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WEEKLY QUOTE
“Courage
is resistance to fear, mastery of fear – not absence of fear.”
- Mark Twain
WEEKLY TIP
If
at all possible, avoid taking a loan from your workplace retirement plan. If
you withdraw funds from it before age 59½, you will usually incur a penalty,
and you will be drawing down money that should be left to grow and compound
in a tax-favored account.
WEEKLY RIDDLE
You
can crack it, share it, tell it, make it, or play it. What is it? Can you
name it?
Last week’s 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 answer:
She was driving in the daylight.
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February 21,
2018
INFLATION SUDDENLY
INTENSIFIES
The Consumer Price Index rose 0.5% in January, its
greatest month-over-month advance since January 2017. Core inflation (minus
food and energy prices) increased 0.3%, marking the largest monthly gain in
almost 13 years.1
RETAIL SALES PACE
SLOWS
Contradicting perceptions that the economy might be
overheating, retail purchases fell 0.3% in January. Minus car buying, retail
sales would have been unchanged for a second straight month, as a Department
of Commerce revision rendered the previously announced December gain flat.2
DEVELOPERS
BUILT MORE IN JANUARY
Groundbreaking increased 9.7% last month, according to a
Census Bureau report. The first month of the year also brought a 7.4% rise in
building permits.3
TAILWINDS RETURN
TO WALL STREET
In the wake of the correction, the major indices rebounded
nicely last week. The Nasdaq Composite led the way, rising 5.31% to a Friday
settlement of 7,239.47. Bulls also sent the Dow Industrials and S&P 500
much higher: the Dow gained 4.25% on the week to 25,219.38, while the S&P
rose 4.30% to 2,732.22. The CBOE VIX volatility index is certainly on a wild
ride: it fell 33.52% across last week to 19.32, but remained up 75.00% YTD.
In the commodities sector, oil staged a notable comeback, rallying 4.2% in
five days to finish the week at $61.68 on the NYMEX.4,5
THIS WEEK: Monday is Presidents Day: U.S. financial
markets are closed. The earnings roll call for Tuesday includes results from
Cardtronics, Cracker Barrel, Domino’s Pizza, Duke Energy, Fluor, Fresh Del
Monte Produce, Home Depot, HSBC, Medtronic, Noble Energy, Public Storage,
Sempra Energy, Transocean, and Walmart. On Wednesday, Wall Street considers
January existing home sales, minutes from the Federal Reserve’s January
policy meeting, and earnings from Avis Budget Group, Cheesecake Factory, Dish
Network, Garmin, Kaiser Aluminum, Owens Corning, Pandora Media, Roku, Sunoco,
and Wendy’s. A new initial jobless claims report arrives on Thursday, plus
earnings news from Bloomin’ Brands, Chesapeake Energy, Edison International, First
Solar, GoDaddy, Herbalife, Hewlett-Packard, Hormel, Intuit, Planet Fitness,
Wayfair, and Wingstop. Huntsman and KBR present earnings Friday.
Sources: wsj.com, bigcharts.com, treasury.gov - 2/16/184,6,7,8
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 - thestreet.com/story/14488773/1/bond-yields-surge-as-investors-anticipate-rate-hikes-following-inflation-uptick.html
[2/14/18]
2 - marketwatch.com/story/us-retail-sales-slump-in-january---and-december-doesnt-look-so-good-now-either-2018-02-14/
[2/16/18]
3 - investing.com/economic-calendar/ [2/16/18]
4 - markets.wsj.com/us
[2/16/18]
5 - marketwatch.com/story/us-oil-benchmark-aims-for-3-day-win-streak-ahead-of-rig-data-2018-02-16
[2/16/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F16%2F17&x=0&y=0
[2/16/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F16%2F17&x=0&y=0
[2/16/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F16%2F17&x=0&y=0
[2/16/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F15%2F13&x=0&y=0
[2/16/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F15%2F13&x=0&y=0
[2/16/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F15%2F13&x=0&y=0
[2/16/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F15%2F08&x=0&y=0
[2/16/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F15%2F08&x=0&y=0
[2/16/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F15%2F08&x=0&y=0
[2/16/18]
7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield
[2/16/18]
8 -
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll
[2/16/18]
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Wednesday, February 21, 2018
Economic Update for the week of February 21st, 2018
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