Economic update for the week of May 31st, 2016

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE               “The foolish man seeks happiness in the distance, the wise man grows it under his feet.”      - James Oppenheim           WEEKLY TIP               In your fifties, make sure to check up on your retirement goals. Does it appear you have viable financial paths to achieve them? Test out different financial scenarios (with professional input) to see if your retirement strategy may need adjusting.          WEEKLY RIDDLE              I descend softly, fade away gently, change the color of the ground, but I never go up the way I come down. What am I?    Last week’s riddle: It is a word in the English language, written using only two letters of the alphabet. You can say this word merely by using one letter of the alphabet, and that letter is a vowel. What word is this?       Last week’s answer: Eye.	May 31, 2016    TWO HOUSING INDICATORS HIT MULTIYEAR HIGHS While monthly real estate indicators are often later revised, the latest numbers for new home buying and pending home sales are impressive, indeed. The Census Bureau reported a 16.6% jump in new home sales in April, putting them at an 8-year peak. Housing contract activity surged 5.1% last month, according to the National Association of Realtors, reaching a level unseen since February 2006. The Wall Street Journal had forecast just an 0.7% April gain for the NAR’s pending home sales index.1     Q1 GDP REVISED UP; DURABLE GOODS ORDERS UP 3.4% How much did the economy grow in the first quarter? In the second estimate of the Bureau of Economic Analysis, 0.8%. (The BEA originally estimated 0.5% growth.) Minus transportation orders, the Department of Commerce still found hard goods orders advancing 0.4% in April.2    HOUSEHOLD SENTIMENT INDEX RISES IN MAY The University of Michigan’s consumer sentiment index lost 1.1 points from its preliminary May reading to post a final May mark of 94.7. Still, that was far better than its final April reading of 89.0.2,3   BULLS RUN FREELY Federal Reserve Chair Janet Yellen’s Friday remark that an interest rate hike could be appropriate in the coming months took very little momentum out of the market last week. From May 23-27, the Dow rose 2.13% to 17,873.22; the S&P 500, 2.28% to 2,099.06; and the Nasdaq, 3.44% to 4,933.50 (the Nasdaq had its best week in more than three months). Oil ended the trading week at $49.33; gold, at $1,216.70.3     THIS WEEK: Monday is Memorial Day, so U.S. financial markets will be closed. Tuesday offers the April personal spending report, the April core PCE price index, the March S&P/Case-Shiller home price index, and earnings from TiVo. On Wednesday, the latest manufacturing PMIs from China and the European Union appear, plus the May manufacturing PMI from the Institute for Supply Management and a new Beige Book from the Federal Reserve; earnings news will come from Cracker Barrel, Land’s End, and Michael Kors. Earnings from Broadcom, Five Below, Hovnanian, and Navistar are out Thursday, plus a new initial claims report. In addition to the Department of Labor’s May employment report, Friday also presents the May ISM service sector PMI, the May factory orders report and earnings from Sears Hometown.   % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +2.57 -1.60 +8.73 +5.85 NASDAQ -1.48 -3.39 +15.28 +12.32 S&P 500 +2.70 -1.15 +11.54 +6.40 REAL YIELD 5/27 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.27% 0.34% 0.79% 2.44%   Sources: wsj.com, bigcharts.com, treasury.gov - 5/27/164,5,6,7 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 - constructiondive.com/news/pending-home-sales-wallop-expectations-climb-to-10-year-high/419905/ [5/26/16] 2 - investing.com/economic-calendar/ [5/27/16] 3 - cnbc.com/2016/05/27/us-markets.html [5/27/16] 4 - markets.wsj.com/us [5/27/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F27%2F15&x=0&y=0 [5/27/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F27%2F15&x=0&y=0 [5/27/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F27%2F15&x=0&y=0 [5/27/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F27%2F11&x=0&y=0 [5/27/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F27%2F11&x=0&y=0 [5/27/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F27%2F11&x=0&y=0 [5/27/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F26%2F06&x=0&y=0 [5/27/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F26%2F06&x=0&y=0 [5/27/16] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F26%2F06&x=0&y=0 [5/27/16]             6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [5/27/16] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [5/27/16]

