Economic Update for the week of November 30th, 2017

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “There are two ways of spreading light: to be the candle or the mirror that reflects it.”       - Edith Wharton            WEEKLY TIP               Some investors play a guessing game: they watch Wall Street and try to pick future winners. Other investors recognize that diversification may improve their chances of holding shares in such companies without a lot of guessing.          WEEKLY 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 riddle: They can darken the dark; they can also lighten the intensity of the light. What are they?      Last week’s answer: Sunglasses.	November 30, 2017     CONSUMER SENTIMENT DECLINES FOR NOVEMBER The University of Michigan’s monthly gauge of how households perceive current and future economic conditions ended the month at a mark of 98.5. Compared to the 100.7 final October reading, this was a disappointment. Still, the index was up 5.0 points year-over-year. Richard Curtin, the economist in charge of the consumer survey, noted that the index has hovered near “the highest levels since 2004” since January.1     HOME BUYING GETS A FALL BOOST Existing home sales rose 2.0% in October, surpassing the consensus 0.7% gain forecast by analysts polled by Investing.com. Elsewhere in its latest monthly report, the National Association of Realtors revised September’s minor advance in home buying down to 0.4%.2    LEADING INDICATORS TAKE A MAJOR LEAP After a decline of 0.2% in September, the Conference Board’s index of leading economic indicators soared 1.2% for October. This was double the gain forecast in a Reuters survey of economists. This surge in the 10-component index may signal an impressive fourth quarter.3    A NEW MILESTONE FOR A MARKET BENCHMARK Stocks regained their momentum in time for Thanksgiving. During an abbreviated trading week, the S&P 500 settled above 2,600 for the first time, closing at 2,602.42 Friday and going +0.93% across three-and-a-half days. Weekly gains also came for the Nasdaq Composite (1.57%) and the Dow Jones Industrial Average (0.86%); the Nasdaq finished the week at 6,889.16; the Dow, at 23,557.99. The Nasdaq was up 5.07% month-over-month as of Friday’s closing bell.4,5        THIS WEEK: Monday, the Census Bureau presents data on October new home sales. The latest S&P/Case-Shiller home price index and the October Conference Board consumer confidence index both appear Tuesday. On Wednesday, Federal Reserve chair Janet Yellen testifies on the U.S. economic outlook in Congress, and investors also consider the second federal government take on Q3 GDP, a new Fed Beige Book, and the NAR’s latest pending home sales index. October personal spending data, the October PCE price index, and a new initial unemployment claims report arrive Thursday. The Institute for Supply Management releases its November snapshot of the U.S. factory sector Friday.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +19.20 +23.00 +16.22 +8.15 NASDAQ +27.98 +27.60 +26.44 +16.53 S&P 500 +16.24 +17.58 +16.94 +8.06 REAL YIELD 11/24 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.50% 0.47% -0.72% 1.63%   Sources: wsj.com, bigcharts.com, treasury.gov - 11/24/175,6,7,8 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 - sca.isr.umich.edu/ [11/22/17] 2 - investing.com/economic-calendar/existing-home-sales-891 [11/22/17] 3 - cnbc.com/2017/11/20/october-leading-indicators-index.html [11/20/17] 4 - finance.google.com/finance?q=INDEXSP%3A.INX&ei=02cYWuG2DYfSjAHDvqqQDA [11/24/17] 5 - markets.wsj.com/us [11/24/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F25%2F16&x=0&y=0 [11/24/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F25%2F16&x=0&y=0 [11/24/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F25%2F16&x=0&y=0 [11/24/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F23%2F12&x=0&y=0 [11/24/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F23%2F12&x=0&y=0 [11/24/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F23%2F12&x=0&y=0 [11/24/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F23%2F07&x=0&y=0 [11/24/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F23%2F07&x=0&y=0 [11/24/17] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F23%2F07&x=0&y=0 [11/24/17] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/24/17] 8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/24/17]

