Economic Update for the week of September 30th, 2014

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “No law or ordinance is mightier than understanding.”       - Plato            WEEKLY TIP               Schedule your yearly financial review to coincide roughly with an anniversary or a birthday. The life event will provide a ready reminder.        WEEKLY RIDDLE              What 2 common English-language words both contain 2 Cs in a row, 2 Ss in a row and two Ls in a row?     Last week’s riddle: What word measures weight and turns negative if spelled backwards?        Last week’s answer: Ton.	September 30, 2014      NEW HOME SALES JUMP, RESALES DIP Existing home sales slumped 1.8% in August – their first retreat since March, according to the National Association of Realtors. This followed gains of 2% or more in each of the previous three months. News about new home purchases was better: the Census Bureau recorded an 18.0% increase for August, more than making up for two months of declines. Keep in mind that these numbers may be significantly revised (as an example, May’s apparent 18.6% advance in new home buying was reduced to an 8.3% gain a month later).1,2         CONSUMER SENTIMENT RISES At a final September mark of 84.6, the University of Michigan’s much-watched consumer sentiment index climbed 2.1 points above its final August reading. Economists polled by Bloomberg expected it to reach 84.8, however. This month’s preliminary reading for the index was also 84.6.3         AN 18.2% DROP FOR HARD GOODS ORDERS The August descent was the biggest monthly dip ever recorded by the Commerce Department, following the biggest monthly rise ever seen – the revised 22.5% gain in July. Major variations in aircraft orders affected those percentages. Minus the transportation sector, durable goods orders were up 0.7% last month.4      5 VOLATILE DAYS ON THE STREET U.S. air strikes against ISIS. Key economic indicators soaring and plunging. An Apple selloff. Q2 GDP revised up to 4.6%. Bill Gross leaving PIMCO for Janus. All this made for a choppy week on Wall Street, with 5-day performances of major indices as follows: S&P 500, -1.37% to 1,982.85; NASDAQ, -1.48% to 4,512.19; DJIA, -0.96% to 17,113.15.3,5       THIS WEEK: August personal spending statistics and August pending home sales figures arrive Monday, along with earnings from Cintas. Tuesday offers the latest Conference Board consumer confidence index, July’s Case-Shiller home price index, September’s HSBC manufacturing PMI for China, September readings on eurozone unemployment and inflation and earnings from Walgreens. Official September factory PMIs for China, Japan and the euro area come out on Wednesday along with September’s ISM factory PMI for the U.S.; investors will also consider the latest ADP employment report. The European Central Bank holds a policy meeting Thursday, and that day also brings a new initial jobless claims report, August factory orders data and Q3 results from Constellation Brands. Friday, the Labor Department issues its September jobs report and ISM releases its September non-manufacturing PMI.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +3.24 +11.64 +15.41 +7.13 NASDAQ +8.04 +19.14 +23.16 +14.26 S&P 500 +7.28 +16.73 +17.97 +7.97 REAL YIELD 9/26 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.57% 0.47% 1.60% 1.72%   Sources: online.wsj.com, bigcharts.com, treasury.gov - 9/26/146,7,8,9 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 - investing.com/economic-calendar/ [9/26/14] 2 - forbes.com/sites/erincarlyle/2014/07/24/new-home-sales-slip-8-1-in-june/ [7/24/14] 3 - businessweek.com/news/2014-09-25/asia-stock-index-futures-fall-after-u-dot-s-dot-drop-dollar-holds-gain [9/25/14] 4 - marketwatch.com/story/us-durable-goods-orders-sink-record-182-in-august-on-fewer-jet-contracts-2014-09-25 [9/25/14] 5 - markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [9/26/14] 6 - markets.wsj.com/us [9/26/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F26%2F13&x=0&y=0 [9/26/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F26%2F13&x=0&y=0 [9/26/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F26%2F13&x=0&y=0 [9/26/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F25%2F09&x=0&y=0 [9/26/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F25%2F09&x=0&y=0 [9/26/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F25%2F09&x=0&y=0 [9/26/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F27%2F04&x=0&y=0 [9/26/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F27%2F04&x=0&y=0 [9/26/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F27%2F04&x=0&y=0 [9/26/14]          8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/26/14] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/26/14]

