Articles for April 2013

CFGIowa Weekly Economic Update – April 29, 2013

Q1 GDP COMES IN AT 2.5%

The initial estimate of first quarter growth from the Bureau of Economic Analysis disappointed some analysts who had expected 3% expansion or better. Personal consumption and inventory accumulation were the prime sources of growth. Personal spending rose 3.2% in the quarter, but real disposable personal income fell 5.3%, which led the personal savings rate to slip to 2.6% from 4.7% in Q4. The big picture? The economic recovery is definite, but still sluggish. Overall durable goods orders dropped 5.7% in March, according to the Commerce Department.1,2

EXISTING HOME SALES FALL; NEW HOME SALES RISE

While March brought a 0.6% dip in residential resales, the National Association of Realtors also noted the 10.3% gain in the pace of home buying from a year before. The Census Bureau reported a 1.5% gain in new home sales last month, with the year-over-year improvement in the sales pace at 18.5%.3

CONSUMERS GROW MORE POSITIVE AS APRIL ENDS

Economists polled by Reuters had forecast April’s final consumer sentiment reading from the University of Michigan to rise mildly to 73.2. Instead, it jumped to 76.4. That was still underneath the final March mark of 78.6.4

STOCKS KEEP ADVANCING

Across a volatile week, the Dow went +1.13% to settle at 14,712.55 Friday. The NASDAQ (+2.28% to 3,279.26) and S&P 500 (+1.74% to 1,582.24) also improved. At Friday’s close, about half of S&P 500 companies had reported quarterly results; just 42% had surpassed revenue forecasts, but 69% had beaten earnings expectations.4

THIS WEEK: The March consumer spending report arrives Monday, plus NAR’s March pending home sales figures and earnings from Hartford Financial, Newmont Mining and Buffalo Wild Wings. Tuesday offers the Conference Board’s April consumer confidence poll, February’s S&P/Case-Shiller Home Price Index and Q1 results from Pfizer, Aetna, UBS, Deutsche Bank, BP, NYSE Euronext, Sirius XM, US Steel and DreamWorks. Wednesday brings ADP’s April employment report, ISM’s April manufacturing index, a policy statement from the Federal Reserve, and earnings from Facebook, Visa, Allstate, Comcast, MasterCard, Merck, Time Warner, CVS, Chesapeake Energy, Clorox, Humana, CBS, Marriott, MetLife and Yelp. Earnings from Kellogg, GM, Royal Dutch Shell, Beazer Homes, AIG and Kraft Foods come out Thursday, plus April’s Challenger job cut report. On Friday, the Labor Department’s April employment report arrives along with ISM’s April service sector index and quarterly results from Berkshire Hathaway.

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

+12.27

+11.42

+2.82

+7.71

NASDAQ

+8.60

+7.50

+7.07

+12.86

S&P 500

+10.94

+13.02

+2.64

+7.60

REAL YIELD

4/26 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

-0.68%

-0.29%

1.60%

2.18%

Sources: cnbc.com, bigcharts.com, treasury.gov – 4/26/134,5,6,7
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.


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 send us their address (click the link). We will contact them first and request their permission to add them to our list.


Disclosure
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. 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. 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. Past performance is no guarantee of future results.  Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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.
Citations.
1 – www.bloomberg.com/news/2013-04-26/latest-gdp-report-shows-u-s-economy-still-waiting-for-liftoff.html [4/26/13]
2 – briefing.com/investor/calendars/economic/2013/04/22-26 [4/26/13]
3 – www.csmonitor.com/Business/new-economy/2013/0423/New-home-sales-climb-1.5-percent-bolstering-housing-recovery [4/23/13]
4 – www.cnbc.com/id/100678668 [4/26/13]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F26%2F12&x=0&y=0 [4/26/13]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F26%2F12&x=0&y=0 [4/26/13]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F26%2F12&x=0&y=0 [4/26/13]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F25%2F08&x=0&y=0 [4/26/13]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F25%2F08&x=0&y=0 [4/26/13]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F25%2F08&x=0&y=0 [4/26/13]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F25%2F03&x=0&y=0 [4/26/13]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F25%2F03&x=0&y=0 [4/26/13]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F25%2F03&x=0&y=0 [4/26/13]
6 – www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/26/13]
7 – www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/26/13]

CFGIowa Weekly Economic Update – April 22, 2013

INFLATION DECLINES

Consumer prices retreated 0.2% in March as fuel costs fell, a sea change from the 0.7% rise in the Consumer Price Index seen in February. (Labor Department data did show a 0.1% rise in core CPI.) Annualized consumer inflation was at 1.5% in March, down half a percent in a month. Year-over-year inflation hasn’t been so mild since July, and that is reassuring news for the Federal Reserve.1