Economic Update for the week of November 23rd, 2017

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “Humor is just another defense against the universe.”       - Mel Brooks            WEEKLY TIP               The classic way to balance a household budget is to reduce expenses. But what about earning more money? In this strong economy, consider asking for a raise at work or creating another income stream.             WEEKLY RIDDLE              They can darken the dark; they can also lighten the intensity of the light. What are they?      Last week’s riddle: Wherever you notice me, I’ll be in a row. My name has no letters, but my initials are MNO. What am I?      Last week’s answer: The 6 key on a phone keypad.	November 23, 2017     YEARLY INFLATION BACK AT 2.0% Consumer costs ticked up just 0.1% in October, according to the Department of Labor. The marginal monthly gain left the annualized increase in the headline Consumer Price Index at 2.0%, down from 2.2% a month earlier. The core CPI has risen 1.8% in 12 months. Gasoline prices influenced the October headline number: they fell 2.4% in October after a 13.1% September leap.1     RETAIL SALES BEAT EXPECTATIONS Analysts surveyed by MarketWatch thought retail sales would be flat for October after their huge surge in September. That was not so. They surprised to the upside with a gain of 0.2%. Minus auto buying, the advance was 0.1%.2    DEVELOPERS PICK UP THE PACE AS FALL BEGINS Newly released Census Bureau data shows a 13.7% monthly increase in housing starts in October as well as a 5.9% rise for building permits. Single-family home construction strengthened 5.3% last month.3    NASDAQ OUTPERFORMS DOW, S&P 500 After a volatile five days, the Nasdaq Composite closed 0.47% higher on November 17 than it had on November 10: 6,782.79. The trading week was tougher for the Dow Jones Industrial Average, which declined 0.27% to 23,358.24, and the S&P 500, which lost 0.13% on the way to a Friday settlement of 2,578.85. The Russell 2000 added 1.19% to wrap up the week at 1,492.82. Wall Street’s hottest index over the past year has been the PHLX Semiconductor – as of Friday, it had gained 49.77% in the past 52 weeks.4        THIS WEEK: Monday, Agilent Technologies and Urban Outfitters reveal Q3 results. On Tuesday, investors consider earnings announcements from Campbell Soup, Hormel Foods, and Lowe’s, plus the latest new home sales report from the National Association of Realtors; also, Federal Reserve chair Janet Yellen stops by New York University for a moderated Q&A session. The Fed releases the minutes from its November policy meeting on Wednesday; Wall Street will also keep an eye out for the final November consumer sentiment index from the University of Michigan, a new report on durable goods orders, and earnings from Deere & Co. On Thursday, U.S. financial markets are closed for Thanksgiving. Friday, Wall Street reopens for a shortened trading session ending at 1:00pm EST.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +18.19 +23.56 +17.11 +7.73 NASDAQ +26.00 +27.16 +27.55 +15.72 S&P 500 +15.19 +17.91 +17.93 +7.68 REAL YIELD 11/17 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.49% 0.42% -0.81% 1.80%   Sources: wsj.com, bigcharts.com, treasury.gov - 11/17/174,5,6,7 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 - cnbc.com/2017/11/15/us-consumer-price-index-oct-2017.html [11/15/17] 2 - marketwatch.com/economy-politics/calendars/economic [11/17/17] 3 - builderonline.com/money/economics/housing-starts-permits-jump-in-october_o [11/17/17] 4 - markets.wsj.com/us [11/17/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F17%2F16&x=0&y=0 [11/17/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F17%2F16&x=0&y=0 [11/17/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F17%2F16&x=0&y=0 [11/17/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F16%2F12&x=0&y=0 [11/17/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F16%2F12&x=0&y=0 [11/17/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F16%2F12&x=0&y=0 [11/17/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F16%2F07&x=0&y=0 [11/17/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F16%2F07&x=0&y=0 [11/17/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F16%2F07&x=0&y=0 [11/17/17] 6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/17/17] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/17/17]

