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WEEKLY QUOTE
“Do
what you can, with what you have, where you are.”
- Teddy Roosevelt
WEEKLY TIP
Under
30? Now is the time to automate your saving and investing, so you can take
advantage of compounding. Many baby boomers and Gen Xers wish they had
started investing in their twenties.
WEEKLY RIDDLE
Emily
takes a picture at an art museum in Michigan. Why is she subsequently told not
to leave the museum?
Last week’s riddle:
Had by some and treasured by all, it is found inside and outside
and makes many fall. Can you name what it is?
Last week’s answer:
Beauty.
|
December 27,
2017
LANDMARK FEDERAL
TAX CHANGES SLATED FOR 2018
Congress passed the Tax Cuts & Jobs Act last week, and
President Trump signed the bill into law on Friday. The new legislation
authorizes major changes to the Internal Revenue Code. On January 1, 2018, the
corporate tax rate will be reduced to 21%, most pass-through businesses will
be allowed to claim a 20% deduction on earnings, the estate tax exemption
will double, the individual standard deduction will rise to $12,000, and personal
exemptions will disappear. At the start of 2019, the health insurance
requirement for individuals set by the Affordable Care Act is scheduled for
repeal. Most of the reforms are slated to sunset at the end of 2025.1
HOME SALES STRENGTHEN
The National Association of Realtors reported a 5.6% rise
in residential resales in November, complementing last month’s 17.5% gain in
new home buying announced by the Census Bureau. In a separate report, the
Bureau found housing starts up 3.3% for November, with building permits down
1.4%.2
CONSUMER
SPENDING JUMPS 0.6% IN NOVEMBER
Beside this noteworthy gain, the Department of Commerce
also documented a 0.3% rise in personal income last month. Turning to
consumer sentiment, the University of Michigan’s final December index declined
0.9 points from its preliminary reading to 95.9. In further consumer-linked
news, the Bureau of Economic Analysis issued its last estimate of Q3 GDP,
reducing it 0.1% to 3.2%.2
SMALL GAINS ON
WALL STREET
As last week’s performance of the S&P 500 demonstrated,
tax reform was already priced into U.S. equities. The benchmark advanced
but 0.28% across five days, settling Friday at 2,683.34. In quiet trading,
the Nasdaq Composite gained 0.34% for the week while the Dow Jones Industrial
Average rose 0.42%. The Nasdaq finished the week at 6,959.96; the Dow, at
24,754.06. Bitcoin took a 27% intraday dive Friday, falling to $11,833 before
recovering to $14,241 by Wall Street’s closing bell.3,4
THIS WEEK: U.S. financial markets are closed on
Christmas Day. Trading resumes Tuesday, which is also the release date for the
October S&P/Case-Shiller home price index. Wednesday, the Conference
Board’s latest consumer confidence snapshot arrives, along with the NAR’s
November pending home sales index. A new initial jobless claims report surfaces
Thursday. Friday, nothing major is scheduled.
Sources: wsj.com, bigcharts.com, treasury.gov - 12/22/173,5,6,7
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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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. The information herein has been
derived from sources believed to be accurate. Please note - investing
involves risk, and past performance is no guarantee of future results.
Investments will fluctuate and when redeemed may be worth more or less than
when originally invested. 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 market indices discussed
are unmanaged and are not illustrative of any particular investment. Indices
do not incur management fees, costs and expenses, and cannot be invested into
directly. All economic and performance data is historical and not indicative
of future results. The Dow Jones Industrial Average is a price-weighted index
of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is a
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 a market-cap weighted index composed
of the common stocks of 500 leading companies in leading industries of the
U.S. economy. 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. MarketingPro, Inc. is not affiliated with
any person or firm that may be providing this information to you. 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 -
cpapracticeadvisor.com/news/12388205/2018-tax-reform-law-new-tax-brackets-credits-and-deductions
[12/22/17]
2 - investing.com/economic-calendar/ [12/22/17]
3 - markets.wsj.com/us
[12/22/17]
4 - washingtonpost.com/news/the-switch/wp/2017/12/22/bitcoin-tumbles-nearly-30-percent-in-volatile-trading/
[12/22/17]
5 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F22%2F16&x=0&y=0
[12/22/17]
5 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F22%2F16&x=0&y=0
[12/22/17]
5 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F22%2F16&x=0&y=0
[12/22/17]
5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F21%2F12&x=0&y=0
[12/22/17]
5 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F21%2F12&x=0&y=0
[12/22/17]
5 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F21%2F12&x=0&y=0
[12/22/17]
5 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F21%2F07&x=0&y=0
[12/22/17]
5 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F21%2F07&x=0&y=0
[12/22/17]
5 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F21%2F07&x=0&y=0
[12/22/17]
6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield
[12/22/17]
7 -
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll
[12/22/17]
|
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Wednesday, December 27, 2017
Economic Update for the week of December 27th, 2017
Wednesday, December 13, 2017
Economic Update for the week of December 13th, 2017
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WEEKLY QUOTE
“One’s
dignity may be assaulted, vandalized and cruelly mocked, but it can never be
taken away unless it is surrendered.”
