Economic Update for the week of August 30th, 2017

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WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “Knowledge is love and light and vision.”       - Helen Keller            WEEKLY TIP               In retirement, arranging income distributions with an eye on tax efficiency could help your savings last longer. Smaller, tax-deferred account distributions will make your annual income taxes more bearable.          WEEKLY RIDDLE              Jon drove past the college at 60 mph, but he wasn’t pulled over or cited, even though a police officer was right behind him. Why?       Last week’s riddle: I follow you during the daytime, but at night I can’t be seen. What am I?             Last week’s answer: Your shadow.	August 30, 2017     SUMMER SLOWDOWN HITS HOUSING MARKET Low inventory and high prices are taking a toll on existing home sales. They declined 1.3% in July, according to the National Association of Realtors, making a second straight monthly retreat. In the past 12 months, the number of existing homes on the market has shrunk 9.0%, while the median sale price has risen 6.2% to $258,300. While resales were up 2.1% year-over-year, the seasonally adjusted annual sales rate reached a 2017 low in July. Census Bureau data showed new home sales falling 9.4% last month.1,2   GASOLINE FUTURES RISE, BUT OIL FUTURES FALL On the NYMEX, unleaded gasoline gained 2.6% last week, with prices briefly reaching a 5-month peak. Even as oncoming Hurricane Harvey posed a threat to Gulf Coast oil output, crude lost 1.6% last week to settle at $47.87 Friday.3     ORDERS FOR DURABLES DECLINE Hard goods orders retreated 6.8% for July; the decrease was 7.8% with defense orders factored out. However, core orders (which do not include transportation equipment purchases) were up 0.5% last month.1   STOCKS ADVANCE August could end up being a down month for the S&P 500, but the index was up for the week. It rose 0.72% in five days to 2,443.05. The Dow and Nasdaq also advanced last week: the blue chips added 0.64% to close at 21,813.67 Friday, and Wall Street’s top tech benchmark gained 0.79% to 6,265.64.4      THIS WEEK: Nothing major is slated for Monday. Tuesday, the latest Conference Board consumer confidence index appears, along with the June S&P/Case-Shiller home price index and earnings from Bank of Montreal, Best Buy, and H&R Block. On Wednesday, Wall Street scrutinizes ADP’s August payroll report, the second estimate of Q2 GDP, and earnings news from Analog Devices, Bob Evans Farms, Chico’s FAS, Five Below, and Shoe Carnival. Thursday sees the release of July personal spending data, the Federal Reserve’s July PCE price index, the August Challenger job-cut report, the NAR’s July pending home sales index, new initial claims numbers, and earnings from Campbell Soup, Dollar General, Land’s End, and Lululemon Athletica. The Department of Labor’s August jobs report, the final August University of Michigan consumer sentiment index, and the August ISM factory PMI all arrive on Friday.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +10.38 +18.24 +13.16 +6.30 NASDAQ +16.39 +20.21 +20.82 +14.32 S&P 500 +9.12 +12.45 +14.63 +6.51 REAL YIELD 8/25 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.42% 0.09% -0.60% 2.40%   Sources: wsj.com, bigcharts.com, treasury.gov - 8/25/174,5,6,7 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 - investing.com/economic-calendar/ [8/25/17] 2 - inman.com/2017/08/24/existing-home-sales-dip-for-second-month-in-a-row/ [8/24/17] 3 - marketwatch.com/story/gasoline-ends-barely-higher-after-touching-a-5-month-high-2017-08-25 [8/25/17] 4 - markets.wsj.com/us [8/25/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F25%2F16&x=0&y=0 [8/25/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F25%2F16&x=0&y=0 [8/25/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F25%2F16&x=0&y=0 [8/25/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F24%2F12&x=0&y=0 [8/25/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F24%2F12&x=0&y=0 [8/25/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F24%2F12&x=0&y=0 [8/25/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F24%2F07&x=0&y=0 [8/25/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F24%2F07&x=0&y=0 [8/25/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F24%2F07&x=0&y=0 [8/25/17] 6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/25/17] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/25/17]

