Economic Update for the week of November 25th, 2014

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “We touch other people’s lives simply by existing.”       - J.K. Rowling            WEEKLY TIP               You have until April 15, 2015, to make IRA contributions for the 2014 tax year. If you want to make your 2014 contribution in early 2015, just be sure to note that the contribution should apply to 2014.        WEEKLY RIDDLE              I often exist in the unaware; I persist, yet they don’t care. My hosts may have a blind eye, and a deaf ear; inform them, and I will disappear. What am I?    Last week’s riddle: The more of these you take, the more of these you will likely leave behind. What are they?      Last week’s answer: Footsteps and footprints.	November 25, 2014                         HOME SALES IMPROVE, PERMITS HIT 6-YEAR PEAK Last month saw a 1.5% gain in existing home sales, according to the National Association of Realtors. That took the annualized increase in home buying to 2.5%. NAR measured the inventory of unsold homes at 5.1 months in October; compare that with 11.9 months in July 2010. Census Bureau data showed building permits at a high unseen since June 2008 thanks to a 4.8% October jump (there was a 10.0% leap in permits for apartment projects alone). October did see less groundbreaking, with housing starts slipping 2.8%; year-over-year, they were still up 7.7%.1,2       CPI STAYS STILL IN OCTOBER The overall Consumer Price Index didn’t budge last month, although the Labor Department did report the core CPI (which excludes energy and food prices) advancing 0.2%. The Producer Price Index was up 0.2% last month after an 0.1% September decline.3                                                                                                           FACTORY OUTPUT DISAPPOINTS Economists surveyed by MarketWatch expected U.S. industrial production to rise 0.2% after the 0.8% gain in September. Instead, the Federal Reserve’s latest report showed industrial output down by 0.1% for October.3         STIMULUS SIGNALS PUSH STOCKS HIGHER A surprise interest rate cut by the Bank of China and a pledge from European Central Bank President Mario Draghi to stoke euro area inflation gave U.S. equities a lift Friday. The S&P 500 ended the week 1.16% higher at 2,063.50; across five days, the Dow rose 0.99% to 17,810.06 and the Nasdaq 0.52% to 4,712.97. The S&P has now surged more than 11% off of its October low.4,5           THIS WEEK: Nothing major is slated for Monday. Tuesday sees the release of the September S&P/Case-Shiller home price index, the Conference Board’s latest consumer confidence index and the BEA’s second estimate of Q3 GDP; Wall Street also interprets earnings from Campbell’s Soup, Hewlett-Packard, Hormel Foods, Tiffany and TiVo. Wednesday brings November’s final University of Michigan consumer sentiment index, reports on October durable goods orders, personal spending, new home sales and pending home sales, the latest initial claims figures and quarterly results from Deere & Co. Thursday is Thanksgiving Day, so U.S. stock and bond markets will be closed; OPEC oil ministers will meet in Vienna. Wall Street will be open for a short trading day Friday, with the NYSE and NASDAQ closing at 1:00pm EST and the bond market likely closing at 2:00pm EST; investors will react to eurozone inflation and unemployment numbers for October.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +7.44 +11.24 +14.52 +6.98 NASDAQ +12.84 +18.74 +23.92 +12.60 S&P 500 +11.64 +14.90 +17.81 +7.53 REAL YIELD 11/21 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.45% 0.60% 1.21% 1.62%   Sources: online.wsj.com, bigcharts.com, treasury.gov - 11/21/146,7,8,9 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.
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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 - haver.com/comment/comment.html?c=141120E.html [11/20/14] 2 - haver.com/comment/comment.html?c=141119A.html [11/19/14] 3 - marketwatch.com/economy-politics/calendars/economic [11/21/14] 4 - bloomberg.com/news/2014-11-21/u-s-index-futures-rise-as-s-p-500-heads-for-fifth-weekly-gain.html [11/21/14] 5 - markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [11/21/14] 6 - markets.wsj.com/us [11/21/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F21%2F13&x=0&y=0 [11/21/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F21%2F13&x=0&y=0 [11/21/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F21%2F13&x=0&y=0 [11/21/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F20%2F09&x=0&y=0 [11/21/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F20%2F09&x=0&y=0 [11/21/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F20%2F09&x=0&y=0 [11/21/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F22%2F04&x=0&y=0 [11/21/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F22%2F04&x=0&y=0 [11/21/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F22%2F04&x=0&y=0 [11/21/14]        8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/21/14] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/21/14]