- Michael J. Fox
WEEKLY TIP
Consider
buying used capital equipment in good condition for your company rather than
new equipment. Sometimes, lenders will auction off assets from foreclosed businesses.
Through such auctions, you could, potentially, realize big savings.
WEEKLY RIDDLE
What
flies without any wings?
Last week’s riddle:
What round, white container hides a tasty delight within it, and
requires no keys to open?
Last week’s answer:
An egg.
|
December 11,
2017
ANOTHER MONTH
OF SOLID HIRING
According to the Department of Labor, the U.S. workforce
gained 228,000 more jobs than it lost during November. Annualized wage growth
improved from 2.5% to 2.7%. The headline jobless rate held at 4.1% last
month, while the U-6 rate, that includes the underemployed, ticked up a tenth
of a percent to 8.0%. Even though October’s net job gain was revised down to
244,000, October-November 2017 represents the best two-month hiring period in
more than a year.1,2
ISM INDEX
MISSES EXPECTATIONS
The Institute for Supply Management’s gauge of service
sector activity fell 2.7 points to a still-impressive reading of 57.4 in
November. Economists polled by Briefing.com expected a retreat, albeit a
lesser one: they projected a reading of 59.3.2
A SMALL
DECLINE FOR CONSUMER SENTIMENT
There was just a bit less optimism in households in early
December, at least by the measure of the University of Michigan’s
twice-monthly Surveys of Consumers. The preliminary December edition of the
university’s consumer sentiment index fell 1.7 points from its final November
reading to a mark of 96.8.2
TWO OF THREE
MAJOR INDICES RISE
Once again, the Nasdaq Composite gave up ground across
five trading sessions while the S&P 500 and Dow Jones Industrial
Average advanced. The tech benchmark lost only 0.11% last week on its way to
a 6,840.08 Friday close. The same stretch brought gains of 0.40% for the Dow
and 0.35% for the S&P; their respective Friday settlements were 24,329.16
and 2,651.50. Dropping 16.19% last week,
the CBOE VIX volatility gauge went back under 10, closing Friday at 9.58.
Settling at 1,521.72 Friday, the small-cap Russell 2000 lost 1.00% for the
week.3
THIS WEEK: Casey’s General Stores announces Q3 earnings
Monday. Tuesday, the November Producer Price Index comes out, and Verifone presents
Q3 results. The Federal Reserve is widely expected to raise the benchmark
interest rate Wednesday; the November Consumer Price Index also appears for Wall
Street’s consideration. Thursday brings federal government reports on initial
jobless claims and November retail sales, plus earnings from Costco and Jabil
Circuit. A Federal Reserve report on November industrial output arrives Friday.
Sources: wsj.com, bigcharts.com, treasury.gov - 12/8/173,4,5,6
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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|
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. |
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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. The information herein has been derived
from sources believed to be accurate. Please note - investing involves risk,
and past performance is no guarantee of future results. Investments will
fluctuate and when redeemed may be worth more or less than when originally
invested. 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 market indices discussed are unmanaged and are not
illustrative of any particular investment. Indices do not incur management
fees, costs and expenses, and cannot be invested into directly. All economic
and performance data is historical and not indicative of future results. The
Dow Jones Industrial Average is a price-weighted index of 30 actively traded
blue-chip stocks. The NASDAQ Composite Index is a 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 a market-cap weighted index composed of the common stocks of
500 leading companies in leading industries of the U.S. economy. The Russell 2000 measures the performance of
approximately 2000 small-cap companies in the Russell 3000 Index, which is
made up of 3000 of the biggest U.S. stocks. The CBOE Volatility Index®
(VIX® Index®) is a key measure of market expectations
of near-term volatility conveyed by S&P 500 stock index option prices. The
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. MarketingPro, Inc. is not affiliated with
any person or firm that may be providing this information to you. 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 - fortune.com/2017/12/08/november-job-report-unemployment-rate/
[12/8/17]
2 - briefing.com/investor/calendars/economic/ [12/8/17]
3 - markets.wsj.com/us
[12/8/17]
4 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F8%2F16&x=0&y=0
[12/8/17]
4 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F8%2F16&x=0&y=0
[12/8/17]
4 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F8%2F16&x=0&y=0
[12/8/17]
4 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F7%2F12&x=0&y=0
[12/8/17]
4 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F7%2F12&x=0&y=0
[12/8/17]
4 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F7%2F12&x=0&y=0
[12/8/17]
4 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F7%2F07&x=0&y=0
[12/8/17]
4 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F7%2F07&x=0&y=0
[12/8/17]
4 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F7%2F07&x=0&y=0
[12/8/17]
5 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield
[12/8/17]
6 -
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll
[12/8/17]
|
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Thursday, December 7, 2017
Economic Update for the week of December 7th, 2017
|
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|
WEEKLY QUOTE
“My
father used to say, ‘Let them see you and not the suit.’”
