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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.
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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.
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]
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Wednesday, January 22, 2014
Economic Update for the week of January 22nd, 2014
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