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WEEKLY QUOTE
“No
one is useless in this world who lightens the burdens of another.”
- Charles Dickens
WEEKLY TIP
Try
to contribute the maximum amount to your IRA(s) as early as you can this
year, rather than waiting until the April deadline. By doing so, you give
those dollars a little more time to potentially grow and compound.
WEEKLY RIDDLE
A
man and a woman wearing very expensive outfits manage, without using wheels
or any form of assistance, to push a 6-ton object entirely through their own
physical effort. Under what circumstances are they able to do this?
Last week’s riddle:
There is an adjective. When you take away the whole from it, some
still remains. What adjective is this?
Last week’s answer:
Wholesome.
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January 12,
2016
CAN STOCKS
REGAIN THEIR FOOTING THIS WEEK?
Investors hope so after a very rough start to 2016. Declining
oil prices and disappointing manufacturing data in both the U.S. and China helped
trigger a global selloff: the major equity indices in Europe and Asia fell
between 5-9% last week with our benchmarks following suit. The Dow Jones
Industrial Average lost 6.19% in five days to 16,346.45, paralleled by a 6.13%
fall for the S&P 500 to 1,922.03 and a 7.27% descent for the Nasdaq
Composite to 4,643.60. The week ended with the S&P 9.8% below its May
2015 peak, and with Wall Street hoping for some stability and a decent Q4
earnings season.1,2
292,000 NEW
HIRES IN DECEMBER
The Labor Department’s latest employment report affirmed
the durability of the U.S. economy. Last month’s impressive payroll growth
was complemented by upward revisions to hiring totals for October (307,000)
and November (252,000). Economists surveyed by the Wall Street Journal had expected 210,000 new jobs in December.
The U-3 and U-6 jobless rates remained at 5.0% and 9.9% last month. Year-over-year
wage growth rose to 2.5%.3
FACTORY SECTOR CONTRACTS FOR ANOTHER
MONTH
In
December, the Institute for Supply Management’s manufacturing PMI remained
under 50, slipping 0.4 points lower to a reading of 48.2. ISM’s service
sector PMI declined 0.6 points last month, but still showed strong sector
growth at 55.3.4
GOLD PRICES CLIMB, OIL PRICES SLIDE
Rallying in the flight to safety that occurred last week,
COMEX gold settled Friday at 1,097.90. The yellow metal gained 3.6% in five
trading days. NYMEX crude ended the week at its lowest close since 2005 –
just $33.16, a price resulting from a 10.0% five-day decline.5
THIS WEEK: Earnings season
starts Monday evening with Q4 results from Alcoa. Nothing major is slated for
Tuesday. Wednesday, a new Federal Reserve Beige Book appears, plus Q4 results
from SuperValu. Earnings from Intel, JPMorgan Chase, and Rocky Mountain
Chocolate Factory arrive Thursday. Friday offers earnings from BlackRock,
Citigroup, Fastenal, PNC Financial Services, Wells Fargo, Regions Financial,
and U.S. Bancorp, the initial January University of Michigan household
sentiment index, the December PPI, and reports on December industrial
production and retail sales.
Sources: investing.com, bigcharts.com, treasury.gov - 1/8/161,6,7,8
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.
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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 - investing.com/indices/major-indices [1/8/16]
2 - bloomberg.com/news/articles/2016-01-08/u-s-index-futures-signal-rebound-as-yuan-fixing-soothes-nerves
[1/8/16]
3 - news.morningstar.com/all/dow-jones/us-markets/201601085057/us-job-market-closed-2016-on-strong-note.aspx
[1/8/16]
4 - briefing.com/investor/calendars/economic/2016/01/04-08 [1/8/16]
5 - 247wallst.com/investing/2016/01/08/the-4-stocks-that-weighed-on-the-djia-friday-2/
[1/8/16]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F8%2F15&x=0&y=0
[1/8/16]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F8%2F15&x=0&y=0
[1/8/16]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F8%2F15&x=0&y=0
[1/8/16]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F7%2F11&x=0&y=0
[1/8/16]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F7%2F11&x=0&y=0
[1/8/16]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F7%2F11&x=0&y=0
[1/8/16]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F9%2F06&x=0&y=0
[1/8/16]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F9%2F06&x=0&y=0
[1/8/16]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F9%2F06&x=0&y=0
[1/8/16]
7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield
[1/8/16]
8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll
[1/8/16]
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Tuesday, January 12, 2016
Economic Update for the week of January 12th, 2016
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