Economic Update for the week of June 26th, 2017

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “He that will not sail until all dangers are over, will never put to sea.”       - Thomas Fuller            WEEKLY TIP               If you are divorcing, make the effort to collect, sort, and catalogue as many financial documents as you can find. As you move further into divorce proceedings, these records may become crucially important.          WEEKLY RIDDLE              Tom tells Phillip that a faded, worn ten-dollar bill is worth more than a newer one. In what way is he correct?     Last week’s riddle: What are you able to keep after you give it to someone?        Last week’s answer: Your word.	June 26, 2017     MORE HOMES MOVED IN MAY In a pleasant surprise for economists, both new and existing home sales picked up last month. The National Association of Realtors announced a 1.1% gain for resales, with the average house for sale spending only 27 days on the market. New home buying increased 2.9% in May, resulting in an annualized gain of 8.9%. The average sale price for a new home was $406,400, a record.1     LEADING INDICATORS IMPROVE The Conference Board’s Leading Economic Index rose 0.3% for May, following gains of 0.2% for April and 0.4% for March. Most of the index’s components were positive for May and a steepening interest rate spread, a climb for the Institute for Supply Management’s new orders index, and greater consumer optimism about business and economic conditions were major factors. The LEI was up 3.5% year-over-year through May.2   CRUDE IS ON ITS LONGEST LOSING STREAK IN 2 YEARS WTI crude settled at $43.01 at Friday’s closing bell, down 4.4% from the end of last week. This decline marked the fifth straight weekly retreat for oil; an 8-week losing streak ended in August 2015. Oil is now in a bear market.3   STOCKS ADVANCE All three of the major U.S. equity indices had made 5-day gains by the time trading wrapped up on Friday. The Dow Jones Industrial Average had added just 0.05%, advancing to 21,394.76, and the S&P 500 had improved 0.21% to 2,438.30. In contrast, the Nasdaq Composite rose 1.84% to 6,265.25. Even after this last sideways week, the Dow 30 ended Friday’s session up 1.49% month-over-month.4   THIS WEEK: On Monday, the Census Bureau shares data on May hard goods orders. Tuesday sees the release of the latest consumer confidence index from the Conference Board, plus earnings reports from Darden Restaurants and KB Home. Wednesday, the NAR puts out its May pending home sales report, and Franklin Covey, General Mills, Monsanto, Paychex, and Pier 1 announce earnings. The third estimate of Q1 GDP appears Thursday along with a new initial unemployment claims report and earnings announcements from ConAgra Brands, Constellation Brands, Micron Technology, Nike, and Walgreens Boots Alliance. The final June University of Michigan consumer sentiment index, May consumer spending figures, and the May PCE price index arrive on Friday.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +8.26 +18.79 +13.85 +6.01 NASDAQ +16.39 +27.60 +23.32 +14.20 S&P 500 +8.91 +15.38 +16.53 +6.22 REAL YIELD 6/23 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.45% 0.24% -0.42% 2.70%   Sources: wsj.com, bigcharts.com, treasury.gov - 6/23/174,5,6,7 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. 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 - foxbusiness.com/features/2017/06/23/new-home-sales-rise-in-may-as-prices-hit-record-level-update.html [6/23/17] 2 - haver.com/comment/comment.html?c=170622d.html [6/22/17] 3 - marketwatch.com/story/oil-prices-edge-up-as-big-producers-stick-to-cuts-2017-06-23-6103497/ [6/23/17] 4 - markets.wsj.com/us [6/23/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F23%2F16&x=0&y=0 [6/23/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F23%2F16&x=0&y=0 [6/23/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F23%2F16&x=0&y=0 [6/23/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F22%2F12&x=0&y=0 [6/23/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F22%2F12&x=0&y=0 [6/23/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F22%2F12&x=0&y=0 [6/23/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F22%2F07&x=0&y=0 [6/23/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F22%2F07&x=0&y=0 [6/23/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F22%2F07&x=0&y=0 [6/23/17] 6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [6/23/17] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [6/23/17]

