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WEEKLY QUOTE
“The
greatest good you can do for another is not just share your riches, but to
reveal to him his own.”
- Benjamin Disraeli
WEEKLY TIP
Encourage
your children to start off on the right financial footing: tell them to save
10% of what they make.
WEEKLY RIDDLE
There
is a 7-letter word that starts with BR and ends in G, and if you put an E in
it, you get an 8-letter word that sounds the same yet has a different
meaning. Name these two words.
Last week’s riddle:
Simply talk about it, and you will break it. What is it?
Last week’s answer:
Silence.
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August 11,
2015
A GREEN LIGHT FOR A RATE HIKE?
According
to the latest Labor Department report, employers hired 215,000 new workers in
July – 77,000 of them in professional, business, education, and health care
occupations. The jobless rate held steady at 5.3% while the U-6 rate
(unemployment + underemployment) ticked down to 10.4%. Monthly hiring totals have
averaged 235,000 since May compared to 195,000 in Q1, and even with continued
lackluster wage growth, some analysts see a stronger argument for the Federal
Reserve to adjust short-term interest rates next month.1
PERSONAL SPENDING IMPROVED 0.2% IN JUNE
This minor gain followed the 0.7% increase measured by the
Commerce Department for May. Personal wages, however, rose 0.4% in June. A
consensus MarketWatch forecast had both indicators advancing 0.3%.2
ISM SERVICE SECTOR PMI REACHES HISTORIC
PEAK
With 15 of 18 service fields reporting growth, the
Institute for Supply Management’s non-manufacturing PMI rose 4.3 points to
reach 60.3 in July, the highest mark in its 7-year history. ISM’s factory PMI
lost 0.8 points in July, slipping to 52.7. Better news emerged from the
manufacturing sector, however: the Commerce Department noted a 1.8% gain for
factory orders in June.2,3
A DOWN WEEK
FOR STOCKS
The July employment report did little to ease concerns
that the Fed might raise interest rates in September. That factor and some
earnings disappointments sent the major indices south last week. Across
August 3-7, the DJIA lost 1.79% to fall to 17,373.38. The S&P 500 slipped
1.25% in that time span to settle at 2,077.57 while the Nasdaq fell 1.65% to
5,043.54. Oil’s grim summer continued as futures lost 6.33% on the NYMEX for
the week on the way to a Friday close of $43.81. Gold declined 0.28% for the
week, settling Friday at $1,091.80 on the COMEX.4,5
THIS WEEK: Dean
Foods, Live Nation, Shake Shack, and Take-Two Interactive report earnings
Monday. Tuesday, the Street eyes Q2 results from Fossil, Red Robin, and Symantec.
On Wednesday, earnings arrive from News Corp., Alibaba, Aramark, Cisco, and
Macy’s. Thursday, July retail sales figures and a new initial jobless claims
report complement earnings from Advance Auto Parts, Applied Materials, Dillard’s,
El Pollo Loco, Kohl’s, Nordstrom, and Tribune Media. The initial August
University of Michigan consumer sentiment index and the July Producer Price
Index appear Friday, along with a report on July industrial output, and Q2 results
from JCPenney.
Sources: wsj.com, bigcharts.com, treasury.gov - 8/7/156,7,8,9
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/story/us-creates-215000-jobs-in-july-setting-stage-for-rate-hikes-2015-08-07
[8/7/15]
2 - marketwatch.com/economy-politics/calendars/economic
[8/7/15]
3 - usnews.com/news/business/articles/2015/08/05/growth-at-us-services-firms-surges-to-record-in-july
[8/5/15]
4 - markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp
[8/7/15]
5 - markets.on.nytimes.com/research/markets/commodities/commodities.asp
[8/7/15]
6 - markets.wsj.com/us [8/7/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F7%2F14&x=0&y=0
[8/7/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F7%2F14&x=0&y=0
[8/7/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F7%2F14&x=0&y=0
[8/7/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F6%2F10&x=0&y=0
[8/7/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F6%2F10&x=0&y=0
[8/7/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F6%2F10&x=0&y=0
[8/7/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F8%2F05&x=0&y=0
[8/7/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F8%2F05&x=0&y=0
[8/7/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F8%2F05&x=0&y=0
[8/7/15]
8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield
[8/7/15]
9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll
[8/7/15]
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Tuesday, August 11, 2015
Economic Update for the week of August 11th, 2015
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