Economic Update for the week of November 15th, 2017

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “I have found the best way to give advice to your children is to find out what they want and then advise them to do it.”       - Harry S. Truman            WEEKLY TIP               You may know a young adult who is so unsure about the investment world that they refrain from investing at all. Share what you know, or introduce them to a financial professional who can provide knowledge.          WEEKLY RIDDLE              Wherever you notice me, I’ll be in a row. My name has no letters, but my initials are MNO. What am I?       Last week’s riddle: I am heartless and spineless, and spend most of my time in the dark. When you encounter me, I may try to sting you. What am I?      Last week’s answer: A jellyfish.	November 15, 2017     CONSUMER SENTIMENT INDEX DECLINES The University of Michigan’s monthly gauge of U.S. household sentiment fell to 97.8 in its initial November edition; analysts polled by Bloomberg estimated it would tick up to 100.8. While the 2.9-point dip from its final October level was the largest drop in a year, the index remained near a 13-year peak. Sixty percent of the consumers surveyed felt that stocks would rise in 2018.1     Q3 Earnings: A LOOK AT THE SCORECARD As of Friday, 87% of S&P 500 companies had reported third-quarter earnings. An analysis from Zacks Investment Research reveals that 73% have topped earnings forecasts; 67% have surpassed revenue estimates. So far, the earnings growth rate for S&P 500 firms in the third quarter is 6.8%, with revenues rising 6.2%. Zacks expects total earnings for the quarter to be 6.2% higher than Q3 2016, with year-over-year income growth at 5.7%.2    OIL CAPS OFF A STRONG WEEK Light sweet crude rose to its highest level in 28 months last week before settling slightly lower: $56.67 was the NYMEX price at Friday’s NYSE closing bell. At that time, WTI crude was up 1.8% from its November 3 close.3    A SLIGHT PULLBACK ON WALL STREET Uncertainty about the potential for tax code reform led to some weakness in stocks over the past five trading days. The S&P 500 fell 0.21% for the week to 2,582.30; the Nasdaq Composite retreated 0.20% to 6,750.94. Blue chips took a deeper loss: the Dow Jones Industrial Average declined 0.50% to 23,422.21. The week was much rougher for the Russell 2000, which gave back 1.31% on the way to a Friday settlement of 1,475.27. The CBOE VIX ended the week at 11.29, rising 23.52% in five days.4        THIS WEEK: Monday, Tyson Foods presents Q3 results. On Tuesday, the October Producer Price Index arrives as well as earnings from Aramark and Beazer Homes. Wall Street looks at last month’s retail sales figures and Consumer Price Index on Wednesday, plus earnings from Cisco, L Brands, NetEase, and Target. Thursday, reports on initial jobless claims and October industrial output complement earnings from Best Buy, Gap, Viacom, and Walmart. Friday, the Census Bureau issues a report on October housing starts and building permits.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +18.52 +24.53 +16.55 +7.96 NASDAQ +25.41 +29.61 +26.48 +15.69 S&P 500 +15.34 +19.14 +17.43 +7.76 REAL YIELD 11/10 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.52% 0.27% -0.83% 1.82%   Sources: wsj.com, bigcharts.com, treasury.gov - 11/10/174,5,6,7 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 - bloomberg.com/news/articles/2017-11-10/u-s-consumer-sentiment-unexpectedly-drops-amid-price-concerns [11/10/17] 2 - nasdaq.com/article/7-retail-stocks-to-steal-the-show-with-q3-earnings-beat-cm875644 [11/10/17] 3 - marketwatch.com/story/oil-steadies-after-climb-toward-2-year-highs-2017-11-10 [11/10/17] 4 - markets.wsj.com/us [11/10/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F10%2F16&x=0&y=0 [11/10/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F10%2F16&x=0&y=0 [11/10/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F10%2F16&x=0&y=0 [11/10/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F9%2F12&x=0&y=0 [11/10/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F9%2F12&x=0&y=0 [11/10/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F9%2F12&x=0&y=0 [11/10/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F9%2F07&x=0&y=0 [11/10/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F9%2F07&x=0&y=0 [11/10/17] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F9%2F07&x=0&y=0 [11/10/17] 6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/10/17] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/10/17]