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WEEKLY QUOTE
“Never
promise more than you can perform.”
- Publilius Syrus
WEEKLY TIP
Retirement
living is fundamentally about income versus expenses. If you retire with
numerous debts and liabilities and high expenses, retirement may fast become
financially uncomfortable for you. Do what you can to whittle debt and
expenses down.
WEEKLY RIDDLE
A
ship cruised out of the Pacific Ocean and into the Atlantic Ocean through the
Panama Canal – but as it went through the Panama Canal, it didn’t travel
east. How is this possible?
Last week’s riddle:
Francis had finished cleaning the windows on his 2-story house
when he slipped and fell off a ladder. He wasn’t injured, however. How come?
Last week’s answer:
He slipped off of one of the
ladder’s lowest steps, so he was only a few feet above the ground when he
fell.
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February 2,
2015
FOURTH QUARTER SAW 2.6% GROWTH
Given
the final 5.0% GDP reading for Q3, this initial Commerce Department estimate
displeased many investors – even though the personal spending rate rose an
impressive 4.3% in Q4. Investors also disliked the 3.4% overall dip in hard
goods orders for December, which followed a 2.1% descent in November.1,2
HOUSEHOLDS IN AN UPBEAT MOOD
At 102.9, January’s Conference Board consumer confidence
index shattered the 96.9 forecast of analysts polled by MarketWatch. The University of
Michigan’s January consumer sentiment index reached 98.1, its best final
monthly reading in 11 years.1,2
NEW HOME SALES ACCELERATE
They advanced 11.6% in December, with the Census Bureau noting
an 8.8% yearly rise in the sales pace. On the other hand, the National
Association of Realtors found pending home sales down 3.7% in December.
November’s S&P/Case-Shiller home price index showed an overall 4.3% yearly
gain, 0.2% less than the October edition.1,3
A ROUGH MONTH ENDS ON WALL STREET
While the January 28 Federal Reserve policy statement bullishly
referenced an economy growing at “a solid pace,” disappointment over key
earnings reports and the Q4 GDP number sent stocks further south. Losing
another 2.77% across five trading days, the S&P 500 concluded January at
1,994.99. The Dow and Nasdaq also gave up ground last week – the Dow lost
2.87% to close at 17,164.95 Friday, while the Nasdaq retreated 2.58% in five
days to slip to 4,635.24.4,5
THIS WEEK: Monday brings
December personal spending numbers, ISM’s latest factory activity index, new
factory PMIs for the eurozone and China and earnings from ExxonMobil, Sysco,
Hartford Financial and Pitney Bowes. Tuesday offers data on
December factory orders and January auto sales plus earnings from Chipotle,
UPS, Archer Daniels Midland, Walt Disney, BP, Aetna and Gannett. ISM’s
January services index and ADP’s employment change report are out Wednesday, along
with earnings from Clorox, Marathon Petroleum, Whirlpool, Sony, Yum! Brands,
General Motors, Merck, Humana, Keurig Green Mountain, Ralph Lauren, Under
Armour, Allstate and Suncor Energy. Thursday brings January’s Challenger
job-cut report, new initial claims figures and earnings from Twitter, Lions
Gate Entertainment, Buffalo Wild Wings, Pandora, Sprint, Activision Blizzard,
GoPro, Philip Morris, Symantec, AstraZeneca, Sirius XM, Michael Kors, Teva
Pharmaceutical, Yelp, Dunkin Brands, LinkedIn and Expedia. Friday sees the
release of the Labor Department’s January jobs report plus earnings from Alcatel-Lucent
and Moody’s.
Sources: online.wsj.com, bigcharts.com, treasury.gov - 1/30/156,7,8,9
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 - marketwatch.com/economy-politics/calendars/economic [1/30/15]
2 - latimes.com/business/la-fi-gdp-fourth-quarter-economy-20150130-story.html
[1/30/15]
3 - consumeraffairs.com/news/new-home-sales-surge-in-december-012715.html
[1/27/15]
4 - reuters.com/article/2015/01/28/us-usa-fed-idUSKBN0L10DZ20150128
[1/28/15]
5 -
markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [1/30/15]
6 - markets.wsj.com/us [1/30/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F30%2F14&x=0&y=0
[1/30/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F30%2F14&x=0&y=0
[1/30/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F30%2F14&x=0&y=0
[1/30/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F29%2F10&x=0&y=0
[1/30/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F29%2F10&x=0&y=0
[1/30/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F29%2F10&x=0&y=0
[1/30/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F31%2F05&x=0&y=0
[1/30/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F31%2F05&x=0&y=0
[1/30/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F31%2F05&x=0&y=0
[1/30/15]
8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield
[1/30/15]
9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll
[1/30/15]
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Monday, February 2, 2015
Economic Update for the week of February 2nd, 2015
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