Economic Update for the week of June 21, 2017

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE               “We learn by example and by direct experience because there are real limits to the adequacy of verbal instruction.”      - Malcolm Gladwell           WEEKLY TIP               Do you have a child heading off to college this fall? Financially, it may be time for his or her first credit card. One idea: have your son or daughter sign up for a basic, low-limit card through a credit union or independent bank and have the monthly statements sent to you.          WEEKLY RIDDLE             What are you able to keep after you give it to someone?    Last week’s riddle: I often stand straight and tall. I can illuminate your wall or hall. If you push me, I may fall. What am I?        Last week’s answer: A candle.	June 21, 2017    FED DELIVERS EXPECTED & UNEXPECTED NEWS As Wall Street anticipated, the Federal Reserve raised interest rates on June 14. The Federal Open Market Committee voted 8-1 to take the benchmark interest rate north by a quarter-point to the 1.00-1.25% range. The Fed also said it would begin to reduce its $4.5 trillion balance sheet at some point “this year” by slowing reinvestments. As a start, it will let $6 billion per month in Treasury holdings run off, along with $4 billion per month in agency debt and mortgage-linked securities. This implies upward pressure on long-term interest rates.1,2        RETAIL SALES, HEADLINE INFLATION BOTH RETREAT The Consumer Price Index declined 0.1% in May, noted the Bureau of Labor Statistics; core consumer inflation rose 0.1%. A bigger May decline came for retail purchases – the Census Bureau said that they fell 0.3% even with car sales factored out.3     HOUSING STARTS SLIP The Census Bureau’s new residential construction snapshot showed groundbreaking at an 8-month low, with total housing starts down 5.5% in May. Total building permits decelerated 4.9% last month to their slowest pace since April 2016.4   GAUGE OF SENTIMENT DESCENDS In its preliminary June edition, the University of Michigan’s consumer sentiment index fell short of expectations. Economists, polled by Briefing.com, forecast a reading of 97.0 for the index, but it came in at 94.5.3   DOW 30 OUTPACES S&P 500 Rising 0.53% in five days, the Dow Jones Industrial Average ended the week at 21,384.28. The S&P 500 made a weekly advance of 0.06% to a Friday close of 2,433.15. Tech shares kept selling off, resulting in the Nasdaq Composite’s 0.90% weekly descent to a Friday settlement of 6,151.76. The Dow Jones Utility Average had the best week among consequential U.S. equity indices, rising 1.75%.5   THIS WEEK: Nothing major is scheduled for Monday. Tuesday, Adobe Systems, FedEx, La-Z-Boy, Lennar, and Red Hat all present earnings. Wednesday offers May existing home sales figures and earnings announcements from CarMax, Oracle, and Winnebago. Earnings news from Accenture, Barnes & Noble, Bed Bath & Beyond, Carnival, and Sonic arrives Thursday, plus new initial jobless claims numbers. Friday, investors consider May new home sales and Q2 results from Finish Line.   % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +8.21 +20.59 +13.50 +5.68 NASDAQ +14.28 +26.97 +22.83 +13.42 S&P 500 +8.68 +17.09 +16.24 +5.87 REAL YIELD 6/16 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.49% 0.15% -0.54% 2.73%   Sources: wsj.com, bigcharts.com, treasury.gov - 6/16/175,6,7,8 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.
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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 - marketwatch.com/story/fed-raises-interest-rates-to-reduce-balance-sheet-this-year-2017-06-14 [6/14/17] 2 - businessinsider.com/federal-reserve-rate-hike-plan-to-unwind-45-trillion-balance-sheet-2017-6 [6/14/17] 3 - briefing.com/investor/calendars/economic/2017/06/12-16 [6/16/17] 4 - reuters.com/article/us-usa-economy-idUSKBN197277 [6/16/17] 5 - markets.wsj.com/us [6/16/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F16%2F16&x=0&y=0 [6/16/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F16%2F16&x=0&y=0 [6/16/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F16%2F16&x=0&y=0 [6/16/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F15%2F12&x=0&y=0 [6/16/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F15%2F12&x=0&y=0 [6/16/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F15%2F12&x=0&y=0 [6/16/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F15%2F07&x=0&y=0 [6/16/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F15%2F07&x=0&y=0 [6/16/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F15%2F07&x=0&y=0 [6/16/17] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [6/16/17] 8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [6/16/17]

