Economic update for the week of March 29th, 2016

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE               “Before you are a leader, success is all about growing yourself. When you become a leader, success is all about growing others.”      - Jack Welch            WEEKLY TIP               Canceling an old credit card may be a bad idea if you have a good credit history. Part of that history is based on long you have been borrowing, and if that old card has a good history attached to it, it may be wiser to keep it.          WEEKLY RIDDLE             You put me on a table. You cut me, yet you will not eat me. What am I?     Last week’s riddle: Why is B the coolest letter within the alphabet?       Last week’s answer: It is surrounded by A-C.	March 29, 2016    MIXED NEWS ON HOME SALES New home buying increased 2.0% in February, with all of the gain attributable to a remarkable 38.5% jump in sales in the West (a region which had witnessed a 32.7% January plunge in new home purchases). In contrast to this Census Bureau data, the National Association of Realtors noted a 7.1% February decline in existing home sales, with tightening inventory a factor. Last month, the median sale price of a new home was $301,400, up 2.6% in a year; the median existing home sale price was $210,800, up 4.4% from 12 months ago.1     THE ECONOMY EXPANDED 1.4% IN Q4 Last quarter’s GDP was just revised upward by the Bureau of Economic Analysis. In its previous estimate, the BEA had measured Q4 growth at 1.0%. Analysts polled by Briefing.com had expected no change for the third and final estimate.2    HARD GOODS ORDERS DECLINE Overall orders for capital goods dipped 2.8% for February, according to the Census Bureau. With transportation orders removed, the number looked better; the pullback in core durable goods orders was just 1.0%. In January, overall durable goods orders increased 4.2% while core orders rose 1.2%.2        AN EXTENDED RALLY ENDS Hawkish comments from some Federal Reserve officials held stocks and commodities in check last week, contributing to the end of a 5-week win streak. Across four trading days, the S&P 500 retreated 0.67% to 2,035.94; the Nasdaq Composite, 0.46% to 4,773.50; and the Dow Jones Industrial Average, 0.49% to 17,515.73. Gold had its worst week in more than five months, giving back 2.6% to settle at $1,221.60 on the COMEX Friday. Oil ended the week at $39.46 on the NYMEX.3    THIS WEEK: On Monday, Wall Street will consider February consumer spending and pending home sales reports. Janet Yellen speaks on monetary policy Tuesday in New York, and, in addition to her statements, investors will look at the Conference Board’s new consumer confidence survey, January’s S&P/Case-Shiller home price index, and earnings from Dave & Buster’s, Lennar, and Sonic. Wednesday offers the March ADP employment change report and earnings from Lululemon Athletica and Paychex. Thursday, the March Challenger job-cut report and new initial claims figures arrive. The Labor Department’s latest employment report, the final March consumer sentiment report from the University of Michigan, the March ISM manufacturing PMI, and China’s latest manufacturing PMIs all appear Friday.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +0.52 -1.14 +8.67 +5.53 NASDAQ -4.67 -2.11 +14.80 +10.64 S&P 500 -0.39 -1.22 +10.99 +5.63 REAL YIELD 3/24 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.34% 0.12% 1.02% 2.20%   Sources: wsj.com, bigcharts.com, treasury.gov - 3/25/164,5,6,7 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 - latimes.com/business/la-fi-new-home-sales-20160323-story.html [3/23/16] 2 - briefing.com/investor/calendars/economic/2016/03/21-25 [3/25/16] 3 - cnbc.com/2016/03/24/us-markets.html [3/24/16] 4 - markets.wsj.com/us [3/25/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F25%2F15&x=0&y=0 [3/25/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F25%2F15&x=0&y=0 [3/25/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F25%2F15&x=0&y=0 [3/25/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F25%2F11&x=0&y=0 [3/25/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F25%2F11&x=0&y=0 [3/25/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F25%2F11&x=0&y=0 [3/25/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F24%2F06&x=0&y=0 [3/25/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F24%2F06&x=0&y=0 [3/25/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F24%2F06&x=0&y=0 [3/25/16]             6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [3/25/16] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [3/25/16]

