Economic Update for the week of August 26th, 2014

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “Happiness arises in a state of peace, not of tumult.”       - Ann Radcliffe            WEEKLY TIP               Explain how credit works to your children, especially if they are teens. You don’t want to have to help them pay off their consumer debts down the road.        WEEKLY RIDDLE              What is located in the middle of nowhere?          Last week’s riddle: Stick your fingers in my eyes, then move them and watch my jaws open wide. What am I?        Last week’s answer: A pair of scissors.	August 26, 2014      A GAIN IN EXISTING HOME SALES In its July report, the National Association of Realtors recorded a 2.4% monthly increase in existing home sales. The good news from July took the annualized sales pace up to 5.15 million. According to the Census Bureau, July also saw a 15.7% leap in housing starts and an 8.1% rise for building permits.1       INFLATION REMAINS MUTED The latest Consumer Price Index reading shows that inflation is manageable and matching the Federal Reserve’s target. In July, the CPI ticked north only 0.1% and that brought its yearly advance to 2.0% (1.9% minus energy and food prices). July saw the smallest monthly increase for the CPI since February.2       ANOTHER JUMP FOR THE CONFERENCE BOARD LEI After rising 0.6% in both May and June, the Conference Board’s leading economic index advanced 0.9% last month. The July gain took it to 103.3, and its coincident economic index reached 109.0.2    S&P 500 EDGES BACK TOWARD RECORD TERRITORY Advancing 1.71% for the week, the broad benchmark closed at 1,988.40 Friday. The NASDAQ nearly matched its 5-day gain (+1.65% to 4,538.55) while the Dow beat it (+2.03% to 17,001.22). Gold got a boost Friday after Federal Reserve chair Janet Yellen expressed that the economy is headed toward normal inflation and full employment, but it still lost 2.0% for the week, settling at $1,280.20 on the COMEX. NYMEX crude finished the week down at $93.65 a barrel; it is on a 5-week losing streak, its longest since November 2013.3,4    THIS WEEK: The Census Bureau publishes its July new home sales report on Monday. Tuesday brings quarterly results from Analog Devices, Smith & Wesson, Best Buy, TiVo and Bob Evans plus the June S&P/Case-Shiller home price index, the July hard goods orders report and the Conference Board’s August consumer confidence index. Wednesday offers earnings from Guess? and Brown-Forman. Thursday, NAR releases numbers on July pending home sales, the federal government issues its second estimate of Q2 GDP and new initial claims figures arrive; in addition, Bebe Stores announces Q2 results. Friday brings the University of Michigan’s final August consumer sentiment index and the July consumer spending report.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +2.56 +13.62 +15.77 +6.88 NASDAQ +8.67 +24.73 +24.92 +14.68 S&P 500 +7.58 +20.00 +18.76 +8.14 REAL YIELD 8/22 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.26% 0.79% 1.69% 1.86%   Sources: online.wsj.com, bigcharts.com, treasury.gov - 8/22/145,6,7,8 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 - investing.com/economic-calendar/ [8/22/14] 2 - 247wallst.com/economy/2014/08/21/leading-economic-indicators-show-continued-growth/ [8/21/14] 3 - markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [8/22/14] 4 - proactiveinvestors.com/companies/news/56376/gold-drops-2-for-the-week-oil-settles-below-94-56376.html [8/22/14] 5 - markets.wsj.com/us [8/22/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F22%2F13&x=0&y=0 [8/22/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F22%2F13&x=0&y=0 [8/22/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F22%2F13&x=0&y=0 [8/22/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F21%2F09&x=0&y=0 [8/22/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F21%2F09&x=0&y=0 [8/22/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F21%2F09&x=0&y=0 [8/22/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F23%2F04&x=0&y=0 [8/22/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F23%2F04&x=0&y=0 [8/22/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F23%2F04&x=0&y=0 [8/22/14]         7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/22/14] 8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/22/14]

