Weekly Economic Update
MidAmerica Financial Resources Presents:
“The world is full of people whose notion of a satisfactory future is, in fact, a return to the idealized past.”
- Robertson Davies
If you’re wondering about going Roth with your IRA, talk with a financial professional to determine whether or not the move makes sense. If you are a younger IRA owner who anticipates retiring to a higher tax bracket, it might.
I can certainly run, but I will never be able to walk by myself. Wherever I go, thoughts are close behind me. What am I?
Last week’s riddle:
It can only be broken with force, yet it can be dulled by contact with a piece of paper. What is it?
Last week’s answer:
April 14, 2014
HOUSEHOLD SENTIMENT REACHES 9-MONTH PEAK
The University of Michigan’s index of consumer sentiment rose 2.6 points in its preliminary April reading, bouncing back from a 4-month low of 80.0 at the end of March to a high unseen since last July. From 2003-07, the index averaged a reading of 89.0; during the 2007-09 recession, its average mark was just 64.2.1
PRODUCER PRICES ROSE 0.5% IN MARCH
You have to go back to last June (when wholesale inflation spiked 0.8%) to find such a sizable monthly advance in the Producer Price Index. The PPI had retreated 0.1% in February. A 1.1% monthly increase in wholesale food costs was a big factor. Annualized wholesale inflation rose to 1.4% in March, up from 0.9% for February.1,2
OIL, GAS, GOLD LOG NOTABLE GAINS
NYMEX crude was worth $103.74 per barrel at Friday’s close thanks to a 2.6% advance during the week. On April 10, AAA’s weekly survey found a gallon of unleaded averaging $3.62 nationally, which was an 8-month peak. An ounce of gold was worth $1,319.00 as the COMEX trading week ended, with futures up 1.2% in five days; an ounce of palladium was worth $806.80, a high unseen since 2011.1,3
NASDAQ SETTLES BELOW 4,000
A 3.10% plunge across five trading days took the Nasdaq Composite to a Friday close of 3,999.73. The Dow and S&P 500 also went red on the week – the blue chips retreated 2.35% to 16,026.75 and the S&P fell 2.64% to 1,815.69.4,5
THIS WEEK: Earnings from Citigroup, Capital One, Piper Jaffray, Overstock.com and American Airlines arrive Monday, complementing data on March retail sales and February business inventories. Yahoo!, Coca-Cola, Intel and Charles Schwab report quarterly results Tuesday, which is also when the March CPI and the April NAHB housing market index appear. Wednesday offers a new Beige Book and a report on March industrial output from the Federal Reserve, Census Bureau data on March housing starts and building permits, and earnings from IBM, Google, SanDisk, US Bancorp, American Express, Bank of America, First Republic Bank, PNC and Kinder Morgan. Thursday, earnings from Philip Morris, BlackRock, AutoNation, Mattel, Fifth Third, Chipotle, Morgan Stanley, General Electric, Honeywell, BB&T, UnitedHealth, Sherwin Williams, Union Pacific and PepsiCo appear along with new initial claims numbers; the bond market will close early. March 18 is Good Friday: U.S. financial markets will be closed, and no economic data or major earnings news will be released.
Sources: USATODAY.com, bigcharts.com, treasury.gov - 4/11/145,6,7,8
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This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. 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. 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. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. 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 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.
1 - bloomberg.com/news/2014-04-11/michigan-u-s-sentiment-index-increased-to-82-6-in-april-from-80.html [4/11/14]
2 - investing.com/economic-calendar/ [4/11/14]
3 - proactiveinvestors.com/companies/news/53395/gold-up-12-for-the-week-oil-picks-up-26-palladium-hits-2011-high-53395.html [4/11/14]
4 - google.com/finance?q=INDEXSP%3A.INX&ei=11VIU_C8JaXLiQKgzgE [4/11/14]
5 - usatoday.com/money/markets/overview/ [4/11/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F11%2F13&x=0&y=0 [4/11/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F11%2F13&x=0&y=0 [4/11/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F11%2F13&x=0&y=0 [4/11/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F9%2F09&x=0&y=0 [4/11/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F9%2F09&x=0&y=0 [4/11/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F9%2F09&x=0&y=0 [4/11/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F12%2F04&x=0&y=0 [4/11/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F12%2F04&x=0&y=0 [4/11/14]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F12%2F04&x=0&y=0 [4/11/14]
7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/11/14]
8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/11/14]
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Weekly Economic Update