence poll, reports on May hard goods orders and new home sales and earnings from Lennar, Carnival, Walgreens and Barnes & Noble. Wednesday, the Bureau of Economic Analysis publishes its final estimate of Q1 GDP, and earnings arrive from Monsanto, Bed Bath & Beyond and General Mills. The latest initial jobless claims figures come in Thursday, along with NAR’s report on May pending home sales, the Commerce Department’s report on May consumer spending and earnings news from KBHome, ConAgra, Nike and Accenture. Friday brings the final June University of Michigan consumer sentiment survey and earnings from Blackberry.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +12.94 +17.70 +4.99 +6.08 NASDAQ +11.19 +17.42 +7.91 +10.41 S&P 500 +11.66 +20.14 +4.17 +5.99 REAL YIELD 6/21 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.59% -0.47% 1.72% 1.77%   Sources: cnbc.com, usatoday.com, bigcharts.com, treasury.gov - 6/21/135,6,7,8,9 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 - cnbc.com/id/100831276 [6/20/13] 2 - foxbusiness.com/markets/2013/06/19/wall-street-pummeled-amid-fed-woes/ [6/19/13] 3 - online.wsj.com/article/SB10001424127887323566804578553151902340728.html [6/18/13] 4 - bloomberg.com/news/2013-06-20/sales-of-previously-owned-u-s-homes-rise-more-than-forecast.html [6/20/13] 5 - cnbc.com/id/100834381 [6/21/13] 6 - usatoday.com/money/markets/overview/ [6/21/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F21%2F12&x=0&y=0 [6/21/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F21%2F12&x=0&y=0 [6/21/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F21%2F12&x=0&y=0 [6/21/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F20%2F08&x=0&y=0 [6/21/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F20%2F08&x=0&y=0 [6/21/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F20%2F08&x=0&y=0 [6/21/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F20%2F03&x=0&y=0 [6/21/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F20%2F03&x=0&y=0 [6/21/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F20%2F03&x=0&y=0 [6/21/13] 8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [6/21/13] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [6/21/13]

Economic Update for the week of June 17th, 2013

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE               “Patriotism is easy to understand in America; it means looking out for yourself by looking out for your country.”       - Calvin Coolidge           WEEKLY TIP               A dollar available now is worth more than a dollar available in the future – not just because of long-term inflation, but because that now-available dollar can potentially earn interest. This truism is known as the time value of money.           WEEKLY RIDDLE             You hold a sheet of cellophane. Fully unfolded, it is 3 feet long by 2 feet wide. How can you get two people to stand on it (when it is fully unfolded) in such a way that they can't touch or see each other?      Last week’s riddle: What runs around a field, but doesn’t move?     Last week’s answer: A fence.	June 17, 2013      IMF: FED SHOULD WAIT 6 MONTHS TO TAPER QE3 On Friday, the International Monetary Fund called for the Federal Reserve to keep easing at current levels at least until the end of 2013 and to carefully manage any exit from QE3. In its annual review of the U.S. economy, the IMF characterized the March 1 federal budget cuts as “excessively rapid and ill-designed” and called for their repeal. It lowered its 2014 GDP projection for the U.S. to 2.7%. The IMF still projects U.S. growth for 2013 at 1.9%.1,2    RETAIL SALES UP 0.6% IN MAY This Commerce Department announcement was a nice surprise, as retail purchases advanced just 0.1% in April. A 1.8% jump in car and truck sales was instrumental, though the pace of overall retail purchases still improved 0.3% for May with vehicle sales factored out.3      A NOTABLE RISE IN THE PPI Increases in food and energy costs took the overall Producer Price Index 0.5% higher for May, with a surge in gasoline prices central to the advance. The core PPI (minus food and energy prices) rose 0.1% last month.1,4        HOUSEHOLD SENTIMENT SLIPS On Friday, the University of Michigan’s preliminary June index of consumer sentiment came in at 82.7. That was a surprise to the downside; economists polled by Bloomberg had forecast a reading of 84.5, the index’s final mark for May.1     HEADWINDS BUFFET WALL STREET The Dow fell 1.17% from June 10-14, closing at 15,070.18 Friday. Similar weekly losses plagued the NASDAQ (-1.32% to 3,423.56) and the S&P 500 (-1.01% to 1,626.73). Last week also brought a 12.62% rise for the CBOE VIX, which settled at 17.05 Friday.4      THIS WEEK: June’s NAHB housing market index comes out Monday, and a G8 summit begins in Ireland. Tuesday, the May Consumer Price Index arrives along with data on May housing starts; Adobe Systems and La-Z-Boy present earnings. Wall Street will be focused on the Federal Reserve’s latest policy announcement on Wednesday; in addition, earnings news rolls in from Red Hat, FedEx and Jabil Circuit. Thursday, NAR releases its report on May existing home sales and the Conference Board’s May index of leading indicators appears, complemented by earnings from Kroger, Rite Aid and Oracle. Friday is a quadruple witching day which also offers earnings from CarMax.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +15.00 +19.11 +4.49 +6.53 NASDAQ +13.38 +20.70 +7.90 +11.05 S&P 500 +14.06 +22.39 +3.92 +6.45 REAL YIELD 6/14 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.09% -0.47% 1.77% 1.51%   Sources: cnbc.com, bigcharts.com, treasury.gov - 6/14/134,5,6,7 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 - nasdaq.com/article/midday-update-stocks-sliding-after-imf-cuts-us-growth-forecast-consumer-sentiment-dips-cm253273 [6/14/13] 2 - bbc.co.uk/news/business-22911400 [6/14/13] 3 - stltoday.com/business/local/u-s-retail-sales-jump-percent-in-may-on-autos/article_33200d05-0de6-5d75-a666-5d422d700c76.html [6/13/13] 4 - cnbc.com/id/100816191 [6/14/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F14%2F12&x=0&y=0 [6/14/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F14%2F12&x=0&y=0 [6/14/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F14%2F12&x=0&y=0 [6/14/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F13%2F08&x=0&y=0 [6/14/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F13%2F08&x=0&y=0 [6/14/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F13%2F08&x=0&y=0 [6/14/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F13%2F03&x=0&y=0 [6/14/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F13%2F03&x=0&y=0 [6/14/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F13%2F03&x=0&y=0 [6/14/13] 6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [6/14/13] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [6/14/13]