Economic Update for the week of May 17th, 2016

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE               “Knowledge is the eye of desire and can become the pilot of the soul.”      - Will Durant           WEEKLY TIP               If you sense that you may need some extra income during the first decade of your retirement, explore ways to turn your favorite hobby into a part-time job. Do some networking in your metro area and among fellow hobbyists.          WEEKLY RIDDLE              You can make it, play it, crack it, and tell it. What is it?    Last week’s riddle: I can easily be divided. Within me, you will notice 13 hearts, but no organs. What am I?       Last week’s answer: A deck of cards.	May 17, 2016    A MAJOR JUMP FOR RETAIL SALES Friday, the Department of Commerce reported a 1.3% April gain in U.S. retail purchases. The core retail sales advance was also impressive at 0.9%. Minus car and truck buying, retail sales were still up 0.8% last month.1     IMPROVEMENT IN CONSUMER SENTIMENT The University of Michigan’s much-watched household sentiment index rebounded 6.8 points to 95.8 in its initial May reading. Surveys of Consumers chief economist Richard Curtin cited “frequent income gains, an improved jobs outlook, and the expectation of lower inflation and interest rates” as reasons for the sudden rise.2    WHOLESALE INFLATION PICKS UP The April Producer Price Index displayed a moderate rise, in contrast to preceding months. Wholesale inflation rose 0.2% last month, 0.3% with food and energy costs subtracted.1   A DOWN WEEK ON WALL STREET Despite some notably positive economic indicators, stocks pulled back for the week as first-quarter earnings from major retailers disappointed. The Dow fell hardest, losing 1.16% across five days; the NASDAQ slipped 0.39% for the week; the S&P 500, 0.51%. The three major indices settled on Friday as follows: DJIA, 17,535.32; NASDAQ, 4,717.68; S&P, 2,046.61. Oil was at $46.29 on the NYMEX as the stock market closed Friday; gold was at $1,275.20 on the COMEX.3,4     THIS WEEK: Monday, Agilent Technologies reports quarterly results. Wall Street assesses earnings from Home Depot, Red Robin, and TJX Companies on Tuesday, along with the April Consumer Price Index and reports on April industrial output, housing starts and building permits. Wednesday offers minutes from the Federal Reserve’s April policy meeting along with earnings from American Eagle Outfitters, Booz Allen Hamilton, Cisco, L Brands, Lowe’s, Staples, Take-Two Interactive, Target, Hormel Foods, Urban Outfitters, and Williams-Sonoma. On Thursday, investors will watch for a new initial claims report and earnings releases from Advance Auto Parts, Applied Materials, Autodesk, Bon-Ton, Dick's Sporting Goods, Dollar Tree, Gap, Perry Ellis, Ross Stores, Shoe Carnival, Stein Mart, Toro, and Walmart. April existing home sales numbers arrive Friday, plus earnings news from Campbell Soup, Deere & Co., and Foot Locker.   % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +0.63 -2.91 +7.84 +5.41 NASDAQ -5.79 -5.30 +13.36 +11.02 S&P 500 +0.13 -2.47 +10.60 +5.85 REAL YIELD 5/13 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.13% 0.41% 0.79% 2.47%   Sources: wsj.com, bigcharts.com, treasury.gov - 5/13/165,6,7,8 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 - philly.com/philly/blogs/economics_in_a_nutshell/April-Retail-Sales-and-Producer-Prices.html [5/13/16] 2 - sca.isr.umich.edu/ [5/13/16] 3 - online.wsj.com/mdc/public/page/mdc_commodities.html [5/13/16] 4 - markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [5/13/16] 5 - markets.wsj.com/us [5/13/16] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F13%2F15&x=0&y=0 [5/13/16] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F13%2F15&x=0&y=0 [5/13/16] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F13%2F15&x=0&y=0 [5/13/16] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F13%2F11&x=0&y=0 [5/13/16] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F13%2F11&x=0&y=0 [5/13/16] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F13%2F11&x=0&y=0 [5/13/16] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F12%2F06&x=0&y=0 [5/13/16] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F12%2F06&x=0&y=0 [5/13/16] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F12%2F06&x=0&y=0 [5/13/16]              7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [5/13/16] 8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [5/13/16]