SURPRISE DIP FOR LEADING INDICATORS

After six straight months of advances, the Conference Board’s index of leading indicators unexpectedly retreated 0.1% for March. It had risen 0.5% across January and February. As for anecdotal evidence of the economy’s health, the latest Fed Beige Book noted “moderate” expansion, adding that household spending “grew modestly” even with the payroll tax hike and higher gas prices.2

HOUSING STARTS UP 7.0% IN MARCH

The Commerce Department noted that they reached a 1.04 million annual rate last month, a pace last seen in June 2008. While single-family projects dipped 4.8% in March, apartment starts jumped 31.0% to their highest level since January 2006.1

VOLATILITY KEEPS STOCKS IN CHECK

The CBOE VIX rose 24.13% last week, and the DJIA (-2.14% to 14,547.51), NASDAQ (-2.70% to 3,206.06) and S&P 500 (-2.11% to 1,555.25) basically gave back the gains realized from April 8-12. NYMEX crude lost 3.1% last week to settle Friday at $88.01; COMEX gold fell another 7.1% last week to $1,395.60 at Friday’s close.3,4,5

THIS WEEK: Monday brings earnings from Netflix, Caterpillar, Halliburton, Hasbro, Zions Bancorp, STMicro and Texas Instruments, and the NAR presents a new existing home sales report. Tuesday, the Census Bureau provides data on March new home sales, the latest FHFA housing index appears, and Discover Financial, Panera Bread, Delta Airlines, United Tech, DuPont, Travelers, Amgen, Apple, AT&T, Broadcom, Cree and Yum! Brands announce earnings. Wednesday, the Commerce Department reports on March durable goods orders; Credit Suisse, Akamai, GlaxoSmithKline, Barclays, Boeing, Ford, Eli Lilly, P&G, Sprint Nextel, Qualcomm, Aflac, Cabot Oil & Gas and Zynga are out with earnings. Starbucks, Coinstar, ExxonMobil, 3M, ConocoPhillips, Altria, AstraZeneca, Bristol-Myers, UPS, Altera, Baidu and Expedia report quarterly results Thursday; new weekly jobless claims figures also appear. The BEA publishes its first estimate of Q1 GDP Friday, which is also when the final April University of Michigan consumer sentiment survey arrives; complementing those releases, DR Horton, Honda and Chevron announce earnings.

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

+11.01

+12.21

+2.64

+7.45

NASDAQ

+6.18

+6.60

+6.68

+12.49

S&P 500

+9.05

+12.95

+2.37

+7.40

REAL YIELD

4/19 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

-0.59%

-0.21%

1.45%

2.22%

 

Sources: cnbc.com, bigcharts.com, treasury.gov – 4/19/133,6,7,8 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.


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 send us their address (click the link). We will contact them first and request their permission to add them to our list.


Disclosure
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. 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. 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. Past performance is no guarantee of future results.  Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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.
Citations.
1 – www.sfgate.com/business/bloomberg/article/Housing-Starts-Climb-as-U-S-Consumer-Prices-4438798.php [4/16/13]
2 – www.futuresmag.com/2013/04/18/leading-economic-indicators-index-in-us-unexpected [4/18/13]
3 – www.cnbc.com/id/100656119 [4/19/13]
4 – www.foxbusiness.com/news/2013/04/19/market-snapshot-us-stocks-rise-ibm-weighs-on-dow/ [4/19/13]
5 – www.cnbc.com/id/100655012 [4/19/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F19%2F12&x=0&y=0 [4/19/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F19%2F12&x=0&y=0 [4/19/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F19%2F12&x=0&y=0 [4/19/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F18%2F08&x=0&y=0 [4/19/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F18%2F08&x=0&y=0 [4/19/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F18%2F08&x=0&y=0 [4/19/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F17%2F03&x=0&y=0 [4/19/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F17%2F03&x=0&y=0 [4/19/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F17%2F03&x=0&y=0 [4/19/13]
7 – www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/19/13]
8 – www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/19/13]

CFGIowa Weekly Economic Update – April 15, 2013

HOUSEHOLDS BOUGHT LESS LAST MONTH

Retail sales were down 0.4% in March, according to the Commerce Department. This unanticipated dip was the deepest retreat in nine months. Even with volatile car and truck sales factored out, the March decline remained 0.4%.1