Economic Update for the week of August 19th, 2014

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “Never get angry. Never make a threat. Reason with people.”       - Mario Puzo            WEEKLY TIP               The SSA isn’t mailing paper statements any longer, so it is wise to create a My Social Security account at ssa.gov to track your future benefits and guard against errors.        WEEKLY RIDDLE              Stick your fingers in my eyes, then move them and watch my jaws open wide. What am I?          Last week’s riddle: If I am used in an emergency, I can help the hero – yet when you multiply all the numbers on my face, all you get is zero. What am I?        Last week’s answer: A phone.	August 19, 2014      RETAIL SALES COOL OFF IN JULY They were flat according to the Commerce Department, with core retail sales (excluding food, car, gasoline and home improvement purchases) up just 0.1%. Economists polled by Reuters believed overall retail sales would advance 0.2% last month. Is this a signal that Q3 growth won’t come near Q2 growth? It does reflect subdued consumer spending in the quarter’s first month.1       YEARLY WHOLESALE INFLATION CONTINUES TO DIP The 12-month gain in the federal government’s Producer Price Index has gradually declined since the April reading, when it was measured at 2.1%. July brought a 0.1% increase in the headline PPI, but that still left the yearly gain at just 1.7%.2       FACTORY OUTPUT JUMPS Federal Reserve data showed a 1.0% increase in industrial output last month; July’s gain was the largest since February. July witnessed a 10.1% leap in auto production, the largest monthly improvement for that gauge in more than five years.3    CONSUMER SENTIMENT MOVES SOUTH The preliminary August reading on the Thomson Reuters/University of Michigan's consumer sentiment index was not good. The 79.2 mark was not only below the final 81.8 reading for July, it also represented a 9-month low.3    TENSIONS INCREASE IN UKRAINE, YET STOCKS RISE News of Ukrainian troops destroying Russian military vehicles sent Treasury yields down Friday but had little effect on the weekly performances of the Dow (+0.66% to 16,662.91), S&P 500 (+1.22% to 1,955.06) and Nasdaq (+2.15% to 4,464.93).4    THIS WEEK: Monday, Pandora and Urban Outfitters announce earnings. On Tuesday, the July CPI and data on July housing starts and building permits arrive, plus quarterly results from Dick’s Sporting Goods, TJX and Medtronic. Wednesday sees the release of the July Federal Reserve policy meeting minutes, and Staples, Popeye’s, JM Smucker, America’s CarMart, L Brands and Hewlett-Packard all issue earnings announcements. On Thursday, NAR publishes its July existing home sales report, the Conference Board comes out with its July index of leading indicators, and initial unemployment claims are again tallied; Salesforce.com, GameStop, Intuit and Hormel provide quarterly results. Friday morning, Fed chair Janet Yellen speaks about the labor market at a Kansas City Fed symposium; Friday also features earnings from RBC.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +0.52 +10.26 +15.75 +6.74 NASDAQ +6.90 +23.82 +24.97 +15.04 S&P 500 +5.77 +17.68 +18.94 +8.11 REAL YIELD 8/15 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.16% 0.60% 1.85% 1.82%   Sources: online.wsj.com, bigcharts.com, treasury.gov - 8/15/145,6,7,8 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/nsnnqa5 [8/13/14] 2 - investing.com/economic-calendar/ [8/15/14] 3 - reuters.com/article/2014/08/15/us-usa-economy-prices-idUSKBN0GF11G20140815 [8/15/14] 4 - markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [8/15/14] 5 - markets.wsj.com/us [8/15/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F15%2F13&x=0&y=0 [8/15/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F15%2F13&x=0&y=0 [8/15/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F15%2F13&x=0&y=0 [8/15/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F14%2F09&x=0&y=0 [8/15/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F14%2F09&x=0&y=0 [8/15/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F14%2F09&x=0&y=0 [8/15/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F16%2F04&x=0&y=0 [8/15/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F16%2F04&x=0&y=0 [8/15/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F16%2F04&x=0&y=0 [8/15/14]          7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/15/14] 8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/15/14]

