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WEEKLY QUOTE
“Silent
gratitude isn’t very much use to anyone.”
- Gertrude Stein
WEEKLY TIP
Business
owners can risk neglecting their retirement planning as they get caught up in
the daily activity of their companies. Be sure to look into a SEP IRA, SIMPLE
IRA, Solo 401(k), or other retirement plans if you are growing a small
business.
WEEKLY RIDDLE
You
have three coins that add up to $0.31. Two of them are not quarters. What
kind of coins do you have?
Last week’s riddle:
It inhibits sight, makes the air colder, and it will come back
for you before the day is done. What is it?
Last week’s answer:
Night.
|
June 27,
2018
TARIFF TALK
INTENSIFIES
Major economic powers proposed additional import taxes
last week, as investors wondered if a global trade war was now underway.
Monday evening, President Trump stated that he had instructed U.S. Trade
Representative Robert Lighthizer to identify another $200 billion of Chinese
products to subject to a new 10% import duty. Shortly before the
trading week began, the European Union proclaimed it would place import taxes
on $3.3 billion of U.S. products, in retaliation to recently imposed metals
tariffs. Friday, President Trump mulled imposing a 20% tax on autos arriving
from the E.U. unless it lifts such import duties.1,2
EXISTING HOME
SALES WEAKEN SLIGHTLY
A National Association of Realtors report says that sales
tapered off 0.4% in May. While the inventory of homes listed grew 2.8% in the
fifth month of the year, the median price of an existing home hit an all-time
peak of $264,800. The sales pace was 3.0% slower than in May 2017.3
HOUSING STARTS
RISE, BUT PERMITS FALL
While home sales were nearly flat last month, groundbreaking
increased 5.0% according to the Census Bureau. Its latest report on U.S.
residential construction also noted a 4.6% drop in building permits, far
exceeding the decline seen in April.4
BLUE CHIPS
SHED 2%
To be precise, the Dow Jones Industrial Average lost 2.03%
last week, sinking to 24,580.89 at Friday’s close even with a 119-point
Friday gain. Faring better, the Nasdaq Composite retreated 0.69% to 7,692.82
in the same time frame, while the S&P 500 declined 0.89% to 2,754.88.5
THIS WEEK: Investors react to May new home sales data
and Q2 earnings from Carnival on Monday. The Conference Board’s June consumer
confidence index appears Tuesday, along with the latest S&P CoreLogic
Case-Shiller home price index and earnings from Lennar and Sonic. On
Wednesday, Wall Street considers the NAR’s May index of housing contract
activity, May durable goods orders, and earnings from Bed Bath & Beyond,
General Mills, Paychex, and Rite Aid. Thursday, the third estimate of Q1
economic growth arrives, along with the latest initial claims figures and earnings
announcements from Accenture, ConAgra Brands, KB Home, Nike, and Walgreens
Boots Alliance. May personal spending data, the May PCE price index, and the
final June University of Michigan consumer sentiment index emerge Friday, plus
earnings from Constellation Brands.
Sources: wsj.com, bigcharts.com, treasury.gov - 6/22/185,6,7,8
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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free to forward this article to family, friends or colleagues.
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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 - npr.org/2018/06/18/621227483/trump-asks-for-200-billion-more-in-tariffs-to-impose-on-china
[6/18/18]
2 - fortune.com/2018/06/22/trump-tariffs-european-cars/
[6/22/18]
3 - briefing.com/Investor/Calendars/Economic/Releases/exist.htm
[6/22/18]
4 - investing.com/economic-calendar/
[6/19/18]
5 - markets.wsj.com/us
[6/22/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F22%2F17&x=0&y=0
[6/22/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F22%2F17&x=0&y=0
[6/22/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F22%2F17&x=0&y=0
[6/22/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F21%2F13&x=0&y=0
[6/22/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F21%2F13&x=0&y=0
[6/22/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F21%2F13&x=0&y=0
[6/22/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F23%2F08&x=0&y=0
[6/22/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F23%2F08&x=0&y=0
[6/22/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F23%2F08&x=0&y=0
[6/22/18]
7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield
[6/22/18]
8 -
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll
[6/22/18]
|
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Wednesday, June 27, 2018
Economic Update for the week of June 27th, 2018
Wednesday, June 20, 2018
Economic Update for the week of June 20th, 2018
|
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WEEKLY QUOTE
“Where
there is friendship, there is our natural soil.”
