Economic Update for the week of June 24th, 2014

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “Great works are performed not by strength, but perseverance.”       - Samuel Johnson            WEEKLY TIP               A mental trick to help you build your emergency fund: treat it like a bill that you have to pay each month, and make a corresponding monthly “payment” to it.        WEEKLY RIDDLE              Three playing cards lie face down on a table. A jack is to the left of a queen. To the left of a spade is a diamond. A king is left of a heart. A spade is right of a king. What are the three cards?        Last week’s riddle: When I change my jacket, I make a loud noise and become larger, but I weigh less. What am I?        Last week’s answer: Popcorn.	June 24, 2014      INFLATION PICKS UP The Consumer Price Index increased 0.4% in May – the biggest monthly rise in over a year, with food prices up 0.5%. Labor Department data showed the core CPI (minus energy and food prices) up 0.3% for May; that was its largest monthly advance since August 2011. All this put the annualized gain in the headline CPI at 2.1% and the yearly gain in core CPI at 2.0%. Analysts polled by Reuters thought the overall CPI would increase 0.2% last month. The turmoil in Iraq could help to drive consumer prices higher this summer.1      MAY SEES LESS NEW RESIDENTIAL CONSTRUCTION Reduced home buying eventually means reduced groundbreaking. May’s housing numbers from the Census Bureau reflected that – housing starts slipped 6.5% last month while building permits fell 6.4%. Housing starts are still maintaining a million-unit seasonally adjusted annual pace.1         OIL SETTLES AT A 9-MONTH HIGH $107.26 a barrel – that was where NYMEX crude for July delivery closed at Friday. Even so, prices leveled off last week as ISIS insurgents in Iraq remained far away from Basra, that country’s hub for oil exports.2         WILL THE DOW REACH 17,000 THIS WEEK? At Friday’s close, the blue chips stood at 16,947.08. The Dow rose another 1.02% last week, and its 5-day gain was surpassed by the advances of the Nasdaq (+1.33% to 4,368.04) and the S&P 500 (1.37% to 1,962.87). Investors were encouraged by the Federal Reserve: the Federal Open Market Committee predictably elected to make another $10 billion cut to QE3 for July and expressed confidence that the economy was improving in its Wednesday policy statement, even as it cut its projections for 2014 growth slightly to 2.1%.3,4,5    THIS WEEK: The NAR releases its May existing home sales report Monday. On Tuesday, the Conference Board’s June consumer confidence index, the Census Bureau’s May new home sales report and the April S&P/Case-Shiller home price index all arrive, along with quarterly results from Walgreens. The last federal government estimate of Q1 GDP appears Wednesday, plus the Census Bureau’s May report on durable goods orders and earnings from Bed Bath & Beyond, Lennar, General Mills and Monsanto. Thursday brings May consumer spending data from the Commerce Department, the latest initial jobless claims figures and earnings announcements from Nike, ConAgra Foods and Accenture. Friday sees the release of the University of Michigan’s final June consumer sentiment index.        % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +2.23 +14.83 +19.69 +6.34 NASDAQ +4.58 +29.82 +27.80 +12.12 S&P 500 +6.20 +23.59 +22.61 +7.37 REAL YIELD 6/20 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.35% 0.46% 1.91% 2.16%   Sources: USATODAY.com, bigcharts.com, treasury.gov - 6/20/145,6,7,8 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.
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«RepresentativeDisclosure»   This material was prepared by MarketingPro, 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 - tinyurl.com/pkdpugh [6/17/14] 2 - marketwatch.com/story/brent-slips-below-115-as-iraq-worries-simmer-2014-06-20 [6/20/14] 3 - google.com/finance?q=INDEXDJX%3A.DJI&ei=Aa-kU7C5O6SxsgezkIHQDA [6/20/14] 4 - cbsnews.com/news/federal-reserve-tapers-by-another-10-billion/ [6/18/14] 5 - usatoday.com/money/markets/overview/ [6/20/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F20%2F13&x=0&y=0 [6/20/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F20%2F13&x=0&y=0 [6/20/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F20%2F13&x=0&y=0 [6/20/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F19%2F09&x=0&y=0 [6/20/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F19%2F09&x=0&y=0 [6/20/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F19%2F09&x=0&y=0 [6/20/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F21%2F04&x=0&y=0 [6/20/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F21%2F04&x=0&y=0 [6/20/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F21%2F04&x=0&y=0 [6/20/14]         7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [6/20/14] 8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [6/20/14]