Economic Update for the week of Nov. 18th, 2014

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “Let no man imagine that he has no influence. Whoever he may be, and wherever he may be placed, the man who thinks becomes a light and a power.”       - Henry George            WEEKLY TIP               Refrain from dipping into your retirement savings to pay college costs for your children. You don’t see any retirement scholarships or retirement financial aid out there.        WEEKLY RIDDLE              The more of these you take, the more of these you will likely leave behind. What are they?    Last week’s riddle: My three eyes blink, and I give you commands. Although I can’t see, the changing colors in me prompt you to obey me with your wheels, feet and hands. What am I?      Last week’s answer: A traffic light.	November 18, 2014                         RETAIL SALES REBOUND FROM SEPTEMBER SLUMP The 0.3% October gain announced by the Commerce Department exactly offset the September decline. Below the headline number, core retail sales (minus auto buying) also rose 0.3% last month. Sales increased in 11 of 13 categories; online retailers saw a 1.9% boost to lead the pack. Annually, overall retail sales were up 4.1% from last October.1,2       MOOD OF U.S. HOUSEHOLDS BRIGHTENS November’s initial University of Michigan consumer sentiment index came in at 89.4 on Friday – the best reading since July 2007. This represents a return to normal, in a sense – the index averaged a reading of 89 in the five years preceding the Great Recession. Economists polled by Bloomberg had anticipated only a minor rise to 87.5 from the final October mark of 86.9.1                                                                                                           CRUDE, GOLD & SILVER RALLY ON FRIDAY Rising 2.1% on the COMEX trading day, gold ended the week at $1,185.60 an ounce, its best price since October 30. Silver futures climbed 4.4% Friday to a close of $16.31. NYMEX crude settled at $75.20, up 1.4% on the day with some investors sensing that OPEC may move to reduce output.3         S&P 500 SEES FOURTH STRAIGHT WEEK OF GAINS Across five trading days without any momentous market swings, the index rose another 0.39% to a Friday settlement of 2,039.82. The Nasdaq (+1.21% to 4,688.54) and Dow (+0.36% to 17,634.74) also advanced during the week.4,5           THIS WEEK: Monday, Urban Outfitters and Tyson Foods report quarterly results; the Federal Reserve’s report on October industrial output also arrives. October’s Produce Price Index comes out Tuesday, plus earnings from Home Depot, TJX, PetSmart and La-Z-Boy. Minutes from last month’s Federal Reserve policy meeting appear on Wednesday, along with earnings from Keurig Green Mountain, Lowe’s, Target, J. M. Smucker, L Brands, Staples and Williams-Sonoma; additionally, the Census Bureau issues its report on October housing starts and building permits. Thursday, Wall Street considers the October Consumer Price Index, the October edition of the Conference Board’s leading indicator index, data on October existing home sales and earnings from Best Buy, Perry Ellis, Gap Inc. and Dollar Tree. Nothing major is scheduled for Friday.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +6.38 +11.08 +14.34 +6.72 NASDAQ +12.26 +18.02 +23.25 +12.39 S&P 500 +10.36 +13.92 +17.31 +7.23 REAL YIELD 11/14 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.43% 0.51% 1.31% 1.67%   Sources: online.wsj.com, bigcharts.com, treasury.gov - 11/14/145,6,7,8 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.
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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 - bloomberg.com/news/2014-11-14/michigan-u-s-consumer-sentiment-index-rises-to-89-4-from-86-9.html [11/14/14] 2 - haver.com/ [11/14/14] 3 - proactiveinvestors.com/companies/news/58175/gold-rallies-21-to-end-at-1185-wti-gains-14-to-7520-58175.html [11/14/14] 4 - fxstreet.com/news/forex-news/article.aspx?storyid=96804df6-0d9b-49b8-bc32-679c8bfed2c9 [11/14/14] 5 - markets.wsj.com/us [11/14/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F14%2F13&x=0&y=0 [11/14/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F14%2F13&x=0&y=0 [11/14/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F14%2F13&x=0&y=0 [11/14/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F13%2F09&x=0&y=0 [11/14/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F13%2F09&x=0&y=0 [11/14/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F13%2F09&x=0&y=0 [11/14/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F15%2F04&x=0&y=0 [11/14/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F15%2F04&x=0&y=0 [11/14/14] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F15%2F04&x=0&y=0 [11/14/14]        7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/14/14] 8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/14/14]

