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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.
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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.
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]
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Tuesday, June 18, 2013
Economic Update for the week of June 17th, 2013
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