CONSUMER SENTIMENT SLIPS

The University of Michigan’s overall index of consumer sentiment came in at 72.3 in its preliminary April reading – down significantly from the final March mark of 78.6. Last month’s imposed federal budget cuts may have had an effect.1

PRODUCER PRICE INDEX DOWN 0.6%

Cheap gasoline was the big factor. Economists polled by Reuters had forecast a 0.2% retreat in the PPI for March, but the decline in pump prices made more of an impact. Core PPI (with food and energy costs subtracted) rose 0.2% last month.1,2

GOLD ENTERS A BEAR MARKET

Friday, the precious metal settled at $1,501.40 on the COMEX after a 4.1% one-day plunge. Futures fell 4.7% across last week. The April 12 settlement price was 20.5% below the record close of $1,888.70 notched on August 22, 2011.3

STOCKS CLIMB 2% IN A WEEK

Unfazed by soft economic indicators, Wall Street was in a buying mood last week. After a 2.29% gain in five days left the S&P 500 at 1,588.85 at Friday’s close, investors wondered if the index would top 1,600 soon. The Dow (+2.06% to 14,865.06), NASDAQ (+2.84% to 3,294.95) and Russell 2000 (+2.12% to 942.85) all advanced impressively on the week.2

THIS WEEK: Monday, Citigroup presents Q1 results and a new NAHB Housing Market Index appears. The March CPI arrives Tuesday, along with numbers on March housing starts and earnings from Coca-Cola, Yahoo!, BlackRock, Goldman Sachs, Johnson & Johnson, Northern Trust, US Bancorp, Intel and CSX. Wednesday, the Federal Reserve offers its latest Beige Book and Wall Street awaits earnings from American Express, Bank of NY Mellon, Abbott Labs, Bank of America, eBay and SanDisk. The Conference Board’s March index of leading indicators comes out Thursday, G20 finance ministers meet, and Chipotle, United Health, E-Trade, Philip Morris, Morgan Stanley, PepsiCo, Verizon, Nokia, Peabody Energy, Google, IBM, Microsoft and Capital One report earnings. Friday, earnings from Schlumberger, McDonald’s, GE and Honeywell round out the week.

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

+13.44

+14.46

+4.12

+8.12

NASDAQ

+9.12

+7.83

+8.77

+14.25

S&P 500

+11.41

+14.51

+3.84

+8.30

REAL YIELD

4/12 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

-0.68%

-0.22%

1.19%

2.23%

Sources: cnbc.com, bigcharts.com, treasury.gov – 4/12/132,4,5,6

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.

These returns do not include dividends.


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 send us their address (click the link). We will contact them first and request their permission to add them to our list.


Disclosure
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. 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. 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. Past performance is no guarantee of future results.  Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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.
Citations.
1 – www.nasdaq.com/article/us-stocks-slip-with-weak-consumer-sentiment-retail-data-20130412-00393#.UWhv1cpXqXk [4/12/13]
2 – www.cnbc.com/id/100637362 [4/12/13]
3 – www.marketwatch.com/story/gold-prices-slip-with-weekly-declines-in-sight-2013-04-12 [4/12/13]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F12%2F12&x=0&y=0 [4/12/13]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F12%2F12&x=0&y=0 [4/12/13]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F12%2F12&x=0&y=0 [4/12/13]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F11%2F08&x=0&y=0 [4/12/13]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F11%2F08&x=0&y=0 [4/12/13]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F11%2F08&x=0&y=0 [4/12/13]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F11%2F03&x=0&y=0 [4/12/13]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F11%2F03&x=0&y=0 [4/12/13]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F11%2F03&x=0&y=0 [4/12/13]
5 – www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/12/13]
6 – www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/12/13]

CFGIowa Monthly Economic Update April 2013

April 2013

THE MONTH IN BRIEF

Stocks just couldn’t be stopped in March. The S&P 500 rose 3.60%, all the way to a new record close of 1,569.19 on March 28 (the last market day of the month). The Dow and Russell 2000 reached all-time peaks as well. Even another crisis in Europe couldn’t stop the advance. Stateside indicators were broadly positive (which was not the case for foreign stock indices and the performance of key commodities). Even with sequester cuts affecting the federal budget and the payroll tax holiday a memory, the overall outlook for the economy and the market seemed to brighten.1

