Stonecreek Wealth Advisors, Inc. A Fee-only Registered Investment Advisor firm in Salt Lake City, Utah, providing Wealth Management Services http://www.stonecreekwealthadvisors.com We offer institutional level investment portfolios that you can’t get with a Financial Planner, Financial Advisor, or an ordinary Investment Advisor. Mon, 06 Feb 2012 17:40:06 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 Economic Update for February 6, 2012 http://www.stonecreekwealthadvisors.com/2012/02/economic-update-for-february-6-2012/?utm_source=rss&utm_medium=rss&utm_campaign=economic-update-for-february-6-2012 http://www.stonecreekwealthadvisors.com/2012/02/economic-update-for-february-6-2012/#comments Mon, 06 Feb 2012 17:40:06 +0000 Mark Lund, The Investor Coach http://www.stonecreekwealthadvisors.com/?p=1216 Presented by Mark Lund, Investor Coach.

WEEKLY QUOTE
“If you would be loved, love and be lovable.”
- Benjamin Franklin

JOBLESS RATE DOWN TO 8.3%
Are we seeing a trend here? The unemployment rate has now fallen 0.8% in the last six months. We haven’t seen a descent this sharp and swift since 1984. January hiring blew away forecasts: the Labor Department said the economy added 243,000 jobs last month, while economists polled by Briefing.com expected non-farm payrolls to grow by 155,000 positions. The labor force hasn’t grown so much in a month since last April, and the numbers are making analysts wonder if the Federal Reserve will tinker with interest rates months ahead of expectations.1,2

HOUSEHOLDS SAVE FIRST, SPEND SECOND
Consumer spending was flat in December after gains of just 0.1% in November and October. More significantly, consumer incomes rose 0.5% for December and so did the personal savings rate. People essentially put the extra money in the bank. In related news, the federal government estimated 2011 GDP at 1.7%, about half of the economic growth seen in 2010.3

BOTH ISM INDEXES RISE
The Institute for Supply Management’s closely watched purchasing manager indexes signaled expanding service and manufacturing sectors in January. ISM’s service sector PMI improved 3.8% to 56.8. Its manufacturing PMI advanced 1.0% to 54.1.4

CASE-SHILLER INDEX DECLINES AGAIN
This was the third straight monthly dip for the 20-city roundup of residential home prices. The latest available edition (November) showed a 1.3% monthly retreat in prices with a 3.7% year-over-year drop.5

NASDAQ TOPS 2,900
The tech-heavy index closed at an 11-year high Friday: 2,905.66. The Dow settled at 12, 862.23 at week’s end, its best close since May 2008. The S&P 500 finished Friday at 1,344.90. The weekly gains: DJIA, 1.59%; S&P, 2.17%; NASDAQ, 3.16%.1,6

THIS WEEK: Earnings take center stage in a stretch without much economic data. Monday brings Q4 results from Yum Brands, Humana and Hasbro. Tuesday, earnings arrive from Disney, UBS, Toyota, BP, Coca-Cola and Hartford Financial. Wednesday, Groupon, VISA, CVS, Sprint Nextel, Time Warner and Cisco join in. Thursday, the Bank of England and ECB wrap up policy meetings; new initial claims figures complement earnings reports from Expedia, PepsiCo, Dunkin’ Brands, Sirius XM Radio, Rio Tinto and Credit Suisse. Friday, the University of Michigan’s initial February consumer sentiment survey comes out plus Q4 results from Barclays.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +5.28 +6.63 +0.33 +3.28
NASDAQ +11.54 +5.51 +3.47 +5.66
S&P 500 +6.94 +2.89 -1.43 +2.29
REAL YIELD 2/3 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS -0.21% 1.23% 2.42% 3.48%

Sources: money.msn.com, bigcharts.com, treasury.gov, treasurydirect.gov – 2/3/121,7,8,9 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.

WEEKLY TIP
As your retirement progresses, your retirement strategy should be reviewed in light of budgeting and inflation concerns and the current financial climate.

WEEKLY RIDDLE
A lone pine tree stands on a cliff. The wind is blowing from the east through the mountains. Which way do the tree’s leaves blow?

Last week’s riddle:
It has no crown, yet when the chips are down it is more powerful than a king or queen. What is it?

Last week’s answer:
An ace in a deck of cards.

Citations.
1 – money.msn.com/market-news/post.aspx?post=7c25b3c1-0028-46a6-a114-77f785c12529 [2/3/12]
2 – www.briefing.com/investor/calendars/economic/2012/01/30-03 [2/3/12]
3 – www.mercurynews.com/breaking-news/ci_19853130 [1/30/12]
4 – www.ism.ws/ISMReport/NonMfgROB.cfm [2/3/12]
5 – www.latimes.com/business/money/la-fi-mo-home-prices-decline-20120131,0,3490723.story [1/31/12]
6 – montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [2/3/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F3%2F11&x=0&y=0 [2/3/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F3%2F11&x=0&y=0 [2/3/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F3%2F11&x=0&y=0 [2/3/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F2%2F07&x=0&y=0 [2/3/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F2%2F07&x=0&y=0 [2/3/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F2%2F07&x=0&y=0 [2/3/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F4%2F02&x=0&y=0 [2/3/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F4%2F02&x=0&y=0 [2/3/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F4%2F02&x=0&y=0 [2/3/12]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [2/3/12]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [2/3/12]
9 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02]

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. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, 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 an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. 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. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. 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. This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with Stonecreek Wealth Advisors, Inc.

 

]]> http://www.stonecreekwealthadvisors.com/2012/02/economic-update-for-february-6-2012/feed/ 0 Economic Update for January 30, 2012 http://www.stonecreekwealthadvisors.com/2012/01/economic-update-for-january-30-2012/?utm_source=rss&utm_medium=rss&utm_campaign=economic-update-for-january-30-2012 http://www.stonecreekwealthadvisors.com/2012/01/economic-update-for-january-30-2012/#comments Mon, 30 Jan 2012 18:35:06 +0000 Mark Lund, The Investor Coach http://www.stonecreekwealthadvisors.com/?p=1212 Presented by Mark Lund, Investor Coach.

WEEKLY QUOTE
“Judge each day not by the harvest you reap but by the seeds you plant.”
- Robert Louis Stevenson

ECONOMY GROWS 2.8% in Q4
While this is the best GDP reading since Q2 2010, the initial estimate from the Bureau of Economic Analysis still disappointed the markets. Many economists and investors were looking for growth of 3.0% or better. The majority of the growth actually came from increased inventories. Consumer spending rose 2.0% last quarter, with auto sales being the biggest factor. Durable goods orders did see 3.0% growth in December, putting them 45% above the recession low hit in April 2009.1,2,3

DIPS IN New & PENDING HOME SALES
The number of signed home sale contracts fell 3.5% in December, according to the National Association of Realtors. Separately, a Census Bureau report showed that new home sales declined 2.2% in December.4,5

MARQUEE sentiment INDEX at 11-MONTH PEAK
The Thomson Reuters/University of Michigan consumer sentiment index ended January at 75.0. This was way up from December’s 69.9 mark, and it beat the 74.1 reading forecast by economists surveyed by Reuters.6,7

A STRONG MONTH COMES TO A CLOSE
With just a couple of trading days left, January is shaping up to be the best month for U.S. equities since October (see the YTD numbers below). Across last week, the S&P 500 rose 0.07% to 1,316.33 and the NASDAQ gained 1.07% to 2,816.55; the Dow slipped 0.47% to fall to 12,660.46.1

THIS WEEK: The December consumer spending report comes out Monday. On Tuesday, earnings reports arrive from Amazon.com, Broadcom, ExxonMobil, UPS, Pfizer and Eli Lilly – and we also get the latest S&P/Case-Shiller home price index and the Conference Board’s January consumer confidence poll. Wednesday, Q4 results roll in from Qualcomm, Electronic Arts, Aetna and Marathon Oil and the latest ISM manufacturing index appears. Besides new initial claims figures, Thursday brings Q4 results from Unilever, Sony, Deutsche Bank, Merck and Beazer Homes. Friday, the January unemployment report is out along with ISM’s service sector index and data on December factory orders; Clorox also issues Q4 results.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +3.63 +5.59 +0.28 +2.83
NASDAQ +8.11 +2.22 +3.13 +4.49
S&P 500 +4.67 +1.29 -1.49 +1.62
REAL YIELD 1/27 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS -0.18% 1.16% 2.48% 3.48%

Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov – 1/27/121,8,9,10 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.

WEEKLY TIP
Spending and value should go hand in hand. Reduce or forego spending money on things that don’t bring you much value.

WEEKLY RIDDLE
It has no crown, yet when the chips are down it is more powerful than a king or queen. What is it?

Last week’s riddle:
I’m usually standing on a city sidewalk, and I’ll always stand by your car. But if you don’t feed me, you may get into trouble. What am I?

Last week’s answer:
A parking meter.

Citations.
1 – www.cnbc.com/id/46162429 [1/27/12]
2 – money.msn.com/market-news/post.aspx?post=6e802a2f-f50a-4ae4-948b-7bc9555ff5f6&_nwpt=1 [1/27/12]
3 – www.npr.org/2012/01/26/145895744/durable-goods-orders-signal-business-investment [1/26/12]
4 – www.reuters.com/article/2012/01/25/us-usa-economy-idUSTRE7BM0AB20120125 [1/25/12]
5 – www.startribune.com/business/138174364.html [1/26/12]
6 – montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [1/27/12]
7 – www.cnbc.com/id/46162624/ [1/27/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F27%2F11&x=0&y=0 [1/27/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F27%2F11&x=0&y=0 [1/27/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F27%2F11&x=0&y=0 [1/27/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F26%2F07&x=0&y=0 [1/27/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F26%2F07&x=0&y=0 [1/27/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F26%2F07&x=0&y=0 [1/27/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F28%2F02&x=0&y=0 [1/27/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F28%2F02&x=0&y=0 [1/27/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F28%2F02&x=0&y=0 [1/27/12]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [1/27/12]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [1/27/12]
10 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02]

]]> http://www.stonecreekwealthadvisors.com/2012/01/economic-update-for-january-30-2012/feed/ 0 Economic Update for January 16, 2012 http://www.stonecreekwealthadvisors.com/2012/01/economic-update-for-january-16-2012/?utm_source=rss&utm_medium=rss&utm_campaign=economic-update-for-january-16-2012 http://www.stonecreekwealthadvisors.com/2012/01/economic-update-for-january-16-2012/#comments Mon, 16 Jan 2012 20:06:40 +0000 Mark Lund, The Investor Coach http://www.stonecreekwealthadvisors.com/?p=1200 Presented by Mark Lund, The Investor Coach.

WEEKLY QUOTE
“Sweet are the slumbers of the virtuous man.”
– Joseph Addison

AN UNDERWHELMING RETAIL SALES REPORT
Holiday shopping was strong … or was it? The Census Bureau’s newest monthly retail sales data indicated only a 0.1% gain for December. Yet in the big picture, 2011 was the best year for retail sales since 1999. Total retail sales rose 7.7% last year, online and catalog sales were up 10.6% and overall sales have now improved about 20% from the depths hit during the Great Recession.1,2

CONSUMER SENTIMENT INDEX INCREASES
The University of Michigan’s preliminary January consumer sentiment survey showed further improvement, with a gain from 69.9 to 74.0; the best reading since last May and better than the 71.5 economists polled by Reuters anticipated.3

NEW BEIGE BOOK NOTES IMPROVING ECONOMY
The Federal Reserve’s new economic snapshot of its 12 banking districts showed 11 noting economic growth. The anecdotal survey noted improvement in auto and retail sales, manufacturing and consumer spending in the last six weeks of 2011.4

S&P CUTS CREDIT RATINGS OF 9 EU NATIONS
After U.S. markets closed Friday, Standard & Poor’s downgraded a third of the European Union: it took France from AAA to AA+, cut ratings for Austria, Slovakia, Slovenia and Malta by a notch and booted the ratings of Italy, Portugal, Spain and Cyprus down two notches. S&P said the EU’s debt reduction plan lacks “sufficient size or scope”. Additionally, EU talks on restructuring Greek debt fell apart Friday.5

STOCKS ON A WINNING STREAK
The S&P 500 posted its second straight weekly gain across January 9-13, rising 0.88% to 1,289.09. The DJIA rose 1.67% to 12,422.06 and the NASDAQ gained 1.36% to 2,710.67. Last week also saw gains for the U.S. Dollar Index (0.24%) and COMEX gold (0.87%).5,6

THIS WEEK: U.S. financial markets are closed Monday for the federal holiday honoring Martin Luther King, Jr. Tuesday, Wells Fargo, Citigroup and Charles Schwab issue earnings reports. Wednesday, the December PPI arrives and we will have Q4 earnings from eBay and assorted financial heavy hitters: Goldman Sachs, Bank of NY Mellon, State Street, Northern Trust, PNC Bank and US Bancorp. Thursday, we have December’s CPI, a new initial jobless claims report and Q4 results from more big names: Bank of America, Morgan Stanley, AmEx, IBM, Microsoft, Google, Sony Ericsson, UnitedHealth and Capital One. Friday, last month’s existing home sales figures will be released along with earnings from GE.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +1.67 +5.88 -0.21 +2.56
NASDAQ +4.05 -0.90 +1.66 +3.62
S&P 500 +2.50 +0.42 -1.98 +1.32
REAL YIELD 1/13 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS -0.14% 0.97% 2.49% 3.48%

Sources: money.msn.com, bigcharts.com, treasury.gov, treasurydirect.gov – 1/13/121,5,7,8,9 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.

