Economic Update for the week of September 23rd, 2013

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “Always bear in mind that your own resolution to succeed is more important than any other.”       - Abraham Lincoln           WEEKLY TIP               Understanding the tax status of your investments can help you arrange your withdrawals to make the most out of your retirement funds.           WEEKLY RIDDLE             In the morning, I lie at your feet. I almost vanish in midday sun. But I’ll be with you all day as you stand, walk, leap a run. What am I?            Last week’s riddle: A 10k cross-country run through the woods attracts 36 entrants. The day is unseasonably hot, and the course is not laid out well. Three runners get lost, five quit and 28 finish the run. What happens to the other entrants?       Last week’s answer: The whereabouts of all entrants are known, as 3 + 5 + 28 = 36.	September 23, 2013      NO TAPERING YET...BUT COULD IT HAPPEN SOON? The DJIA hit an all-time high Wednesday after the Federal Reserve decided not to reduce its $85 billion monthly stimulus effort. Friday, the index lost 185 points on the heels of comments from St. Louis Fed President James Bullard (who said that QE3 could be tapered next month) and Kansas City Fed President Esther George (who said that the decision not to taper created confusion in the markets). So investors wonder: is an “Octaper” ahead? This week is data-heavy, and investors will be keeping an eye on federal budget talks in addition to any comments from Fed officials. The September FOMC minutes come out on October 9; the next Fed policy announcement occurs on October 30.1,2    RISING INTEREST RATES PROMPT HOMEBUYING Existing home sales hit a six-year peak in August, rising 1.7% for the month in the estimate of the National Association of Realtors. The big reason? Buyers ran to lock in interest rates on mortgages before they increased further. The median price of an existing home in August was $212,100 – 14.7% higher than in August 2012. Housing starts rose 0.9% in August, according to the Commerce Department.3      CPI BARELY BUDGES IN AUGUST Consumer inflation (as measured by the Consumer Price Index) ticked up 0.1% last month. The core CPI also rose 0.1%. Economists surveyed by Briefing.com had expected 0.2% August gains for both the headline and core indices.4       STOCKS ADVANCE FOR THIRD CONSECUTIVE WEEK A bad Friday still left the Dow at 15,451.09 at the end of the week. Across a volatile five days, it rose 0.49%; the S&P 500 (+1.30% to 1,709.91) and NASDAQ (+1.41% to 3,774.73) both outperformed it last week.1     THIS WEEK: On Monday, Goldman Sachs, Nike and Visa join the DJIA (replacing Alcoa, Bank of America and Hewlett-Packard); Red Hat announces Q2 results. July’s S&P/Case-Shiller home price index and FHFA home price index appear Tuesday, along with the Conference Board’s September consumer confidence survey and earnings from Lennar, CarMax and KBHome. Wednesday, the Census Bureau issues August new home sales figures, the August durable goods orders report arrives, and Bed Bath & Beyond and AutoZone report earnings. Thursday brings the last estimate of Q2 GDP from the federal government, NAR’s report on August pending home sales, new initial jobless claims numbers and Q2 results from Accenture and Nike. Friday offers the University of Michigan’s final September consumer sentiment index, the August consumer spending numbers and earnings from Blackberry.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +17.91 +13.64 +7.13 +6.02 NASDAQ +25.01 +18.85 +13.20 +9.81 S&P 500 +19.89 +17.10 +7.25 +6.50 REAL YIELD 9/20 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.52% -0.70% 1.85% 2.17%   Sources: cnbc.com, bigcharts.com, treasury.gov - 9/20/131,5,6,7 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 - tinyurl.com/lco7mw2 [9/20/13] 2 - federalreserve.gov/whatsnext.htm [9/19/13] 3 - sfgate.com/business/bloomberg/article/Sales-of-U-S-Existing-Homes-Rise-in-August-to-4827311.php [9/19/13] 4 - briefing.com/investor/calendars/economic/2013/09/16-20 [9/20/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F20%2F12&x=0&y=0 [9/20/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F20%2F12&x=0&y=0 [9/20/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F20%2F12&x=0&y=0 [9/20/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F19%2F08&x=0&y=0 [9/20/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F19%2F08&x=0&y=0 [9/20/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F19%2F08&x=0&y=0 [9/20/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F19%2F03&x=0&y=0 [9/20/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F19%2F03&x=0&y=0 [9/20/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F19%2F03&x=0&y=0 [9/20/13] 6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/20/13] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/20/13]

