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WEEKLY ECONOMIC UPDATE 11-14-2011

November 15, 2011

John Jastremski Presents:

 WEEKLY ECONOMIC UPDATE

November 14, 2011

 ACTIONS in GREECE & ITALY CALM MARKETS
Global investors seemed reassured at the end of last week by developments in the European Union. By Friday, Greek prime minister George Papandreou had stepped down; Italian prime minister Silvio Berlusconi’s resignation was at hand. Greek prime minister designate Lucas Papademos and a new coalition government will now be charged with implementing austerity cuts as Greece accepts the EU’s latest €130 billion aid package. Italy’s senate passed new economic reforms at the end of the week aimed at reducing its sovereign debt. Italy’s treasury was also able to sell €5 billion of one-year notes , albeit at 6.09% interest.1,2

A BIG REBOUND IN CONSUMER CONFIDENCE
The preliminary November consumer sentiment index from the University of Michigan was a nice surprise. It came in at 64.2; far better than the final mark of 60.9 for October and the 61.3 consensus forecast of economists polled by Briefing.com. The reading hasn’t been this high since June. The future expectations sub-index improved to 56.2 from the previous 51.8.3

 OIL PUSHES TOWARD $100 AGAIN
On Veterans Day, oil futures settled at $98.99 on the NYMEX after a +5.02% week that saw prices rise $3.25 across Thursday and Friday. Gold prices posted a weekly gain as well: the precious metal gained 1.83% on the COMEX for the week, and that brought its 3-week advance to 9.32%.4

STRONG FRIDAY PUTS DOW BACK IN THE BLACK
The DJIA climbed 260 points on Friday after rising 113 points on Thursday, almost offsetting Wednesday’s 389-point descent. That left it at +4.98% YTD. Last week’s performances: DJIA, +1.42% to 12,153.68; S&P 500, +0.85% to 1,263.85; NASDAQ, -0.28% to 2,678.75.5,6,7

THIS WEEK

Key economic releases will be complemented by earnings from the big boxes. Monday, Lowe’s, Urban Outfitters and JCPenney issue 3Q results. On Tuesday, Wal-Mart, Home Depot, Staples, Dell and Beazer Homes come out with earnings, and the October PPI arrives along with October’s retail sales report from the Census Bureau. Wednesday, the October CPI appears along with data on October industrial output; 3Q results roll in from Target and Abercrombie & Fitch. Thursday brings earnings from Ross Stores, Sears, Dollar Tree, GameStop and GAP, the latest initial claims figures and October’s housing starts report. Friday, Heinz announces 3Q results, EU finance ministers meet and the Conference Board offers its October leading indicator index.

% CHANGE Y-T-D 1-YR   CHG 5-YR   AVG 10-YR   AVG
DJIA +4.98 +7.72 +0.00075 +2.72
NASDAQ +0.98 +4.82 +2.42 +4.56
S&P 500 +0.49 +4.15 -1.70 +1.30
REAL YIELD 11/11   RATE 1   YR AGO 5   YRS AGO 10   YRS AGO
10 YR TIPS -0.04% 0.71% 2.25% 3.50%

Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov – 11/11/117,8,9,10

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

These returns do not include dividends.

 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.

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