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|
WEEKLY QUOTE
“Next to trying and
winning, the best thing is trying and failing.”
- L.M.
Montgomery
WEEKLY TIP
Will you soon be using a
credit card outside the U.S.? Call the card issuer before your trip, and let
your bank know the exact countries and territories you will be visiting.
Otherwise, you may run the risk of having your card suspended on suspicion of
fraud.
WEEKLY RIDDLE
When is L greater than
XL?
Last week’s riddle:
What goes
with you wherever you go, often demands an answer, and never asks you a
question?
Last week’s answer:
Your
cell phone.
|
June 28,
2016
BREXIT VOTE
BATTERS GLOBAL MARKETS
The world reacted to the
news Thursday night that U.K. voters had decided to leave the European Union.
Germany’s DAX, France’s CAC-40, and Japan’s Nikkei 225 respectively ended their Friday trading sessions with
losses of 6.82%, 8.04%, and 7.92%. Wall Street was not hit as hard, but
the Dow fell 3.39% Friday, while the Nasdaq declined 4.12% and the S&P 500
retreated 3.60%.1,2
A GAIN FOR
EXISTING HOME SALES IN MAY
Last month, the pace of
residential resales accelerated another 1.8%. According to the National
Association of Realtors, the latest annual rate of 5.53 million sales marked a
9-year high. Separately, a Census Bureau report showed a 6.0% drop in new home
buying in May.3
CONSUMER
SENTIMENT GAUGE DECLINES IN JUNE
Displaying a final June
reading of 93.5, the University of Michigan’s monthly consumer sentiment index
finished the sixth month of the year 1.2 points below its final May mark. A year
ago, the index was at 96.1.4
STOCKS END
ROCKY TRADING WEEK LOWER
Even with global markets
plunging on Friday, weekly losses for the major U.S. indices were not extreme.
The Nasdaq declined 1.92% across five days, while the Dow and S&P 500
respectively retreated 1.56% and 1.64%. As the dust settled Friday, the Dow
closed the week at 17,399.86; the S&P, at 2,037.30; and the Nasdaq, at
4,707.98. Gold jumped $59.30 Friday to a COMEX close of $1,322.40. Oil settled
at $47.64 Friday on the NYMEX.2,5
THIS
WEEK: Global
markets will react further to the Brexit on Monday; stateside, no major news
releases are scheduled. Tuesday, an E.U. leadership summit begins in Brussels;
the Conference Board presents its June consumer confidence index; the April
Case-Shiller home price index appears; the BEA issues its final estimate of Q1
GDP; and Nike reports quarterly results. Wednesday, Federal Reserve chair Janet
Yellen, European Central Bank president Mario Draghi, and Bank of England
governor Mark Carney take part in a panel discussion at an ECB forum in
Portugal; Wall Street will also pay attention to May pending home sales, May
personal spending figures, and earnings news from General Mills, Monsanto, and
Pier 1. Thursday, a new initial claims report complements earnings from ConAgra
Foods, Constellation Brands, Darden Restaurants, and Paychex. Friday, investors
consider ISM’s June U.S. manufacturing PMI and China’s latest factory PMI
reading.
Sources: wsj.com, bigcharts.com, treasury.gov - 6/24/162,6,7,8
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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free to forward this article to family, friends or colleagues.
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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 -
markets.on.nytimes.com/research/markets/worldmarkets/worldmarkets.asp
[6/24/16]
2 -
markets.wsj.com/us [6/24/16]
3 -
investors.com/news/economy/new-home-sales-fall-6-jobless-claims-near-43-year-low/
[6/23/16]
4 -
investing.com/economic-calendar/michigan-consumer-sentiment-320
[6/24/16]
5 -
cnbc.com/2016/06/24/us-markets.html [6/24/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F24%2F15&x=0&y=0
[6/24/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F24%2F15&x=0&y=0
[6/24/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F24%2F15&x=0&y=0
[6/24/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F24%2F11&x=0&y=0
[6/24/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F24%2F11&x=0&y=0
[6/24/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F24%2F11&x=0&y=0
[6/24/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F23%2F06&x=0&y=0
[6/24/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F23%2F06&x=0&y=0
[6/24/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F23%2F06&x=0&y=0
[6/24/16]
7 -
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield
[6/24/16]
8 -
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll
[6/24/16]
| |||||||||||||||||||||||||||||||
Tuesday, June 28, 2016
Economic Update for the week of June 28th, 2016
Tuesday, June 21, 2016
Economic update for the week of June 21st, 2016
| |||||||||||||||||||||||||||||||
|
WEEKLY QUOTE
“What we anticipate
seldom occurs; what we least expected generally happens.”
