Economic Update for the week of May 29th, 2018

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “Imagination and fiction make up more than three quarters of our real life.”        - Simone Weil            WEEKLY TIP               If your child is going to a faraway college this fall, this is the time to investigate housing options. Keep in mind that while off-campus rents may be cheaper than the rent for a dorm unit, utilities, food, and commuting costs may offset the apparent savings.       WEEKLY RIDDLE              Kelsey is 16, and she just learned how to drive. She was on the other side of the road yesterday morning, but did not get a ticket even though a police car saw her. Why?     Last week’s riddle: They come at night without being called. They are lost in the day without being stolen. What are they?       Last week’s answer: Stars.	May 28, 2018     HOME SALES DECLINE Both new and existing home sales weakened in April, according to reports from the Census Bureau and National Association of Realtors. Resales were down 2.5%; new home buying, 1.5%. NAR chief economist Lawrence Yun cited “the utter lack of available listings on the market” as the “root cause” of the retreat in resales. Existing home sales were down 1.4% year-over-year through April; on the other hand, the pace of new home buying improved 8.4% in the same 12 months. Zillow says that existing home values soared 8.7% in the year ending in April; that is the largest annualized jump it has recorded since June 2006.1,2      CONSUMER SENTIMENT TURNS SLIGHTLY LOWER The University of Michigan’s preliminary May consumer sentiment index came in at 98.0 on Friday, 0.8 points below its final April reading. The gauge was 0.9 points above its year-ago level.3     OIL TAKES A FALL WTI crude suffered a 4.9% loss last week on the NYMEX. The price settled at $67.88 Friday after a 4.2% single-day dive. That was the lowest close since May 1. The main reason for the drop? News that OPEC countries and Russia may boost output to counter production slumps in Iran and Venezuela.4    A POSITIVE FIVE DAYS FOR STOCKS All three major Wall Street equity indices advanced last week. Leading the way, the Nasdaq Composite improved 1.08% to 7,433.85. The S&P 500 added 0.31% to settle at 2,721.33 Friday; the Dow Industrials gained 0.15% to reach 24,753.09.5       THIS WEEK: U.S. financial markets are closed Monday in observance of Memorial Day. The Conference Board’s May consumer confidence index arrives on Tuesday, along with the latest S&P CoreLogic Case-Shiller home price index and Q1 results from Booz Allen Hamilton, HP, and Salesforce. Wednesday offers the May ADP payrolls report, a second estimate of Q1 GDP, a new Federal Reserve Beige Book, and earnings from Analog Devices, Bank of Montreal, Chico’s FAS, Dick’s Sporting Goods, DSW, Guess, and Michael Kors. April personal spending and pending home sales numbers surface Thursday, in addition to a new initial claims report and earnings from American Eagle Outfitters, Costco, Dollar General, Dollar Tree, Express, Kirkland’s, Lululemon Athletica, and Ulta Beauty. The April jobs report from the Department of Labor appears Friday, plus the May ISM manufacturing PMI and quarterly results from Abercrombie & Fitch.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +0.14 +17.41 +12.35 +9.73 NASDAQ +7.68 +19.80 +22.98 +19.96 S&P 500 +1.78 +12.68 +12.99 +9.64 REAL YIELD 5/25 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.84% 1.46% -0.26% 0.45%   Sources: wsj.com, bigcharts.com, treasury.gov - 5/25/185,6,7,8 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 - investopedia.com/news/home-values-jumped-87-april-0/ [5/25/18] 2 - tinyurl.com/y86fcsr3 [5/23/18] 3 - sca.isr.umich.edu/ [5/25/18] 4 - marketwatch.com/story/oil-prices-slide-as-opec-russia-mull-output-increase-2018-05-25 [5/25/18] 5 - markets.wsj.com/us [5/25/18] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F25%2F17&x=0&y=0 [5/25/18] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F25%2F17&x=0&y=0 [5/25/18] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F25%2F17&x=0&y=0 [5/25/18] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F24%2F13&x=0&y=0 [5/25/18] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F24%2F13&x=0&y=0 [5/25/18] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F24%2F13&x=0&y=0 [5/25/18] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F27%2F08&x=0&y=0 [5/25/18] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F27%2F08&x=0&y=0 [5/25/18] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F27%2F08&x=0&y=0 [5/25/18] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [5/25/18] 8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [5/25/18]