Economic Update for the week of September 23rd, 2014

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “I believe that one of life’s greatest risks is never daring to risk.”       - Oprah Winfrey            WEEKLY TIP               As you pursue both intermediate and long-range financial objectives, breaking the effort down into 5-year blocks can help you measure your progress.        WEEKLY RIDDLE              What word measures weight and turns negative if spelled backwards?          Last week’s riddle: Christine likes grapes but not potatoes. She likes squash but not lettuce, and peas but not onions. Following the same rule, will she like pumpkins or apples?        Last week’s answer: Pumpkins. Christine only likes fruits and vegetables that grow on vines.	September 23, 2014      INFLATION TOOK A HOLIDAY IN AUGUST Consumer prices fell 0.2% last month while producer prices stayed flat. Wall Street didn’t mind the dip in the Consumer Price Index – it saw less impetus for the Federal Reserve to alter its stance on interest rates. In its latest policy statement, the Fed reiterated its intent to keep the federal funds rate at a historically low level “for a considerable time after” it stops easing. The central bank is still on track to wrap up QE3 after its October policy meeting. Economists surveyed by MarketWatch expected no change in either the Consumer Price Index or the Producer Price Index for August.1,2     A DOWNTURN IN GROUNDBREAKING Why did housing starts drop 14.4% last month, with building permits down 5.6% as well? Census Bureau data showed an August decline in multi-family projects. Apartment construction accelerated 51% in July alone and is up 19.2% in the past year. Groundbreaking for single-family homes was only down 2.4% in August and remains up 4.2% year-over-year.3       MINOR ADVANCE FOR LEADING INDICATORS The Conference Board’s leading economic index showed a 0.2% gain for August after increases of 1.1% in July and 0.7% in June. In the words of CB economist Ken Goldstein, the smaller advance implies that the economy “is continuing to gain traction, but most likely won’t repeat its stellar second quarter performance in the second half.”4    STATUS QUO GOOD FOR STOCKS The Federal Open Market Committee stayed the course last week and Scotland stayed part of Great Britain (and NATO and the European Union). Those headlines helped U.S. benchmarks record the following weekly gains: S&P 500, 1.25% to 2,010.40; DJIA, 1.72% to 17,279.74; NASDAQ, 0.27% to 4,579.79.5    THIS WEEK: Monday, Wall Street looks at the latest data on existing home sales and earnings from AutoZone. Tuesday, key September PMIs for China and the eurozone appear, accompanying earnings news from Bed Bath & Beyond and Carnival. The Census Bureau’s August report on new home sales comes out on Wednesday along with earnings from KB Home and Accenture. Thursday, the Street will consider August durable goods data, initial jobless claims numbers and quarterly results from Nike. The last estimate of Q2 GDP arrives from Washington on Friday, along with the month’s final University of Michigan consumer sentiment index and Q2 results from BlackBerry.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +4.24 +10.51 +15.19 +6.93 NASDAQ +9.65 +20.86 +22.95 +14.00 S&P 500 +8.77 +16.72 +17.64 +7.91 REAL YIELD 9/19 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.56% 0.55% 1.68% 1.80%   Sources: online.wsj.com, bigcharts.com, treasury.gov - 9/19/146,7,8,9 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/economy-politics/calendars/economic [9/19/14] 2 - forbes.com/sites/samanthasharf/2014/09/17/fed-still-sees-considerable-time-before-interest-rate-hike/ [9/17/14] 3 - abcnews.go.com/Business/wireStory/us-home-construction-drops-144-percent-august-25589765 [9/18/14] 4 - conference-board.org/press/pressdetail.cfm?pressid=5281 [9/19/14] 5 - markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [9/19/14] 6 - markets.wsj.com/us [9/19/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F19%2F13&x=0&y=0 [9/19/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F19%2F13&x=0&y=0 [9/19/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F19%2F13&x=0&y=0 [9/19/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F18%2F09&x=0&y=0 [9/19/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F18%2F09&x=0&y=0 [9/19/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F18%2F09&x=0&y=0 [9/19/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F20%2F04&x=0&y=0 [9/19/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F20%2F04&x=0&y=0 [9/19/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F20%2F04&x=0&y=0 [9/19/14]             8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/19/14] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/19/14]