DOMESTIC ECONOMIC HEALTH

On March 1, an $85 billion reduction in federal spending over the next six months was authorized by law – a 13% cut for the armed forces and a 9% cut for other government agencies. The spending cuts (also known as sequestration) would be gradually enacted, and some analysts felt they would be smaller than announced or retroactively amended. While sequestration resulted from a stalemate between the White House and Congress, fears that Congress would fail to pass a crucial  short-term budget bill by March 27 faded away when lawmakers did so on March 21.2,3

The Commerce Department’s latest consumer spending data showed Americans spending, saving and earning more. In February, personal spending rose 0.7% and personal incomes 1.1%; the savings rate improved to 2.6%. Higher gas prices and swelling dividends influenced the jumps in spending and income, however – and rising pump prices also accounted for about half of the month’s 1.1% advance in retail sales. Still, consumer spending was up 0.3% in February when adjusted for inflation. Speaking of inflation, the Consumer Price Index and the Producer Price Index each rose 0.7% for February. Annualized consumer inflation was still no threat at 1.3%; the Federal Reserve’s current target is 2.0%.4,5,6,7

America’s two most-watched consumer confidence polls flashed opposite signals in March: the University of Michigan’s final March consumer sentiment survey rose 1.0% to 78.6, but the Conference Board’s March poll dropped 8.3% to 59.7.4,5

The Institute for Supply Management’s March manufacturing PMI disappointed, falling to 51.3 (the weakest reading since December) from the prior mark of 54.2. On the other hand, its February non-manufacturing index climbed to 56.0 (a one-year peak) from the 54.2 reading in January. In related news, durable goods orders rose 5.7% in February, with new transportation orders driving the gain; industrial production also rose 0.7% in that month.7,8,9,10

Would the Fed taper off its stimulus effort in the coming months? Perhaps not. Fed Chairman Ben Bernanke reassured investors in mid-March that while the central bank might soon adjust the amount of its monthly bond purchases, it would keep easing for the foreseeable future. The federal government also put out its final estimate of Q4 GDP: +0.4%, the poorest quarterly advance since 2011.5,11

GLOBAL ECONOMIC HEALTH

Another EU member required a bailout: Cyprus, hardly an economically significant nation within the euro area but still a potential harbinger of a fractured eurozone. On March 16, Cyprus was offered a €10 billion rescue package from the European Central Bank to recapitalize its lenders – but on March 19, its parliament rejected the bailout terms. The most controversial stipulation: a tax of up to 10% on bank accounts. Rumors had the country appealing to Russia and Middle Eastern investors for aid; finally, it accepted an ultimatum and agreed to a modified €10 billion ECB bailout on March 25. Its banks reopened on March 28 after being shuttered for almost two weeks, with limits on withdrawals to quell a panic.12,13

The HSBC purchasing manager indices tracking manufacturing in several Asian nations improved last month: 51.6 in China, 50.8 in Vietnam, 52.0 in South Korea, 51.3 in Indonesia, 51.2 in Taiwan. (India’s HSBC PMI reading declined 2.2% to 52.0.) The Bank of China’s official PMI was at 50.9 in March, the highest level in 11 months. Also making headlines: “Abenomics”, the sweeping economic policies of new Japanese prime minister Shinzo Abe. Abe is for aggressive central bank easing and stimulus spending, and fresh optimism that Japan will leave its current recession seemed prevalent in its soaring stock market and in a Bank of Japan survey that had business sentiment rising after falling for consecutive quarters.14,15  

WORLD MARKETS

In the west, the TSX Composite (-0.56%), Bovespa (-1.87%) and BOLSA (-0.10%) all fell last month as our major indices gained. In Europe, March gains were logged by the FTSE 100 (+0.80%), CAC 40 (+0.23%) and DAX (+0.69%); the EURO STOXX 50 fell 0.36%. Losses were common in the Asia Pacific region last month, felt by the S&P Asia 50 (-2.19%), the S&P/ASX 200 (-2.70%), the Sensex (-1.10%), the Hang Seng (-3.13%) and the Shanghai Composite (-5.21%); the Nikkei 225, on the other hand, climbed 6.82% to go +22.95% for the first quarter. MSCI’s World Index rose 2.10% for March, while its Emerging Markets Index fell 2.09%.16,17

COMMODITIES MARKETS

A strengthening dollar and renewed belief in the economy took a toll on some commodity futures. Key precious and base metals had a mixed March: silver (-0.4%) and platinum (-0.6%) pulled back, gold (+1.1%) and palladium (+4.6%) advanced. At the end of March, COMEX gold settled at $1,595.70. Oil futures gained 5.6% in March (NYMEX crude ended the month at $97.23) while natural gas futures jumped 15.1%. Cotton futures rose 5.8% in March. The U.S. Dollar Index logged another monthly gain (+1.27%) and settled at 82.99 on March 28.18,19,20,21