Economic Update for the week of June 17th, 2014

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “Success is often the result of taking a misstep in the right direction.”       - Al Bernstein            WEEKLY TIP               Sooner or later, many of us end up paying for services we no longer need. Saying goodbye to those services means quick savings.         WEEKLY RIDDLE              When I change my jacket, I make a loud noise and become larger, but I weigh less. What am I?          Last week’s riddle: I run but never walk, often murmur, never talk, have a bed and never sleep, have a mouth and never eat. What am I?      Last week’s answer: A river.	June 17, 2014      UNREST IN IRAQ SENDS OIL TOWARD $107 NYMEX crude settled at $106.91 Friday, up 4.1% for the week in reaction to the Sunni-led ISIS militant movement seizing control of Mosul and other cities in northern and eastern Iraq. It was oil’s biggest weekly spike since December. While the price of unleaded gasoline fell a cent for the week to $3.65 a gallon according to AAA, a short-term increase seems imminent. Iraqi oil supplies were not seriously impacted as of the weekend: most oil production in Iraq occurs in the nation’s southern half, and Iraq hasn’t exported oil from its northern regions since March.1,2      RETAIL SALES, SENTIMENT INDEX UNDERWHELM U.S. retail sales rose 0.3% in May, beneath the 0.7% gain forecast economists polled by the Wall Street Journal. With car buying and gasoline purchases factored out, they were actually flat for the month. (In better news, the Commerce Department revised April’s retail sales increase north to 0.5% and sales are up 4.3% in the past 12 months.) If consumer purchasing was a bit disappointing, so was the University of Michigan’s initial June index of consumer sentiment, which fell from its previous level of 81.9 to 81.2.3,4         PRODUCER PRICES RETREAT The Producer Price Index pulled back 0.2% for May, its largest decline since October; the core PPI dipped 0.1% for May. Bureau of Labor Statistics data shows both the headline and core PPI up 2.0% in the past 12 months, however.4         S&P 500 SNAPS ITS 3-WEEK WINNING STREAK Anxieties about Iraq and subpar economic indicators took the tailwind from the market last week. Friday’s trading day ended with the S&P at 1,936.16, the Nasdaq at 4,310.65 and the Dow at 16,775.74. Across five days, the S&P retreated 0.68%, the Nasdaq 0.25% and the Dow 0.88%.5    THIS WEEK: Monday brings the federal government’s report on May industrial output. On Tuesday, the Bureau of Labor Statistics issues the May Consumer Price Index, the Census Bureau releases its report on May housing starts and building permits and Adobe and Mitel report earnings. The Federal Reserve wraps up a policy meeting Wednesday, with a press conference to follow; Wall Street will also consider quarterly results from Red Hat and FedEx. Thursday, a new Conference Board leading indicator index arrives along with the latest initial claims figures and earnings from Oracle, Kroger, Smith & Wesson and BlackBerry. Darden Restaurants and CarMax announce earnings Friday.        % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +1.20 +10.54 +18.13 +6.23 NASDAQ +3.21 +25.25 +26.43 +11.91 S&P 500 +4.75 +18.32 +20.92 +7.21 REAL YIELD 6/13 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.41% 0.15% 1.91% 2.26%   Sources: USATODAY.com, bigcharts.com, treasury.gov - 6/13/146,7,8,9 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 MarketingPro, 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 - marketwatch.com/story/oil-futures-tally-biggest-weekly-gain-of-the-year-2014-06-13 [6/13/14] 2 - marketwatch.com/story/oil-rises-to-9-month-high-as-iraq-violence-weighs-2014-06-13 [6/13/14] 3 - nasdaq.com/article/us-retail-sales-rose-03-in-may-20140612-00395 [6/12/14] 4 - investing.com/economic-calendar/ [6/13/14] 5 - thestreet.com/story/12744298/1/earlier-market-losses-end-3-week-winning-streak.html [6/13/14] 6 - usatoday.com/money/markets/overview/ [6/13/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F13%2F13&x=0&y=0 [6/13/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F13%2F13&x=0&y=0 [6/13/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F13%2F13&x=0&y=0 [6/13/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F12%2F09&x=0&y=0 [6/13/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F12%2F09&x=0&y=0 [6/13/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F12%2F09&x=0&y=0 [6/13/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F14%2F04&x=0&y=0 [6/13/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F14%2F04&x=0&y=0 [6/13/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F14%2F04&x=0&y=0 [6/13/14]           8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [6/13/14] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [6/13/14]

Economic Update for the week of June 10th, 2014

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “That some achieve great success is proof to all that others can achieve it as well.”       - Abraham Lincoln            WEEKLY TIP               Is it rude to negotiate a discount for goods or services? It happens more often than you may think. Buying in bulk and arranging long-term agreements are keys.         WEEKLY RIDDLE              I run but never walk, often murmur, never talk, have a bed and never sleep, have a mouth and never eat. What am I?          Last week’s riddle: What can go down a chimney when it is down, but can’t go up through a chimney when it is up?      Last week’s answer: An umbrella.	June 10, 2014      HIRING CORRESPONDS TO EXPECTATIONS Employers added 217,000 new jobs in May, just 1,000 less than analysts polled by Reuters had forecast. Over the past year, payrolls have expanded by average of 197,000 new hires a month. The jobless rate remained at 6.3% in May, but the U-6 rate (the unemployed + the underemployed) sank to 12.2%, a low unseen since October 2008.1      SERVICE SECTOR EXPANDS AT A FASTER PACE At 56.3, the Institute for Supply Management’s non-manufacturing purchasing manager index rose 1.1 points to hit a 10-month high in May. ISM corrected its May manufacturing PMI twice last Tuesday; the final reading was at 55.4, up half a point from April’s mark. May also brought a 0.7% improvement in factory orders, following a (revised) 1.5% gain for April.2,3         PRECIOUS METALS RISE, OIL STAYS FLAT Silver futures rose 1.7% last week on the COMEX, ending the week at $18.99 an ounce. Five days of trading left gold futures 0.5% higher at $1,252.50 an ounce at Friday’s close. In base metals, copper slipped 2.3%. As for NYMEX crude, it declined just 0.05% for the week to $102.66 a barrel.4,5         SUSTAINED CONFIDENCE ON WALL STREET The market seems to have regained some momentum of late. At the closing bell Friday, the S&P 500 settled at 1,949.44, the Dow at 16,924.28. Respective weekly gains of 1.27% and 1.16% sent them to those levels. The Nasdaq rose 1.86% across five days, ending the week at 4,321.40.6    THIS WEEK: Monday brings a Commerce Department report on May wholesale inventories and Q1 results from Hertz and Casey’s General Stores. On Tuesday, Radio Shack reports earnings. Wednesday sees the Commerce Department release May retail sales figures and data on April business stockpiles; investors will also consider earnings from H&R Block. The University of Michigan’s preliminary June consumer sentiment index arrives Thursday, along with the May PPI, a new initial jobless claims report and earnings from Lululemon Athletica. Nothing major is slated stateside for Friday, but Wall Street will interpret China’s latest retail sales and industrial production reports.        % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +2.10 +12.52 +18.63 +6.29 NASDAQ +3.47 +26.21 +26.73 +11.39 S&P 500 +5.47 +20.15 +21.47 +7.09 REAL YIELD 6/6 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.40% -0.05% 1.88% 2.11%   Sources: USATODAY.com, bigcharts.com, treasury.gov - 6/6/147,8,9,10 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 MarketingPro, 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 - tinyurl.com/mtm6eto [6/6/14] 2 - ism.ws/ISMReport/NonMfgROB.cfm [6/4/14] 3 - investing.com/economic-calendar/ [6/6/14] 4 - proactiveinvestors.com/companies/news/54617/gold-up-05-for-week-oil-settles-above-102-54617.html [6/6/14] 5 - money.cnn.com/data/commodities/ [6/6/14] 6 - fxstreet.com/news/forex-news/article.aspx?storyid=ac79bdcc-38d8-4531-94da-147b5408ec3a [6/6/14] 7 - usatoday.com/money/markets/overview/ [6/6/14] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F6%2F13&x=0&y=0 [6/6/14] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F6%2F13&x=0&y=0 [6/6/14] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F6%2F13&x=0&y=0 [6/6/14] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F5%2F09&x=0&y=0 [6/6/14] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F5%2F09&x=0&y=0 [6/6/14] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F5%2F09&x=0&y=0 [6/6/14] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F7%2F04&x=0&y=0 [6/6/14] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F7%2F04&x=0&y=0 [6/6/14] 8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F7%2F04&x=0&y=0 [6/6/14]           9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [6/6/14] 10 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [6/6/14]