Economic Update for the week of August 26th, 2013

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “The best revenge is massive success.”       - Frank Sinatra           WEEKLY TIP               Take a tip from the millionaire next door: buy a terrific low-maintenance car and drive it for several years or more. Your ride may not be flashy, but the choice may prove thrifty.           WEEKLY RIDDLE             It stands higher than any tree, yet it seemingly takes forever to grow and you can’t see its roots. To reach its top, you won’t have to shimmy up any trunk. What is it?          Last week’s riddle: There are three cups of flour on a counter and you take one away. How many cups of flour do you have now?       Last week’s answer: One, as you have taken one away.	August 26, 2013      ARE COSTLIER MORTGAGES IMPACTING HOME SALES? On Friday, the Census Bureau announced an unexpected 13.4% drop in new home purchases for July. In contrast to that news, the National Association of Realtors stated that existing home sales rose 6.5% last month. So what is the takeaway here? Most new home purchase contracts close months in the future, and many buyers of existing homes may have locked in the rates of home loans in spring. Is the dip in new home buying a direct, alarming reflection of the recent jump in mortgage rates? Will it give the Federal Reserve pause about tapering?1    LEADING INDICATORS RISE IN JULY The 0.6% increase in the Conference Board Leading Economic Index was a nice change after its flat June reading. The LEI now stands at 96.0, edging closer to its original mark of 100. From February to July, it rose 2.0%; in the preceding six months, it rose 1.1%.2      GOLD CLIMBS BACK TOWARD $1,400 Friday’s COMEX settlement price was the highest since June: $1,395.80 per ounce. The troubling news about new home sales may have had an effect. NYMEX crude also gained $1.39 Friday, settling at $106.42.3       STOCKS REGAIN SOME MOMENTUM Last week saw two unusual occurrences in the financial world: a three-hour trading interruption for the NASDAQ on Thursday, and a Federal Reserve symposium in Jackson Hole, WY without the presence of Ben Bernanke. The S&P 500 rose 0.46% in five days to settle at 1,663.50 Friday. The NASDAQ also advanced; its 1.52% weekly rise brought it to 3,657.79 at week’s end. As for the Dow, it declined 0.47% across five days to 15,010.51.4     THIS WEEK: Monday brings the July durable goods orders report from the Census Bureau. The June S&P/Case-Shiller Home Price Index and the Conference Board’s August consumer confidence poll both arrive Tuesday. Wednesday, the National Association of Realtors provides numbers on July pending home sales. The second estimate of Q2 GDP appears Thursday, courtesy of the Bureau of Economic Analysis; the latest initial jobless claims figures also become available. On Friday, August ends with the month’s final consumer sentiment index from the University of Michigan and the Commerce Department’s report on July consumer spending.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +14.55 +14.96 +5.82 +6.06 NASDAQ +21.14 +19.79 +10.30 +10.72 S&P 500 +16.64 +18.65 +5.75 +6.75 REAL YIELD 8/23 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.69% -0.62% 1.69% 2.26%   Sources: usatoday.com, bigcharts.com, treasury.gov - 8/23/135,6,7,8 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 - nasdaq.com/article/what-happened-to-new-home-sales-real-time-insight-cm269852 [8/23/13] 2 - tinyurl.com/lhm84lb [8/22/13] 3 - abcnews.go.com/Business/wireStory/corn-prices-drop-percent-metals-oil-rise-20041509 [8/23/13] 4 - thestreet.com/story/12017038/1/stocks-opens-higher-as-microsoft-jumps.html [8/23/13] 5 - usatoday.idmanagedsolutions.com/stocks/overview.idms?index=DJIA [8/23/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F23%2F12&x=0&y=0 [8/23/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F23%2F12&x=0&y=0 [8/23/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F23%2F12&x=0&y=0 [8/23/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F22%2F08&x=0&y=0 [8/23/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F22%2F08&x=0&y=0 [8/23/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F22%2F08&x=0&y=0 [8/23/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F22%2F03&x=0&y=0 [8/23/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F22%2F03&x=0&y=0 [8/23/13] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F22%2F03&x=0&y=0 [8/23/13] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/23/13] 8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/23/13]