REAL ESTATE

Despite some monthly volatility, the year-over-year change in this sector remained profoundly positive. New home sales fell 4.6% in February, but were up 12.3% annually. Existing home sales rose 0.8% in February, bringing the yearly increase to 10.2%; the median price of a residential resale reached $173,600, 11.6% improved from February 2012. Pending home sales did fall 0.4% in February, but the yearly gain was 5.0%; January’s Case-Shiller Home Price Index rose 1.0% after a 0.9% gain in December. Housing starts were up 0.8% in February and 27.7% annually.5,22,23,24

Comparing Freddie Mac’s Primary Mortgage Market Surveys of February 28 and March 28, average home loan interest rates increased on both 30-year FRMs (3.51% to 3.57%) and 5/1-year ARMs (2.61% to 2.68%) in that interval. On the other hand, average rates for 1-year ARMs declined from 2.64% to 2.62% while rates on 15-year FRMs were 2.76% in both editions of the survey.25

LOOKING BACK…LOOKING FORWARD

The DJIA achieved nine record closes in March, ending the month with another one: 14,578.54. The S&P ended March at 1,569.19, the NASDAQ at 3,267.52 and the Russell 2000 at 951.54 (the RUT was up 4.44% for the month).1,26

 

% CHANGE

YTD

1-MO CHG

1-YR CHG

10-YR AVG

DJIA

+11.25

+3.73

+11.06

+7.90

NASDAQ

+8.21

+3.40

+5.24

+13.86

S&P 500

+10.03

+3.60

+11.64

+8.17

REAL YIELD

3/28 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

-0.64%

-0.11%

1.13%

2.09%

 

Sources: cnbc.com, bigcharts.com, treasury.gov – 3/28/131,27,28

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.

These returns do not include dividends.

So where is the top for this market? Ardent bulls see the S&P marching steadily toward 1,550 or even 1,600 across the balance of the year, even if the current optimism fades and something approaching a correction occurs. Bears see a bubble forming off the collective euphoria. So which side has it right? No crystal ball exists to provide us with the answer to that question, but there is an old saying to keep in mind: bull markets tend to doggedly ascend a “wall of worry.” Right now, your notable or emerging worries to stocks include the lingering crisis in the eurozone, a strengthening dollar, the potential hit to the economy this spring from the sequester cuts, the only-guesstimated nuclear weapons potential of Iran and North Korea, and anxieties that the Fed and other central banks might wrap up quantitative easing campaigns too quickly. At the start of April, none of these market threats had dented investor confidence all that much. Perhaps that confidence will take the rally to new peaks this month.

UPCOMING ECONOMIC RELEASES:

Looking at the rest of April, here are the highlights of the economic news stream … ISM’s March non-manufacturing index (4/3), the March employment report from the Labor Department (4/5), February wholesale inventories (4/9), the March 20 Fed minutes (4/10), the March PPI, March retail sales, February business inventories and the University of Michigan’s preliminary April consumer sentiment survey (4/12), April’s NAHB housing market index (4/15), the March CPI plus data on March housing starts, building permits and industrial production (4/16), a Fed Beige Book (4/17), the Conference Board’s March index of Leading Economic Indicators (4/18), March existing home sales (4/22), March new home sales and February’s FHFA housing price index (4/23), March durable goods orders (4/24), the initial estimate of Q1 GDP and the month’s final University of Michigan consumer sentiment survey (4/26), March consumer spending and pending home sales (4/29), and finally the February Case-Shiller home price index and the Conference Board’s April consumer confidence poll (4/30).


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 send us their address (click the link). We will contact them first and request their permission to add them to our list.