Economic Update for the week of May 22nd, 2018

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “The heart has its reasons which reason knows nothing of.”        - Blaise Pascal            WEEKLY TIP               Yes, you could file for Social Security at 62, as soon as you are eligible. It might pay to wait, however. The size of your monthly payment will grow by about 8% for every year you hold off claiming benefits through age 70.       WEEKLY RIDDLE              They come at night without being called. They are lost in the day without being stolen. What are they?     Last week’s riddle: I grind my feet upon the earth, my forward motion supported by a metal hearth. What I call food and drink was left behind by changes made in an ancient time. What am I?       Last week’s answer: An automobile.	May 22, 2018     RETAIL SALES RISE ANOTHER 0.3% April’s advance remained at that level. even with car and truck sales removed. It paled compared to the 0.8% March gain reported by the Department of Commerce, but it matched the consensus forecast of economists surveyed by MarketWatch.1      APRIL SAW LESS GROUNDBREAKING An 11.3% drop for apartment construction set the pace of overall housing starts back 3.7% last month, Department of Commerce data noted.2     HOME LOAN RATES REACH 7-YEAR HIGH According to Freddie Mac, the mean interest rate for a 30-year, fixed-rate mortgage last week was 4.61%. That exceeds any number seen since May 2011. Redfin says that the median existing home sold in April spent only 36 days on the market, a sign that buyers have rushed to close quickly before rates climb higher.3    RUSSELL 2000 makes HISTORY The small-cap benchmark notched its third straight record close on Friday, settling at 1,626,63 and rising 1.23% for the week. Blue chips lost 0.47% in five days, with the Dow Jones Industrial Average slipping to 24,715.09 at Friday’s close. The S&P 500 settled 0.54% lower for the week at 2,712.97, and the Nasdaq Composite lost 0.66% in five days, finishing Friday’s trading session at 7,354.34. Through Friday, the big three were all at least 1% higher for the month. Oil ended the week at $71.35 on the NYMEX.4,5       THIS WEEK: Nothing major is scheduled for Monday. Advance Auto Parts, AutoZone, Container Store, Cracker Barrel, Hewlett Packard Enterprise, Intuit, Kohl’s, TJX Companies, Toll Brothers, and Urban Outfitters all present earnings Tuesday. April new home sales figures, minutes from this month’s Federal Reserve policy meeting, and earnings from L Brands, Lowe’s, NetApp, Ralph Lauren, Stein Mart, Target, and Williams-Sonoma attract Wall Street’s attention Wednesday. On Thursday, investors react to earnings news from Best Buy, Gap, Hormel Foods, Lionsgate, Medtronic, Ross Stores, Royal Bank of Canada, Shoe Carnival, Stage Stores, TD Bank, and Toro, along with April existing home sales data and a new initial jobless claims report. Friday, the University of Michigan’s final May consumer sentiment index arrives, along with a report on April durable goods orders and earnings from Foot Locker; additionally, Fed chair Jerome Powell joins a panel discussion at a central banking conference in Sweden.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA -0.02 +19.61 +12.19 +8.97 NASDAQ +6.53 +21.46 +22.04 +19.23 S&P 500 +1.47 +14.68 +12.54 +9.02 REAL YIELD 5/18 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.91% 0.43% -0.31% 1.36%   Sources: wsj.com, bigcharts.com, treasury.gov - 5/18/184,5,6,7 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 - marketwatch.com/economy-politics/calendars/economic [5/18/18] 2 - cnbc.com/2018/05/16/us-housing-starts-april-2018.html [5/16/18] 3 - latimes.com/business/la-fi-high-mortgage-rates-20180517-story.html [5/17/18] 4 - tinyurl.com/y8ao4tbd [5/18/18] 5 - markets.wsj.com/us [5/18/18] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F18%2F17&x=0&y=0 [5/18/18] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F18%2F17&x=0&y=0 [5/18/18] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F18%2F17&x=0&y=0 [5/18/18] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F17%2F13&x=0&y=0 [5/18/18] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F17%2F13&x=0&y=0 [5/18/18] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F17%2F13&x=0&y=0 [5/18/18] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F19%2F08&x=0&y=0 [5/18/18] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F19%2F08&x=0&y=0 [5/18/18] 6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F19%2F08&x=0&y=0 [5/18/18] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [5/18/18] 8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [5/18/18]