WEEKLY TIP
If your monthly bank statement comes with a fee disclosure, it may be a big hint that fee hikes are coming your way.

WEEKLY RIDDLE
Create a 13-letter word using all 13 of the following letters: O A I I S T T R R D N A M.

Last week’s riddle:
What is worn by the foot and often bought by the yard?

Last week’s answer:
Carpet.

Citations.
1 – www.census.gov/retail/marts/www/marts_current.pdf [1/12/12]
2 – www.chron.com/business/article/Retail-had-record-year-but-eased-in-December-2490293.php [1/12/12]
3 – www.nytimes.com/2012/01/14/business/economy/trade-deficit-and-consumer-sentiment-rise.html [1/14/12]
4 – www.usatoday.com/money/economy/fed/beigebook/story/2012-01-11/fed-beige-book-january/52500550/1 [1/11/12]
5 – money.msn.com/market-news/post.aspx?post=a677f0ec-38f9-432c-bbc1-fb98c5362013 [1/13/12]
6 – montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [1/13/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F13%2F11&x=0&y=0 [1/13/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F13%2F11&x=0&y=0 [1/13/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F13%2F11&x=0&y=0 [1/13/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F12%2F07&x=0&y=0 [1/13/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F12%2F07&x=0&y=0 [1/13/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F12%2F07&x=0&y=0 [1/13/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F14%2F02&x=0&y=0 [1/13/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F14%2F02&x=0&y=0 [1/13/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F14%2F02&x=0&y=0 [1/13/12]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [1/13/12]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [1/13/12]
9 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02]

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. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, 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 an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. 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. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. 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. This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. Stonecreek Wealth Advisors Inc., A fee-only registered investment advisor firm in Salt Lake City, Utah.  Mark Lund is the author of The Effective Investor.

]]> http://www.stonecreekwealthadvisors.com/2012/01/economic-update-for-january-16-2012/feed/ 0 Economic Update for January 9, 2012 http://www.stonecreekwealthadvisors.com/2012/01/economic-update-for-january-9-2012/?utm_source=rss&utm_medium=rss&utm_campaign=economic-update-for-january-9-2012 http://www.stonecreekwealthadvisors.com/2012/01/economic-update-for-january-9-2012/#comments Mon, 09 Jan 2012 20:11:22 +0000 Mark Lund, The Investor Coach http://www.stonecreekwealthadvisors.com/?p=1192 WEEKLY QUOTE
“Being brilliant is no great feat if you respect nothing.”
– Johann Wolfgang von Goethe 

UNEMPLOYMENT DOWN TO 8.5%
In December, the jobless rate declined for the fourth straight month to its lowest level since February 2009. (The problem is this may not be the true number due to the fact that they stopped reporting those who can no longer qualify to collect unemployment.)  The Labor Department announced that the economy added 200,000 net new jobs last month, topping the consensus forecast of analysts polled by Reuters who expected a gain of 155,000. Separately, payroll processing firm ADP reported private sector firms hiring 325,000 workers in December. Whether December’s boost reflects a seasonal hiring boom or not, Labor Department data indicates that private sector payrolls expanded by an average of 132,000 jobs per month during the second half of 2011.1,2

MANUFACTURING, SERVICE SECTOR GAUGES RISE
According to the twin barometers of the Institute for Supply Management, the U.S. manufacturing and non-manufacturing sectors continued to expand last month. ISM’s service sector PMI came in at 52.6, up 0.6% from the November reading; its manufacturing PMI rose to 53.9 from November’s 52.7 mark.3

STOCKS START 2012 WITH GAINS
Across January 3-6, the Dow rose 1.17% to 12,359.92, the NASDAQ climbed 2.65% to 2,674.22 and the S&P 500 advanced 1.61% to 1,277.81. Optimism prevailed despite more woes from the Eurozone: Fitch Ratings lowered Hungary’s credit rating to “junk” status on Friday and the euro fell to a 16-month low versus the dollar.2

THIS WEEK: Monday, German chancellor Angela Merkel and French president Nicolas Sarkozy meet to discuss the EU’s new fiscal pact; Alcoa kicks off the Q4 earnings season. Tuesday, we get a report on November’s wholesale trade. Wednesday brings a new Beige Book from the Federal Reserve and Q4 results from Lennar. Thursday, the Census Bureau releases December retail sales figures, the latest initial jobless claims data arrives and the European Central Bank and Bank of England issue monetary policy statements. On Friday, the University of Michigan’s preliminary January consumer sentiment survey will be out, plus Q4 earnings from JPMorgan.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +1.17 +5.66 -0.0006 +2.12
NASDAQ +2.65 -1.32 +1.97 +3.13
S&P 500 +1.61 +0.31 -1.87 +0.97
REAL YIELD 1/6 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS -0.11% 0.96% 2.39% 3.48%

Sources: online.wsj.com, bigcharts.com, treasury.gov, treasurydirect.gov – 1/6/122,7,8,9 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.

WEEKLY TIP
If you’re thinking about selling a business, consider contacting a business broker, one that represents companies similar to yours. It may make finding an appropriate buyer easier.

WEEKLY RIDDLE
What is worn by the foot and often bought by the yard?

Last week’s riddle:
They can run side by side for thousands of miles; they are made of steel. While they constantly touch the ground, they seldom meet or touch each other. What are they?

Last week’s answer:
Railroad tracks.

To request a FREE copy of our Investor Awareness Guide please click here.

Citations.
1 – abcnews.go.com/Business/MadeInAmerica/december-jobless-rate-falls-85-percent/story?id=15300534 [1/6/12]
2 – www.cnbc.com/id/45899327 [1/6/12]
3 – www.ism.ws/ISMReport/NonMfgROB.cfm [1/6/12]
4 – blogs.wsj.com/marketbeat/2012/01/06/data-points-energy-metals-540/ [1/6/12]
5 – montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [1/6/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F6%2F11&x=0&y=0 [1/6/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F6%2F11&x=0&y=0 [1/6/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F6%2F11&x=0&y=0 [1/6/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F5%2F07&x=0&y=0 [1/6/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F5%2F07&x=0&y=0 [1/6/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F5%2F07&x=0&y=0 [1/6/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F7%2F02&x=0&y=0 [1/6/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F7%2F02&x=0&y=0 [1/6/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F7%2F02&x=0&y=0 [1/6/12]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [1/6/12]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [1/6/12]
8 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02]

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. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, 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 an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. 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. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. 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. This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you.

