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WEEKLY ECONOMIC UPDATE 10-3-2011

October 7, 2011
The Retirement Group Presents:

 

WEEKLY ECONOMIC UPDATE

 

 

 

WEEKLY QUOTE

“Lots of people want to ride with you in the limo, but what you want is someone who will take the bus with you when the limo breaks down.”

– Oprah Winfrey

 

WEEKLY TIP

With the holidays just ahead, consider automatic paycheck deductions into an online savings account. These accounts may reap a tidy dividend, and you could have a well of cash to draw from as you shop for gifts.

 

WEEKLY RIDDLE

A rain gauge collects rainfall each day of a wet week beginning on Monday. Every day, the amount of rain in the gauge doubles. At Sunday’s end, the rain gauge is completely filled. So on which day is it half-filled?

 

 

Last week’s riddle:
I can’t be seen, but I’m all around. I have no mouth, yet can make a sound. I can be harnessed, but never bound. No hands have I, yet I move the ground. What am I?

 

Last week’s answer:

Wind.

October 3, 2011

 

AMERICANS SPEND A BIT MORE, EARN A BIT LESS
In August, personal spending improved by 0.2% while personal incomes retreated by 0.1%. This was the first monthly decline in household incomes since October 2009; July’s household earnings gain was revised down to 0.1%.1

 

An IMPROVEMENT IN CONSUMER SENTIMENT
September’s final University of Michigan consumer sentiment survey came in at 59.4, much better than the final August mark of 55.7 and topping the consensus forecast of 57.8 from economists surveyed by Bloomberg News. The Conference Board’s consumer confidence index ticked up 0.2% to 45.4 this month.1

 

DURABLE GOODS DEMAND HOLDS UP IN AUGUST
The Commerce Department said overall hard goods orders declined 0.1% in August, but a closer look revealed some positives. Core capital goods orders (excluding the aircraft and transportation sectors) improved by 1.1% and core capital goods shipments were up by 2.8%.2

 

SURVEYING THE REAL ESTATE SECTOR
New home sales slipped 2.3% in August but showed a 6.1% annual gain, according to the Census Bureau. The same trend held true for pending home sales: the National Association of Realtors said they were down 1.2% for August but up 7.7% from a year before. The Standard & Poor’s/Case-Shiller home price index rose 0.9% in July with prices 4.1% underneath July 2010 levels.3,4,5

MIXED WEEK CLOSES OUT TOUGH MONTH
September saw major losses for the Dow (-6.03%), NASDAQ (-6.36%) and S&P 500 (-7.18%). Last week’s numbers showed the blue chips rising: DJIA, +1.32% for the week to settle Friday at 10,913.38; NASDAQ, -2.73% last week to 2,415.40; S&P 500, -0.44% last week to 1,131.42.6

 

THIS WEEK: Monday, ISM comes out with its September manufacturing index and we learn about September auto sales. Tuesday, Fed chairman Ben Bernanke speaks to Congress, the latest Apple iPhone is unveiled and Yum Brands announces 3Q earnings. Wednesday offers ISM’s September service sector index plus earnings from Costco, Marriott and Monsanto. On Thursday, the European Central Bank and Bank of England make monetary policy announcements, Treasury Secretary Tim Geithner testifies in Congress, and new initial claims figures also arrive. Friday, the Labor Department releases the September unemployment report.

 

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

-5.74

+1.16

-1.31

+2.35

NASDAQ

-8.95

+1.97

+1.39

+6.32

S&P 500

-10.04

-0.86

-3.06

+0.89

REAL YIELD

9/30 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

0.17%

0.75%

2.27%

3.50%

 

Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov – 9/30/116,7,8,9

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

These returns do not include dividends.

 

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This material was prepared by Peter Montoya Inc, and does not necessarily represent the views of John Jastremski, Jeremy Keating, Erik J Larsen, Frank Esposito, Patrick Ray, Robert Welsch, Michael Reese, Brent Wolf, Andy Starostecki and The Retirement Group or FSC Financial Corp. This information should not be construed as investment advice. Neither the named Representatives nor Broker/Dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information or call 800-900-5867.

 

The Retirement Group is not affiliated with nor endorsed by fidelity.com, netbenefits.fidelity.com, hewitt.com, resources.hewitt.com,  access.att.com, ING Retirement, AT&T, Qwest, Chevron, Hughes, Northrop Grumman, Raytheon, ExxonMobil, Glaxosmithkline, Merck, Pfizer, Verizon, Bank of America, Alcatel-Lucent or by your employer. We are an independent financial advisory group that specializes in transition planning and lump sum distribution. Please call our office at 800-900-5867 if you have additional questions or need help in the retirement planning process.

 

John Jastremski is a Representative with FSC Securities and may be reached at http://www.theretirementgroup.com.

 

 

Citations.

1 – businessweek.com/news/2011-09-30/consumer-sentiment-in-u-s-increases-more-than-forecast.html [9/30/11]

2 – marketwatch.com/story/us-durable-goods-orders-drop-01-in-august-2011-09-28?reflink=MW_news_stmp [9/28/11]

3 – census.gov/const/newressales.pdf [9/26/11]

4 – realtor.org/press_room/news_releases/2011/09/phs_august [9/29/11]

5 – articles.latimes.com/2011/sep/28/business/la-fi-home-prices-20110928 [9/28/11]

6 – cnbc.com/id/44729786 [9/30/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F30%2F10&x=0&y=0 [9/30/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F30F2%2F10&x=10&y=18 [9/30/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F30%2F10&x=0&y=0 [9/30/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F29%2F06&x=0&y=0 [9/30/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F29%2F06&x=0&y=0 [9/30/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F29%2F06&x=0&y=0 [9/30/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F1%2F01&x=0&y=0 [9/30/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F1%2F01&x=0&y=0 [9/30/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F1%2F01&x=0&y=0 [9/30/11]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/30/11]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/30/11]

9 – treasurydirect.gov/instit/annceresult/press/preanre/2001/ofm71101.pdf [7/11/01]

10 – montoyaregistry.com/Financial-Market.aspx?financial-market=an-introduction-to-the-stock-market&category=29 [9/30/11]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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