Skip to content

WEEKLY ECONOMIC UPDATE November 21, 2011

November 22, 2011

John Jastremski Presents:

WEEKLY ECONOMIC UPDATE

 November 21, 2011

 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.

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.

 

 

Advertisements

Comments are closed.

%d bloggers like this: