Tuesday, March 25, 2014

Economic Update for the week of March 25th, 2014

WEEKLY ECONOMIC UPDATE


WEEKLY QUOTE
              
“In the business world, the rearview mirror is always clearer than the windshield.”
     
- Warren Buffett
     
   
WEEKLY TIP
             
If you are thinking about changing careers, recognize the potential expenses involved for training and traveling and strive to stay at your current job as you search.
  
   
WEEKLY RIDDLE
           
I twist, I turn, but I don’t have curves. You can twist me to fix me, but in the process you may throw me into disarray. Hours later, you may cast me away. What am I?  
     
 
Last week’s riddle:
What binds two people together yet touches only one person?
   
Last week’s answer:
A wedding ring.

March 25, 2014
    
FED TAPERS, CHANGES CRITERIA FOR A RATE HIKE
Last week, the Federal Reserve disclosed another $10 billion cut for QE3 in April, and a view that declining unemployment would not necessarily prompt interest rate increases. Rather than peg rate hikes on the jobless rate dipping below 6.5%, the Fed will give greater weight to inflation and other economic factors; it sees the federal funds rate at 1% by the end of 2015 and 2% by the end of 2016. Wall Street was startled Thursday by Fed chair Janet Yellen’s verbal guesstimate that the central bank might raise rates about 6 months after the presumed late-2014 end of QE3 (about 6 months earlier than many analysts presume). IHS Global Insight economist Paul Edelstein echoed the prevalent opinion, saying “this could have been a rookie gaffe on Yellen’s part.”1
   
DID COLD WEATHER COOL HOME SALES?
The National Association of Realtors said existing home sales fell 0.4% in February, leading to the slowest annualized sales pace since June 2012. The median sale price was $189,000, up 9.1% year-over-year. Census Bureau data showed a 7.7% rise in building permits in February, but groundbreaking decreased 0.2% last month.2,3
   
A MINIMAL UPTICK IN CONSUMER PRICES
February saw the Consumer Price Index rise just 0.1% for the second straight month. The core CPI (minus food and energy prices) advanced 0.1% for the third consecutive month. In the past year, the headline CPI is up only 1.1% and the core CPI only 1.6%.3
 
STOCKS TURN NORTH
A 1.37% weekly gain brought the S&P 500 to a close of 1,866.52 Friday. The Dow rose 1.48% on the week to settle Friday at 16,302.77, and the Nasdaq managed an 0.74% advance for the week to 4,276.79.4,5
  
THIS WEEK: Wall Street will watch private-sector PMIs for China, Germany and the eurozone Monday. Tuesday offers data on February new home sales, the Conference Board’s March consumer confidence index, January’s S&P/Case-Shiller home price index, January’s FHFA housing price index and earnings from Walgreen’s. On Wednesday, the Commerce Department releases a report on February hard goods orders. Thursday brings NAR’s pending home sales report for February, the final government estimate of Q4 GDP, the latest initial jobless claims numbers and earnings from Lululemon, Red Hat, RE/MAX and Accenture. Friday offers the February consumer spending report, the final March consumer sentiment index from the University of Michigan, and Q4 results from BlackBerry.    
  
% CHANGE
Y-T-D
1-YR CHG
5-YR AVG
10-YR AVG
DJIA
-1.65
+13.04
+24.80
+6.20
NASDAQ
+2.40
+32.71
+38.70
+12.39
S&P 500
+0.98
+20.75
+28.57
+7.04
REAL YIELD
3/21 RATE
1 YR AGO
5 YRS AGO
10 YRS AGO
10 YR TIPS
0.61%
-0.57%
1.43%
1.44%
 

Sources: USATODAY.com, bigcharts.com, treasury.gov - 3/21/145,6,7,8
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. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. 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. 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. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. 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 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 - sacbee.com/2014/03/19/6251229/yellen-speaks-clarity-weak-stocks.html [3/19/14]
2 - marketwatch.com/story/existing-home-sales-decline-04-in-february-2014-03-20-109104 [3/20/14]
3 - reuters.com/article/2014/03/18/usa-economy-idUSL2N0MF0HR20140318 [3/18/14]
4 - google.com/finance?q=INDEXDJX%3A.DJI&ei=qqwsU-C5DISsiALCKw [3/21/14]
5 - usatoday.com/money/markets/overview/ [3/21/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F21%2F13&x=0&y=0 [3/21/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F21%2F13&x=0&y=0 [3/21/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F21%2F13&x=0&y=0 [3/21/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F20%2F09&x=0&y=0 [3/21/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F20%2F09&x=0&y=0 [3/21/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F20%2F09&x=0&y=0 [3/21/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F22%2F04&x=0&y=0 [3/21/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F22%2F04&x=0&y=0 [3/21/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F22%2F04&x=0&y=0 [3/21/14]         
7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [3/21/14]
8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [3/21/14]

 


Tuesday, March 18, 2014

Economic Update for the week of March 18th, 2014

WEEKLY ECONOMIC UPDATE


WEEKLY QUOTE
              
“Every day brings a chance for you to draw in a breath, kick off your shoes, and dance.”
     
