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WEEKLY QUOTE
“Love
is, above all else, the gift of oneself.”
- Jean Anouilh
WEEKLY TIP
How
long should you keep hard-copy bank account statements? A year is often long
enough. Retain them longer if you want to use them to support tax records.
WEEKLY RIDDLE
Brittany
carried a load of wood in a wheelbarrow, yet the wood was neither straight
nor crooked. How could this be?
Last week’s riddle:
I lack lungs, yet I constantly need oxygen; I have no mouth, but
sufficient water will drown me. What am I?
Last week’s answer:
Fire.
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September 24,
2015
FED POSTPONES RATE
MOVE, SIGNALS ONE SOON
The September interest rate hike Wall Street had long
anticipated did not occur, as the Federal Open Market Committee voted 9-1
against raising the federal funds rate Thursday. In their September 17 policy
statement, Federal Reserve officials noted that recent “global economic and
financial developments” had “somewhat” impeded the U.S. economy and reduced
inflation pressures, lessening the need to tighten. The central bank’s latest
dot-plot chart projected the benchmark interest rate at 0.40% by the end of 2015
– hinting that an upward move might come as early as October.1
INFLATION HARDLY PRESENT IN AUGUST
Last
month, the headline Consumer Price Index retreated 0.1% while the core CPI
advanced 0.1%. Through August, the headline CPI had risen just 0.2% during
2015 while the core CPI was up just 1.8% in the past 12 months – not quite
the inflation pressure that might prompt the Federal Reserve to tighten.2
A MINOR GAIN IN RETAIL SALES
Last
month, Americans bought 0.2% more from retailers than they had in July, and
only 0.1% more with car and truck sales factored out. In July, overall retail
sales rose 0.7% with core retail sales up 0.6%.3
HOUSING STARTS DECLINE, BUT PERMITS INCREASE
August
saw 3.0% less groundbreaking according to the Census Bureau, but overall
housing starts were up 16.6% annually. Building permits rose 3.5% last month.4
INVESTORS RESET EXPECTATIONS
The Fed’s decision to leave interest rates unchanged left
the market with more questions than answers, yet stocks ended the week about
where they began. Across five days, the S&P 500 went -0.15% to 1,958.03,
the Dow -0.29% to 16,384.79, and the Nasdaq +0.10% to 4,827.23.5
THIS WEEK: Monday
brings August existing home sales numbers plus quarterly results from Lennar
and Red Hat. On Tuesday, AutoZone, Carnival Cruise Lines, ConAgra Foods, CarMax,
Darden Restaurants, and General Mills all release earnings news. A new
factory PMI reading from China appears Wednesday. Thursday offers reports on
August new home sales and durable goods orders, initial jobless claims and earnings
from Accenture, Bed Bath & Beyond, Cintas, Jabil Circuit, KB Home, Nike,
and Pier 1; in addition, Fed chair Janet Yellen speaks on monetary policy in
Massachusetts. Friday, Wall Street considers the final government estimate of
Q2 GDP and the University of Michigan’s final September consumer sentiment
index.
Sources: wsj.com, bigcharts.com, treasury.gov - 9/18/156,7,8,9
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/federal-reserve-keeps-interest-rates-unchanged-but-forecasts-hike-this-year-2015-09-17
[9/17/15]
2 - news.investors.com/economy/091615-771278-inflation-eases-but-homebuilder-sentiment-rises.htm
[9/16/15]
3 - marketwatch.com/economy-politics/calendars/economic [9/18/15]
4 - 247wallst.com/housing/2015/09/17/housing-starts-slow-in-august-after-july-estimates-revised-down/
[9/17/15]
5 - markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp
[9/18/15]
6 - markets.wsj.com/us [9/18/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F18%2F14&x=0&y=0
[9/18/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F18%2F14&x=0&y=0
[9/18/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F18%2F14&x=0&y=0
[9/18/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F17%2F10&x=0&y=0
[9/18/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F17%2F10&x=0&y=0
[9/18/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F17%2F10&x=0&y=0
[9/18/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F19%2F05&x=0&y=0
[9/18/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F19%2F05&x=0&y=0
[9/18/15]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F19%2F05&x=0&y=0
[9/18/15]
8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield
[9/18/15]
9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll
[9/18/15]
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Thursday, September 24, 2015
Economic Update for the week of September 24th, 2015
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