- Voltaire
WEEKLY TIP
When
a lender permits a borrower to defer a college loan, the borrower may still
have to pay interest on the remaining loan balance. The lender, not the
borrower, will decide when the loan payments need to restart.
WEEKLY RIDDLE
It
inhibits sight, makes the air colder, and it will come back for you before
the day is done. What is it?
Last week’s riddle:
I am plain, thin, and lonely, but you use me all the time. I can
appear with one keystroke or just one movement when you write. What am I?
Last week’s answer:
The number 1.
|
June 18,
2018
FED, NEW
TARIFFS GET WALL STREET’S ATTENTION
As expected, the Federal Reserve adjusted the target range
on the federal funds rate to 1.75%-2.00% on Wednesday. The central bank’s
latest dot-plot projection, however, raised some eyebrows: it showed four
interest rate increases planned for 2018 instead of three. The median
forecast of Fed officials puts the benchmark interest rate at 2.4% at the end
of this year, on the way to a peak of 3.4% in 2020. Friday morning, the Trump
administration announced new 25% tariffs on at least $34 billion of Chinese
imports. Hours later, China retaliated, declaring that it would levy 25%
import taxes on a minimum of $34 billion of goods from America. The U.S. and China
both plan to implement their new tariffs on July 6.1,2
YEARLY INFLATION
REACHES 2.8%
The latest Consumer Price Index shows the highest 12-month
inflation reading in six years; the core CPI (which leaves out food and fuel
costs) rose 2.2% in the year ending in May. Both the headline and core CPI were
up 0.2% last month. Wholesale inflation, as measured by the Producer Price
Index, increased 0.5% in May.3,4
AN IMPRESSIVE ADVANCE
FOR RETAIL SALES
According to the Department of Commerce, the May gain was
0.8% (0.9% with car and truck buying factored out). This follows an April improvement
of 0.4% (revised up from 0.3%).4
A MIXED WEEK
FOR THE MAJOR INDICES
Once again, the Nasdaq Composite outran the Dow Jones
Industrial Average and S&P 500. Last week, the tech benchmark added 1.32%
to settle at 7,746.38 at Friday’s closing bell. The S&P 500 ended up flat
for the week (+0.01%) at 2,779.42. At Friday’s close, the Dow Jones
Industrial Average had slipped 0.89% in five days to 25,090.48.5
THIS WEEK: Nothing major is slated for Monday. Wall
Street considers earnings from FedEx, La-Z-Boy, and Oracle on Tuesday, along
with the latest Census Bureau snapshot of housing construction activity. Federal Reserve Chairman Jerome Powell
discusses monetary policy at a European Central Bank forum on Wednesday
morning; investors will also eye earnings from Micron Technology, Steelcase,
and Winnebago, and a National Association of Realtors report on existing home
sales. Thursday, the Conference Board issues its May leading indicators
index, a new initial jobless claims report arrives, and Barnes & Noble,
Darden Restaurants, Kroger, and Red Hat present earnings. Friday, Blackberry,
and CarMax offer Q1 results.
Sources: wsj.com, bigcharts.com, treasury.gov - 6/15/185,6,7,8
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.
|
||||||||||||||||||||||||||||||
|
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. |
|||||||||||||||||||||||||||||||
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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/story/fomc-lifts-fed-funds-rate-to-175-2-signals-4-hikes-in-2018-2018-06-13
[6/13/18]
2 - cnbc.com/2018/06/15/china-announces-retaliatory-tariffs-on-34-billion-worth-of-us-goods-including-agriculture-products.html
[6/15/18]
3 - bloomberg.com/news/articles/2018-06-12/u-s-consumer-prices-rise-by-most-since-2012
[6/12/18]
4 - briefing.com/investor/calendars/economic/2018/06/11-15
[6/15/18]
5 -
markets.wsj.com/us [6/15/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F15%2F17&x=0&y=0
[6/15/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F15%2F17&x=0&y=0
[6/15/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F15%2F17&x=0&y=0
[6/15/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F14%2F13&x=0&y=0
[6/15/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F14%2F13&x=0&y=0
[6/15/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F14%2F13&x=0&y=0
[6/15/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F16%2F08&x=0&y=0
[6/15/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F16%2F08&x=0&y=0
[6/15/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F16%2F08&x=0&y=0
[6/15/18]
7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield
[6/15/18]
8 -
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll
[6/15/18]
|
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Wednesday, June 13, 2018
Economic Update for the week of June 13th, 2018
|
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WEEKLY QUOTE
“Reflect
on your present blessings, of which every man has many; not on your past
misfortunes, of which all men have some.”