Economic Update for the week of September 16th, 2014

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “Everybody needs beauty as well as bread, places to play in and pray in, where nature may heal and give strength to body and soul alike.”       - John Muir            WEEKLY TIP               Think about putting 50% of your future pay raises into your workplace retirement plan, where those dollars could grow and compound nicely for your future.        WEEKLY RIDDLE              Christine likes grapes but not potatoes. She likes squash but not lettuce, and peas but not onions. Following the same rule, will she like pumpkins or apples?    Last week’s riddle: What flies without wings, fuel, muscles, feet and a fuselage?        Last week’s answer: Time.	September 16, 2014      SUMMER SPENDING SPREE LIFTS RETAIL SALES They increased 0.6% in August, easing some anxieties about a possible slowdown in personal spending. Core retail sales (which exclude auto, gas, food, and home improvement purchases and more closely match the consumer spending aspect of GDP) improved 0.4% last month, and were up 4.1% year-over-year. The Commerce Department also revised July’s headline retail sales gain up to 0.3%.1     CONSUMER SENTIMENT HITS A 14-MONTH PEAK At a reading of 84.6, September’s preliminary Thomson Reuters/University of Michigan consumer sentiment index was 2.1 points above its final mark for August. Not only that, it advanced to its highest level since July 2013. Household income expectations also hit their highest level in almost six years.1       GOLD DESCENDS AGAIN, OIL SLUMPS ON IEA FORECAST Settling Friday at $1,231.50, the precious metal fell 2.8% last week on the COMEX, undercut by dollar strength. Silver posted the same weekly loss, ending the week at $18.55. After the International Energy Agency reduced its 2015 world demand forecast for oil, NYMEX crude slipped 0.6% Friday to settle at $92.27.2    INVESTORS WAIT, WONDER WHAT FED WILL SAY Bulls took a breather last week, mulling whether recent economic indicators might lead the Federal Reserve to issue a slightly more hawkish policy statement this Wednesday. Across five trading days, the S&P 500 retreated 1.10% to 1,985.54, the NASDAQ 0.33% to 4,567.60 and the Dow 0.87% to 16,987.51.3    THIS WEEK: On Monday, investors will consider data on August factory output in the U.S. and China. Tuesday offers the August Producer Price Index as well as Q3 earnings from Adobe Systems. Wednesday, the Fed wraps up its September policy meeting and the August Consumer Price Index appears; Wall Street will also parse earnings news from General Mills, Lennar and FedEx. Thursday, Census Bureau data on August building permits and housing starts accompany the latest initial jobless claims figures and earnings from Oracle, Red Hat, Rite Aid, Pier 1 Imports, Cintas and ConAgra Foods. Friday, the Conference Board presents its August leading economic indicator index and G20 finance ministers and central bankers meet in Australia.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +2.48 +11.02 +15.37 +6.47 NASDAQ +9.36 +22.92 +23.90 +13.91 S&P 500 +7.42 +17.95 +18.08 +7.64 REAL YIELD 9/12 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.49% 0.81% 1.59% 1.81%   Sources: online.wsj.com, bigcharts.com, treasury.gov - 9/12/144,5,6,7 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/2014/09/12/usa-economy-retail-idUSL1N0RD0OS20140912 [9/12/14] 2 - proactiveinvestors.com/companies/news/56782/gold-logs-5-day-slump-wti-drops-06-at-9227--56782.html [9/12/14] 3 - markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [9/12/14] 4 - markets.wsj.com/us [9/12/14] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F12%2F13&x=0&y=0 [9/12/14] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F12%2F13&x=0&y=0 [9/12/14] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F12%2F13&x=0&y=0 [9/12/14] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F11%2F09&x=0&y=0 [9/12/14] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F11%2F09&x=0&y=0 [9/12/14] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F11%2F09&x=0&y=0 [9/12/14] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F13%2F04&x=0&y=0 [9/12/14] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F13%2F04&x=0&y=0 [9/12/14] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F13%2F04&x=0&y=0 [9/12/14]           6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/12/14] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/12/14]