Economic Update for the week of September 16th, 2013

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “A happy person is not a person in a certain set of circumstances, but rather a person with a certain set of attitudes.”       - Hugh Downs           WEEKLY TIP               Beware of assuming long-range economic burdens with little long-term reward – a new car you can barely afford, an apartment with exorbitant rent but no chance for eventual ownership, and so forth.           WEEKLY RIDDLE             A 10k cross-country run through the woods attracts 36 entrants. The day is unseasonably hot, and the course is not laid out well. Three runners get lost, five quit and 28 finish the run. What happens to the other entrants?            Last week’s riddle: Brian bets Denise that he can find something made out of wood in his workshop that can’t be sawed. Brian wins the bet; what is this common substance?       Last week’s answer: Sawdust.	September 16, 2013      HOUSEHOLDS BUY CAUTIOUSLY Retail sales rose an underwhelming 0.2% in August, the Commerce Department noted Friday. Economists polled by Reuters had expected a 0.4% advance, which would have matched the July gain for the indicator. Analysts were left wondering if the subdued buying hinted at slower economic growth in the third quarter.1    INTEREST RATES WEIGH ON CONSUMER SENTIMENT September’s preliminary Thomson Reuters/University of Michigan consumer sentiment index came in at 76.8, the poorest reading since April. Why did it descend so much from the final August reading of 82.1? Survey director Richard Curtin cited a “cooling housing market” and “growing concerns that higher interest rates will diminish the pace of economic growth as well as job gains.”2      WHOLESALE INFLATION UP 0.3% IN AUGUST This gain in the Producer Price Index exceeded the 0.2% rise forecast by economists surveyed by Reuters. The core PPI was flat for August. Annualized wholesale inflation was running at just 1.4% last month.1,3       DOW HAS BEST WEEK SINCE JANUARY As fears about missile strikes on Syria eased last week, stocks rose in advance of the Federal Reserve’s upcoming policy statement. The CBOE VIX fell 10.66% in five days, and the Dow climbed 3.04% during its second-best week of 2013 to settle at 15,376.06 Friday. The NASDAQ (+1.70% to 3,722.18) and S&P 500 (+1.98% to 1,687.99) also had solid weeks. While all three indices are up more than 3% so far in September, the Russell 2000 is ahead of them all (+4.26% MTD at Friday’s close).1     THIS WEEK: Monday brings the Federal Reserve’s report on August industrial output. The August Consumer Price Index comes out Tuesday, along with September’s NAHB Housing Market Index and earnings from Adobe Systems. On Wednesday, global markets will respond to an eagerly anticipated Fed policy statement and press conference; the Census Bureau provides data on August housing starts and building permits, and earnings reports arrive from FedEx, General Mills and Oracle. Thursday offers quarterly results from Rite Aid and ConAgra, August existing home sales numbers, and the latest initial jobless claims figures. The new iPhones are in stores on Friday, and that also happens to be a quadruple witching day.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +17.34 +13.56 +6.92 +6.23 NASDAQ +23.27 +17.95 +12.92 +10.07 S&P 500 +18.36 +15.62 +6.97 +6.57 REAL YIELD 9/13 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.80% -0.72% 1.79% 2.18%   Sources: cnbc.com, bigcharts.com, treasury.gov - 9/13/131,4,5,6 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 - tinyurl.com/kvcdr7a [9/13/13] 2 - dailyfinance.com/2013/09/13/consumer-confidence-economy-falls-interest-rates-housing-market/ [9/13/13] 3 - bls.gov/news.release/ppi.nr0.htm [9/13/13] 4 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F13%2F12&x=0&y=0 [9/13/13] 4 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F13%2F12&x=0&y=0 [9/13/13] 4 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F13%2F12&x=0&y=0 [9/13/13] 4 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F12%2F08&x=0&y=0 [9/13/13] 4 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F12%2F08&x=0&y=0 [9/13/13] 4 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F12%2F08&x=0&y=0 [9/13/13] 4 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F12%2F03&x=0&y=0 [9/13/13] 4 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F12%2F03&x=0&y=0 [9/13/13] 4 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F12%2F03&x=0&y=0 [9/13/13] 5 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/13/13] 6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/13/13]

