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Weekly Economic Update

January 28, 2013

HOMEBUYING DECREASES IN DECEMBER
Last month, existing home sales slumped 1.0% and new home sales tumbled 7.3%.
Year-over-year numbers, however, remain hugely positive. Residential resales
improved 12.8% in 2012, with December’s median single-family home price up
11.5% from a year before to $180,300. New home sales rose 19.9% last year,
representing the first annual increase since 2005 and the best year since 1983.
1,2

HOUSE VOTES TO EXTEND DEBT CEILING
The House of Representatives voted 285-144 last week to suspend the current limit
on federal borrowing through May 18, in a measure demanding that both houses of
Congress approve a budget by April 15 or work for free. The Senate is expected to
pass the bill this week, a formality en route to President Obama’s signature.
3

LEADING INDEX RISES 0.5%
The gain in the Conference Board’s Index of Leading Economic Indicators matched
the expectations of analysts polled by Dow Jones Newswires. The 0.2% November
retreat in the index was revised upward to show no change.
4

S&P 500 SETTLES ABOVE 1,500
Rising 0.54% in five days, the index ended the week at 1,502.96, its highest close
since December 2007. Friday afternoon, the blue chips were on track for their best
January since 1989: the Dow rose 0.51% on the week to settle at 13,895.98 Friday.
The NASDAQ went +0.62% last week to close Friday at 3,149.71. Oil ended the week
at $95.88, gold at $1,656.60.
5,6

THIS WEEK: NAR’s December pending home sales report arrives Monday, plus
December durable goods orders data and earnings results from Caterpillar, Yahoo!
and BMC Software. Tuesday, the November Case-Shiller Home Price Index and the
Conference Board’s newest consumer confidence poll complement earnings from
Broadcom, Valero, Ford, Nintendo, Eli Lilly, DR Horton, Corning and AK Steel.
Results from Facebook, Qualcomm, Boeing, Marathon Petroleum, Phillips 66,
ConocoPhillips and Electronic Arts appear Wednesday, plus a Fed policy statement,
a new ADP employment report and the government’s first estimate of Q4 GDP.
December’s consumer spending figures are in Thursday, plus earnings from Honda,
Royal Dutch Shell, UPS, Aetna, Altria, AutoNation, Colgate-Palmolive, Pulte Group,
Viacom, AstraZeneca, Deutsche Bank and MasterCard. Friday’s economic releases
include January’s jobs report, auto sales figures and ISM manufacturing index, the
University of Michigan’s final January consumer sentiment survey, and earnings
from Merck, Mattel, Chevron, ExxonMobil and Tyson Foods.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +6.04 +8.93 +2.77 +7.09
NASDAQ +4.31 +11.76 +7.08 +13.47
S&P 500 +5.38 +13.34 +2.59 +7.45
REAL YIELD 1/25 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO

10 YR TIPS -0.56% -0.12% 1.34% 2.34%
Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov – 1/25/125,8,9,10
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 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. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ
Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of
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Citations.
1 – http://www.usatoday.com/story/money/business/2013/01/22/existing-home-sales-december/1854563/ [1/22/13]
2 – http://www.sfgate.com/business/bloomberg/article/New-Home-Sales-Decline-Blemishes-Best-Year-Since-4223610.php [1/25/13]
3 – thehill.com/blogs/floor-action/house/278835-house-passes-no-budget-no-pay-sends-to-the-senate [1/23/13]
4 – http://www.nasdaq.com/article/us-conference-board-december-leading-index-rises-05-as-expected-20130124-00822 [1/24/13]
5 – http://www.cnbc.com/id/100407825 [1/25/13]
6 – http://www.nasdaq.com/markets/commodities.aspx [1/25/13]
7 – montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [1/25/13]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F25%2F12&x=0&y=0 [1/25/13]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F25%2F12&x=0&y=0 [1/25/13]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F25%2F12&x=0&y=0 [1/25/13]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F25%2F08&x=0&y=0 [1/25/13]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F25%2F08&x=0&y=0 [1/25/13]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F25%2F08&x=0&y=0 [1/25/13]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F24%2F03&x=0&y=0 [1/25/13]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F24%2F03&x=0&y=0 [1/25/13]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F24%2F03&x=0&y=0 [1/25/13]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [1/25/13]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [1/25/13]
10 – treasurydirect.gov/instit/annceresult/press/preanre/2003/ofm010803.pdf [1/8/03]

 

This material was prepared by Peter Montoya Inc, and does not necessarily represent the views of John Jastremski, 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.


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