]]> http://www.stonecreekwealthadvisors.com/2012/01/economic-update-for-january-9-2012/feed/ 0 Weekly Economic Update for December 27, 2011 http://www.stonecreekwealthadvisors.com/2011/12/weekly-economic-update-for-december-27-2011/?utm_source=rss&utm_medium=rss&utm_campaign=weekly-economic-update-for-december-27-2011 http://www.stonecreekwealthadvisors.com/2011/12/weekly-economic-update-for-december-27-2011/#comments Tue, 27 Dec 2011 20:44:27 +0000 Mark Lund, The Investor Coach http://www.stonecreekwealthadvisors.com/?p=1167 Presented by Mark Lund, The Investor Coach.

WEEKLY QUOTE
“Life is an adventure in forgiveness.”
– Norman Cousins

PAYROLL TAX HOLIDAY EXTENDED FOR 2 MONTHS
Friday, President Obama signed an extension of the payroll tax cut lasting through February 29. The stopgap legislation also extends long-term unemployment benefits through that date and postpones a 27% reduction in Medicare payments to doctors. The federal government will pay for the extenders by having Fannie Mae and Freddie Mac hike guarantee fees on new mortgages, a cost that will be passed on to those buying or refinancing a home in 2012.1

GAINS IN HARD GOODS ORDERS, CONSUMER SPENDING
November’s consumer spending increase was tiny: 0.1%. Wages advanced just 0.1% as well. However, last month also saw a 3.8% rise in durable goods orders (the best month for that indicator since July).2,3

IMPROVED HOME SALES, HOUSING STARTS
The Census Bureau reported a 1.6% increase in new home purchases in November, with the new home inventory at its smallest since March 2006. Housing starts hit a 19-month peak in November, soaring 9.3% on the month. Existing home sales also improved notably in November, rising 4.0%; according to the National Association of Realtors, that was the best month since January.3

CONSUMERS FEELING MERRIER
December’s final Thomson Reuters/University of Michigan consumer sentiment survey came in at 69.9 compared with November’s final 64.1 mark. That also beat the 68.0 estimate forecast by economists Reuters had surveyed.4

A YEAR-END RALLY GETS ROLLING
Stocks showed definite momentum last week. The 5-day performances: DJIA, +3.60% to 12,294.00: NASDAQ, +2.48% to 2,618.64; S&P 500, +3.74% to 1,265.33. At the close on Friday, oil settled at $99.68 on the NYMEX, gold closed at $1,606.00 on the COMEX, retail gasoline prices had fallen 2.15% in the past 30 days and natural gas futures were at lows unseen in four years.2,5

THIS WEEK: No major economic releases are on tap for Monday, Wednesday or Friday. Tuesday, the October edition of the S&P/Case-Shiller home price index arrives plus the Conference Board’s newest consumer confidence poll. Thursday, the National Association of Realtors issues its November report on pending home sales and we get the latest initial claims figures.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +6.19 +6.23 -0.0008 +2.25
NASDAQ -1.29 -1.76 +1.81 +3.47
S&P 500 +0.61 +0.68 -2.06 +1.05
REAL YIELD 12/23 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS -0.04% 1.08% 2.35% 3.50%

Sources: money.msn.com, bigcharts.com, treasury.gov, treasurydirect.gov – 12/23/112,6,7,8 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.

WEEKLY TIP
If 2012 is a year in which you start a business, remember three essentials to have on hand: an emergency fund, a year’s worth of operating capital and the support of your spouse.

WEEKLY RIDDLE
They are sometimes stomped on, yet they can also be very tasty and sweet. What are they?

Last week’s riddle:
A man leaves home and makes three left turns. He comes home again and sees two masked men waiting for him, but he jogs straight toward them with a smile as others cheer. Why is this man so unafraid?

Last week’s answer:
He is a baseball player who has just hit a home run. The masked men are the umpire and the other team’s catcher.

Citations.
1 – money.cnn.com/2011/12/23/news/economy/payroll_tax_cut_deal/ [12/23/11]
2 – money.msn.com/market-news/post.aspx?post=ef94fe40-0c3a-4fc1-bbe6-e6f3f7345f37 [12/23/11]
3 – www.businessweek.com/news/2011-12-23/sales-of-u-s-new-homes-in-november-rise-to-315-000-rate.html [12/23/11]
4 – www.reuters.com/article/2011/12/22/us-usa-economy-sentiment-idUSTRE7BL0YR20111222 [12/13/11]
5 – montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [12/23/11]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F23%2F10&x=0&y=0 [12/23/11]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F23F2%2F10&x=10&y=18 [12/23/11]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F23%2F10&x=0&y=0 [12/23/11]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F22%2F06&x=0&y=0 [12/23/11]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F22%2F06&x=0&y=0 [12/23/11]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F22%2F06&x=0&y=0 [12/23/11]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F24%2F01&x=0&y=0 [12/23/11]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F24%2F01&x=0&y=0 [12/23/11]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F24%2F01&x=0&y=0 [12/23/11]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [12/23/11]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [12/23/11]
8 – treasurydirect.gov/instit/annceresult/press/preanre/2001/ofm71101.pdf [7/11/01]

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. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, 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 an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. 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. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. 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. This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. Stonecreek Wealth Advisors, Inc. a fee only registered investment advisor firm in Salt Lake City, Utah.  Mark Lund is the author of The Effective Investor.

]]> http://www.stonecreekwealthadvisors.com/2011/12/weekly-economic-update-for-december-27-2011/feed/ 0 Weekly Economic Update for December 19, 2011 http://www.stonecreekwealthadvisors.com/2011/12/weekly-economic-update-for-december-19-2011/?utm_source=rss&utm_medium=rss&utm_campaign=weekly-economic-update-for-december-19-2011 http://www.stonecreekwealthadvisors.com/2011/12/weekly-economic-update-for-december-19-2011/#comments Mon, 19 Dec 2011 18:36:57 +0000 Mark Lund, The Investor Coach http://www.stonecreekwealthadvisors.com/?p=1132 Presented by Mark Lund, The Investor Coach.