- Oprah Winfrey
     
   
WEEKLY TIP
             
Making a donation to a charity can give you an immediate tax deduction for the amount of the donation and help you avoid capital gains tax if they are derived from certain assets. Consider this move if you like to itemize deductions and you are in a higher tax bracket.
  
   
WEEKLY RIDDLE
           
What binds two people together yet touches only one person at a time?  
     
 
Last week’s riddle:
Lidia immediately went bankrupt after the car she was pushing around stopped in front of a hotel. It sounds sad, but she wasn’t upset. What was she doing?
   
Last week’s answer:
She was playing Monopoly.

March 18, 2014
    
RETAIL SALES UP 0.3% IN FEBRUARY
Weather didn’t stop Americans from shopping last month. February’s headline gain in retail sales was the first in three months and represented a nice turnaround from the (revised) 0.6% drop measured by the Commerce Department for January. Minus car and truck buying, the February increase was still 0.3%. Sales at clothing and furniture retailers led the way, both improving 0.4% on the month.1
   
SENTIMENT COOLS AS WEATHER WARMS
The preliminary March reading for the University of Michigan’s monthly consumer sentiment index was just 79.9, a 4-month low. February’s final mark was 81.6, and analysts polled by MarketWatch forecast an initial March reading of 80.8.2,3
   
PRODUCER PRICES RETREAT, AGAINST EXPECTATIONS
After rising 0.2% for January, the Producer Price Index ticked down 0.1% in February; in a Bloomberg survey, economists projected a 0.2% increase. The core PPI (minus food and energy prices) dropped 0.2% last month. Over the past year, the headline PPI has risen just 0.9%.2,3
 
OVERSEAS HEADLINES HAMPER STOCKS
Would Crimeans vote to leave Ukraine and join Russia on March 16? To what degree was China’s economy cooling off? These questions preoccupied Wall Street last week, and the Dow, S&P 500 and Nasdaq all turned south. The 5-day performances: S&P, -1.97% to 1,841.13; Dow, -2.35% to 16,065.67; Nasdaq, -2.10% to 4,245.40.4,5
  
THIS WEEK: Monday morning, Wall Street will react to the outcome of the Crimean referendum; the March NAHB housing market index and the Federal Reserve’s report on February industrial output also arrive. Tuesday, investors will consider February’s CPI, data on February housing starts and building permits, and earnings from Oracle, Perry Ellis, Adobe and Hertz. Wednesday brings a Federal Reserve policy announcement (and the potential for further tapering of QE3); Guess, KB Home, FedEx and General Mills announce quarterly results. On Thursday, NAR issues February existing home sales figures, the Conference Board puts out its February leading indicator index, a new round of initial jobless claims data arrives, and Nike, ConAgra and Lennar present earnings. No major economic releases are scheduled for Friday.    
  
% CHANGE
Y-T-D
1-YR CHG
5-YR AVG
10-YR AVG
DJIA
-3.08
+10.50
+24.48
+5.90
NASDAQ
+1.65
+30.27
+39.31
+11.89
S&P 500
-0.39
+17.78
+28.67
+6.67
REAL YIELD
3/14 RATE
1 YR AGO
5 YRS AGO
10 YRS AGO
10 YR TIPS
0.49%
-0.53%
1.87%
1.47%
 

Sources: USATODAY.com, bigcharts.com, treasury.gov - 3/14/145,6,7,8
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. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. 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. 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. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. 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 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 - reuters.com/article/2014/03/13/us-retail-sales-idUSBREA2C0YK20140313 [3/13/14]
2 - marketwatch.com/economy-politics/calendars/economic [3/14/14]
3 - bloomberg.com/news/2014-03-14/wholesale-prices-in-u-s-unexpectedly-drop-on-cheaper-services.html [3/14/14]
4 - reuters.com/article/2014/03/14/markets-usa-stocks-idUSL2N0MB1ON20140314 [3/14/14]
5 - usatoday.com/money/markets/overview/ [3/14/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F14%2F13&x=0&y=0 [3/14/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F14%2F13&x=0&y=0 [3/14/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F14%2F13&x=0&y=0 [3/14/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F13%2F09&x=0&y=0 [3/14/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F13%2F09&x=0&y=0 [3/14/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F13%2F09&x=0&y=0 [3/14/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F15%2F04&x=0&y=0 [3/14/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F15%2F04&x=0&y=0 [3/14/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F15%2F04&x=0&y=0 [3/14/14]          
7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [3/14/14]
8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [3/14/14]
 
 


Tuesday, March 11, 2014

Economic Update for the week of March 11th, 2014

WEEKLY ECONOMIC UPDATE


WEEKLY QUOTE
              
“Only a life lived for others is a life worthwhile.”
     