Economic Update for the week of September 9th, 2013

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “In times like these, it helps to recall that there have always been times like these.”       - Paul Harvey           WEEKLY TIP               If you know a couple about to marry, consider giving them a non-traditional gift: a visit with a financial consultant. It could turn out to be a key step in helping them build wealth.           WEEKLY RIDDLE             Brian bets Denise that he can find something made out of wood in his workshop that can’t be sawed. Brian wins the bet; what is this common substance?            Last week’s riddle: Anna, a supermarket clerk, has not slept during any of the past six nights, and yet she is not tired. How can this be?       Last week’s answer: Anna sleeps during the daytime.	September 9, 2013      BENEATH THE SURFACE, A DISQUIETING JOBS REPORT In August, the U.S. unemployment rate declined to 7.3% with the economy adding 169,000 jobs. Not bad, but details in the Labor Department’s latest report also raised caution flags: the jobless rate fell only because more people gave up the hunt for work, as the labor force participation rate of 63.2% was the poorest in 35 years. June and July hiring was revised downward, with just 104,000 new jobs in July (the weakest hiring in 13 months) and just 148,000 per month from June through August, compared to 184,000 per month in the preceding 12 months. Will the Federal Reserve postpone tapering after jobs data like this?1    FURTHER FACTORY & SERVICE SECTOR GROWTH Both of the Institute for Supply Management’s August purchasing manager indexes showed robust sector expansion. The August non-manufacturing PMI surged 2.6% to 58.6; analysts polled by MarketWatch forecast it to dip 1.0% to 55.0. As for the Institute’s factory-sector PMI, it rose another 0.3% in August to 55.7.2      NEW BEIGE BOOK: LARGELY “MODERATE” EXPANSION In its latest anecdotal survey of economic conditions, that very adjective was used to characterize growth in three-quarters of Federal Reserve districts. In the big picture, the Beige Book noted solid auto and home buying that fostered an increase in consumer spending, but also “weakened” lending.3       AT LAST, A WINNING WEEK The Dow snapped a 4-week losing streak by advancing 0.76% during September 3-6.  It settled Friday at 14,922.50, and its weekly gain was bettered by both the NASDAQ (+1.95% to 3,660.01) and the S&P 500 (+1.36% to 1,655.17). In after-hours trading Friday, the yield on the 10-year Treasury topped 3% for the first time since 2011.4     THIS WEEK: On Monday, Congress returns from its summer recess to consider a strike on Syria; Hovnanian and Pep Boys present Q2 results. Apple holds a “special event” Tuesday, likely unveiling new products. Men’s Wearhouse announces Q2 results on Wednesday, and the Census Bureau presents data on July wholesale inventories. Besides a new report on initial jobless claims, Thursday also offers earnings from Lululemon, Ulta Salon and Kroger. Friday brings a wave of data from Washington – the August Producer Price Index, August retail sales numbers and July business inventories – and the preliminary September consumer sentiment index from the University of Michigan.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +13.88 +12.27 +6.60 +5.70 NASDAQ +21.21 +16.72 +12.45 +9.70 S&P 500 +16.06 +15.57 +6.65 +6.21 REAL YIELD 9/6 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.87% -0.63% 1.71% 2.17%   Sources: cnbc.com, bigcharts.com, treasury.gov - 9/6/134,5,6,7 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.
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 - latimes.com/business/money/la-fi-mo-jobs-federal-reserve-stimulus-unemployment-economy-20130906,0,5880212.story [9/6/13] 2 - marketwatch.com/economy-politics/calendars/economic [9/6/13] 3 - forbes.com/sites/steveschaefer/2013/09/04/feds-beige-book-housing-autos-pace-growth-but-lending-weakens/ [9/4/13] 4 - tinyurl.com/lp244bl [9/6/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F6%2F12&x=0&y=0 [9/6/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F6%2F12&x=0&y=0 [9/6/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F6%2F12&x=0&y=0 [9/6/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F5%2F08&x=0&y=0 [9/6/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F5%2F08&x=0&y=0 [9/6/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F5%2F08&x=0&y=0 [9/6/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F5%2F03&x=0&y=0 [9/6/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F5%2F03&x=0&y=0 [9/6/13] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F5%2F03&x=0&y=0 [9/6/13] 6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/6/13] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/6/13]