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WEEKLY QUOTE
“I
would not waste my life in friction when it could be turned into momentum.”
- Frances Willard
WEEKLY TIP
If
your business is a corporation, how is it structured? Using multiple entities
might lead to big tax savings.
WEEKLY RIDDLE
What
comes at the end of a rainbow?
Last week’s riddle:
As I age my height changes, but not my importance. Your hand
guides me and I help articulate what you want to say. When we part, I am not
important or useful to you. What am I?
Last week’s answer:
A pencil.
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January 13,
2015
ANOTHER GOOD JOBS REPORT
America’s
best year for hiring since 2000 wrapped up with 252,000 more people finding work
in December. Labor Department data showed the jobless rate declining to 5.6%
last month (the U-6 rate tracking the unemployed and underemployed decreased
to 11.2%). The economy added 2.53 million non-farm payroll jobs in 2014,
representing 1.9% net employment growth. October and November hiring totals
were respectively revised up to 261,000 and 353,000. December did see wages
slip 0.2%; private sector average hourly earnings increased just 1.7% during
2014.1
DECEMBER SEES ISM SERVICES PMI RETREAT
The latest Institute for Supply Management’s
non-manufacturing purchasing manager index came in at 56.2 – still strong,
but well under the November reading of 59.3. Tempering that disappointment is
the fact that ISM’s services index has shown sector growth for 59 consecutive
months.2
OIL DIPS BENEATH $50
The price of West Texas Intermediate crude fell 8.2% last
week on the NYMEX. A barrel was valued at just $48.36 at Friday’s close. With OPEC doing
nothing to reduce output, investors are left wondering when the steep losses
will end. Gold did very well last week, rising 2.5% on the
COMEX to settle Friday at $1,216.10.3
A WILD WEEK, A DOWN WEEK
Crude’s continuing slump, excellent December hiring,
assumptions of central bank action, fears following the terrorist attack in Paris
– they all contributed to pronounced volatility. Selling exceeded buying: the
S&P 500 lost 0.63% in five days to settle at 2,044.81 Friday. The Dow
pulled back 0.50% for the week to 17,737.37, the Nasdaq 0.49% to 4,704.07.4,5
THIS WEEK: Here
comes earnings season: Alcoa reports Q4 results Monday, with KB Home
following suit Tuesday. Wednesday offers data on December retail sales and
November business inventories, the latest eurozone factory output report, a
new Beige Book from the Federal Reserve and earnings from Charles Schwab,
Kinder Morgan, Wells Fargo and JPMorgan Chase. Thursday’s spate of earnings
announcements includes releases from Bank of America, Citigroup, Intel,
Lennar, Schlumberger and BlackRock. On Friday, the December Consumer Price
Index and the Federal Reserve’s report on December industrial output arrive
along with the latest eurozone inflation reading and the preliminary January
consumer sentiment index from the University of Michigan.
Sources: online.wsj.com, bigcharts.com, treasury.gov - 1/9/155,6,7,8
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 [1/9/15]
2 - ism.ws/ismreport/nonmfgrob.cfm [1/6/15]
3 - proactiveinvestors.com/companies/news/59186/gold-rebounds-after-2-straight-losses-us-crude-settles-down-09--59186.html
[1/9/15]
4 - google.com/finance?q=INDEXDJX%3A.DJI&ei=z02wVKKhKe7FiwLW2IBo
[1/9/15]
5 - markets.wsj.com/us [1/9/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F9%2F14&x=0&y=0
[1/9/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F9%2F14&x=0&y=0
[1/9/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F9%2F14&x=0&y=0
[1/9/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F8%2F10&x=0&y=0
[1/9/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F8%2F10&x=0&y=0
[1/9/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F8%2F10&x=0&y=0
[1/9/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F10%2F05&x=0&y=0
[1/9/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F10%2F05&x=0&y=0
[1/9/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F10%2F05&x=0&y=0
[1/9/15]
7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield
[1/9/15]
8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll
[1/9/15]
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Tuesday, January 13, 2015
Economic Update for the week of January 13th, 2015
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