Economic Update for the week of August 19th, 2013

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “If you are not criticized, you may not be doing much.”       - Donald Rumsfeld           WEEKLY TIP               Sometimes a sector or industry is touted as the “wave of the future” or the next hot trend. Beware of shifting your investment mix in response to hype or headlines – you may end up with a less diversified portfolio and greater exposure to risk.        WEEKLY RIDDLE             There are three cups of flour on a counter and you take one away. How many cups of flour do you have now?      Last week’s riddle: A cat falls into a hole 14.5' deep. The cat can jump 3' high, but she slides back 1' with each jump. How many jumps does it take her to get out of the hole?       Last week’s answer: Every 3' jump accompanied by a 1' slide equals jumps of 2' high; at that rate, the cat’s seventh jump, starting at 12', will put her 15' above the bottom of the hole and offer her an escape.	August 19, 2013      CONSUMER PRICES RISE 0.2% IN JULY That was exactly the increase that analysts surveyed by Briefing.com expected, and it was a relief after the 0.5% rise in the Consumer Price Index for June. As for July’s Producer Price Index, it was flat – a welcome contrast to June’s 0.8% jump.1    RETAIL SALES IMPROVE July didn’t see as much car and truck buying as in spring, so the gain was 0.2% compared to 0.5% in May and 0.6% in June. The impressive news was the 0.5% rise in core retail sales (excluding auto, gas and construction purchases). That particular indicator hadn’t been so positive since December.2      HOUSEHOLD SENTIMENT SLIPS Analysts polled by Briefing.com expected August’s preliminary University of Michigan consumer sentiment index to be unchanged from the final July reading of 85.1. Instead, it dropped to 80.0 – a 4-month low.1,3,4         RESIDENTIAL CONSTRUCTION INCREASES Housing starts were up 5.9% in July, according to the Commerce Department; building permits rose 2.7% last month. Both increases were in line with the estimates of analysts surveyed by Reuters.4         A 2-WEEK LOSING STREAK ON THE STREET Shares fell during a week in which 10-year Treasury yields hit a 2-year peak of 2.86%. The S&P 500 (-2.10% to 1,655.83), Dow (-2.23% to 15,081.47) and NASDAQ (-1.57% to 3,602.78) all pulled back. The Dow suffered its poorest week of 2013.3     THIS WEEK: Urban Outfitters announces Q2 results on Monday. Tuesday, Dick's Sporting Goods, Medtronic, BHP Billiton, Home Depot, Best Buy, TJX, Barnes & Noble, JCPenney, Saks, Analog Devices and La-Z- Boy come out with earnings. Wednesday, the July 31 FOMC minutes will be released, and NAR comes out with July existing home sales numbers; earnings arrive from Target, JM Smucker, Lowe's, Staples, American Eagle, Toll Brothers, Hewlett-Packard and L Brands. Thursday, we get a new FHFA Housing Price Index, the Conference Board’s July index of leading indicators, new initial jobless claims figures, and earnings from Abercrombie & Fitch, Gold Fields, Hormel Foods, Dollar Tree, Gamestop, Sears, Autodesk, Gap, Marvell, Ross Stores, Aeropostale and Pandora. On Friday, quarterly results from Foot Locker and Ann complement July new home sales figures.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +15.09 +13.82 +5.87 +6.18 NASDAQ +19.32 +17.65 +9.38 +11.17 S&P 500 +16.10 +16.98 +5.51 +6.71 REAL YIELD 8/16 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.68% -0.42% 1.66% 2.36%   Sources: cnbc.com, bigcharts.com, treasury.gov - 8/16/133,5,6,7 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 - briefing.com/investor/calendars/economic/2013/08/12-16 [8/16/13] 2 - nytimes.com/2013/08/14/business/economy/july-retail-sales-rose-0-2-despite-a-drop-in-auto-sales.html [8/14/13] 3 - tinyurl.com/l27dgrz [8/16/13] 4 - reuters.com/article/2013/08/16/us-usa-economy-idUSBRE97E0KS20130816 [8/16/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F16%2F12&x=0&y=0 [8/16/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F16%2F12&x=0&y=0 [8/16/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F16%2F12&x=0&y=0 [8/16/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F15%2F08&x=0&y=0 [8/16/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F15%2F08&x=0&y=0 [8/16/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F15%2F08&x=0&y=0 [8/16/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F15%2F03&x=0&y=0 [8/16/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F15%2F03&x=0&y=0 [8/16/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F15%2F03&x=0&y=0 [8/16/13] 6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/16/13] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/16/13]