- Benjamin
Disraeli
WEEKLY TIP
When you own a small
business, paying estimated taxes is a given. If you are a new business owner,
think about creating a dedicated bank account to which you can direct a monthly
amount for that purpose.
WEEKLY RIDDLE
What goes with you
wherever you go, often demands an answer, and never asks you a
question?
Last week’s riddle:
At the sound
of it, you may dream, dance, laugh, weep or even stamp your feet. What is
it?
Last week’s answer:
Music.
|
June 21,
2016
RETAIL SALES
RISE another HALF-PERCENT
This healthy May
increase follows the 1.3% gain recorded by the
Department of Commerce for April, and offers more evidence that the economy has
rebounded from a sluggish first quarter. Core retail sales (minus auto and
gasoline purchases) were up 0.4% last month.1
INFLATION
CONTINUES TO FIRM
According to the Bureau
of Labor Statistics, consumer prices rose 0.2% in May while producer prices
advanced 0.4%. While a drop in food prices tempered the gain in the Consumer
Price Index, the core CPI (which strips out energy and food costs) was up 2.2%
in a year, exceeding the Federal Reserve’s annualized inflation target. The May
wholesale inflation jump still left the Producer Price Index up just 0.8%
year-over-year; plunging energy costs have held the PPI in
check.1,2
CONSTRUCTION
ACTIVITY MODERATES IN MAY
Building permits and
housing starts both increased 4.9% in April, but Census Bureau data reveals no
such leaps last month. Groundbreaking declined 0.3% in May, while the issuance
of permits increased by 0.7%.1
INVESTORS
ANXIOUSLY AWAIT U.K. VOTE
As expected, the Federal
Reserve refrained from an interest rate move last week; Wall Street was more
concerned about the potential of a Brexit. The S&P 500 fell 1.19% in five
days to 2,071.22, and the other major indices fell with it. The Nasdaq gave back
1.92% on its way to a Friday close of 4,800.34, while the Dow slipped 1.07% on
the week to 17,675.16. Gold is on a 3-week winning streak: it settled at
$1,294.80 on the COMEX Friday, rising 1.5% in five days. WTI crude fell 2.2% for
the week, closing Friday at $47.98 on the NYMEX.3
THIS
WEEK: Nothing
major is scheduled for Monday. Tuesday, Federal Reserve chair Janet Yellen
begins two days of testimony in the Senate on monetary policy; earnings news
emerges from Adobe Systems, CarMax, Carnival, FedEx, KB Home, La-Z-Boy, and
Lennar. Wednesday, Wall Street looks at May existing home sales numbers and
earnings from Barnes & Noble, Bed Bath & Beyond, Red Hat, and Winnebago.
On Thursday, the United Kingdom holds its referendum on whether or not to stay
in the European Union; investors will also consider May new home sales figures,
the federal government’s latest initial jobless claims report, and quarterly
results from Sonic. Friday offers the final June University of Michigan consumer
sentiment index, a Census Bureau report on May hard goods orders and earnings
from Finish Line.
Sources: wsj.com, bigcharts.com, treasury.gov - 6/17/164,5,6,7
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.
| ||||||||||||||||||||||||||||||
|
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 -
investing.com/economic-calendar/ [6/17/16]
2 -
usnews.com/news/articles/2016-06-16/fed-unlikely-to-be-wowed-by-modest-inflation-uptick
[6/16/16]
3 -
cnbc.com/2016/06/17/us-markets.html [6/17/16]
4 -
markets.wsj.com/us [6/17/16]
5 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F17%2F15&x=0&y=0
[6/17/16]
5 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F17%2F15&x=0&y=0
[6/17/16]
5 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F17%2F15&x=0&y=0
[6/17/16]
5 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F17%2F11&x=0&y=0
[6/17/16]
5 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F17%2F11&x=0&y=0
[6/17/16]
5 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F17%2F11&x=0&y=0
[6/17/16]
5 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F16%2F06&x=0&y=0
[6/17/16]
5 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F16%2F06&x=0&y=0
[6/17/16]
5 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F16%2F06&x=0&y=0
[6/17/16]
6 -
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield
[6/17/16]
7 -
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll
[6/17/16]
| |||||||||||||||||||||||||||||||
Tuesday, June 14, 2016
Economic Update for the week of June 14th, 2016
| |||||||||||||||||||||||||||||||
|
WEEKLY QUOTE
“Early to bed and early
to rise makes a man healthy, wealthy, and wise.”