Economic Update for the week of June 14th, 2017

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE               “Shut out all of your past except that which will help you weather your tomorrows.”      - William Osler           WEEKLY TIP               One option that might help you leave more of your assets to charity when you pass away: put provisions in your estate planning documents that allow heirs to individually disclaim some or all of their inheritance in favor of a charitable donation. The disclaimed portion of the inheritance that is donated to charity will not be subject to estate tax.           WEEKLY RIDDLE             I often stand straight and tall. I can illuminate your wall or hall. If you push me, I may fall. What am I?    Last week’s riddle: What 10-letter word has three consecutive pairs of letters in its middle? (It starts with the letter B.)        Last week’s answer: Bookkeeper.	June 14, 2017    AN UPBEAT REPORT ON THE SERVICE SECTOR The Institute for Supply Management’s May non-manufacturing purchasing manager index displayed a reading of 56.9 last week, showing expansion in U.S. service industries for an eighty-ninth straight month. Although the gauge declined 0.6 points from its April mark, it signaled a solid pace of growth. The index’s employment component rose 6.4 points to a mark of 57.8, as 15 industries added workers in May. The PMI has averaged a reading of 55.9 over the past 12 months.1         FACTORY ORDERS DECLINED IN APRIL According to a new Census Bureau report, they decreased 0.2%. That marked their first month-over-month retreat of 2017. The 0.2% gain for March factory orders, however, was revised up to 1.0%. Orders increased by an average of 0.7% per month in the first quarter.2     ABUNDANT SUPPLY HURTS OIL WTI crude lost 3.8% during June 5-9, tumbling to a $45.83 settlement on the NYMEX Friday. The U.S. rig count rose again last week, as it has every week for the past five months. While OPEC has vowed to reduce production by 1.2 million barrels per day, daily American oil output has increased by almost 600,000 barrels, so far, this year.3   TWO MAJOR INDICES RETREAT; A THIRD RISES Last week, the Nasdaq Composite fell 1.55% to 6,207.92, while the S&P 500 dipped 0.30% to 2,431.76. On the other hand, the Dow Jones Industrial Average managed to gain 0.31% on its way to a Friday close of 21,271.28. The CBOE VIX volatility index soared 17.03% for the week, settling Friday at 11.41.4 THIS WEEK: Nothing major is scheduled for Monday. The Bureau of Labor Statistics releases the May Producer Price Index on Tuesday; in addition, H&R Block and Wiley announce quarterly results. Wednesday, investors react to the Federal Reserve’s latest monetary policy decision, the May Consumer Price Index, the May retail sales report, and quarterly results from Jabil and Liberty Tax. A new initial jobless claims report arrives on Thursday, plus a report on May industrial output and earnings announcements from Bob Evans Farms and Kroger. On Friday, the University of Michigan’s preliminary June consumer sentiment index appears, along with data on May housing starts and building permits.   % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +7.63 +18.27 +13.89 +5.85 NASDAQ +15.32 +25.19 +23.44 +14.12 S&P 500 +8.62 +14.95 +16.69 +6.13 REAL YIELD 6/9 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.43% 0.12% -0.50% 2.69%   Sources: wsj.com, bigcharts.com, treasury.gov - 6/9/174,5,6,7 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. 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 - instituteforsupplymanagement.org/ISMReport/NonMfgROB.cfm [6/5/17] 2 - briefing.com/Investor/Calendars/Economic/Releases/facord.htm [6/5/17] 3 - marketwatch.com/story/oil-prices-pinned-down-by-strong-dollar-supply-worries-2017-06-09 [6/9/17] 4 - markets.wsj.com/us [6/9/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F9%2F16&x=0&y=0 [6/9/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F9%2F16&x=0&y=0 [6/9/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F9%2F16&x=0&y=0 [6/9/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F8%2F12&x=0&y=0 [6/9/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F8%2F12&x=0&y=0 [6/9/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F8%2F12&x=0&y=0 [6/9/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F8%2F07&x=0&y=0 [6/9/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F8%2F07&x=0&y=0 [6/9/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F8%2F07&x=0&y=0 [6/9/17] 6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [6/9/17] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [6/9/17]