WEEKLY QUOTE
“Comedy is simply a funny way of being serious.”
– Peter Ustinov

JOBLESS CLAIMS FALL TO 3½-YEAR LOW
Last Thursday, the Labor Department announced that 366,000 Americans filed initial jobless claims in the week ending December 10, the lowest weekly figure since March 2008. This was a drop of 19,000 from the preceding week and refuted the expectations of some economists. This may be a sign that the jobless rate, currently at 8.6%, could be poised to fall further.1  Could also mean that those who qualified to apply for unemployment can no longer qualify because their benefit period is up.

HAS INFLATION PEAKED?
The federal government’s Consumer Price Index was flat in November after a 0.1% retreat in October. While core inflation rose 0.2% last month, the Federal Reserve now expects 1.7% inflation across 2012 compared to a projected 2.8% for 2011. Producer prices were up 0.3% in November; core PPI advanced 0.1%. The year-over-year rise in wholesale prices was 5.7%, the smallest 12-month gain since March.2,3

RETAIL SALES RISE 0.2% in NOVEMBER
While many economists hoped for a bigger advance, the November increase marked the sixth straight monthly gain for the indicator. Lower gas prices may have left consumers with greater discretionary funds: on Friday, AAA said a gallon of regular unleaded averaged $3.25 nationally, 18.4% below a peak hit in early May.2,4

GOLD & OIL TAKE A HIT
Gold lost a whopping 6.93% last week; oil fell 5.49%. Gold settled at $1,597.90 on the COMEX and oil closed Friday’s NYMEX trading day at $93.87.2

STOCKS PULL BACK
Citing “the absence of a credible financial backstop” in the EU debt crisis, Fitch Ratings downgraded France Friday and placed the credit ratings of Spain and Italy on review. It was a wan note to end a rough week, as these numbers point out: DJIA, -2.61% to 11,866.39; S&P 500, -2.83% t0 1,219.66; NASDAQ, -3.46% to 2,555.33.2,5,6

THIS WEEK: No major U.S. economic releases are scheduled for Monday. On Tuesday, we learn about November housing starts and earnings reports arrive from Nike, Oracle, ConAgra and General Mills. Wednesday brings the NAR report on November existing home sales plus earnings out of CarMax, Bed Bath & Beyond and Walgreen’s. Thursday we get the final December consumer sentiment survey from the University of Michigan, the Conference Board’s LEI for November, initial claims numbers and the final 3Q GDP estimate from Washington. Friday brings three big reports: November new home sales, durable goods orders and consumer spending.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +2.50 +3.19 -0.93 +2.00
NASDAQ -3.68 -3.11 +0.80 +2.86
S&P 500 -3.02 -1.87 -2.91 +0.75
REAL YIELD 12/16 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS -0.05% 1.15% 2.29% 3.50%

Sources: money.msn.com, bigcharts.com, treasury.gov, treasurydirect.gov – 12/16/112,7,8,9 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.

WEEKLY TIP
About to do some holiday shopping? Try keeping your credit cards at home. The interest you save can be a financial gift to yourself.

WEEKLY RIDDLE
A man leaves home and makes three left turns. He comes home again and sees two masked men waiting for him, but he jogs straight toward them with a smile as others cheer. Why is this man so unafraid?

Last week’s riddle:
Seven people stand in a square room which measures 30′ x 30′. Each one can see the entire room and everyone in it without making any physical movement (aside from eye movement). Where inside this room can you place an apple so that all but one person can see it?

Last week’s answer:
Place the apple on one person’s head.

If you or someone you know needs some help managing retirement assets or setting up a retirement savings plan,
just give us a call at 801-545-0696 or use the form below to contact us.


Citations.
1 – money.cnn.com/2011/12/15/news/economy/unemployment_benefits/index.htm [12/15/11]
2 – money.msn.com/market-news/post.aspx?post=3a7b4ee5-c1fb-4eda-8bd3-901a162aeaed [12/16/11]
3 – www.latimes.com/business/la-fi-wholesale-prices-20111215,0,6933077.story [12/15/11]
4 – www.usatoday.com/money/industries/retail/story/2011-12-13/retail-sales-november/51866224/1 [12/13/11]

5 – montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [12/16/11]
6 – www.brisbanetimes.com.au/business/world-business/france-rating-outlook-lowered-spain-italy-on-review-fitch-20111217-1ozhg.html [12/17/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F16%2F10&x=0&y=0 [12/16/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F16F2%2F10&x=10&y=18 [12/16/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F16%2F10&x=0&y=0 [12/16/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F15%2F06&x=0&y=0 [12/16/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F15%2F06&x=0&y=0 [12/16/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F15%2F06&x=0&y=0 [12/16/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F17%2F01&x=0&y=0 [12/16/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F17%2F01&x=0&y=0 [12/16/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F17%2F01&x=0&y=0 [12/16/11]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [12/16/11]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [12/16/11]
9 – treasurydirect.gov/instit/annceresult/press/preanre/2001/ofm71101.pdf [7/11/01]

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. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, 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 an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. 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. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. 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. This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. Stonecreek Wealth Advisors, Inc. is a fee only registered investment advisor firm in Salt Lake City, Utah.  Mark Lund is the author of The Effective Investor.

]]> http://www.stonecreekwealthadvisors.com/2011/12/weekly-economic-update-for-december-19-2011/feed/ 0 Weekly Economic Update for December 12, 2011 http://www.stonecreekwealthadvisors.com/2011/12/weekly-economic-update-for-december-12-2011/?utm_source=rss&utm_medium=rss&utm_campaign=weekly-economic-update-for-december-12-2011 http://www.stonecreekwealthadvisors.com/2011/12/weekly-economic-update-for-december-12-2011/#comments Mon, 12 Dec 2011 17:06:01 +0000 Mark Lund, The Investor Coach http://www.stonecreekwealthadvisors.com/?p=1117 Presented by Mark Lund, The Investor Coach.

WEEKLY QUOTE
“Education is the transmission of civilization.”
– Will Durant

CONSUMERS FEEL BETTER IN EARLY DECEMBER
December’s initial University of Michigan consumer sentiment index is in, and the reading of 67.7 represents a six-month high. This is a 3.6% increase from the final November survey. The sub-index of consumer expectations (which some regard as an indicator of future consumer spending) improved from 55.4 to 61.1. In other positive news for households, retail gas prices hit a low unseen since February on December 5, according to the American Automobile Association, $3.27 was the national average for a gallon of regular unleaded.1

SERVICE SECTOR GROWTH MODERATES
The 52.0 reading on the Institute for Supply Management’s November service sector index was the lowest since January 2010. Anything above 50 still denotes expansion, but the reading disappointed investors; economists polled by Reuters had forecast a 0.6% gain to 53.5.2

MORTGAGE APPS RISE ALMOST 13%
The Mortgage Bankers Association reports that home loan demand hit a four-month peak in the week of November 28-December 2. According to Freddie Mac’s latest figures, the average rate on the 15-year FRM was 3.27% last week; interest rates on 30-year FRMs averaged 3.99%.3

GOLD & OIL RETREAT FOR THE WEEK
Despite strong Friday gains, oil and gold both had down weeks. Oil futures slipped 1.54% across five days to $99.41 while gold futures lost $34.20 across the same time frame to settle at $1,712.80 per ounce on the COMEX December 9.4

RALLY REACHES TWO WEEKS
A new EU fiscal treaty helped stocks push north Friday, (even with the UK opting out of the deal). Across December 5-9, the DJIA gained 1.37%, the S&P 500 0.88% and the NASDAQ 0.76%. At the close on Friday, the Dow was at 12,184.26, the S&P at 1,255.19, and the NASDAQ at 2,646.85.5,6

THIS WEEK: No major economic news is scheduled for Monday (at least not stateside). On Tuesday, the Census Bureau issues retail sales data for November, a Federal Reserve FOMC meeting occurs and we have 3Q earnings from Best Buy. Wednesday, an OPEC meeting concludes. Thursday, a plethora of earnings reports roll out (Adobe, FedEx, RIM, RiteAid, Discover and Accenture) and we also get the November PPI, the latest weekly jobless claims and a report on industrial output. Friday brings November’s CPI and a speech from ECB president Mario Draghi.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +5.24 +7.16 -0.20 +2.28
NASDAQ -0.23 +1.15 +1.72 +3.29
S&P 500 -0.19 +1.80 -2.19 +1.01
REAL YIELD 12/9 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.01% 1.09% 2.21% 3.50%

Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov – 12/9/115,7,8,9 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.

WEEKLY TIP
In search of a sizable tax deduction? One idea: donate clothes, electronics and other household items to an IRS-approved charity before 2012 arrives. There are free online tools that can help you keep track of itemized deductions.

WEEKLY RIDDLE
Seven people stand in a square room which measures 30′ x 30′. Each one can see the entire room and everyone in it without making any physical movement (aside from eye movement). Where inside this room can you place an apple so that all but one person can see it?

Last week’s riddle:
Alexandra’s mom had four children. The first one was named May, the second was named June, and the third was named August. What was the fourth child’s name?

Last week’s answer:
Alexandra.

Citations.
1 – www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/12/09/bloomberg_articlesLVY38O0UQVI9.DTL [12/9/11]
2 – www.reuters.com/article/2011/12/05/us-usa-economy-services-idUSTRE7B415X20111205 [12/5/11]
3 – www.usatoday.com/money/economy/housing/story/2011-12-08/mortgage-rates-hover-near-lows/51740400/1 [12/8/11]
4 – blogs.wsj.com/marketbeat/2011/12/09/data-points-energy-metals-534/ [12/9/11]
5 – www.cnbc.com/id/45611888 [12/9/11]
6 – montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [12/9/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F9%2F10&x=0&y=0 [12/9/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F9F2%2F10&x=10&y=18 [12/9/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F9%2F10&x=0&y=0 [12/9/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F8%2F06&x=0&y=0 [12/9/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F8%2F06&x=0&y=0 [12/9/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F8%2F06&x=0&y=0 [12/9/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F10%2F01&x=0&y=0 [12/9/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F10%2F01&x=0&y=0 [12/9/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F10%2F01&x=0&y=0 [12/9/11]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [12/9/11]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [12/9/11]
9 – treasurydirect.gov/instit/annceresult/press/preanre/2001/ofm71101.pdf [7/11/01]

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. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, 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 an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. 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. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. 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. This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you.  Stonecreek Wealth Advisors, Inc. A fee-only registered investment advisor firm in Salt Lake City, Utah. Wealth Management Services.  Mark Lund author of The Effective Investor.

]]> http://www.stonecreekwealthadvisors.com/2011/12/weekly-economic-update-for-december-12-2011/feed/ 0 Weekly Economic Update for December 5, 2011 http://www.stonecreekwealthadvisors.com/2011/12/weekly-economic-update-for-december-5-2011/?utm_source=rss&utm_medium=rss&utm_campaign=weekly-economic-update-for-december-5-2011 http://www.stonecreekwealthadvisors.com/2011/12/weekly-economic-update-for-december-5-2011/#comments Mon, 05 Dec 2011 19:04:43 +0000 Mark Lund, The Investor Coach http://www.stonecreekwealthadvisors.com/?p=1106 Presented by Mark Lund, Investor Coach.

WEEKLY QUOTE
“A lie can travel halfway around the world while the truth is putting on its shoes.”
– Charles Spurgeon

JOBLESS RATE FALLS TO 8.6%
In November, U.S. unemployment hit its lowest level since March 2009. November’s net job gain was 120,000. While the Bureau of Labor Statistics report showed that the majority of the new hires were made by retailers and temp agencies, this is still a sign of recovery. The underemployment rate fell to 15.6% from the prior 16.2%.1

SOME (MOSTLY) POSITIVE HOUSING NEWS
Pending home sales soared 10.4% in October, the National Association of Realtors reported. New home sales also were up 1.3% in that month according to the Census Bureau. The September edition of the S&P/Case-Shiller Home Price Index showed price gains in 14 of 20 metro markets; the index gained 0.1% in the third quarter, but was down 3.9% from a year ago.2

MANUFACTURING SECTOR EXPANDS
The Institute for Supply Management’s manufacturing index showed sector growth in November. It came in at 52.7; economists polled by Briefing.com had forecast it would read 51.0.3

S&P 500 GAINS 7.4% IN 5 DAYS
The index had its best week since March 2009, going +7.39% to settle at 1,244.28 Friday. A coordinated central bank move to make cheaper dollar loans available to EU lenders set off a massive Dow rally Wednesday, a big factor behind great weeks for the DJIA (+7.01 to 12,019.42) and NASDAQ (+7.59% to 2,626.93).5,6

THIS WEEK: All eyes will be on Europe late next week, as there will be an EU summit and we could see notable developments regarding EU member fiscal policies and the future of the euro. Stateside, Monday brings the latest ISM report on the service sector, a look at October factory orders and earnings from Dollar General. Tuesday, Toll Brothers comes out with 3Q results. No major economic releases are slated for Wednesday. Thursday, the Bank of England and European Central Bank conclude policy meetings and Costco announces 3Q results. Friday, we have the conclusion of the EU summit meeting and the initial December consumer sentiment survey from the University of Michigan.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +3.82 +5.78 -0.29 +2.31
NASDAQ -0.98 +1.84 +1.77 +3.79
S&P 500 -1.06 +1.86 -2.18 +1.01
REAL YIELD 12/2 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.00% 0.84% 2.10% 3.50%

Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov – 12/2/115,7,8,9 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.

