Economic update for the week of January 28th, 2014

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “Don’t let the past steal your present.”       - Cherrie L. Moraga           WEEKLY TIP               If you receive an inheritance, make sure your spouse understands your expectations for the money. Do you consider those assets yours to manage, or do you consider them joint assets?        WEEKLY RIDDLE             You can make it and read about it today, and many classes are taught in it, but it is not part of the future. What is it?         Last week’s riddle: Dave is at the hardware store to buy something for his house. Yesterday, he bought 1 for $1. The week before he bought 10 for $2 and his friend bought 100 for $3. Today he bought 907 for $3. If the prices haven’t changed, how is this possible?     Last week’s answer: Dave and his friend have been buying house numbers. 907 is $3 because it costs $1 per numeral.	January 28, 2014      MORE HOMES MOVE IN DECEMBER Last month saw a 1.0% gain in existing home sales, a nice change for this key economic indicator after a few subpar months. Analysts surveyed by Dow Jones Newswires anticipated sales improving 0.6%. The National Association of Realtors did revise November’s sales decline to 5.9% (it had been 4.3%).1,2     GAUGE OF NEAR-TERM PROSPECTS EDGES HIGHER The Conference Board’s index of leading indicators – intended to assess economic prospects for the next 3-6 months – ticked up 0.1% for December. Additionally, the CB revised the November gain of the index from 0.8% to 1.0%.1                   GOLD RALLY CONTINUES Futures advanced for a fifth straight week, settling Friday at $1,264.30 an ounce on the COMEX after rising 1.0% in 5 days, helped by a wave of disappointing economic news from overseas. The precious metal hasn’t had such a long winning streak since September 2012.3   STOCKS STAGE A MAJOR RETREAT Weak manufacturing data from China and an exit from emerging market currencies triggered a 2-day global selloff at the end of last week. The Argentine peso dropped 15% in 5 days, and the Russian ruble, South African rand and Brazil real also slumped. As a result, the DJIA had its poorest week in more than 2 years (-3.52%). The Nasdaq lost 1.65% for the week while the S&P 500 fell 2.63%. At the close Friday, here was where the big three stood: S&P, 1,790.29; DJIA, 15,879.11; NASDAQ, 4,128.17.4,5    THIS WEEK: Monday brings Q4 results from Apple and Caterpillar and the Census Bureau’s report on December new home sales. On Tuesday, investors will consider the Conference Board’s January consumer confidence index, the November Case-Shiller home price index, December durable goods orders and earnings from Amgen, Ford Motor Co., Yahoo, Comcast, AT&T, Siemens and Pfizer. The earnings parade continues Wednesday with quarterly results from Dow Chemical, Novartis, Qualcomm, Boeing and Biogen – and the Federal Reserve makes a policy announcement. Thursday, NAR reports December pending home sales, the first federal estimate of Q4 growth appears, and earnings arrive from Amazon, Google, Banco Santander, Ericsson, LVMH, Royal Dutch Shell, H&M, Exxon Mobil, Visa, UPS and 3M. Friday, the Commerce Department issues its December personal spending report, the University of Michigan’s final January consumer sentiment index appears, and earnings arrive from Chevron, MasterCard and BBVA.        % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA -4.21 +14.86 +19.32 +5.03 NASDAQ -1.16 +31.87 +35.89 +9.44 S&P 500 -3.14 +19.77 +23.04 +5.68 REAL YIELD 1/24 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.61% -0.62% 1.93% 1.82%   Sources: USATODAY.com, bigcharts.com, treasury.gov - 1/24/146,7,8,9 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 - nasdaq.com/article/european-markets-pulled-back-on-weak-chinese-data--earnings-20140123-00763 [1/23/14] 2 - tinyurl.com/mav8xv6 [1/22/14] 3 - proactiveinvestors.com.au/companies/news/52211/gold-climbs-again-friday-longest-rally-since-september-2012-52211.html [1/24/14] 4 - thestreet.com/story/marketstory.html [1/24/14] 5 - businessweek.com/news/2014-01-24/argentina-to-ease-fx-controls-after-peso-fell-most-in-12-years [1/24/14] 6 - usatoday.com/money/markets/overview/ [1/24/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F24%2F12&x=0&y=0 [1/24/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F24%2F12&x=0&y=0 [1/24/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F24%2F13&x=0&y=0 [1/24/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F23%2F09&x=0&y=0 [1/24/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F23%2F09&x=0&y=0 [1/24/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F23%2F09&x=0&y=0 [1/24/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F23%2F04&x=0&y=0 [1/24/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F23%2F04&x=0&y=0 [1/24/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F23%2F04&x=0&y=0 [1/24/14] 8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [1/24/14] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [1/24/14]