Economic Update for the week of May 17th, 2018

WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE                “The secret of happiness is not in what one likes to do, but in what one has to do.”        - J.M. Barrie            WEEKLY TIP               If you receive a big bonus, a windfall, or a sizable inheritance, you may feel like taking some time out of the workforce. If so, keep in mind that there will be a cost linked to that decision – a lack of earned income, which counts in Social Security benefit calculations.       WEEKLY RIDDLE              I grind my feet upon the earth, my forward motion supported by a metal hearth. What I call food and drink was left behind by changes made in an ancient time. What am I?     Last week’s riddle: I went into the woods and got it. I brought it home in my hand and removed it. What am I talking about?       Last week’s answer: A splinter.	May 17, 2018     OIL HITS A 4-YEAR PEAK The price of WTI crude settled at $71.36 on Thursday, hours after Bank of America Merrill Lynch analysts forecast $90 oil by spring 2019 and a “risk of $100 a barrel” Brent crude next year. Thursday’s close was oil’s highest settlement since November 2014. Futures rallied 1.4% on the week after the Trump administration said that the U.S. would exit the Iran nuclear deal and reinstate sanctions against that OPEC member. That implies reduced global oil supply. As of Friday evening, no other OPEC country had committed to produce more oil in response. WTI crude closed at $70.70 on the NYMEX on Friday.1    CONSUMER SENTIMENT HOLDS STEADY At a mark of 98.8, the University of Michigan’s initial May consumer sentiment index was unchanged from its final April reading. At this time in 2017, the index was at 97.1.2     INFLATION PRESSURE MODERATES In April, the Consumer Price Index rose 0.2%, while the core CPI ticked up just 0.1%. This left annualized inflation unchanged at 2.5%, while yearly core inflation fell 0.1% to 2.1%. Thanks to a mere 0.1% April gain in the Producer Price Index, wholesale inflation rose 2.6% in the 12 months ending in April, down from 3.0% in the year ending in March.3     BIG GAINS FOR EQUITY BENCHMARKS The S&P 500 advanced 2.41% in five days to a Friday settlement of 2,727.72. Meanwhile, a 2.68% rise took the Nasdaq Composite north to 7,402.88, and the Dow Jones Industrial Average added 2.34% to reach 24,831.17. The Russell 2000 finished the week 2.63% higher at 1,606.79.4       THIS WEEK: Agilent Technologies announces earnings on Monday. Tuesday, investors look at April retail sales data and Q1 results from Home Depot. Wednesday’s earnings roster includes results from Cisco, Jack in the Box, Macy’s, NetEase, and Take-Two Interactive; in addition, reports on April industrial output and construction activity emerge. Applied Materials, Nordstrom, JCPenney, and Walmart present earnings Thursday, when the Street also considers the latest initial jobless claims figures and the Conference Board’s April leading indicator index. On Friday, AstraZeneca, Campbell Soup, and Deere & Co. offer earnings calls.    % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +0.45 +18.70 +12.85 +9.28 NASDAQ +7.24 +21.04 +23.08 +19.75 S&P 500 +2.02 +13.92 +13.39 +9.43 REAL YIELD 5/11 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.82% 0.51% -0.45% 1.41%   Sources: wsj.com, bigcharts.com, treasury.gov - 5/11/184,5,6,7 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 - marketwatch.com/story/us-oil-prices-hover-at-3-12-year-highs-as-analysts-entertain-the-idea-of-100-crude-2018-05-11 [5/11/18] 2 - sca.isr.umich.edu/ [5/11/18] 3 - investing.com/economic-calendar/ [5/11/18] 4 - markets.wsj.com/us [5/11/18] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F11%2F17&x=0&y=0 [5/11/18] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F11%2F17&x=0&y=0 [5/11/18] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F11%2F17&x=0&y=0 [5/11/18] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F10%2F13&x=0&y=0 [5/11/18] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F10%2F13&x=0&y=0 [5/11/18] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F10%2F13&x=0&y=0 [5/11/18] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F12%2F08&x=0&y=0 [5/11/18] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F12%2F08&x=0&y=0 [5/11/18] 5 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F12%2F08&x=0&y=0 [5/11/18] 6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [5/11/18] 7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [5/11/18]