WEEKLY TIP
Dropping a landline and just using your cell phone might save you as much as $300 annually. Using a broadband phone system might give you even greater savings.

WEEKLY RIDDLE
Alexandra’s mom had four children. The first one was named May, the second was named June, and the third was named August. What was the fourth child’s name?

Last week’s riddle:
We all have one, and even though it often demands an answer, it offers no question. What is this device?

Last week’s answer:
A phone.

Citations.
1 – www.businessweek.com/news/2011-12-02/payroll-gains-speed-up-as-u-s-jobless-rate-drops-economy.html [12/2/11]
2 – www.thestreet.com/story/11325945/1/pending-home-sales-surge-in-october.html [11/30/11]
3 – www.briefing.com/Investor/Calendars/Economic/Releases/napm.htm [12/1/11]
4 – blogs.wsj.com/marketbeat/2011/12/02/data-points-energy-metals-533/ [12/2/11]
5 – www.cnbc.com/id/45523080 [12/2/11]
6 – montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [12/2/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F02%2F10&x=0&y=0 [12/2/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F2F2%2F10&x=10&y=18 [12/2/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F2%2F10&x=0&y=0 [12/2/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F1%2F06&x=0&y=0 [12/2/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F1%2F06&x=0&y=0 [12/2/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F1%2F06&x=0&y=0 [12/2/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F3%2F01&x=0&y=0 [12/2/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F3%2F01&x=0&y=0 [12/2/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F3%2F01&x=0&y=0 [12/2/11]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [12/2/11]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [12/2/11]
9 – treasurydirect.gov/instit/annceresult/press/preanre/2001/ofm71101.pdf [7/11/01]

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. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, 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 an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. 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. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. 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. This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. Stonecreek Wealth Advisors, Inc. a fee only registered investment advisor firm in Salt Lake City, Utah.  Mark Lund is the author of The Effective Investor.

]]> http://www.stonecreekwealthadvisors.com/2011/12/weekly-economic-update-for-december-5-2011/feed/ 0 Weekly Economic Update for November 28, 2011 http://www.stonecreekwealthadvisors.com/2011/11/weekly-economic-update-for-november-28-2011/?utm_source=rss&utm_medium=rss&utm_campaign=weekly-economic-update-for-november-28-2011 http://www.stonecreekwealthadvisors.com/2011/11/weekly-economic-update-for-november-28-2011/#comments Mon, 28 Nov 2011 18:50:57 +0000 Mark Lund, The Investor Coach http://www.stonecreekwealthadvisors.com/?p=1101 Presented by Mark Lund, Investor Coach.

WEEKLY QUOTE
“People always call it luck when you’ve acted more sensibly than they have.”
– Anne Tyler

A TINY INCREASE IN CONSUMER SPENDING
Personal spending advanced by just 0.1% in October, the smallest gain in four months, as measured by the Commerce Department. Hopefully a strong Black Friday and Cyber Monday will make November a different story. In better news, personal incomes rose 0.4% last month, the best month for that statistic since March. America’s savings rate increased 0.2% to 3.5%.1

HOUSEHOLD CONFIDENCE RISES
Americans seems to be feeling less pessimistic about the economy. The final November Thomson Reuters/University of Michigan consumer sentiment survey came in at 64.1, much better than the final October mark of 60.9.1

HOME SALES, DURABLE GOODS ORDERS ENCOURAGE
The National Association of Realtors reported a 1.4% increase in existing home sales in October and a 2.2% monthly reduction in the backlog of unsold properties, taking the inventory down to 8.0 months. Overall hard goods orders declined 0.7% in October but were up 0.7% with transportation orders factored out; economists polled by Bloomberg News had expected a 1.2% overall monthly retreat.2,3,4

GOLD DIPS UNDER $1,700
The precious metal slipped2.27% last week, and it is down 5.71% in the past two weeks; prices settled at 1,685.50 an ounce. Oil lost 0.92% last week on the NYMEX to settle at $96.77 at closing. 5

BUYERS CROWD THE MALLS, BUT NOT WALL STREET
Stocks were hit hard during a short trading week by two developments: the failure of the “super committee” on Capitol Hill and a German bond auction at which 35% of the 10-year notes offered went unsold. The numbers for the week: DJIA, -4.78% to 11,231.78; S&P 500, -4.69% to 1,158.67; NASDAQ, -5.09% to 2,441.51.6

THIS WEEK: On Cyber Monday, the numbers on October new home sales come out. Tuesday, the latest S&P/Case-Shiller home price index is released along with the Conference Board’s November snapshot of U.S. consumer confidence; also, Tiffany issues 3Q results. Wednesday, we get data on October pending home sales from the National Association of Realtors and a new Federal Reserve Beige Book. Thursday brings the latest initial claims numbers, November’s ISM manufacturing index, data on auto sales from the Commerce Department and earnings from Kroger, Barnes & Noble and H&R Block. Friday, the October unemployment report is released and Big!Lots announces 3Q earnings.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA -2.99 +1.26 -1.71 +1.25
NASDAQ -7.97 -3.67 -0.15 +2.58
S&P 500 -7.87 -2.58 -3.46 +0.0001
REAL YIELD 11/25 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.05% 0.75% 2.27% 3.50%

Sources: usatoday.com, bigcharts.com, treasury.gov, treasurydirect.gov – 11/25/117,8,9,10 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.

WEEKLY TIP
Visiting the mall or the grocery store when you are depressed or hungry may encourage you to spend excessively and run up a tab you regret.

WEEKLY RIDDLE
We all have one, and even though it often demands an answer, it offers no question. What is this everyday item?

Last week’s riddle:
Gerald Ford was our 38th President, but he was actually the 37th man to take the job. Why was that?

Last week’s answer:
Grover Cleveland held two non-consecutive terms of office – he was both the 22nd and 24th U.S. President.