Economic Update for the week of January 22nd, 2014

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “The friend who holds your hand and says the wrong thing is made of dearer stuff than the one who stays away.”       - Barbara Kingsolver           WEEKLY TIP               With a durable financial power of attorney, someone you trust can act on your behalf to manage your finances and investments if you cannot.        WEEKLY RIDDLE             Dave is at the hardware store to buy something for his house. Yesterday, he bought 1 for $1. The week before he bought 10 for $2 and his friend bought 100 for $3. Today he bought 907 for $3. If the prices haven’t changed, how is this possible?         Last week’s riddle: David put on a white shirt with three large holes in it and went to the grocery store. No one gave him a funny look; no one objected to it. What kind of shirt was David wearing?     Last week’s answer: A white T-shirt.	January 22, 2014      INFLATION RISES IN DECEMBER Labor Department reports showed the Consumer Price Index up 0.3% last month (with core CPI rising 0.1%) and the Producer Price Index advancing 0.4% (core PPI went north 0.3%). If these spikes foreshadow greater inflation for 2014, they do little to alter the big picture of 2013 – a year in which consumer prices increased only 1.5% and wholesale prices rose just 1.2%. Annualized consumer inflation is beneath the Federal Reserve’s 2.0% target and hasn’t exceeded 2% for two years. The last two consecutive years in which consumer prices rose less than 2% were 1997-98.1,2     A MILD LIFT FOR RETAILERS Economists polled by Briefing.com thought retail sales would be flat in December. They rose 0.2% instead (0.7% with auto buying factored out). The Census Bureau revised November’s 0.7% advance down to 0.4%.3                 CONSUMER SENTIMENT MISSES EXPECTATIONS The initial January consumer sentiment index from the University of Michigan took a major dip, dropping to 80.4 from the final December figure of 82.5. The consensus forecast of analysts surveyed by Briefing.com was for a much higher reading – 83.0.3   LESS GROUNDBREAKING AT YEAR’S END This is hardly surprising given winter weather: the Census Bureau reported a 9.8% drop in housing starts for December, plus a 3.0% decline in building permits. For 2013, housing starts increased 18.3% and permits 17.5%.4   NASDAQ OUT OF THE RED YTD Thanks to a 0.55% 5-day advance, the tech-heavy Nasdaq became the first of the big three to go positive so far for 2014. The Dow gained 0.13% last week; the S&P 500 retreated 0.20%. Friday, the indices settled as follows: DJIA, 16,458.56; NASDAQ, 4,197.58; S&P, 1,838.70.5    THIS WEEK: Monday is Martin Luther King, Jr. Day and U.S. stock and bond markets are closed; overseas, China’s government releases Q4 and 2013 GDP numbers. Tuesday brings earnings from Delta Airlines, Texas Instruments, Verizon, Halliburton, IBM, Johnson & Johnson, TD Ameritrade and The Travelers. More earnings reports arrive Wednesday from eBay, Logitech, Netflix and SanDisk, and the annual World Economic Forum begins in Switzerland. Thursday offers data on December existing home sales and initial jobless claims, Q4 results from Altera and Alaska Airlines and the Conference Board’s December leading indicators index. Friday, nothing major is scheduled.        % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA -0.71 +21.05 +19.75 +5.53 NASDAQ +0.50 +33.85 +34.89 +9.61 S&P 500 -0.52 +24.16 +23.26 +6.13 REAL YIELD 1/17 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.58% -0.64% 1.81% 1.83%   Sources: USATODAY.com, bigcharts.com, treasury.gov - 1/17/146,7,8,9 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 - forbes.com/sites/kitconews/2014/01/16/subdued-inflation-offers-little-help-to-gold/ [1/16/14] 2 - investing.com/news/economic-indicators/u.s.-ppi-rises-0.4-in-december,-core-ppi-up-0.3-260436 [1/15/14] 3 - briefing.com/investor/calendars/economic/2014/01/13-17 [1/17/14] 4 - esa.doc.gov/economic-indicators/economic-indicators-6 [1/17/14] 5 - thestreet.com/story/12244254/1/markets-hustle-stocks-mixed-amid-lackluster-earnings.html [1/17/14] 6 - usatoday.com/money/markets/overview/ [1/17/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F17%2F12&x=0&y=0 [1/17/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F17%2F12&x=0&y=0 [1/17/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F17%2F13&x=0&y=0 [1/17/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F16%2F09&x=0&y=0 [1/17/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F16%2F09&x=0&y=0 [1/17/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F16%2F09&x=0&y=0 [1/17/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F16%2F04&x=0&y=0 [1/17/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F16%2F04&x=0&y=0 [1/17/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F16%2F04&x=0&y=0 [1/17/14] 8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [1/17/14] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [1/17/14]