Economic Update for the week of May 10th, 2016

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE               “He not busy being born is busy dying.”      - Bob Dylan           WEEKLY TIP               In your business budget, think of your marketing costs as a percentage of sales, somewhere between 2-10%. If you are building a brand, those costs might need to approach or exceed 20% of sales.          WEEKLY RIDDLE              I can easily be divided. Within me, you will notice 13 hearts, but no organs. What am I?    Last week’s riddle: It cannot see and it feels no pain, despite matter constantly going through its eye. What is it?       Last week’s answer: A sewing needle.	May 10, 2016    APRIL JOBS REPORT RAISES QUESTIONS Employers hired 160,000 more workers than they let go last month, and that net job gain was the smallest since September. Does this suggest a job market losing steam, or does it hint at an economy nearing full employment? The hiring number may make the Federal Reserve reconsider the possibility of a June interest rate hike. Average hourly wages improved to $25.53 in April, up 2.5% year-over-year. While the main jobless rate remained at 5.0%, the U-6 rate, counting both the unemployed and underemployed, declined 0.1% to 9.7%.1     MORE EXPANSION IN FACTORY & SERVICE SECTORS Both of the Institute for Supply Management’s purchasing manager indices were above the critical 50 level (indicating growth) in April. ISM’s manufacturing index came in at 50.8, its non-manufacturing index at 55.7. Economists surveyed by MarketWatch expected a 51.4 reading for the factory PMI and a 54.7 reading for the services PMI.2    OIL SETTLES UNDER $45 Light sweet crude closed at $44.66 Friday on the NYMEX, down 2.7% for the week on perceptions that near-term supply was exceeding demand. Gold got a boost from the disappointing jobs data, settling at $1,294.00 Friday to go up 0.3% for the week.3,4 WALL STREET SEES A MINOR WEEKLY RETREAT Across May 2-6, the S&P 500 lost 0.40% to 2,057.14; the Nasdaq Composite, 0.82% to 4,736.16; and the Dow Jones Industrial Average, 0.19% to 17,740.63. Headwinds included the underwhelming jobs report, the weaker-than-expected ISM factory PMI and the week’s dip in oil prices.5    THIS WEEK: On Monday, earnings from Chimerix, Hertz Global, Nautilus, Novatel Wireless, TeamHealth, and Tyson Foods arrive. Dean Foods, Electronic Arts, Norwegian Cruise Line, Planet Fitness, Tribune Media, and Walt Disney Co. present earnings Tuesday. Wednesday, the earnings parade includes announcements from Aramark, Jack in the Box, Macy’s, NetEase, Weibo, and Wendy’s. Thursday, the latest initial claims figures complement earnings news from Dillard’s, Kohl’s, Nordstrom, Ralph Lauren, Shake Shack, and Symantec. April retail sales data, the April Producer Price Index, and the initial May consumer sentiment index from the University of Michigan all appear Friday, along with Q1 results from J.C. Penney.   % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +1.81 -0.57 +8.07 +5.32 NASDAQ -5.42 -3.73 +13.50 +10.22 S&P 500 +0.65 -1.11 +10.70 +5.52 REAL YIELD 5/6 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.18% 0.34% 0.71% 2.45%   Sources: wsj.com, bigcharts.com, treasury.gov - 5/6/166,7,8,9 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 - forbes.com/sites/samanthasharf/2016/05/06/jobs-report-u-s-adds-160000-jobs-in-april-unemployment-rate-steady-at-5/ [5/6/16] 2 - marketwatch.com/economy-politics/calendars/economic [5/6/16] 3 - marketwatch.com/story/oil-prices-dip-as-focus-returns-to-global-supply-glut-2016-05-06/ [5/6/16] 4 - marketwatch.com/story/gold-stocks-step-higher-ahead-of-jobs-report-2016-05-06 [5/6/16] 5 - markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [5/6/16] 6 - markets.wsj.com/us [5/6/16] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F6%2F15&x=0&y=0 [5/6/16] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F6%2F15&x=0&y=0 [5/6/16] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F6%2F15&x=0&y=0 [5/6/16] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F6%2F11&x=0&y=0 [5/6/16] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F6%2F11&x=0&y=0 [5/6/16] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F6%2F11&x=0&y=0 [5/6/16] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F5%2F06&x=0&y=0 [5/6/16] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F5%2F06&x=0&y=0 [5/6/16] 7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F5%2F06&x=0&y=0 [5/6/16] 8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [5/6/16] 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [5/6/16]