Disclosure

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. 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 not a solicitation or recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. 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. The S&P/TSX Composite Index is an index of the stock (equity) prices of the largest companies on the Toronto Stock Exchange (TSX) as measured by market capitalization. The Bovespa Index is a gross total return index weighted by traded volume & is comprised of the most liquid stocks traded on the Sao Paulo Stock Exchange.  The Mexican Stock Exchange (Spanish: Bolsa Mexicana de Valores, BMV; BMV: BOLSA) is Mexico’s only stock exchange. The FTSE 100 Index is a share index of the 100 companies listed on the London Stock Exchange with the highest market capitalization. The CAC-40 Index is a narrow-based, modified capitalization-weighted index of 40 companies listed on the Paris Bourse. The DAX 30 is a Blue Chip stock market index consisting of the 30 major German companies trading on the Frankfurt Stock Exchange. The EURO STOXX 50 Index, Europe’s leading Blue-chip index for the eurozone, provides a blue-chip representation of supersector leaders in the eurozone. The S&P Asia 50 is an equity index drawn from four major Asian markets – Hong Kong, Singapore, South Korea, and Taiwan. The S&P/ASX 200 is recognized as the primary investable benchmark in Australia. The BSE SENSEX (Bombay Stock Exchange Sensitive Index), also-called the BSE 30 (BOMBAY STOCK EXCHANGE)or simply the SENSEX, is a free-float market capitalization-weighted stock market index of 30 well-established and financially sound companies listed on the Bombay Stock Exchange (BSE). The Hang Seng Index is a freefloat-adjusted market capitalization-weighted stock market index that is the main indicator of the overall market performance in Hong Kong. The SSE Composite Index is an index of all stocks (A shares and B shares) that are traded at the Shanghai Stock Exchange. Nikkei 225 (Ticker: ^N225) is a stock market index for the Tokyo Stock Exchange (TSE). The Nikkei average is the most watched index of Asian stocks. The MSCI World Index is a free-float weighted equity index that includes developed world markets, and does not include emerging markets. The MSCI Emerging Markets Index is a float-adjusted market capitalization index consisting of indices in more than 25 emerging economies. The US Dollar Index measures the performance of the U.S. dollar against a basket of six currencies. 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.

 

Citations.

1 – www.cnbc.com/id/100600350 [3/28/13]
2 – www.reuters.com/article/2013/03/01/us-usa-fiscal-idUSBRE91P0W220130301 [3/1/13]
3 – www.cbsnews.com/8301-250_162-57575622/congress-finally-averts-fiscal-crisis-with-time-to-spare/ [3/21/13]
4 – www.nytimes.com/reuters/2013/03/29/business/29reuters-consumer-spending.html [3/29/13]
5 – www.csmonitor.com/Business/2013/0329/Strong-rise-in-consumer-spending-caps-good-week-in-economic-news [3/29/13]
6 – articles.marketwatch.com/2013-03-13/economy/37663012_1_retail-sales-gas-stations-building-material-stores [3/13/13]
7 – www.jec.senate.gov/republicans/public/index.cfm?p=EconomicNews&ContentRecord_id=faa3f919-b827-4254-808b-83eb3f6d8602 [3/15/13]
8 – www.nasdaq.com/article/us-march-manufacturing-pmi-slows-to-513-vs-542-in-february–ism-20130401-00482#.UVn1hldXqXk [4/1/13]
9 – www.ism.ws/ISMReport/NonMfgROB.cfm [3/5/13]
10 – www.foxbusiness.com/economy/2013/03/26/durable-goods-orders-big-ticket-items-durable-goods/ [3/26/13]
11 – www.sfgate.com/news/article/Bernanke-Stimulus-hinges-on-sustained-improvement-4370751.php [3/20/13]
12 – www.telegraph.co.uk/finance/financialcrisis/9951858/Cyprus-bailout-timeline.html [3/28/13]
13 – www.businessweek.com/ap/2013-03-28/news-summary-cyprus-banks-reopen-after-crisis [3/28/13]
14 – economictimes.indiatimes.com/news/international-business/asian-manufacturing-picks-up-in-march-data-shows/articleshow/19319865.cms [4/1/13]
15 – www.foxbusiness.com/news/2013/03/31/japan-business-mood-improves-as-market-reacts-to-abenomics/ [3/31/13]
16 – bloomberg.com/markets/stocks/ [3/31/13]
17 – mscibarra.com/products/indices/international_equity_indices/gimi/stdindex/performance.html [3/28/13]
18 – bullionpricestoday.com/bullion-prices-mixed-in-first-quarter-2013-gold-silver-coins-mixed/ [3/29/13]
19 – www.proactiveinvestors.com/companies/news/42162/oil-caps-longest-winning-streak-of-2013-gold-drops-42162.html [3/28/13]
20 – www.reuters.com/article/2013/03/28/markets-commodities-idUSL2N0CK14Y20130328 [3/28/13]
21 – online.wsj.com/mdc/public/npage/2_3050.html?mod=mdc_curr_dtabnk&symb=DXY [3/29/13]
22 – www.realtor.org/news-releases/2013/03/existing-home-sales-and-prices-continue-to-rise-in-february [3/21/13]
23 – www.census.gov/construction/nrc/pdf/newresconst.pdf [3/22/13]
25 – www.freddiemac.com/pmms/ [4/1/13]
26 – blogs.barrons.com/stockstowatchtoday/2013/03/28/sp-500-breaks-record-closing-high/ [3/28/13]
27 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F28%2F12&x=0&y=0 [3/28/13]
27 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F28%2F12&x=0&y=0 [3/28/13]
27 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F28%2F12&x=0&y=0 [3/28/13]
27 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F28%2F03&x=0&y=0 [3/28/13]
27 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F28%2F03&x=0&y=0 [3/28/13]
27 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F28%2F03&x=0&y=0 [3/28/13]
28 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/1/13]