Economic Update for the week of January 14th, 2014

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “Kind words can be short and easy to speak, but their echoes are truly endless.”       - Mother Teresa           WEEKLY TIP               Low-fee or no-fee checking and savings accounts usually let you make major withdrawals without sizeable penalties. That’s a feature you may appreciate if you find you need to make an emergency withdrawal in retirement.        WEEKLY RIDDLE             David put on a white shirt with three large holes in it and went to the grocery store. No one gave him a funny look; no one objected to it. What kind of shirt was David wearing?         Last week’s riddle: Throughout Friday, Hanna asks her mother the same four-word question. On each occasion, her mother gives her a different answer. What is the question?     Last week’s answer: “What time is it?”	January 14, 2014      INTERPRETING A PERPLEXING JOBS REPORT Why did the economy generate only 74,000 new jobs last month? Why did 347,000 people drop out of the job hunt to leave the labor participation rate at 62.8%, the lowest in 35 years? Was it the weather? Maybe. As a note from Capital Economics mentions, the Labor Department found that 273,000 people were unable to work last month because of weather conditions, well above the December average of 166,000. The jobless rate fell to a 5-year low of 6.7% in the final month of 2013, but that was largely due to older workers retiring and the thinning ranks of job seekers. November’s job growth was revised upward by 38,000 to 241,000.1,2   A BIT LESS GROWTH IN THE SERVICE SECTOR December’s non-manufacturing PMI from the Institute for Supply Management came in at 53.0, down from the prior 53.9 mark. Although 53.0 is the weakest reading in six months, it signifies expansion. Data from Markit showed service-sector PMIs in China (50.9) and the euro area (51.0) also down slightly last month.3                                                                         FACTORY ORDERS REBOUND IN DECEMBER The latest report from the Commerce Department noted a 1.8% monthly rise in orders placed with U.S. manufacturers. November’s retreat in factory orders was revised down to 0.5%.3   A MIXED WEEK ON WALL STREET The first full trading week of 2014 brought 5-day gains for the S&P 500 (0.60%) and Nasdaq (1.03%) but a 0.20% pullback for the Dow. Friday, the big three closed as follows: DJIA, 16,437.05; NASDAQ, 4,174.67; S&P, 1,842.37.4    THIS WEEK: Nothing major is scheduled for Monday. Tuesday offers Q4 results from Wells Fargo and JPMorgan Chase and December retail sales numbers. Wednesday, Bank of America, Kinder Morgan, Fastenal, CSX and Plexus announce earnings, and a new Federal Reserve Beige Book and the December PPI arrive. Thursday brings the December CPI, the January NAHB Housing Market Index, the latest initial jobless claims, remarks by Ben Bernanke at a special Brookings Institution conference on central banking, and earnings from UnitedHealth, BB&T, American Express, Intel, Goldman Sachs, Capital One, BlackRock, Citigroup, Charles Schwab, First Republic Bank and PNC Financial. Friday offers data on December industrial output, housing starts, and building permits and the month’s initial consumer sentiment index from the University of Michigan; General Electric, Comerica, Bank of NY Mellon, Morgan Stanley, Schlumberger and SunTrust all post earnings.        % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA -0.84 +22.02 +18.23 +5.72 NASDAQ -0.05 +33.73 +33.13 +10.00 S&P 500 -0.32 +25.15 +21.39 +6.42 REAL YIELD 1/10 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.59% -0.62% 1.87% 1.89%   Sources: USATODAY.com, bigcharts.com, treasury.gov - 1/10/145,6,7,8 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/l9ywkdk [1/10/14] 2 - forbes.com/sites/samanthasharf/2014/01/10/jobs-report-u-s-economy-added-just-74k-jobs-in-december-unemployment-down-to-6-7/ [1/10/14] 3 - bloomberg.com/news/2014-01-06/ism-non-manufacturing-index-in-u-s-fell-to-53-in-december.html [1/6/14] 4 - thestreet.com/story/marketstory.html [1/10/14] 5 - usatoday.com/money/markets/overview/ [1/10/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F27%2F12&x=0&y=0 [1/10/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F27%2F12&x=0&y=0 [1/10/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F10%2F13&x=0&y=0 [1/10/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F9%2F09&x=0&y=0 [1/10/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F9%2F09&x=0&y=0 [1/10/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F9%2F09&x=0&y=0 [1/10/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F9%2F04&x=0&y=0 [1/10/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F9%2F04&x=0&y=0 [1/10/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F9%2F04&x=0&y=0 [1/10/14] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [1/10/14] 8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [1/10/14]