- Ben
Franklin
WEEKLY TIP
Millennials should not
fall for the myth that you need to carry a lot of consumer debt to build a good
credit score. A positive payment history can be established while carrying
relatively little debt.
WEEKLY RIDDLE
At the sound of it, you
may dream, dance, laugh, weep, or even stamp your feet. What is it?
Last week’s riddle:
Three feet
have I, yet not a single leg. What am I?
Last week’s answer:
A
yardstick.
|
June 14,
2016
A LITTLE LESS
OPTIMISM IN EARLY JUNE
On Friday, the
University of Michigan’s initial June survey of consumer sentiment showed a
slight retreat, with the index coming in at 94.3 versus its final May mark of
94.7. The survey’s chief economist, Richard Curtin, noted “consumers rated their
current financial situation at the best levels since the 2007 cyclical peak
largely due to wage gains” and also had “record low inflation expectations.” On
the downside, consumers felt the economy was stronger a year ago.1
YELLEN OFFERS
NO HINT OF SPRING RATE HIKE
Speaking in Philadelphia
last week, Federal Reserve chair Janet Yellen said she felt “the current stance
of monetary policy is generally appropriate,” adding “at the same time, I
continue to think that the federal funds rate will probably need to rise
gradually over time to ensure price stability and maximum sustainable employment
in the longer run.” Investors interpreted her comments as a sign that the
possibility of a June interest rate increase was very
remote.2
BORROWING
BECOMES CHEAPER FOR HOMEOWNERS
The average interest
rate on a conventional home loan fell to 3.60% in Freddie Mac’s June 9 Primary
Mortgage Market Survey. A week earlier, the average interest rate for a 30-year
FRM was at 3.66%; a year ago, it was at 4.04%.3
BREXIT
FEARS REIN IN BULLS
Concerns about the
United Kingdom leaving the European Union sent bond yields falling worldwide
late last week and hampered stocks, ending a 4-week win streak for the S&P
500. The 5-day performances: DJIA, +0.33% to 17,865.34; S&P, -0.15% to
2,096.07; NASDAQ, -0.97% to 4,894.55. Oil settled at $49.07 on the NYMEX Friday;
gold, at a 3-week high of $1,275.90 on the
COMEX.4,5
THIS
WEEK: Nothing
major is scheduled on Monday. May retail sales figures arrive Tuesday, plus Q1
results from Bob Evans.
Wednesday,
the Fed concludes a policy meeting (with a press conference to follow); the May
Producer Price Index is released; and Jabil Circuit and Progressive present
earnings.
Thursday,
the May Consumer Price Index appears, along with a new initial claims report and
earnings from Kroger, Oracle, Red Hat, and Rite Aid.
The Census
Bureau releases its report on May groundbreaking and building permits on
Friday.
Sources: wsj.com, bigcharts.com, treasury.gov - 6/10/165,6,7,8
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.
| ||||||||||||||||||||||||||||||
|
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 -
sca.isr.umich.edu/ [6/10/16]
2 -
cnbc.com/2016/06/07/european-stocks-shell-yellen-oil-prices.html
[6/7/16]
3 -
forbes.com/sites/redfin/2016/06/09/mortgage-rates-down-for-first-time-in-four-weeks/
[6/9/16]
4 -
marketwatch.com/story/us-stock-futures-slammed-by-jitters-over-fed-and-brexit-2016-06-10
[6/10/16]
5 -
markets.wsj.com/us [6/10/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F10%2F15&x=0&y=0
[6/10/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F10%2F15&x=0&y=0
[6/10/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F10%2F15&x=0&y=0
[6/10/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F10%2F11&x=0&y=0
[6/10/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F10%2F11&x=0&y=0
[6/10/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F10%2F11&x=0&y=0
[6/10/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F9%2F06&x=0&y=0
[6/10/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F9%2F06&x=0&y=0
[6/10/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F9%2F06&x=0&y=0
[6/10/16]
7 -
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield
[6/10/16]
8 -
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll
[6/10/16]
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