Economic Update for the week of June 10th, 2013

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE               “We are an impossibility in an impossible universe.”       - Ray Bradbury           WEEKLY TIP               You can’t control what happens with interest rates or stocks in the future; you can control the amount you save for retirement. Boosting your personal savings ratio may bring you closer toward your retirement savings objective.           WEEKLY RIDDLE             What runs around a field, but doesn’t move?      Last week’s riddle: There is a word that starts and ends with T, and contains “tea” as well. What word is this?     Last week’s answer: Teapot.	June 10, 2013      A REASSURING JOBS REPORT A jittery Wall Street liked the big picture it saw in the Labor Department’s May employment report. The economy added 175,000 jobs last month: decent hiring growth, not dismaying to investors, yet not impressive enough to signal the Federal Reserve to taper off QE3. Economists polled by Bloomberg forecast payrolls rising by 163,000. The jobless rate ticked up to 7.6% in May as more people started looking for work; the private sector hired 178,000 new employees and the number of discouraged job seekers hit a 52-month low. The Dow had its best day since January on Friday, rising 207.50 in response.1,2    FACTORY ACTIVITY CONTRACTS IN MAY That was the message sent by the Institute for Supply Management’s latest manufacturing PMI. The May reading dropped 1.7 points to 49.0%. On the other hand, the ISM service sector PMI rose 0.6 points in May to 53.7.3      FED BEIGE BOOK HINTS AT SLOWER GROWTH The central bank’s latest anecdotal survey of businesses, lenders and other segments of the private sector noted “modest to moderate” economic expansion, as opposed to the “moderate” growth referenced in the previous edition. It did report a “moderate to strong pace” of expansion in the real estate sector.4     STOCKS RISE, 10-YEAR TIPS REAL YIELD GOES POSITIVE Volatility didn’t stop stocks from advancing last week – the Dow rose 0.88% to 15,248.12, the NASDAQ 0.38% to 3,469.22 and the S&P 500 0.78% to 1,643.38. NYMEX crude soared 4.4% for the week to settle at $96.03 Friday. Another factoid of interest: the real yield of the 10-year note went into positive territory this week for the first time since January 23, 2012.2,5,6      THIS WEEK: The data stream looks to be fairly light this week. Monday offers earnings reports from Lululemon, Pep Boys and Annie’s. Nothing major is scheduled for Tuesday. Men’s Wearhouse and H&R Block announce quarterly results on Wednesday. Thursday, the Census Bureau provides its May retail sales report, Casey's General Store reports earnings, and the latest initial jobless claims figures arrive. Friday sees the release of May’s Producer Price Index, the Federal Reserve’s report on May industrial output and the University of Michigan’s preliminary June consumer sentiment survey.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +16.36 +22.37 +4.98 +6.82 NASDAQ +14.89 +22.54 +8.04 +11.32 S&P 500 +15.23 +24.97 +4.16 +6.64 REAL YIELD 6/7 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.03% -0.49% 1.47% 1.76%   Sources: barrons.com, usatoday.com, bigcharts.com, treasury.gov - 6/7/135,6,7,8 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.
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 - bloomberg.com/news/2013-06-07/payrolls-in-u-s-increased-175-000-in-may-unemployment-at-7-6-.html [6/7/13] 2 - blogs.barrons.com/stockstowatchtoday/2013/06/07/market-snaps-two-week-losing-streak-on-solid-jobs-report/ [6/7/13] 3 - ism.ws/ISMReport/NonMfgROB.cfm [6/7/13] 4 - articles.chicagotribune.com/2013-06-05/business/chi-fed-beigebook-20130605_1_u-s-economy-federal-reserve-most-districts [6/5/13] 5 - usatoday.com/money/markets/overview/ [6/7/13] 6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [6/7/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F7%2F12&x=0&y=0 [6/7/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F7%2F12&x=0&y=0 [6/7/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F7%2F12&x=0&y=0 [6/7/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F6%2F08&x=0&y=0 [6/7/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F6%2F08&x=0&y=0 [6/7/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F6%2F08&x=0&y=0 [6/7/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F6%2F03&x=0&y=0 [6/7/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F6%2F03&x=0&y=0 [6/7/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F6%2F03&x=0&y=0 [6/7/13] 8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [6/7/13]