- Albert Einstein
     
   
WEEKLY TIP
             
Some couples establish residency in separate states in pursuit of tax advantages. If you are considering this move, keep precise track of how many days each of you spend in each state.
  
   
WEEKLY RIDDLE
           
Lidia immediately went bankrupt after the car she was pushing around stopped in front of a hotel. It sounds sad, but she wasn’t upset. What was she doing? 
     
 
Last week’s riddle:
I have rosy cheeks, I am round and cute – yet debate persists over whether I am vegetable or fruit. What might I be?
   
Last week’s answer:
A tomato.

March 11, 2014
    
ECONOMY ADDS 175,000 MORE JOBS
February’s payroll growth was decent, and seemingly unimpeded by the weather. Last month’s net jobs gain approximated the 12-month average of 179,000 recorded by the Labor Department, which also revised January and December totals north by a collective 25,000 hires. Few of the 264,000 new participants in the job hunt found work last month, so the unemployment rate ticked up to 6.7%. The average hourly wage rose $0.09 in February, the largest monthly increase since June.1
   
CONSUMER SPENDING BEATS EXPECTATIONS
Last month saw personal spending increase 0.4% and personal incomes rise 0.3%. Economists polled by MarketWatch felt that February’s Commerce Department report would show 0.2% gains for each category. Personal spending was up only 0.1% in January.2
   
FEBRUARY PMIs RISE & FALL
According to the Institute for Supply Management, growth in the manufacturing sector accelerated last month while service sector growth moderated. ISM recorded a 1.9% rise in its manufacturing PMI for February to a mark of 53.2, but the Institute’s non-manufacturing PMI slipped 2.4% last month to a reading of 51.6.2
 
BULL MARKET TURNS FIVE, S&P HITS ANOTHER PEAK
Having gained 1.00% across five days, the S&P 500 settled at 1.878.04 Friday, yet another record close. Friday’s positive jobs data also factored into weekly advances for the Nasdaq (+0.65% to 4,336.22) and Dow (+0.79% to 16,452.72).3,4
  
THIS WEEK: Stateside, no major economic releases are scheduled for Monday; China reports February trade surplus and inflation figures, and Urban Outfitters reports earnings. Tuesday brings a Commerce Department report on January wholesale inventories and earnings from VeriFone, Dick’s Sporting Goods and American Eagle Outfitters. Wednesday’s earnings include Williams-Sonoma, Men’s Wearhouse and Krispy Kreme. Thursday offers data on February retail sales and January business inventories, plus earnings from Volkswagen, Dollar General and Aeropostale and the latest initial jobless claims figures; overseas, China releases February industrial output and retail sales data. Friday sees the release of the February PPI, the preliminary March consumer sentiment index from the University of Michigan and Q4 results from Leap Wireless.    
  
% CHANGE
Y-T-D
1-YR CHG
5-YR AVG
10-YR AVG
DJIA
-0.75
+14.82
+29.65
+5.63
NASDAQ
+3.82
+34.16
+47.03
+11.59
S&P 500
+1.61
+21.61
+34.96
+6.37
REAL YIELD
3/7 RATE
1 YR AGO
5 YRS AGO
10 YRS AGO
10 YR TIPS
0.57%
-0.56%
2.02%
1.43%
 

Sources: USATODAY.com, bigcharts.com, treasury.gov - 3/7/144,5,6,7
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. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. 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. 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. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. 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 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 - blogs.wsj.com/five-things/2014/03/07/5-takeaways-from-the-february-employment-report/ [3/7/14]
2 - marketwatch.com/economy-politics/calendars/economic [3/7/14]
3 - fxstreet.com/news/forex-news/article.aspx?storyid=07021240-1a71-41ed-9cea-d7e8041b0495 [3/7/14]
4 - usatoday.com/money/markets/overview/ [3/7/14]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F7%2F13&x=0&y=0 [3/7/14]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F7%2F13&x=0&y=0 [3/7/14]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F7%2F13&x=0&y=0 [3/7/14]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F6%2F09&x=0&y=0 [3/7/14]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F6%2F09&x=0&y=0 [3/7/14]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F6%2F09&x=0&y=0 [3/7/14]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F8%2F04&x=0&y=0 [3/7/14]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F8%2F04&x=0&y=0 [3/7/14]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F8%2F04&x=0&y=0 [3/7/14]          
6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [3/7/14]
7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [3/7/14]