Weekly Economic Update 1/16/2017

RETAIL SALES RISE 0.6%

All of this December gain can be attributed to increased car buying and gasoline purchases; in fact, retail sales were flat with those two categories removed. Analysts surveyed by MarketWatch had projected a 0.8% December advance. Census Bureau data shows that online sales rose 13.2% in 2016, while department store sales fell 8.4%.1,2

     

CONSUMERS MAINTAIN OPTIMISM AS 2017 BEGINS

The University of Michigan’s preliminary January consumer sentiment index was little changed from the final December edition – just a tenth of a point lower at 98.1. In January 2016, the index was at 92.0. The current conditions component of the index reached 112.5, its highest mark since 2004.3

   

PRODUCER PRICES CLIMB AGAIN

After heading north 0.4% in November, the Producer Price Index advanced another 0.3% in December, perhaps hinting that an extended period of minimal wholesale inflation is now history. The December increase left both the headline and core PPI up 1.6% year-over-year.1

      

A GOOD WEEK FOR TECH SHARES

Across January 9-13, the Nasdaq Composite added 0.96% to settle at 5,574.12. Wall Street’s other two major indices went red for the week – the Dow Jones Industrial Average shed 0.39%; the S&P 500, 0.10%. Friday, the Dow settled at 19,885.73; the S&P, at 2,274.64.4

 

THIS WEEK: Wall Street observes Martin Luther King, Jr. Day Monday – U.S. stock and bond markets are closed. Morgan Stanley and UnitedHealth Group announce earnings Tuesday. On Wednesday, Federal Reserve chair Janet Yellen speaks about monetary policy goals in San Francisco, the December CPI and a new Fed Beige Book appear, and investors examine earnings from Charles Schwab, Citigroup, Fastenal, Goldman Sachs, Netflix, Northern Trust, Raymond James, and U.S. Bancorp. Earnings from Alaska Air, American Express, BB&T, Celanese, IBM, J.B. Hunt, Nautilus, and Union Pacific arrive Thursday, along with new data on initial claims, housing starts, and building permits; that night, Janet Yellen talks about the U.S. economic outlook in a California speech. Friday is Inauguration Day: federal offices in Washington, D.C. and its vicinity are closed, but Wall Street is open for business as General Electric, Regions Financial, Schlumberger, and SunTrust Banks present earnings.

  

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +0.62 +23.12 +12.02 +5.84
NASDAQ +3.55 +23.16 +21.13 +12.27
S&P 500 +1.60 +20.33 +15.29 +5.90
REAL YIELD 1/13 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.41% 0.65% -0.14% 2.49%

 Sources: wsj.com, bigcharts.com, treasury.gov – 1/13/174,5,6,7

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

WEEKLY QUOTE

              

“The best ideas come as jokes. Make your thinking as funny as possible.”

     

– David Ogilvy

      

   

WEEKLY TIP

             

In a two-parent household, both parents should have life insurance coverage, even if one of them does not work. If one spouse dies, the money from the life insurance policy can help the surviving spouse pay for child care and education expenses.

     

  

WEEKLY RIDDLE

            

It is a home with no doors, and when its occupant leaves it cracks and it is no more. What is it?

   

 

Last week’s riddle:

It lacks fingers, yet it points. It lacks feet, yet it constantly runs. It lacks arms, yet it may periodically strike. What is it?

     

Last week’s answer:

A clock.

 

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Weekly Economic Update 1-16-2017

Securities and Advisory Services offered through Triad Advisors Member FINRA/SIPC.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is a market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

 

Citations.

1 – investing.com/economic-calendar/ [1/13/17]

2 – marketwatch.com/story/retail-sales-climb-06-in-december-2017-01-13/ [1/13/17]

3 – sca.isr.umich.edu/ [1/13/17]

4 – markets.wsj.com/us [1/13/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F13%2F16&x=0&y=0 [1/13/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F13%2F16&x=0&y=0 [1/13/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F13%2F16&x=0&y=0 [1/13/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F13%2F12&x=0&y=0 [1/13/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F13%2F12&x=0&y=0 [1/13/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F13%2F12&x=0&y=0 [1/13/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F12%2F07&x=0&y=0 [1/13/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F12%2F07&x=0&y=0 [1/13/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F12%2F07&x=0&y=0 [1/13/17]

6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [1/13/17]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [1/13/17] 

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