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WEEKLY QUOTE
“Understanding
human needs is half the job of meeting them.”
- Adlai Stevenson
WEEKLY TIP
Risk
and reward go hand in hand when investing. For that reason, it is crucial to
define your risk tolerance limits. When investors lose their tolerance, they
can make emotional decisions they may later regret.
WEEKLY RIDDLE
Cheryl
was driving a black car. Its lights were off, and there was no moonlight. A
cat walked into the middle of the road. How did she know to stop?
Last week’s riddle:
No matter the time of day, it can open what you can’t. If not for
it, on your front porch you would stand. What is it?
Last week’s answer:
A key.
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February 14,
2018
WALL STREET
SEES ITS FIRST CORRECTION SINCE 2016
On Friday, the S&P 500 settled at 2,619.55, down 5.16%
for the week. Thursday, it entered correction territory just nine days after its
January 26 record close. The Dow Jones Industrial Average made even bigger headlines
last week by taking two 1,000-point drops within four days, the second
occurring Thursday.1,2
Last Monday, U.S. equities took their largest single-session
fall in more than six years as higher interest rates for bonds and inflation
concerns strengthened selling pressure. To add to the anxiety, two of the
financial industry’s top ‘roboadvisor’ websites crashed during Monday’s rout,
frustrating individual investors. The Dow retreated 5.21% for the week to
24,190.90, while the Nasdaq Composite slid 5.06% to 6,874.49.1,3
SERVICE SECTOR
GREW RAPIDLY IN JANUARY
At a mark of 59.9, the Institute for Supply Management’s latest
purchasing manager index for the service sector bettered the forecast of
analysts polled by Briefing.com, who expected a small climb to 56.7. The
index was at 56.0 for December.4
EARNINGS LOOK
STRONG
FactSet’s latest analysis of corporate profits shows a 14%
Q4 earnings growth rate and a Q4 sales growth rate of 8.0% for the S&P
500. Through Friday, 65% of S&P 500 companies had reported quarterly
results.5
A RETREAT FOR CRUDE
Oil also had a poor week, descending 9.6% in five trading
days to a Friday NYMEX settlement price of $59.20. It rebounded Friday from
an intraday low of $58.07.6
THIS WEEK: Heineken and Loews Corp. announce earnings
on Monday. Baidu, Blue Apron, Denny’s, Kemper, MetLife, PepsiCo, Under
Armour, Voya Financial, and Weibo present results Tuesday. Investors review
January’s Consumer Price Index and retail sales report Wednesday, along with
earnings news from Agilent Technologies, Applied Materials, Cisco, Credit
Suisse, Hilton Worldwide Holdings, Hyatt Hotels, Marathon Oil, Marriott, Molson
Coors, TripAdvisor, and Wyndham Worldwide. On Thursday, the earnings parade
includes Avon, CBS, Nestlé, Shake Shack, Sonoco, and Waste Management;
reports on initial jobless claims and January wholesale inflation also
surface. The University of Michigan’s initial February consumer sentiment
index arrives Friday, plus data on January construction activity and
industrial production and earnings from Campbell Soup, Coca-Cola, Deere &
Co., Enbridge, J.M. Smucker, Kraft Heinz, Ryder Systems, and Vulcan Materials.
Sources: wsj.com, bigcharts.com, treasury.gov - 2/9/181,7,8,9
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 -
markets.wsj.com/us [2/9/18]
2 - seattletimes.com/business/us-stocks-snap-higher-a-day-after-entering-a-correction/
[2/9/18]
3 - businessinsider.com/betterment-and-wealthfront-crash-during-market-bloodbath-2018-2
[2/5/18]
4 - briefing.com/investor/calendars/economic/2018/02/05-09
[2/9/18]
5 -
insight.factset.com/sp-500-companies-with-more-global-exposure-reporting-higher-earnings-growth-in-q4
[2/9/18]
6 -
cnbc.com/2018/02/09/oil-falls-below-60-for-first-time-in-2018-on-pace-for-big-weekly-drop.html
[2/9/18]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F9%2F17&x=0&y=0
[2/9/18]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F9%2F17&x=0&y=0
[2/9/18]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F9%2F17&x=0&y=0
[2/9/18]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F8%2F13&x=0&y=0
[2/9/18]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F8%2F13&x=0&y=0
[2/9/18]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F8%2F13&x=0&y=0
[2/9/18]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F8%2F08&x=0&y=0
[2/9/18]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F8%2F08&x=0&y=0
[2/9/18]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F8%2F08&x=0&y=0
[2/9/18]
8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield
[2/9/18]
9 -
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll
[2/9/18]
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Wednesday, February 14, 2018
Economic Update for the week of February 14th, 2018
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