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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.
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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.
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]
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Tuesday, March 22, 2016
Economic Update for the week of March 22nd, 2016
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