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Weekly Economic Update

By Financial Planning

MidAmerica Financial Resources Presents:

 

WEEKLY ECONOMIC UPDATE

 

 

WEEKLY QUOTE

              

“Always forgive your enemies; nothing annoys them so much.”

     

- Oscar Wilde

     

   

WEEKLY TIP

             

If your income, expenses or financial commitments have changed recently, it may be a good idea to reexamine your retirement savings effort.

  

   

WEEKLY RIDDLE

           

I’m not alive, yet I grow. I need air, yet I have no lungs. I lack a mouth, yet water will calm me down. What am I?    

     

 

Last week’s riddle:

What common English-language word becomes shorter when you make it longer?

   

Last week’s answer:

Short.

 

 

November 25, 2013

    

CONSUMER & PRODUCER PRICES DECLINE

Last week, Labor Department reports showed the Consumer Price Index down 0.1% for October while the Producer Price Index slipped 0.2% with help from a 3.8% dip in gasoline costs. The real news was the remarkably tame yearly inflation. In the last 12 months, the CPI has only increased 1.0% and the PPI just 0.3% (although the core PPI did rise 1.4%). What do these annualized gains represent? The weakest wholesale inflation since 2009.1,2

 

FEWER HOMES SELL IN OCTOBER

Existing home sales fell 3.2% last month, according to the National Association of Realtors. This marks the second straight monthly decline. Higher mortgage rates, narrowing inventory and the federal government’s 16-day shutdown certainly influenced sales volume. The median sales price of an existing home was $199,500 last month, 12.8% higher than a year ago.1,3

   

RETAIL SALES IMPROVE

October saw a solid 0.4% rise in the indicator, and that surprised analysts who thought the federal shutdown would hurt the headline number. Auto sales powered October’s gain, but Census Bureau data showed a 0.2% advance even with car and truck buying removed.1

                                                                                                                                           

S&P CLOSES ABOVE 1,800

While the October Federal Reserve policy meeting minutes revealed the possibility of tapering QE3 in “the coming months,” stocks still pulled higher on the week. The Dow (+0.65% to 16,064.77), NASDAQ (+0.14% to 3,991.65) and S&P 500 (+0.37% to 1,804.76) all shrugged off midweek dips.1,4

  

THIS WEEK: NAR releases its October pending home sales report Monday, complementing earnings from Fifth Street Finance and Wet Seal. On Tuesday, the Census Bureau issues September and October reports on housing starts and building permits, the Conference Board’s November consumer confidence index comes out, and the September Case-Shiller Home Price Index arrives; additionally, TiVo and Chico’s announce Q3 results. Wednesday brings the University of Michigan’s final November consumer sentiment index, the Conference Board’s October leading indicators index and the October durable goods orders report from the Census Bureau. All U.S. financial markets will be closed Thursday in observance of Thanksgiving. Friday is Black Friday, of course; the NYSE and NASDAQ will close at 1:00pm EST with the bond market likely closing an hour later.  

  

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

+22.59

+25.15

+19.93

+6.68

NASDAQ

+32.20

+36.39

+37.67

+11.08

S&P 500

+26.54

+29.74

+25.12

+7.43

REAL YIELD

11/22 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

0.56%

-0.71%

3.15%

1.93%

 

Sources: USATODAY.com, bigcharts.com, treasury.gov - 11/22/135,6,7,8

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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MidAmerica Financial Resources may be reached at 618.548.4777 or greg.malan@natplan.com.

www.mid-america.us

 

Securities and advisory services offered through National Planning Corporation (NPC), Member FINRA/SIPC, a Registered Investment Advisor.

MidAmerica Financial Resources, SunAmerica, and Malan Financial Group are separate and unrelated companies to NPC.

 

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. 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 Securities Dealers Automated Quotation System. The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world's largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Past performance is no guarantee of future results.  Investments will fluctuate and when redeemed may be worth more or less than when originally invested. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

 

Citations.

1 - news.morningstar.com/articlenet/article.aspx?id=620267 [11/20/13]

2 - marketwatch.com/story/us-wholesale-costs-fall-again-in-october-2013-11-21 [11/21/13]

3 - business.time.com/2013/11/20/u-s-existing-home-sales-fall-3-2-percent-in-october/ [11/20/13]

4 - thestreet.com/story/12120723/1/market-hustle-curb-that-enthusiasm-dow-hesitates-at-16000.html [11/22/13]

5 - usatoday.com/money/markets/overview/ [11/22/13]

6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F21%2F12&x=0&y=0 [11/22/13]

6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F21%2F12&x=0&y=0 [11/22/13]

6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F21%2F12&x=0&y=0 [11/22/13]

6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F21%2F08&x=0&y=0 [11/22/13]

6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F21%2F08&x=0&y=0 [11/22/13]

6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F21%2F08&x=0&y=0 [11/22/13]

6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F21%2F03&x=0&y=0 [11/22/13]

6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F21%2F03&x=0&y=0 [11/22/13]

6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F21%2F03&x=0&y=0 [11/22/13]

7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/22/13]

8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/22/13]

 

 

 

 

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