|
|||||||||||||||||||||||||||||||
|
WEEKLY QUOTE
“Integrity
without knowledge is weak and useless, and knowledge without integrity is
dangerous and dreadful.”
- Samuel Johnson
WEEKLY TIP
June
is a time to assess your 2015 financial objectives. In terms of debt
reduction, retirement saving and portfolio performance, are you on pace toward
your yearly goals?
WEEKLY RIDDLE
What
falls yet does not make noise?
Last week’s riddle:
I am the beginning of sorrow, and the end of sickness. You cannot
express happiness without me, yet I am always in risk. I am never in danger,
though. What am I?
Last week’s answer:
The letter S.
|
June 23,
2015
WILL THE FED MAKE A MOVE IN THE FALL?
The
Federal Reserve left interest rates alone last week, but its median federal
funds rate forecast for the end of 2015 is now at 0.625%. That would seem to
suggest multiple adjustments to the key interest rate in the last half of
this year, but Fed chair Janet Yellen noted last week that the central bank
is looking for “more decisive evidence that a moderate pace of economic
growth will be sustained” before making any move. The Fed now projects 2015
GDP at only 1.8-2.0%, down from a range of 2.3-2.7% this spring. Futures
markets point to the Fed raising interest rates from historic lows in December,
though many economists think the incremental tightening will start in
September.1
CPI UP 0.4% IN
MAY, BUT INFLATION STILL MUTED
Gas prices soared 10.4% last month, prompting a notable
rise in the headline Consumer Price Index. The Federal Reserve might not be
too concerned with that one-month advance, however. The core CPI (which strips
out energy and food prices) was up only 0.1% for May and just 1.7%
year-over-year.2
HOUSING STARTS DOWN, BUILDING PERMITS
UP
These volatile indicators moved in drastically opposite
directions in May. According to the Census Bureau, building permits rose
11.8% last month to an 8-year peak while groundbreaking declined 11.1%. Starts
were up 5.1% and permits up 25.4% from May 2014.3
STOCKS ADVANCE
Rising 1.30% to 5,117.00, the NASDAQ Composite outpaced
the S&P 500 and Dow Jones Industrial Average last week. The blue chips
added 0.65% in five days to reach 18,015.95 and the S&P 500 rose 0.76%
for the week to a Friday settlement of 2,109.99.4
THIS WEEK: On
Monday, the National Association of Realtors presents May existing home sales
figures and Sonic and Carnival announce Q2 results. Tuesday, May durable
goods and new home sales reports arrive. The final estimate of Q1 GDP appears
on Wednesday along with earnings from Nike, Lennar, Winnebago, Steelcase, Bed
Bath & Beyond and Monsanto. Thursday, Wall Street evaluates May personal
spending numbers, a new initial claims report and earnings from Accenture and
Barnes & Noble. Friday brings the University of Michigan’s final June consumer sentiment index.
Sources: wsj.com, bigcharts.com, treasury.gov - 6/19/155,6,7,8
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.
|
||||||||||||||||||||||||||||||
|
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 - washingtonpost.com/blogs/wonkblog/wp/2015/06/17/federal-reserve-rate-hike-likely-before-year-end/
[6/17/15]
2 - marketwatch.com/story/jump-in-us-consumer-prices-in-may-biggest-since-2013-2015-06-18
[6/18/15]
3 - tradingeconomics.com/united-states/housing-starts [6/16/15]
4 - markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp
[6/19/15]
5 - markets.wsj.com/us [6/19/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F19%2F14&x=0&y=0
[6/19/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F19%2F14&x=0&y=0
[6/19/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F19%2F14&x=0&y=0
[6/19/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F18%2F10&x=0&y=0
[6/19/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F18%2F10&x=0&y=0
[6/19/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F18%2F10&x=0&y=0
[6/19/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F20%2F05&x=0&y=0
[6/19/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F20%2F05&x=0&y=0
[6/19/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F20%2F05&x=0&y=0
[6/19/15]
7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield
[6/19/15]
8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll
[6/19/15]
|
|||||||||||||||||||||||||||||||
Tuesday, June 23, 2015
Economic Update for June 23rd, 2015
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment