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WEEKLY QUOTE
“Chance
is always powerful. Let your hook be always cast; in the pool where you least
expect it, there will be a fish.”
- Ovid
WEEKLY TIP
Many
people stay with the same bank for decades. Online tools now make it easier
to compare various banks. If you find your bank’s fees irritating or its ATM
network insufficient, you can explore your options.
WEEKLY RIDDLE
Normally
flat and often inscribed, it can fall off the tallest building and land
unscathed, but it can fall off a kayak or raft and be ruined. What is it?
Last week’s riddle:
Gaze at my flat and anchored face. You will not see 13 any place.
What am I?
Last week’s answer:
A clock.
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December 22,
2015
TIGHTENING
BEGINS
As anticipated, the Federal Reserve raised the benchmark
interest rate by 0.25% last week. The Federal Open Market Committee voted
10-0 to make the move. Its latest dot-plot forecast projects four rate hikes
during 2016, which would put the federal funds rate above 1% by the end of
next year. The Fed also adjusted the discount rate charged to commercial
banks, raising it a quarter-point to 1.0%.1,2
ANOTHER TOUGH WEEK FOR OIL
Baker
Hughes data showed a gain in the number of active U.S. oil rigs last week,
the first since mid-November. Light sweet crude slipped 0.6% Friday, settling
at $34.73 on the NYMEX and losing 2.5% in five days.3
CORE CONSUMER
PRICES RISE 0.2%
The
core Consumer Price Index matched its October advance in November, taking its
year-over-year gain to 2.0%. As for the headline CPI, it was flat in the
eleventh month of the year and up just 0.5% in 12 months.4
BUILDERS WERE BUSY LAST MONTH
Housing
starts climbed 10.5% in November according to the Census Bureau, nearly
reversing the (revised) 12.0% decline in October. Building permits surged by
11.0% last month, following a 4.1% October rise.4
CRUDE WEIGHS DOWN EQUITIES AGAIN
Aside from a Wednesday rally following the Federal Reserve
decision to raise interest rates, investors had little to cheer last week. During
five days, the S&P 500 declined 0.34% to 2,005.55, the Nasdaq 0.21% to
4,923.08, and the Dow 0.79% t0 17,128.55.3
THIS WEEK: Cintas
and Steelcase report quarterly results Monday. On Tuesday, Wall Street reacts
to November existing home sales figures, the final Q3 GDP number from the
federal government, and earnings from ConAgra Foods, Micron, Nike, and
Paychex. Wednesday’s important items include reports on November personal
spending, new home sales, and capital goods orders and the final December
consumer sentiment index from the University of Michigan. Thursday is
Christmas Eve, with the NYSE and NASDAQ closing at 1:00pm EST; earlier, the
Labor Department will present its usual weekly initial claims report. Friday is Christmas Day; all U.S.
financial markets will be closed.
Sources: wsj.com, bigcharts.com, finance.yahoo.com, treasury.gov - 12/18/155,6,7,8,9
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-lifts-interest-rates-for-first-time-since-2006-2015-12-16
[12/16/15]
2 - marketwatch.com/story/federal-reserve-dot-plot-still-signals-4-interest-rate-hikes-in-2016-2015-12-16
[12/16/15]
3 - cnbc.com/2015/12/18/us-markets.html [12/18/15]
4 - tradingeconomics.com/united-states/calendar [12/18/15]
5 - markets.wsj.com/us [12/18/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F18%2F14&x=0&y=0
[12/18/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F18%2F14&x=0&y=0
[12/18/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F18%2F14&x=0&y=0
[12/18/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F17%2F10&x=0&y=0
[12/18/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F17%2F10&x=0&y=0
[12/18/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F19%2F05&x=0&y=0
[12/18/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F19%2F05&x=0&y=0
[12/18/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F19%2F05&x=0&y=0
[12/18/15]
7 - finance.yahoo.com/q/hp?s=^DJI&a=11&b=8&c=2010&d=11&e=11&f=2010&g=d
[12/18/15]
8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield
[12/18/15]
9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll
[12/18/15]
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Tuesday, December 22, 2015
Economic Update for the week of December 22, 2015
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