Economic Update for the week of Nov. 11th, 2014

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “We don’t know who we are until we see what we can do.”       - Martha Grimes            WEEKLY TIP               Tax prep software is great, but you’re still on your own when you use it. If you’re self-employed or a freelancer, consider meeting with an accountant who can spot additional opportunities for deductions and savings.        WEEKLY RIDDLE              My three eyes blink, and I give you commands. Although I can’t see, the changing colors in me prompt you to obey me with your wheels, feet and hands. What am I?    Last week’s riddle: You can separate them with a word, yet they are mostly inseparable. What are they?      Last week’s answer: Your lips.	November 11, 2014                         UNEMPLOYMENT DOWN TO 5.8% America’s jobless rate dipped 0.1% in October as companies hired 214,000 new workers. Analysts polled by the Wall Street Journal had expected no improvement. In another nice development, the U-6 rate measuring underemployment plus unemployment fell 0.3% last month to 11.5%, 2.2% lower than a year before. Additionally, the Labor Department revised August and September hiring figures; firms added 31,000 more jobs during those months than previously estimated.1          ONE SECTOR HEATS UP, ANOTHER COOLS DOWN October factory and service sector PMIs from the Institute for Supply Management were a mixed bag. The service sector PMI slipped to 57.1 (which was still 2.0 points above where it was a year prior). ISM’s manufacturing PMI, on the other hand, rose 2.4 points for October to 59.0.2,3         GOLD BREAKS 7-DAY LOSING STREAK; OIL UNDER $80 The yellow metal settled at $1,169.80 an ounce on the COMEX Friday. Its 2.4% Friday advance – representing its first winning market day since October 28 – couldn’t offset a 1.5% weekly retreat. West Texas Intermediate crude finished up the week at a mere $78.65 a barrel on the NYMEX.4         FUTURES MOVE HIGHER FOR THE WEEK Friday found the Dow closing at a record high once more: 17,573.93. It rose 1.04% across five days. The Nasdaq and S&P 500 respectively gained 0.04% and 0.69% last week on their way to respective Friday settlements of 4,632.53 and 2,031.92.5           THIS WEEK: Monday, Wall Street examines the latest inflation reading from China and quarterly results from Dean Foods. On Tuesday (Veterans Day), the stock market is open with D.R. Horton reporting Q3 results. Wednesday, the Street looks at earnings from Abercrombie & Fitch, Macy’s and J. C. Penney along with reports on euro area factory output and U.S. business inventories. Thursday, Janet Yellen speaks at an economic forum at the Federal Reserve, a new initial claims report appears and investors look at new retail sales and manufacturing data from China in addition to earnings from Wal-Mart, Kohl’s, Nordstrom, RE/MAX Holdings and Viacom. Friday, the market reacts to data on October retail sales and September business stockpiles, November’s initial University of Michigan consumer sentiment index, and the latest measures of euro area inflation and GDP.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +6.02 +12.70 +15.07 +6.91 NASDAQ +10.92 +20.10 +23.86 +12.72 S&P 500 +9.93 +16.30 +18.00 +7.44 REAL YIELD 11/7 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.38% 0.46% 1.37% 1.72%   Sources: online.wsj.com, bigcharts.com, treasury.gov - 11/7/146,7,8,9 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.
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 - blogs.wsj.com/briefly/2014/11/07/october-jobs-report-the-numbers/ [11/7/14] 2 - haver.com/comment/comment.html?c=141105C.html [11/5/14] 3 - ism.ws/ismreport/mfgrob.cfm [11/4/14] 4 - proactiveinvestors.com/companies/news/57991/gold-snaps-7-day-retreat-wti-up-at-7865-57991.html [11/7/14] 5 - fxstreet.com/news/forex-news/article.aspx?storyid=cc595c22-222c-41ea-8e15-6a0297ccf803 [11/7/14] 6 - markets.wsj.com/us [11/7/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F7%2F13&x=0&y=0 [11/7/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F7%2F13&x=0&y=0 [11/7/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F7%2F13&x=0&y=0 [11/7/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F6%2F09&x=0&y=0 [11/7/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F6%2F09&x=0&y=0 [11/7/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F6%2F09&x=0&y=0 [11/7/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F8%2F04&x=0&y=0 [11/7/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F8%2F04&x=0&y=0 [11/7/14] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F8%2F04&x=0&y=0 [11/7/14]          8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/7/14] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/7/14]