Economic Update for the week of August 22nd, 2017

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “One man practicing sportsmanship is better than a hundred teaching it.”       - Knute Rockne            WEEKLY TIP               Business owners should dedicate one hour per month to collect and sort receipts. This is vital for independent contractors, whose tax liability is linked to the expenses they deduct.          WEEKLY RIDDLE              I follow you during the daytime, but at night I can’t be seen. What am I?       Last week’s riddle: Shake me and I’ll do what you want, but first you must extract me from the earth. I may be on the tip of your tongue and over your shoulder. What am I?             Last week’s answer: Salt.	August 22, 2017     RETAIL SALES RISE IMPRESSIVELY In July, they were up 0.6% – the largest monthly increase seen so far in 2017. This gain suggests the economy has gathered momentum in the third quarter. Core retail sales (which do not include food, construction, gas, and auto buying) advanced 0.6% for July as well. The Department of Commerce also revised some spring numbers: retail purchases improved 0.3% in June and were flat a month earlier.1   AN UPTURN FOR CONSUMER SENTIMENT The University of Michigan’s monthly gauge of how U.S. households view current and future economic conditions rose 4.5 points in its preliminary August edition to 97.6. Not since January has the index been so high. In the past 12 months, it has gained 8.7 points.2     HOUSING STARTS RETREAT Groundbreaking decreased 4.8% in July, according to the latest monthly Census Bureau snapshot of American construction activity. Building permits were also down for the month, with the pace of permits issued declining by 4.1%.3   WALL STREET BENCHMARKS SEE WEEKLY LOSSES The Barcelona terror attack and concerns over the federal government’s potential to adjust U.S. economic policy impeded equities last week. During August 14-18, the S&P 500 lost 0.65%, settling at 2,425.55 Friday. In its fourth straight weekly retreat, the Nasdaq Composite fell 0.64% to 6,216.53. Like the S&P, the Dow Jones Industrial Average took a second straight weekly loss, ceding 0.84% to reach 21,674.51. In contrast, the Dow Jones Utility Average notched a 1.09% gain across five days. At the end of Friday’s trading session, gold stood at $1,291.60, and WTI crude, at $48.51.4,5      THIS WEEK: Ruby Tuesday announces earnings on Monday. Coty, DSW, Intuit, Kirkland’s, La-Z-Boy, Medtronic, Salesforce, and Toll Brothers join the earnings parade Tuesday. Wednesday offers a Census Bureau report on July new home sales and earnings from American Eagle Outfitters, Eaton Vance, Express, HP, Lowe’s, Regis Corp., and Williams-Sonoma. Wall Street learns about July existing home sales Thursday, while also scrutinizing new initial unemployment claims numbers and earnings news from Abercrombie & Fitch, Autodesk, Broadcom, Burlington Stores, Dollar Tree, GameStop, Hormel Foods, Michaels Companies, J.M. Smucker, Staples, Toro, and Ulta Beauty. Federal Reserve chair Janet Yellen speaks on the topic of “financial stability” at the Kansas City Fed’s annual Jackson Hole economic symposium Friday; investors will also consider a report on July hard goods orders.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +9.67 +16.54 +12.65 +6.57 NASDAQ +15.48 +18.63 +20.41 +14.82 S&P 500 +8.34 +10.90 +14.21 +6.77 REAL YIELD 8/18 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.43% 0.06% -0.43% 2.45%   Sources: wsj.com, bigcharts.com, treasury.gov - 8/18/175,6,7,8 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 - reuters.com/article/us-usa-economy-retail-idUSKCN1AV1BZ [8/15/17] 2 - sca.isr.umich.edu/ [8/18/17] 3 - tradingeconomics.com/united-states/housing-starts [8/16/17] 4 - marketwatch.com/story/dow-set-to-fight-for-direction-but-flirts-with-biggest-two-week-drop-in-nearly-a-year-2017-08-18 [8/18/17] 5 - markets.wsj.com/us [8/18/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F18%2F16&x=0&y=0 [8/18/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F18%2F16&x=0&y=0 [8/18/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F18%2F16&x=0&y=0 [8/18/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F17%2F12&x=0&y=0 [8/18/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F17%2F12&x=0&y=0 [8/18/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F17%2F12&x=0&y=0 [8/18/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F17%2F07&x=0&y=0 [8/18/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F17%2F07&x=0&y=0 [8/18/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F17%2F07&x=0&y=0 [8/18/17] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/18/17] 8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/18/17]