- Charles Dickens
WEEKLY TIP
If
you get an email asking for your personal or financial information from what appears
to be the Internal Revenue Service, it is probably a scam. The I.R.S. does
not use emails, text messages, or social media to make initial inquiries
about these matters.
WEEKLY RIDDLE
I
am plain, thin, and lonely, but you use me all the time. I can appear with
one keystroke or just one movement when you write. What am I?
Last week’s riddle:
You can put me on a table and cut me, but you will never eat me.
What am I?
Last week’s answer:
A deck of cards.
|
June 13,
2018
100 MONTHS OF
GROWTH FOR SERVICE BUSINESSES
The Institute for Supply Management announced this milestone
as it revealed a 58.6 May reading for its non-manufacturing purchasing
manager index. That excellent reading was well north of the 56.8 mark seen in
April. Fourteen of the fifteen service industries followed by the PMI
reported expansion in May; the information sector was the only outlier.1
Q2 GDP OUTLOOK
BRIGHTENS
Is the economy now expanding at the rate of 5% a year? The
bold new estimate by the Federal Reserve Bank of Atlanta nearly says as much.
The Atlanta Fed projects a 4.6% GDP reading for Q2. The first quarter saw a
2.2% rate of growth, and the economy grew 2.3% for all of 2017.2
SOCIAL
SECURITY TO TAP ITS RESERVES THIS YEAR
Last week, Social Security’s trustees announced that the
program needs to dip into its trust funds for the first time in 36 years in
order to fully fund itself in 2018. In their annual report, the trustees
noted that monthly benefits could be reduced as much as 23% by 2034 if no
legislative action is taken on Capitol Hill between now and then. The report
also noted that Medicare’s hospital insurance fund risks being depleted by
2026; barring a fix, Medicare might only pay out 91% of hospital costs at
that point.3
NASDAQ ATTAINS
RECORD TERRITORY AGAIN
Finishing Friday at 7,645.51, the Nasdaq Composite retreated
from its historic closes on Monday, Tuesday, and Wednesday of last week. Even
so, it gained 1.21% across five trading sessions. The S&P 500 added 1.62%
last week to settle at 2,779.03 Friday. The Dow Jones Industrial Average? It
rose 2.77% for the week, reaching 25,316.53 at Friday’s closing bell.4,5
THIS WEEK: Nothing major is scheduled on Monday. The
May Consumer Price Index appears Tuesday, plus earnings from H&R Block. Wednesday, Wall Street awaits a Federal
Reserve interest rate decision and considers the May Producer Price Index. May
retail sales numbers appear Thursday, in addition to a new initial jobless
claims report and quarterly results from Michaels Companies. On Friday, the
University of Michigan releases its preliminary June consumer sentiment index.
Sources: wsj.com, bigcharts.com, treasury.gov - 6/8/185,6,7,8
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.
|
||||||||||||||||||||||||||||||
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 - nytimes.com/aponline/2018/06/05/us/politics/ap-us-economy-services.html
[6/5/18]
2 - cnbc.com/2018/06/08/gdp-for-second-quarter-on-track-to-double-2018-full-year-pace-of-2017.html
[6/8/18]
3 - marketwatch.com/story/new-warnings-about-cuts-to-social-security-and-medicare-are-a-reason-to-worry-2018-06-07
[6/7/18]
4 -
reuters.com/article/us-usa-stocks/tesla-drives-fourth-day-of-gains-for-nasdaq-banks-up-idUSKCN1J21E8
[6/6/18]
5 - markets.wsj.com/us
[6/8/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F8%2F17&x=0&y=0
[6/8/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F8%2F17&x=0&y=0
[6/8/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F8%2F17&x=0&y=0
[6/8/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F7%2F13&x=0&y=0
[6/8/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F7%2F13&x=0&y=0
[6/8/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F7%2F13&x=0&y=0
[6/8/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F9%2F08&x=0&y=0
[6/8/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F9%2F08&x=0&y=0
[6/8/18]
6 -
bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F9%2F08&x=0&y=0
[6/8/18]
7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield
[6/8/18]
8 -
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll
[6/8/18]
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