Skip to content

WEEKLY ECONOMIC UPDATE March 12th 2012

March 13, 2012

John Jastremski Presents:

WEEKLY ECONOMIC UPDATE March 12th 2012

March 12, 2012

227,000 NEW JOBS, BUT JOBLESS RATE STILL AT 8.3%

While unemployment levels remained unchanged in February, Labor Department data showed that nonfarm payrolls expanded by more than 200,000 positions for the third straight month. The private sector added 233,000 jobs in February, so it was basically responsible for the impressive net job gain. The underemployment rate (representing the jobless plus those settling for less than a 40-hour workweek) was 14.9% in February, a 1.8% drop from a year before. With such consistent job growth, the Federal Reserve faces less pressure to roll out another monetary stimulus.1

SERVICE SECTOR GROWS IN FEBRUARY

The Institute for Supply Management’s service sector PMI climbed to 57.3 for February, seeing a half-percent gain. A 3.1% jump in business activity/production and a 1.8% rise in new orders were nice highlights.2

OIL, GOLD END WEEK WITH MODERATE GAINS

From Wednesday to Friday, gold futures rose $39.50 and oil futures $2.70. For the week, gains were actually modest: oil advanced but $0.70 on the NYMEX to $107.40 a barrel, while gold racked up a $2.10 gain to end Friday’s COMEX session at $1,710.90 per ounce. The price of unleaded gas was $3.76 a gallon nationally on Friday per AAA’s survey.1,3

LITTLE VOLATILITY AFTER GREEK BOND SWAP

On Wall Street, March 5-9 mirrored the week before: the Dow pulled back (-0.43% to 12,922.02) and the NASDAQ (+0.41% to 2,988.34) and S&P 500 (+0.09% to 1,370.87) advanced. The market was still wary of the debt deal out of the EU – last week, 86% of investors holding Greek bonds agreed to swap securities issued by the Greek government for replacement ones worth less, and collective action clauses will force about 10% more of these bondholders to do so. While this seemingly opens the door for a new €130 billion EU/IMF rescue package for Greece, it could be the last bailout Greece receives.1,4

THIS WEEK: In addition to what goes on in Europe, we have a lot of stateside data. Monday, Urban Outfitters and Burger King issue Q4 results. On Tuesday, a Fed policy meeting concludes and February retail sales figures arrive. Wednesday, Fed chairman Ben Bernanke speaks in Nashville and Guess and Youku (China’s equivalent of YouTube) provide Q4 earnings. Besides new initial claims figures, Thursday offers February’s PPI and earnings from Ross Stores and Dole. Friday, February’s CPI arrives plus the initial March consumer sentiment survey from the University of Michigan; the iPad 3 also hits the shelves.

% CHANGE

Y-T-D

1-YR   CHG

5-YR   AVG

10-YR   AVG

DJIA

+5.77

+5.80

+1.05

+2.22

NASDAQ

+14.71

+8.60

+5.03

+5.49

S&P 500

+9.01

+3.86

-0.46

+1.77

REAL YIELD

3/9   RATE

1 YR   AGO

5 YRS   AGO

10   YRS AGO

10 YR TIPS

-0.24%

0.98%

2.25%

3.48%

 

 

Sources: money.msn.com, bigcharts.com, treasury.gov, treasurydirect.gov – 3/9/121,5,6,7,8

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: