Tuesday, October 29, 2013

Economic Update for the week of Oct. 29th, 2013

WEEKLY ECONOMIC UPDATE


WEEKLY QUOTE
              
“If you don’t design your own life plan, chances are you’ll fall into someone else’s plan. And guess what they have planned for you? Not much.”
     
- Jim Rohn
     
   
WEEKLY TIP
             
For the convenience of your executor and heirs, beneficiary designations you have made for various accounts, trusts and policies should be outlined in your will.
  
   
WEEKLY RIDDLE
           
How could Gail drive her car from Cleveland to Miami with a flat tire?    
     
 
Last week’s riddle:
If there are 6 pheasants in a stand of cattails and a hunter shoots one of them, how many pheasants will remain amid the cattails?
   
Last week’s answer:
None, because the rest of the pheasants will fly away when they hear the shot.


October 29, 2013
    
AN ARGUMENT AGAINST TAPERING
According to the Labor Department, the economy added 148,000 jobs in September. The jobless rate dipped to 7.2%, but job creation has averaged less than 150,000 for three straight months. (August job growth was revised up to 193,000, July job growth down to 89,000.) The University of Michigan’s final October consumer sentiment index slipped in the wake of the federal shutdown: the 73.2 reading was an 11-month low. Economists polled by Reuters forecast it coming in at 75.0.1,2
 
EXISTING HOME SALES PACE SLOWS
There was good news beneath the 1.9% September decrease reported by the National Association of Realtors. Residential resales have increased 10.7% in the past 12 months, 25.0% with distressed sales factored out. Distressed sales made up 14% of the market last month compared to 24% a year before. The median sale price was $199,200 last month, improving 11.7% in a year.3
  
DURABLES & INVENTORIES: GOOD NEWS
September saw a 3.7% jump in durable goods orders (albeit a 0.1% retreat minus transportation orders). The Commerce Department also said wholesale inventories rose 0.5% in August, a hint that businesses and suppliers expect solid holiday sales.2
     
ANOTHER RECORD CLOSE FOR THE S&P 500
Rising 0.88% for the week, the S&P settled at a new peak of 1,759.77 Friday, and both the DJIA (+1.11% to 15,570.28) and NASDAQ (+0.74% to 3,943.36) advanced with it. Friday’s NASDAQ close represented a 13-year high.2
  
THIS WEEK: Apple, Merck and Herbalife announce earnings Monday, which is also when NAR issues its September pending home sales report. Tuesday brings earnings from Nokia, Baidu, Pfizer, Gilead, Aflac, BP, Deutsche Bank, UBS, Electronic Arts, LinkedIn and Yelp plus the September PPI, September retail sales figures, the Conference Board’s October consumer confidence poll and the August S&P/Case-Shiller home price index. On Wednesday, the Federal Reserve makes a policy statement and the September CPI and October ADP employment change report appear; Facebook, General Motors, Allstate, GlaxoSmithKline, Barclays, Comcast, Visa, Expedia, Kraft Foods, Boeing and AT&T are out with earnings. October’s Challenger job-cut report arrives Thursday, along with a new initial claims report and quarterly results from ExxonMobil, MasterCard, ConocoPhillips, Sony, Starbucks and AIG. On Friday, November kicks off with Q3 results from Chevron, the October ISM manufacturing index and Commerce Department figures on October car and truck sales.
  
% CHANGE
Y-T-D
1-YR CHG
5-YR AVG
10-YR AVG
DJIA
+18.82
+18.82
+17.17
+6.25
NASDAQ
+30.60
+32.06
+30.82
+11.14
S&P 500
+23.39
+24.54
+20.14
+7.10
REAL YIELD
10/25 RATE
1 YR AGO
5 YRS AGO
10 YRS AGO
10 YR TIPS
0.34%
-0.63%
3.02%
1.92%
 

Sources: usatoday.com, bigcharts.com, treasury.gov - 10/25/134,5,6,7
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 - stream.wsj.com/story/latest-headlines/SS-2-63399/SS-2-360718/ [10/22/13]
2 - tinyurl.com/lqwsp7p [10/25/13]
3 - usatoday.com/story/money/business/2013/10/21/september-existing-single-family-home-sales/3141663/ [10/21/13]
4 - usatoday.com/money/markets/overview/ [10/25/13]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F25%2F12&x=0&y=0 [10/25/13]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F25%2F12&x=0&y=0 [10/25/13]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F25%2F12&x=0&y=0 [10/25/13]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F24%2F08&x=0&y=0 [10/25/13]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F24%2F08&x=0&y=0 [10/25/13]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F24%2F08&x=0&y=0 [10/25/13]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F24%2F03&x=0&y=0 [10/25/13]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F24%2F03&x=0&y=0 [10/25/13]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F24%2F03&x=0&y=0 [10/25/13]
6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [10/25/13]
7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [10/25/13]
 


Tuesday, October 22, 2013

Economic Update for the week of Oct. 21st, 2013

WEEKLY ECONOMIC UPDATE


WEEKLY QUOTE
              
“It is our choices that show what we truly are, far more than our abilities.”
     
- J.K. Rowling
     
   
WEEKLY TIP
             
A retirement plan isn’t simply about reaching a number. As you get closer to your savings goals, keep your life goals front and center.
  
   
WEEKLY RIDDLE
           
If there are 6 pheasants in a stand of cattails and a hunter shoots one of them, how many pheasants will remain amid the cattails?    
     
 
Last week’s riddle:
I have a rough skin and sometimes more than two eyes, but I can be tasty even plainly and simply prepared. Just what am I?
   
Last week’s answer:
A potato.


October 21, 2013
    
FOCUS RETURNS TO EARNINGS, FUNDAMENTALS
A sense of normalcy returned to Wall Street late last week following Wednesday’s deal to end the federal shutdown. The sense of relief spurred the S&P 500 to an all-time high on Friday. At the end of last week, 85 S&P firms had reported quarterly results with earnings surpassing forecasts by an average of 4.2%. As for Washington, the new question is whether a bipartisan committee can negotiate its way to a federal budget agreement by December 13, while also crafting a 10-year plan for tax and entitlement reform. If this new budget panel can’t reach common ground by that deadline, the federal government will face the threat of another shutdown on January 15.1,2
 
MORE “MODEST TO MODERATE” GROWTH REPORTED
That was the big picture out of the Federal Reserve’s latest Beige Book. Eight of 12 Fed districts reported unchanged economic expansion over the past several weeks; however, the Chicago, Richmond, Kansas City and Philadelphia districts found the pace of the economic rebound slowing.3
  
STOCKS CLIMB 2.4%, OIL DECLINES, GOLD RISES 
To be precise, the S&P 500 advanced 2.42% last week, hitting a new intraday record of 1,745.32 on Friday before settling at 1,744.50. The NASDAQ finished the week at a 13-year high of 3,914.28, rising 3.23% across five days. A 1.07% weekly gain brought the Dow to a settlement price of 15,399.65 Friday. NYMEX crude settled at $100.81 per barrel Friday afternoon, down 1.2% since Monday for their fifth weekly loss in the past six weeks. COMEX gold jumped 3.2% on Thursday alone, with futures up 3.7% for the week to a Friday close of $1,314.60.1,4
  
THIS WEEK: Monday offers the NAR’s latest existing home sales report and earnings reports from Discover Financial, McDonald's, Halliburton, Netflix and Texas Instruments. Look what’s coming Tuesday: Apple and Nokia launch events, the Microsoft Surface 2 release, the delayed September jobs report from the Labor Department, and earnings from United Tech, Broadcom, DuPont, Travelers and Amgen. The August FHFA Housing Price Index is out Wednesday, along with earnings from Caterpillar, GlaxoSmithKline, Boeing and AT&T. Thursday brings earnings from Amazon.com, Microsoft, Credit Suisse, Western Digital, Ford, 3M and Zynga, the latest initial claims figures, and possibly the Census Bureau report on September new home sales. Friday, Procter & Gamble and UPS announce Q3 results, the month’s final University of Michigan consumer sentiment index arrives, and the September durable goods report is slated for release.
  
% CHANGE
Y-T-D
1-YR CHG
5-YR AVG
10-YR AVG
DJIA
+17.52
+13.66
+14.79
+5.84
NASDAQ
+29.63
+27.38
+25.75
+10.47
S&P 500
+22.32
+19.70
+17.10
+6.79
REAL YIELD
10/18 RATE
1 YR AGO
5 YRS AGO
10 YRS AGO
10 YR TIPS
0.42%
-0.66%
2.87%
2.14%
 

Sources: usatoday.com, bigcharts.com, treasury.gov - 10/18/135,6,7,8
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 - tinyurl.com/n7awhay [10/18/13]  
2 - csmonitor.com/USA/DC-Decoder/2013/1017/A-new-shutdown-clock-is-ticking.-Can-Washington-avoid-a-rerun-video [10/17/13]
3 - kansascity.com/2013/10/16/4556768/economic-growth-lagging-in-kansas.html [10/16/13]
4 - marketwatch.com/investing/commodities [10/18/13]
5 - usatoday.com/money/markets/overview/ [10/18/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F18%2F12&x=0&y=0 [10/18/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F18%2F12&x=0&y=0 [10/18/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F18%2F12&x=0&y=0 [10/18/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F17%2F08&x=0&y=0 [10/18/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F17%2F08&x=0&y=0 [10/18/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F17%2F08&x=0&y=0 [10/18/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F17%2F03&x=0&y=0 [10/18/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F17%2F03&x=0&y=0 [10/18/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F17%2F03&x=0&y=0 [10/18/13]
7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [10/18/13]
8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [10/18/13]


Tuesday, October 15, 2013

Economic update for the week of October 14th, 2013

WEEKLY ECONOMIC UPDATE


WEEKLY QUOTE
              
“Without leaps of imagination, or dreaming, we lose the excitement of possibilities. Dreaming, after all, is a form of planning.”
     
- Gloria Steinem
     
   
WEEKLY TIP
             
Think twice about loaning or giving money to adult children or relatives. Sure, they will appreciate the loan or gift, but remember that your financial well-being is a gift to you and your family.
  
   
WEEKLY RIDDLE
           
I have a rough skin and sometimes more than two eyes, but I can be tasty even plainly and simply prepared. Just what am I?    
     
 
Last week’s riddle:
What invention permits you to peer through any wall?
   
Last week’s answer:
A window.


October 14, 2013
    
HOPES FOR A DEBT DEAL EMERGE
After a Friday meeting with President Obama, GOP senators went to work on a bipartisan solution to both the federal budget and federal debt limit impasses, one that would lift the debt limit in exchange for spending cuts. House Republicans introduced a proposal last Thursday to raise the debt ceiling for 6 weeks contingent on budget negotiations. Sen. Lindsey Graham (R-SC) said Friday’s talks produced “nothing concrete,” but Sen. Mitch McConnell (R-KY) called the discussions “very useful” and thought they might lead forward. Hopefully, at least a short-term deal can be reached by the start of this week.1,2
 
NO SURPRISE: CONSUMER SENTIMENT INDEX SLIPS
The University of Michigan’s initial October consumer sentiment index came in at 75.2, which was a 9-month low. Still, that beat the 73.0 consensus forecast of economists polled by Briefing.com.1,3
    
NO TAX HOLIDAY THIS TUESDAY, IRS SAYS
If you filed Form 4868 with the IRS earlier this year, you must still send your federal tax return to the IRS with a postmark of October 15 or earlier. (Taxpayers in certain Colorado counties have until December 2 to file; most military personnel serving in war zones get an additional 180 days after departing the theater of combat to file.) The federal government shutdown did halt the release of the September Producer Price Index and September retail sales figures last week.1,4,5
  
DJIA RISES AS CAPITOL HILL NEGOTIATIONS PICK UP 
The Dow climbed more than 300 points last Thursday en route to a 1.09% weekly gain and a Friday close of 15,237.11. The S&P 500 (+0.75% to 1,703.20) advanced for the week, though the NASDAQ (-0.42% to 3,791.87) did not.1
  
THIS WEEK: Monday is Columbus Day; banks are closed, but Wall Street is open for business. Tuesday is October 15, the federal tax extension deadline; Yahoo!, CSX, Citigroup, Coca-Cola, Johnson & Johnson and Intel issue earnings. Wednesday offers a new Federal Reserve Beige Book, a new NAHB Housing Market Index, earnings from eBay, PepsiCo, US Bancorp, Bank of America, BlackRock, American Express and IBM, and possibly the September CPI. Thursday is the deadline to raise the federal debt limit; September reports on housing starts and industrial output may arrive, and earnings from Verizon, Goldman Sachs, Google, Capital One and Chipotle will arrive plus the latest initial jobless claims report. The Conference Board comes out with its September leading indicator index Friday, and Morgan Stanley, Schlumberger, General Electric and Honeywell issue earnings reports.
  
% CHANGE
Y-T-D
1-YR CHG
5-YR AVG
10-YR AVG
DJIA
+16.28
+14.34
+16.06
+5.75
NASDAQ
+25.58
+24.35
+12.99
+9.80
S&P 500
+19.42
+18.87
+17.88
+6.41
REAL YIELD
10/11 RATE
1 YR AGO
5 YRS AGO
10 YRS AGO
10 YR TIPS
0.50%
-0.77%
2.97%
2.14%
 

Sources: cnbc.com, bigcharts.com, treasury.gov - 10/11/131,6,7,8
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 - tinyurl.com/mqjbduv [10/11/13]
2 - latimes.com/nation/politics/politicsnow/la-pn-republican-senators-shutdown-solutions-obama-20131011,0,7305655.story [10/11/13]
3 - briefing.com/investor/calendars/economic/2013/10/07-11 [10/11/13]
4 - foxnews.com/politics/2013/10/11/got-extension-on-your-tax-returns-irs-wants-them-by-oct-15/ [10/11/13]
5 - dailyfinance.com/2013/10/03/tax-procrastinators-october-15-is-coming/ [10/3/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F11%2F12&x=0&y=0 [10/11/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F11%2F12&x=0&y=0 [10/11/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F11%2F12&x=0&y=0 [10/11/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F10%2F08&x=0&y=0 [10/11/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F10%2F08&x=0&y=0 [10/11/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F10%2F08&x=0&y=0 [10/11/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F10%2F03&x=0&y=0 [10/11/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F10%2F03&x=0&y=0 [10/11/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F10%2F03&x=0&y=0 [10/11/13]
7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [10/11/13]
8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [10/11/13]