Economic Update for the week of March 22nd, 2016

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE               “If your success is not on your own terms, if it looks good to the world but does not feel good in your heart, it is not success at all.”      - Anna Quindlen            WEEKLY TIP               When shopping for business insurance, ask any trade or professional organizations you belong to if they can provide discounted coverage. If you are not a member of such an organization, you may want to join for that reason.          WEEKLY RIDDLE             Why is B the coolest letter within the alphabet?     Last week’s riddle: What mathematical symbol can be put between 5 and 9 to get a number bigger than 5 and smaller than 9?       Last week’s answer: A decimal point: 5.9.	March 22, 2016    FEDERAL RESERVE SENDS A DOVISH SIGNAL The Federal Open Market Committee voted 9-1 to leave interest rates unchanged last week, and it also scaled back its rate hike expectations for 2016. The central bank’s latest dot-plot projects just two interest rate increases by the end of the year with a median forecast of 0.9% for the federal funds rate as 2017 begins. Fed policymakers now estimate economic growth of 2.2% in 2016, with inflation at 1.2% as the fourth quarter ends.1     CORE PRICES UP MORE THAN 2% IN 12 MONTHS The core Consumer Price Index measured 2.3% annualized inflation in February as a result of its 0.3% monthly increase. Headline consumer prices retreated 0.2% last month, slimming the year-over-year gain in headline CPI to 1.0%. As for the Producer Price Index, it fell 0.2% in February with the core PPI unchanged.2    THE LATEST on SALES, SENTIMENT & STARTS According to the Commerce Department, retail sales tailed off 0.1% in February. (The decline was the same minus auto sales.) The University of Michigan’s March consumer sentiment index also retreated; its 90.0 initial March reading was 1.7 points below its final February mark. Census Bureau figures showed housing starts increasing 5.2% last month, although building permits decreased 3.1%.2        DOW, S&P TURN POSITIVE FOR 2016 Wall Street rallied last week with help from recent, accommodative policy statements issued by the Fed, the Bank of Japan, and the European Central Bank. March 14-18 saw the Dow Jones Industrial Average rise 2.26% to 17,602.30; the Nasdaq Composite, 0.99% to 4,795.65; and the S&P 500, 1.35% to 2,049.58. Elsewhere in New York, light sweet crude settled at $39.44 on Friday, gold at $1,254.30.3    THIS WEEK: Monday offers the February existing home sales report from the National Association of Realtors and earnings from Carnival. Krispy Kreme, Nike, Red Hat, and Steelcase post earnings Tuesday. Wednesday, February new home sales figures complement earnings announcements from Fred’s, General Mills, KB Home, and Oxford Industries. Reports on initial jobless claims and February durable goods orders arrive Thursday, plus earnings from Accenture, Finish Line, GameStop, and Winnebago. March 25 is Good Friday; while the federal government will issue its final estimate of Q4 GDP, the NYSE and NASDAQ will be closed.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +1.02 -2.62 +9.69 +5.61 NASDAQ -4.23 -3.76 +16.28 +10.79 S&P 500 +0.28 -2.38 +12.04 +5.68 REAL YIELD 3/18 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.27% 0.23% 0.85% 2.16%   Sources: wsj.com, bigcharts.com, treasury.gov - 3/18/164,5,6,7 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-sees-just-two-rate-hikes-in-2016-2016-03-16 [3/16/16] 2 - tradingeconomics.com/united-states/calendar [3/18/16] 3 - cnbc.com/2016/03/18/us-markets.html [3/18/16] 4 - markets.wsj.com/us [3/18/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F18%2F15&x=0&y=0 [3/18/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F18%2F15&x=0&y=0 [3/18/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F18%2F15&x=0&y=0 [3/18/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F18%2F11&x=0&y=0 [3/18/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F18%2F11&x=0&y=0 [3/18/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F18%2F11&x=0&y=0 [3/18/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F17%2F06&x=0&y=0 [3/18/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F17%2F06&x=0&y=0 [3/18/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F17%2F06&x=0&y=0 [3/18/16]     6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [3/18/16] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [3/18/16]