CFGIowa Weekly Economic Update – April 8, 2013

JUST 88,000 NEW JOBS?

In the wake of the Labor Department’s disappointing March employment report, puzzled analysts tried to figure out the reasons for such poor job growth. Did businesses fear the impact of the federal budget cuts in March and scale back hiring? Were there fewer food service, retail and temporary job openings? (More than 7% of Americans work in food service jobs, and temp work has made up a larger share of employment in recent years.) Was it seasonal, since hiring also declined in spring 2011 and spring 2012? Would the number later be revised upward? Whatever the cause(s), the message was troubling. The jobless rate dipped to 7.6%, but that was because of fewer jobseekers – the labor force participation rate was 63.3% in March, a 34-year low.1

ISM: BUSINESS ACTIVITY SLOWED IN MARCH

In another disconcerting development, the Institute for Supply Management’s manufacturing and service sector PMIs both retreated last month. ISM’s manufacturing PMI fell to 51.3 from the previous 54.2, while its non-manufacturing PMI dipped 1.6 points to 54.4. On the upside, the Commerce Department did note a 3.0% rise in factory orders in February.2,3

OIL & GOLD MOVE LOWER FOR THE WEEK

NYMEX crude settled at $92.70 a barrel Friday, representing a 4.7% five-day loss. COMEX gold gained 1.5% Friday to end the week at $1,575.90 an ounce but still slipped 1.2% last week.4

CAUTION ON WALL STREET

The jobs report and North Korea’s ongoing threats gave investors pause last week, and so the Dow (-0.09% to 14,565.25), NASDAQ (-1.95% to 3,203.86) and S&P 500 (-1.01% to 1,553.28) all lost ground. Still, it was only the second down week in the past seven for the Dow.5

THIS WEEK: Alcoa kicks off the Q1 earnings season after Monday’s closing bell, and Ben Bernanke speaks on stress testing banks Monday night. Nothing major is scheduled for Tuesday. Wednesday, the March 20 FOMC minutes will be made public and CarMax, Constellation Brands and Bed Bath & Beyond report earnings. Thursday brings the latest initial jobless claims report from the Labor Department plus earnings from Rite Aid, JB Hunt and Pier 1 Imports. Friday, March’s PPI and March retail sales data arrive, Wells Fargo and JPMorgan report earnings, the University of Michigan’s preliminary April consumer sentiment survey appears, and Ben Bernanke delivers an afternoon speech at the Fed’s development conference.

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

+11.15

+11.52

+3.10

+7.60

NASDAQ

+6.11

+4.00

+7.03

+13.16

S&P 500

+8.91

+11.10

+2.67

+7.67

REAL YIELD

4/5 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

-0.74%

-0.08%

1.18%

2.16%

Sources: cnbc.com, bigcharts.com, treasury.gov – 4/5/135,6,7,8

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.

These returns do not include dividends.


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 send us their address (click the link). We will contact them first and request their permission to add them to our list.


Disclosure
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. 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. 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. Past performance is no guarantee of future results.  Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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.
Citations.
1 – www.nytimes.com/2013/04/06/business/economy/us-adds-only-88000-jobs-jobless-rate-falls-to-7-6.html [4/5/13]
2 – www.ism.ws/ISMReport/NonMfgROB.cfm [4/3/13]
3 – www.reuters.com/article/2013/04/02/us-economy-factory-orders-idUSBRE9310HV20130402 [4/2/13]
4 – www.proactiveinvestors.com/companies/news/42403/oil-drops-gold-rises-on-us-jobs-report-42403.html [4/5/13]
5 – www.cnbc.com/id/100619132 [4/5/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F5%2F12&x=0&y=0 [4/5/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F5%2F12&x=0&y=0 [4/5/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F5%2F12&x=0&y=0 [4/5/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F4%2F08&x=0&y=0 [4/5/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F4%2F08&x=0&y=0 [4/5/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F4%2F08&x=0&y=0 [4/5/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F4%2F03&x=0&y=0 [4/5/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F4%2F03&x=0&y=0 [4/5/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F4%2F03&x=0&y=0 [4/5/13]
7 – www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/5/13]
8 – www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/5/13]

