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WEEKLY QUOTE
“Only
the mediocre are always at their best.”
- Jean Giraudoux
WEEKLY TIP
Starting
up a business? Talk to a CPA to determine the tax benefits you might be
eligible for and the expenses you may be able to itemize.
WEEKLY RIDDLE
I
am a port city in Canada, a state in southeast Australia, a big lake in
Africa, and a renowned queen. What is my name?
Last week’s riddle:
It grows down, yet it also grows up. What is it?
Last week’s answer:
A goose.
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August 25,
2015
CHINA DATA,
CRUDE PRICES DRIVE MAJOR SELLOFF
Fierce headwinds hit Wall Street last week. A report
showed that Chinese factory activity hit a 6-year low in July, raising
serious doubts about whether that country’s economy was still maintaining 7%
annual growth. (The Shanghai Composite lost 4.3% Friday and 11% for the week.)
Friday, WTI crude dipped under $40 before settling at $40.45 on the NYMEX;
oil is on an 8-week losing streak.) Under such pressure, U.S. stocks had
their poorest week of the year: in five days, the Dow fell 5.82% to 16,459.75,
the Nasdaq 6.78% to 4,706.04 and the S&P 500 5.77% to 1,970.89. The CBOE
VIX soared 40% last week to a Friday close of 26.81.1,2
EXISTING HOME SALES AT AN 8-YEAR PEAK
New
National Association of Realtors data showed 2.0% more resales in July and a yearly
gain of 10.3%, with the annualized sales pace at its hottest since February
2007. July also saw single-family housing starts rise 12.8%. Total starts were
up just 0.2%, however, and the Census Bureau measured a 16.3% dip for
building permits.3
LATEST CPI SHOWS MINIMAL INFLATION
PRESSURE
In
July, both the headline and core Consumer Price Index rose only 0.1%. That
was half the gain projected by analysts in a Briefing.com consensus forecast.
In June, consumer prices were up 0.3% with core CPI rising 0.2%.4
JULY FED MINUTES: UNCERTAINTY ABOUT A
RATE HIKE
Minutes from the July Federal Open Market Committee
meeting released last week showed no apparent consensus about raising
short-term interest rates, with some Federal Reserve officials leaning
against an increase because of muted U.S. inflation and slowing overseas
economies and others wishing to proceed. Wall Street was left a bit less
certain about the long-assumed September rate move.5
THIS WEEK: Stateside,
nothing major is scheduled for Monday. Tuesday, the Conference Board’s August
consumer confidence index comes out, along with the June S&P/Case-Shiller
home price index, July new home sales data and earnings from Best Buy, DSW,
Toll Bros., and Valspar. A report on July durable goods orders arrives
Wednesday, plus earnings from Abercrombie & Fitch, Chico’s, Express,
Tilly’s, and Williams-Sonoma. The second federal government estimate of Q2
GDP appears Thursday, plus NAR’s July pending home sales index, a new initial
claims report and earnings from Aeropostale, Autodesk, Burlington Stores,
Dollar General, Fred’s, GameStop, J.M. Smucker, Smith & Wesson, and Tiffany.
Friday brings the final August University of Michigan consumer sentiment
index, July personal spending figures and earnings results from Regis Corp.
and Big Lots.
Sources: wsj.com, bigcharts.com, treasury.gov - 8/21/156,7,8,9
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 - thestreet.com/story/13263507/1/stocks-end-brutal-week-as-market-nears-correction.html
[8/21/15]
2 - markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp
[8/21/15]
3 - usnews.com/news/slideshows/5-things-to-know-about-the-economy-this-week-8-21-2015
[8/21/15]
4 - briefing.com/investor/calendars/economic/2015/08/17-21
[8/21/15]
5 - money.cnn.com/2015/08/21/investing/stocks-market-lookahead-august-21/index.html
[8/21/15]
6 - markets.wsj.com/us [8/21/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F21%2F14&x=0&y=0
[8/21/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F21%2F14&x=0&y=0
[8/21/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F21%2F14&x=0&y=0
[8/21/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F20%2F10&x=0&y=0
[8/21/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F20%2F10&x=0&y=0
[8/21/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F20%2F10&x=0&y=0
[8/21/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F22%2F05&x=0&y=0
[8/21/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F22%2F05&x=0&y=0
[8/21/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F22%2F05&x=0&y=0
[8/21/15]
8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield
[8/21/15]
9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll
[8/21/15]
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Tuesday, August 25, 2015
Economic Update for the week of August 25th, 2015
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