Economic Update for the week of August 12th, 2014

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “The real voyage of discovery consists not in seeking new landscapes but in having new eyes.”       - Marcel Proust            WEEKLY TIP               Here’s a good reason not to prematurely withdraw funds from a qualified retirement plan: it will be some of the costliest money you can find. Taxes and penalties could leave you with as little as 50% of that money in the end.        WEEKLY RIDDLE              If I am used in an emergency, I can help the hero – yet when you multiply all the numbers on my face, all you get is zero. What am I?          Last week’s riddle: Fill in the blank: if Ruby’s mom is Patricia, then Patricia is the ____ of Ruby’s mother.        Last week’s answer: Name.	August 12, 2014      U.S. SERVICE SECTOR IS BOOMING The Institute for Supply Management’s July non-manufacturing PMI came in at a stellar 58.7, indicating rapid expansion. It hadn’t been that high since December 2005, and its new orders sub-index reached a peak unseen since August 2005. On Wall Street, some investors worried that the Federal Reserve would take the news as additional grounds for raising short-term interest rates – but in the big picture, it expresses the strength of the recovery. ISM’s service sector PMI had a reading of 56.0 in June.1       FACTORY ORDERS RISE 1.1% June’s gain far outshined the 0.5% increase forecast by analysts surveyed by Briefing.com. This was a nice comeback for the indicator after the (revised) 0.6% decline in orders that the Census Bureau recorded for May.2       HEADLINES BOOST GOLD PRICES; OIL PULLS BACK Geopolitical risk in Eastern Europe and the Middle East meant more interest in the yellow metal last week as investors sought a place to park some cash. In New York, gold settled at $1,310.60 per ounce Friday, up 1.35% for the week. NYMEX crude actually lost 0.28% for the week, settling Friday at $97.35.3    FRIDAY RALLY TURNS DOWN WEEK AROUND Reports that Russian troops were no longer conducting maneuvers near Ukraine’s border helped the S&P 500 climb 1.15% Friday. The broad benchmark gained 0.33% across 5 days, closing the week at 1,931.59. Minor weekly gains also came for the Nasdaq (0.42% to 4,370.90) and the Dow (0.37% to 16,553.93).4    THIS WEEK: Earnings season rolls on Monday as American Apparel, Aramark, Priceline.com, Tata Motors, Procter & Gamble and Sysco report quarterly results. Tuesday, the Street considers earnings from Prudential, Fossil, La Quinta Holdings, LoJack and Towers Watson. On Wednesday, reports on July retail sales and June business inventories complement earnings from Cisco, NetApp, Deere, Macy’s, Pinnacle Foods, RE/MAX and Silver Wheaton. In addition to the week’s report on initial jobless claims, Thursday brings earnings reports from Wal-Mart, Lenovo, Nordstrom, JC Penney, Red Robin, Applied Materials, Houghton Mifflin and Autodesk. Friday, the July PPI and July industrial output report appear along with Q2 results from Estee Lauder.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA -0.14 +6.81 +15.33 +6.87 NASDAQ +4.65 +19.13 +23.70 +14.63 S&P 500 +4.50 +13.79 +18.23 +8.13 REAL YIELD 8/8 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.19% 0.34% 1.88% 1.85%   Sources: online.wsj.com, bigcharts.com, treasury.gov - 8/8/144,5,6,7 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 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 - reuters.com/article/2014/08/06/us-usa-economy-idINKBN0G51LF20140806 [8/6/14] 2 - briefing.com/investor/calendars/economic/2014/08/04-08 [8/8/14] 3 - markets.on.nytimes.com/research/markets/commodities/commodities.asp [8/8/14] 4 - markets.wsj.com/us [8/8/14] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F8%2F13&x=0&y=0 [8/8/14] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F8%2F13&x=0&y=0 [8/8/14] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F8%2F13&x=0&y=0 [8/8/14] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F7%2F09&x=0&y=0 [8/8/14] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F7%2F09&x=0&y=0 [8/8/14] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F7%2F09&x=0&y=0 [8/8/14] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F9%2F04&x=0&y=0 [8/8/14] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F9%2F04&x=0&y=0 [8/8/14] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F9%2F04&x=0&y=0 [8/8/14]           6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/8/14] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/8/14]