Citations.
1 – www.dailyfinance.com/2011/11/23/as-holiday-season-begins-a-mixed-bag-of-economic-news// [11/23/11]
2 – montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [11/25/11]
3 – http://realtors.org/press_room/news_releases/2011/11/ehs_oct [11/21/11]
4 – www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/11/23/bloomberg_articlesLV4AM307SXKX.DTL [11/23/11]
5 – blogs.wsj.com/marketbeat/2011/11/25/data-points-energy-metals-532/ [11/25/11]
6 – blogs.wsj.com/marketbeat/2011/11/25/data-points-u-s-markets-66/ [11/25/11]
7 – www.usatoday.com/money/index [11/25/11]
8 – www.google.com/finance/historical?cid=983582&startdate=Nov+26%2C+2010&enddate=Nov+26%2C+2010&num=30 [11/25/11]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F26F2%2F10&x=10&y=18 [11/25/11]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F26%2F10&x=0&y=0 [11/25/11]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F24%2F06&x=0&y=0 [11/25/11]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F24%2F06&x=0&y=0 [11/25/11]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F24%2F06&x=0&y=0 [11/25/11]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F26%2F01&x=0&y=0 [11/25/11]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F26%2F01&x=0&y=0 [11/25/11]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F26%2F01&x=0&y=0 [11/25/11]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/25/11]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/25/11]
10 – treasurydirect.gov/instit/annceresult/press/preanre/2001/ofm71101.pdf [7/11/01]

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. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, 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 an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. 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. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. 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. This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. Stonecreek Wealth Advisors, Inc. a fee only registered investment advisor firm in Salt Lake City, Utah, providing wealth management services.  Mark Lund is the author of The Effective Investor.

 

]]> http://www.stonecreekwealthadvisors.com/2011/11/weekly-economic-update-for-november-28-2011/feed/ 0 Weekly Economic Update for November 21, 2011 http://www.stonecreekwealthadvisors.com/2011/11/weekly-economic-update-for-november-21-2011/?utm_source=rss&utm_medium=rss&utm_campaign=weekly-economic-update-for-november-21-2011 http://www.stonecreekwealthadvisors.com/2011/11/weekly-economic-update-for-november-21-2011/#comments Mon, 21 Nov 2011 18:14:46 +0000 Mark Lund, The Investor Coach http://www.stonecreekwealthadvisors.com/?p=1097 Presented by Mark K. Lund, Investor Coach.

WEEKLY QUOTE
“Accept no one’s definition of your life; define yourself.”
– Harvey Fierstein

CONSUMER PRICES RETREAT IN OCTOBER
For the first month since June, consumer inflation decreased. The biggest influence on the 0.1% decline in the Consumer Price Index? Falling retail gasoline prices. New car prices also saw their biggest one-month drop in nearly two years. Core CPI rose 0.1% in October; annualized inflation lessened to 3.5% with annualized core CPI at 2.1%. Producer prices declined last month as well, going -0.3% after a +0.8% September showing; core PPI was flat in October.1,2

RETAIL SALES, HOUSING STARTS, LEI ALL ENCOURAGE
The Commerce Department said U.S. retail purchases increased by 0.5% in October – the fifth consecutive monthly gain. While overall housing starts declined 0.3% last month, single-family home construction improved by 5.1%. October housing permits were 17.7% above year-ago levels. The Conference Board’s index of leading economic indicators rose a striking 0.9% in October, with the boost in home construction a key factor.2,3,4,5

GOLD & OIL PRICES SLIDE
In fact, gold had its roughest trading week since September, with prices pulling back 3.5% to $1,720.10 at Friday’s COMEX close. Oil prices also descended: crude settled at $97.41 per barrel on the NYMEX at week’s end.6,7

STOCKS LOSE SOME GROUND
Investors weren’t buying much last week, what with one eye on Europe and another on the “super committee” impasse in Congress. The Dow, S&P 500 and NASDAQ all pulled back for the week as follows: DJIA, -2.94% to 11,796.23; S&P 500, -3.81% to 1,215.67; NASDAQ, -3.97% to 2,572.50.8

THIS WEEK: Monday, the National Association of Realtors tells us about October existing home sales and Hewlett-Packard and Tyson Foods issue 3Q results. Tuesday brings the second estimate of 3Q GDP, the most recent Federal Reserve policy meeting minutes and earnings from Campbell Soup and Hormel Foods. Wednesday is big indeed: the day before Thanksgiving is the deadline for the Congressional “super committee” to approve a deficit-trimming plan. Wednesday will also see the release of data on October consumer spending and October durable goods orders, plus the latest initial claims figures and the final University of Michigan consumer sentiment poll for the month. Thursday being Thanksgiving, all U.S. financial markets will be closed. This Friday will be Black Friday, of course; the NYSE will have a shortened trading day.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +1.89 +5.50 -0.89 +1.82
NASDAQ -3.03 +2.31 +1.04 +3.30
S&P 500 -3.34 +1.59 -2.65 +0.56
REAL YIELD 11/18 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.05% 0.83% 2.33% 3.50%

Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov – 11/18/118,9,10,11 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.

WEEKLY TIP
If you pay your real estate taxes instead of your mortgage lender, you could pre-pay some 2012 taxes this year to qualify for a deduction on your 1040.

WEEKLY RIDDLE Gerald Ford was our 38th President, but he was actually the 37th man to take the job. Why was that?

Last week’s riddle:
A sudden noise startles a gopher, an owl and a skunk at the edge of a forest. The owl flies off and the gopher retreats into his burrow, but the skunk runs for the trees. How far can that skunk run into the forest?

Last week’s answer:
Halfway; after he gets halfway in, he’s running out of the forest.

Citations.
1 – www.businessweek.com/ap/financialnews/D9R1SFE00.htm [11/16/11]
2 – www.nytimes.com/2011/18/16/business/economy/us-retail-sales-rose-0-5-in-october.html [11/16/11]
3 – www.latimes.com/business/realestate/la-fi-housing-starts-20111118,0,4792319.story [11/17/11]
4 – www.dailyfinance.com/2011/18/18/index-of-leading-economic-indicators-rises/ [11/18/11]
5 – montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [11/18/11]
6 – www.cnbc.com/id/45346193 [11/18/11]
7 – www.cnbc.com/id/45346195 [11/18/11]
8 – www.cnbc.com/id/45354584 [11/18/11]
9 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F18%2F10&x=0&y=0 [11/18/11]
9 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F18F2%2F10&x=10&y=18 [11/18/11]
9 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F18%2F10&x=0&y=0 [11/18/11]
9 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F17%2F06&x=0&y=0 [11/18/11]
9 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F17%2F06&x=0&y=0 [11/18/11]
9 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F17%2F06&x=0&y=0 [11/18/11]
9 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F19%2F01&x=0&y=0 [11/18/11]
9 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F19%2F01&x=0&y=0 [11/18/11]
9 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F19%2F01&x=0&y=0 [11/18/11]
10 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/18/11]
10 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/18/11]
11 – treasurydirect.gov/instit/annceresult/press/preanre/2001/ofm71101.pdf [7/11/01]

 

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