- Cary Grant
WEEKLY TIP
Did
you just get a great business idea? If you have a product or service offering
that you sense your customers will find irresistible, perhaps they could help
you finance it. Consider presenting it through a subscription model or have customers
pay for the goods or services in advance.
WEEKLY RIDDLE
What
round, white container hides a tasty delight within it and requires no keys
to open?
Last week’s riddle:
Tom figures out that an old grandfather clock is one minute fast
every hour. How can Tom manipulate the clock to tell the correct time twice a
day, while keeping it running at the same pace?
Last week’s answer:
By making it run backwards.
|
December 7
2017
CONSUMERS ACT
ON THEIR CONFIDENCE
A new factoid points out just how well the economy is
doing: the federal government just upgraded its estimate of third-quarter
growth to 3.3%. New data on consumer spending and confidence hints at
fourth-quarter strength. Personal spending improved 0.3% in October following
the 0.9% leap in September, and household wages were up 0.4% in October for a
second straight month. At a mark of 129.5, the Conference Board’s consumer
confidence index reached a YTD peak in November, having soared 9.1 points in
two months.1,2
TWO VERY
POSITIVE HOUSING SIGNALS
New homes are selling strongly. October saw a 6.2% advance
for new home buying according to the Commerce Department, with sales up 30%
in the Northeast; the annualized rate of new home purchases was the best in a
decade. In addition, the National Association of Realtors announced a 3.5%
gain in its pending home sales index for October, a turnaround from the 0.4%
September decline.1,3
MANUFACTURING
SECTOR MAINTAINS A HECTIC PACE
The Institute for Supply Management’s October factory
sector purchasing manager index came in at 58.2 last week – a sign of
significant expansion. That was half a point below its September reading, but
still far above the 50.0 dividing line between sector growth and contraction.4
MORE UPS THAN
DOWNS ON WALL STREET
News from the nation’s capital affected equity index
performance more than anything else as November ebbed into December. When the closing
bell called an end to a rollercoaster trading day on Friday, the weekly
numbers looked better for the Dow Jones Industrial Average (+2.86% to
24,231.59) and S&P 500 (+1.53% to 2,642.22) than for the Nasdaq Composite
(-0.60% to 6,847.59). The CBOE VIX volatility index climbed 18.20% for the
week to 11.43.5
THIS WEEK: Monday, no major economic news items are
scheduled. On Tuesday, a new ISM service sector PMI arrives, plus earnings
from AutoZone, Bank of Montreal, Land’s End, and Toll Brothers. Wednesday,
ADP issues its November payrolls report; investors also review earnings from
American Eagle Outfitters, Analogic, H&R Block, Broadcom, Fred’s,
Hudson’s Bay Co., and Lululemon Athletica. Thursday offers the latest
Challenger job-cut report, a new weekly initial claims report, and earnings
from Dell Technologies, Dollar General, and Toro. Wall Street considers the
Department of Labor’s November employment report Friday along with the
initial University of Michigan consumer sentiment index for December.
Sources: wsj.com, bigcharts.com, treasury.gov - 12/1/175,6,7,8
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. The information herein has been
derived from sources believed to be accurate. Please note - investing
involves risk, and past performance is no guarantee of future results.
Investments will fluctuate and when redeemed may be worth more or less than
when originally invested. 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 market indices discussed
are unmanaged and are not illustrative of any particular investment. Indices
do not incur management fees, costs and expenses, and cannot be invested into
directly. All economic and performance data is historical and not indicative
of future results. The Dow Jones Industrial Average is a price-weighted index
of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is a
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 a market-cap weighted index
composed of the common stocks of 500 leading companies in leading industries
of the U.S. economy. 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. MarketingPro, Inc. is not
affiliated with any person or firm that may be providing this information to
you. 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/economy-politics/calendars/economic
[12/1/17]
2 - bloomberg.com/quote/CONCCONF:IND [12/1/17]
3 - thestreet.com/story/14403381/1/with-real-sector-booming-what-housing-sector-stocks-will-pop-.html
[11/27/17]
4 - instituteforsupplymanagement.org/ismreport/mfgrob.cfm?SSO=1 [12/1/17]
5 - markets.wsj.com/us
[12/1/17]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F1%2F16&x=0&y=0
[12/1/17]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F1%2F16&x=0&y=0
[12/1/17]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F1%2F16&x=0&y=0
[12/1/17]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F30%2F12&x=0&y=0
[12/1/17]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F30%2F12&x=0&y=0
[12/1/17]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F30%2F12&x=0&y=0
[12/1/17]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F30%2F07&x=0&y=0
[12/1/17]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F30%2F07&x=0&y=0
[12/1/17]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F30%2F07&x=0&y=0
[12/1/17]
7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield
[12/1/17]
8 -
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll
[12/1/17]
|
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