Economic Update for the week of August 12th, 2013

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “When the only tool you have is a hammer, you tend to see every problem as a nail.”       - Abraham Maslow           WEEKLY TIP               If much of your net worth is tied to the value of your home and you are seeing home equity as a tool to help fund your retirement, recognize that the ups and downs of your local real estate market may alter that possibility.        WEEKLY RIDDLE             A cat falls into a hole 14.5 feet deep. The cat can jump 3 feet high, but she slides back 1 foot with each jump. How many jumps does it take her to get out of the hole?      Last week’s riddle: I am usually only as wide as a thumb, and I typically travel across the nation for less than a dollar, all while lying flat. What am I?     Last week’s answer: A postage stamp.	August 12, 2013      IMPRESSIVE SERVICE SECTOR GROWTH Last month saw solid expansion in U.S. service industries, according to the July non-manufacturing PMI from the Institute for Supply Management. ISM’s latest service sector PMI came in at 56.0 compared with 52.2 in June. July’s new orders index rose 6.9% to 57.7, and July’s business activity index climbed 8.7% to 60.4.1    OBAMA: FANNIE MAE & FREDDIE MAC SHOULD GO Last week in Phoenix, the President said that “private capital should take a bigger role in the mortgage markets” and advocated the passage of bipartisan legislation circulating in the Senate that would “end Fannie and Freddie as we know them” and create a Federal Mortgage Insurance Corporation to regulate the home financing system. Even though winding down Fannie and Freddie has widespread support, mortgage interest rates would likely rise without their credit guarantees.2,3      HOW DOES EARNINGS SEASON LOOK SO FAR? The short answer: it looks better than many analysts had expected. Just after Friday’s close, Bloomberg reported that 447 firms in the S&P 500 had reported quarterly results; 72% of them had beaten the profit projections of analysts and 56% had exceeded sales forecasts.4         OIL & GOLD FINISH THE WEEK WITH A FLOURISH NYMEX crude settled up at $106.03 per barrel Friday after rising 2.54% in a trading day. On the COMEX, gold ended the week at $1,314.60 an ounce, up $3.90 Friday.5         STOCKS BEAT A RETREAT The big three all traded lower last week. The Dow went -1.49% to settle at 15,425.51 Friday, the NASDAQ went -0.80% to end the week at 3,660.11, and the S&P 500 went -1.07% to wrap up the week at 1,691.42.6     THIS WEEK: Monday brings earnings from Sysco. July retail sales numbers from the Census Bureau, a report on June business inventories and earnings from Flower Foods and Cree arrive Tuesday. Wednesday, the July Producer Price Index appears, plus earnings from Cisco, NetApp, Deere, Macy's and NetEase. July’s Consumer Price Index comes out Thursday, along with the August NAHB Housing Market Index, numbers on July industrial output, and quarterly results from Nordstrom, Applied Materials, Kohl's and Wal-Mart. Friday, the initial August consumer sentiment index from the University of Michigan appears, along with numbers on July housing starts and building permits.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +17.71 +17.17 +6.29 +6.78 NASDAQ +21.22 +21.25 +10.32 +12.26 S&P 500 +18.60 +20.57 +6.10 +7.30 REAL YIELD 8/9 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.33% -0.58% 1.72% 2.27%   Sources: cnbc.com, bigcharts.com, treasury.gov - 8/9/136,7,8,9 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 - ism.ws/ISMReport/NonMfgROB.cfm [8/5/13] 2 - nytimes.com/2013/08/07/us/politics/obama-fannie-mae-freddie-mac.html [8/7/13] 3 - csmonitor.com/Business/new-economy/2013/0808/If-Obama-eliminates-Fannie-Mae-Freddie-Mac-will-mortgage-rates-go-up [8/8/13] 4 - bloomberg.com/news/2013-08-09/u-s-stock-index-futures-decline-monster-beverage-drops.html [8/9/13] 5 - reuters.com/finance/commodities [8/9/13] 6 - tinyurl.com/luqsm63 [8/9/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F9%2F12&x=0&y=0 [8/9/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F9%2F12&x=0&y=0 [8/9/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F9%2F12&x=0&y=0 [8/9/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F8%2F08&x=0&y=0 [8/9/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F8%2F08&x=0&y=0 [8/9/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F8%2F08&x=0&y=0 [8/9/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F8%2F03&x=0&y=0 [8/9/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F8%2F03&x=0&y=0 [8/9/13] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F8%2F03&x=0&y=0 [8/9/13] 8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/9/13] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/9/13]