CFGIowa Weekly Economic Update – April 1, 2013

SOLID GAINS IN HOUSEHOLD SPENDING, INCOME

According to the latest Commerce Department report, household spending was up 0.7% in February (the largest gain in five months) while consumer incomes jumped 1.1%. February’s 35-cent climb in gasoline prices influenced the first number, while an 11.9% surge in dividends influenced the second. Still, consumer spending rose 0.3% in inflation-adjusted terms. The personal savings rate improved to 2.6%.1,2

CONSUMER POLLS TELL DIFFERENT STORIES

The University of Michigan’s final consumer sentiment survey for March came in at 78.6, improving by a full point from the end of February. The Conference Board’s March survey of consumer confidence presented a strikingly different result: it dropped to 59.7 from February’s 68.0 mark. The CB said the sequester had a negative influence, while the University of Michigan cited stock market highs, March’s lower gas prices and the housing recovery as positive factors.1,2

SMALLER INVENTORY MAY HAVE CURBED HOME SALES

New home sales fell 4.6% in February, according to the Census Bureau; the National Association of Realtors noted a 0.4% decline in pending home sales for that month. Reduced inventory appears to have been a factor. The January S&P/Case-Shiller Home Price Index showed a one-month gain of 1.0%.2

FINAL Q4 GDP +0.4%; HARD GOODS ORDERS JUMP

This last estimate from the Commerce Department still makes Q4 2012 growth the smallest in any quarter since 2011. More big ticket items were ordered in February: durable goods orders soared 5.7% in that month after falling 3.8% in January.2,3

A RECORD CLOSE FOR THE S&P 500

A terrific quarter wrapped up Thursday with the S&P settling at 1,569.19, the Dow at 14,578.54 and the NASDAQ at 3,267.52. March was the fifth straight positive month for both the S&P and NASDAQ. Last week’s gains: Dow, 0.46%; NASDAQ, 0.69%; S&P, 0.79%. Gold ended the quarter at $1,595.70, losing 4.8% in three months; oil settled Thursday at $97.23, rising 5.9% in the quarter.4,5

THIS WEEK: Monday sees the release of the Institute for Supply Management’s March manufacturing PMI. Tuesday, the federal government presents data on March auto sales and February factory orders. ISM’s service sector PMI arrives Wednesday, along with earnings from ConAgra and Monsanto. Thursday, the European Central Bank and Bank of England make policy announcements. The Labor Department’s March employment report comes out on Friday.

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

+11.25

+11.06

+3.87

+7.90

NASDAQ

+8.21

+5.24

+8.90

+13.86

S&P 500

+10.03

+11.64

+3.86

+8.17

REAL YIELD

3/28 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

-0.64%

-0.11%

1.13%

2.09%

Sources: cnbc.com, bigcharts.com, treasury.gov – 3/28/134,6,7,8

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.

These returns do not include dividends.


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 send us their address (click the link). We will contact them first and request their permission to add them to our list.


Disclosure
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. 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. 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. Past performance is no guarantee of future results.  Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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.
Citations.
1 – www.nytimes.com/reuters/2013/03/29/business/29reuters-consumer-spending.html [3/29/13]
>2 – www.csmonitor.com/Business/2013/0329/Strong-rise-in-consumer-spending-caps-good-week-in-economic-news [3/29/13]
3 – www.foxbusiness.com/economy/2013/03/26/durable-goods-orders-big-ticket-items-durable-goods/ [3/26/13]
4 – www.cnbc.com/id/100600350 [3/28/13]
5 – www.proactiveinvestors.com/companies/news/42162/oil-caps-longest-winning-streak-of-2013-gold-drops-42162.html [3/28/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F28%2F12&x=0&y=0 [3/28/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F28%2F12&x=0&y=0 [3/28/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F28%2F12&x=0&y=0 [3/28/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F28%2F08&x=0&y=0 [3/28/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F28%2F08&x=0&y=0 [3/28/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F28%2F08&x=0&y=0 [3/28/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F28%2F03&x=0&y=0 [3/28/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F28%2F03&x=0&y=0 [3/28/13]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F28%2F03&x=0&y=0 [3/28/13]
7 – www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [3/28/13]
8 – www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [3/28/13]