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WEEKLY QUOTE
“The only way most
people recognize their limits is by trespassing on them.”
- Tom
Morris
WEEKLY TIP
Young adults who
consider debt consolidation should weigh the pros and cons of the idea. Lower
monthly payments might free up more cash for saving and investing. Extending a
credit card balance for decades, though, may cost a borrower much more in the
long run.
WEEKLY RIDDLE
Can you name three
consecutive days without using the words Monday, Tuesday, Wednesday, Thursday,
Friday, Saturday, or Sunday?
Last week’s riddle:
At times I’m
high and low, I never fly but I can rise, and I can creep between your toes.
What am I?
Last week’s answer:
The
tide.
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July 19,
2016
Two SIGNS OF A
STRONGER ECONOMY
Retail sales improved
0.6% in June, according to the Commerce Department, and the core gain was 0.7%
with auto buying and home improvement purchases factored out. Industrial production rose 0.6% in June, making up for a 0.3% May
loss. Both indicators could be taken as hints of solid second-quarter
growth.1
CORE INFLATION
IS OUTPACING HEADLINE INFLATION
In the year ending in
June, the headline Consumer Price Index increased just 1.0%. According to the
Department of Labor, the average 12-month gain in the past decade is 1.7%. The
yearly gain in the core CPI, however, was 2.3% in June; it has averaged 1.9% in
the past 10 years. June also saw a 0.5% gain for the Producer Price
Index.1,2
SENTIMENT
INDEX FALLS 4 POINTS
The drop in the
University of Michigan’s monthly consumer sentiment index seemed to reflect
anxiety over the Brexit vote; 24% of households with upper-tier incomes cited it
in their survey responses. The preliminary July edition of the index came in at
89.5, down from the final June mark of 93.5. Economists polled by MarketWatch
had anticipated a 92.5 reading.3
MAJOR
INDICES KEEP CLIMBING
Less than a month after
the Brexit vote disrupted global markets, both the Dow and S&P 500 reached
historic peaks. Across five trading days, the Dow rose 2.04% to a new record
close of 18,516.55. The S&P 500 and Nasdaq, respectively, advanced 1.49% and
1.47% for the week to Friday settlements of 2,161.74 and 5,029.59. The S&P
closed at four straight all-time highs Monday through
Thursday.4,5
THIS
WEEK: Bank of
America, Charles Schwab, Hasbro, IBM, J.B. Hunt, Netflix, and Yahoo! all present
earnings Monday. Tuesday, investors will review June housing starts and building
permits and earnings from Discover, Goldman Sachs, Johnson & Johnson,
Lockheed Martin, Microsoft, Philip Morris International, Regions Financial, TD
Ameritrade, United Continental Holdings, and UnitedHealth. Wednesday, earnings
emerge from Abbott
Labs, American Express, eBay, Halliburton, IMAX, Intel, Mattel, Morgan Stanley,
Newmont Mining, Qualcomm, Raymond James, St. Jude Medical, and United Rentals.
Thursday, Wall Street looks at June existing home sales plus earnings from
Alaska Air, AT&T, BONY Mellon, Biogen, Boise Cascade, Chipotle, DISH
Network, Domino’s, Dunkin’ Brands, E*TRADE, General Motors, PayPal, Quest
Diagnostics, Sherwin-Williams, Skechers, Southwest Airlines, Starbucks,
Travelers, Union Pacific, and VISA. American Airlines, GE, Honeywell
International, and Whirlpool report earnings Friday.
Sources: wsj.com, bigcharts.com, treasury.gov - 7/15/164,6,7,8
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/economic-calendar/ [7/15/16]
2 -
cnbc.com/2016/07/15/us-consumer-price-index-june-2016.html [7/15/16]
3
-
marketwatch.com/story/rich-americans-say-they-were-rattled-by-brexit-driving-consumer-sentiment-lower-in-july-2016-07-15/
[7/15/16]
4 -
markets.wsj.com/us [7/15/16]
5 -
usatoday.com/story/money/markets/2016/07/15/stocks-dow-friday/87121654/
[7/15/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F15%2F15&x=0&y=0
[7/15/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F15%2F15&x=0&y=0
[7/15/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F15%2F15&x=0&y=0
[7/15/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F15%2F11&x=0&y=0
[7/15/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F15%2F11&x=0&y=0
[7/15/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F15%2F11&x=0&y=0
[7/15/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F14%2F06&x=0&y=0
[7/15/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F14%2F06&x=0&y=0
[7/15/16]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F14%2F06&x=0&y=0
[7/15/16]
7 -
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield
[7/15/16]
8 -
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll
[7/15/16]
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Tuesday, July 19, 2016
Economic Update for the week of July 19th, 2016
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