Economic Update for the week of March 15th, 2016

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE               “Believe those who are seeking the truth. Doubt those who find it.”      - Andre Gide           WEEKLY TIP               If your student will graduate from college with multiple, large student loans with different lenders, consolidating those loans may leave just one payment to one lender at one low interest rate. If your student has multiple but relatively small student loans, just paying them off as quickly as possible is often a better choice than consolidation.          WEEKLY RIDDLE             What mathematical symbol can be put between 5 and 9 to get a number bigger than 5 and smaller than 9?   Last week’s riddle: You drop a coin into a bottle through its opening. Then, you push a cork into that same bottle opening to seal the opening. How do you get the coin out of the bottle without breaking the bottle or taking out the cork?       Last week’s answer: Push the cork into the bottle.	March 15 2016    STOCKS SETTLE AT 2016 Highs A 5-day gain of 1.10% left the S&P 500 at 2,022.19 at the closing bell Friday. Settling at 17,213.31 Friday afternoon, the Dow Jones Industrial Average rose 1.20% for the week while the Nasdaq Composite advanced 0.67% to end the week at 4,748.47. On March 11, the S&P settled above its moving average for the first time since December 30, and both the S&P and DJIA had their highest closes of the year, reaching peaks unseen since intraday trading on January 4.1    OIL RALLIES, GOLD RETREATS Light sweet crude closed at $38.50 a barrel Friday on the NYMEX, going +7.2% in five trading days. It was the highest settlement for a most-active contract since December. Gold went -0.9% for the week as appetite for risk grew, settling Friday at $1,259.40 an ounce in COMEX trading.2,3    WALL STREET WATCHES ECB, WAITS ON FED Economists polled by Reuters widely believe the Federal Reserve will leave interest rates alone next week, but in their consensus estimate, they put the chance of a rate hike by mid-year at 60%. The European Central Bank went in for more easing last week, unexpectedly expanding the scope of its economic stimulus measures and reducing all three of its interest rates.4    BULL MARKET TURNS SEVEN At 84 months, this bull market is now the third-longest in history, and it could soon surpass the 1949-56 bull, which ended after 85½ months. The current bull market rose an astonishing 68.6% in its first year. It advanced more than 10% in five of its first six years. It has lost ground over the past 12 months, but it has been rebounding.5    THIS WEEK: On Monday, Wall Street considers Q1 earnings from Cintas and Lennar. February’s PPI, February retail sales numbers and earnings from Oracle arrive Tuesday. Wednesday, the Federal Reserve releases its latest policy statement; investors will also evaluate the February CPI, data on February housing starts and industrial output, and earnings announcements from FedEx, Guess?, Jabil Circuit, and Williams-Sonoma. Thursday brings a new initial jobless claims report, plus earnings from Adobe Systems, Aeropostale, Lands’ End, and Michaels Companies. The University of Michigan’s preliminary March consumer sentiment index appears Friday, along with Q4 results from Tiffany.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA -1.22 -2.39 +8.58 +5.54 NASDAQ -5.17 -2.09 +14.97 +10.99 S&P 500 -1.06 -0.88 +11.01 +5.78 REAL YIELD 3/11 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.44% 0.39% 0.96% 2.23%   Sources: wsj.com, bigcharts.com, treasury.gov - 3/11/166,7,8,9 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.
Please feel free to forward this article to family, friends or colleagues. If you would like us to add them to our distribution list, please reply with their address. We will contact them first and request their permission to add them to our list.
«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 - cnbc.com/2016/03/11/us-markets.html [3/11/16] 2 - marketwatch.com/story/crude-zigzags-back-above-38-a-barrel-amid-production-freeze-questions-2016-03-11 [3/11/16] 3 - marketwatch.com/story/gold-prices-dull-as-dollar-stocks-oil-gain-2016-03-11/ [3/11/16] 4 - nytimes.com/reuters/2016/03/10/business/10reuters-usa-economy-poll.html [3/10/16] 5 - usatoday.com/story/money/markets/2016/03/08/wall-street-bull-market-turns-7/81438562/ [3/8/16] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F9%2F09&x=0&y=0 [3/11/16] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F9%2F16&x=0&y=0 [3/11/16] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F11%2F15&x=0&y=0 [3/11/16] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F11%2F15&x=0&y=0 [3/11/16] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F11%2F15&x=0&y=0 [3/11/16] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F11%2F11&x=0&y=0 [3/11/16] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F11%2F11&x=0&y=0 [3/11/16] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F11%2F11&x=0&y=0 [3/11/16] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F10%2F06&x=0&y=0 [3/11/16] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F10%2F06&x=0&y=0 [3/11/16] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F10%2F06&x=0&y=0 [3/11/16]      7 - markets.wsj.com/us [3/11/16] 8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [3/11/16] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [3/11/16]