Economic Update for the week of August 16th, 2017

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “We are what we pretend to be, so we must be careful what we pretend to be.”       - Kurt Vonnegut, Jr.            WEEKLY TIP               The investment markets experience cycles, and the major indices inevitably see downturns at some point. If you are focused on long-term performance, the good news is that the markets have the potential to rebound in reasonable time. If your portfolio is diversified, that may provide you with some insulation in a correction.          WEEKLY RIDDLE              Shake me, and I’ll do what you want, but first you must extract me from the earth. I may be on the tip of your tongue and over your shoulder. What am I?       Last week’s riddle: What is the only type of “worm” that will never risk ending up on a hook?            Last week’s answer: A bookworm.	August 16, 2017     TAME INFLATION PERSISTS Can the Federal Reserve justify another interest rate hike in the second half of 2017? Given weak inflation pressure, maybe not. The central bank has set a 2% yearly inflation target, but the Consumer Price Index rose only 0.1% in July, resulting in a 1.7% year-over-year gain. Core consumer prices rose 0.1% for a fourth consecutive month in July, so annualized core inflation was also at 1.7%. The Producer Price Index fell 0.1% last month; analysts polled by Briefing.com expected a 0.2% rise.1,2   ANALYSIS: EARNINGS GROW AT a 10% PACE More than 90% of companies in the S&P 500 have now reported second-quarter results. FactSet, the respected financial analytics firm, now projects a blended earnings growth rate of 10.2% for the S&P 500 for the second quarter, along a with 5.1% blended sales growth rate. S&P component firms generating less than 50% of their sales outside the U.S., however, are set to record 14.0% blended earnings growth and 6.0% blended revenue growth.3     THE PRICE OF GOLD RISES At Friday’s close, the yellow metal hit a 2-month high of $1,294.00 on the COMEX as investors looked away from equities. Gold gained 2.3% on the week.4   TURBULENCE FOR WALL STREET Diplomatic tensions sent stocks lower last week. Across August 7-11, the Dow Jones Industrial Average declined 1.06% to 21,858.32; the S&P 500, 1.43% to 2,441.32; the Nasdaq Composite, 1.50% to 6,256.56. Volatility certainly came back: the CBOE VIX jumped 53.44% to end the week at 15.39.5      THIS WEEK: On Monday, Cumulus Media and Sysco report quarterly results. Tuesday brings July retail sales numbers and earnings from Advance Auto Parts, Agilent, Coach, Dick’s Sporting Goods, Home Depot, TJX, and Urban Outfitters. On Wednesday, minutes from the July Federal Reserve policy meeting appear; Wall Street will also interpret a report on July housing starts and building permits and earnings news from Cisco, L Brands, NetApp, Stein Mart, and Target. Fresh reports on initial jobless claims and industrial production roll in Thursday, complemented by earnings from Alibaba Group, America’s Car-Mart, Applied Materials, Bon-Ton Stores, Gap, Ross Stores, Sportsman’s Warehouse, Stage Stores, and Walmart. Friday, investors consider earnings from Deere & Co. and Estee Lauder and the preliminary August consumer sentiment index from the University of Michigan.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +10.60 +17.43 +13.10 +6.51 NASDAQ +16.23 +19.66 +21.42 +14.58 S&P 500 +9.04 +11.69 +14.73 +6.79 REAL YIELD 8/11 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.40% 0.10% -0.60% 2.56%   Sources: wsj.com, bigcharts.com, treasury.gov - 8/11/175,6,7,8 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 - reuters.com/article/us-usa-economy-inflation-idUSKBN1AR19S [8/11/17] 2 - briefing.com/investor/calendars/economic/2017/08/07-11 [8/11/17] 3 - insight.factset.com/sp-500-companies-with-more-global-exposure-reported-higher-earnings-growth-in-q2 [8/11/17] 4 - marketwatch.com/story/gold-marks-highest-finish-since-early-june-up-more-than-2-for-the-week-2017-08-11 [8/11/17] 5 - markets.wsj.com/us [8/11/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F11%2F16&x=0&y=0 [8/11/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F11%2F16&x=0&y=0 [8/11/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F11%2F16&x=0&y=0 [8/11/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F10%2F12&x=0&y=0 [8/11/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F10%2F12&x=0&y=0 [8/11/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F10%2F12&x=0&y=0 [8/11/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F10%2F07&x=0&y=0 [8/11/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F10%2F07&x=0&y=0 [8/11/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F10%2F07&x=0&y=0 [8/11/17] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/11/17] 8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/11/17]