Weekly Economic Update
MidAmerica Financial Resources Presents:
“You’ve got to take the bitter with the sour.”
- Samuel Goldwyn
Before you go shopping, draw the line at how much you will spend and resolve not to cross it.
What can go down a chimney when it is down, but can’t go up through a chimney when it is up?
Last week’s riddle:
What always shows up in the middle of March and the middle of April?
Last week’s answer:
The letter R.
June 2, 2014
HOW OPTIMISTIC ARE CONSUMERS?
No firm conclusion can be drawn from May’s major consumer economic polls. The Conference Board’s consumer confidence index rose 1.3 points to 83.0. That was its second-best reading in the past six years. The University of Michigan’s final May consumer sentiment index dipped to 81.9 from April’s reading of 84.1. Fresh Commerce Department data also sent mixed signals. Consumer spending contracted 0.1% in April even as consumer incomes rose 0.3%.1,2
PENDING HOME SALES IMPROVE AGAIN
They rose 0.4% for April, the National Association of Realtors said; this follows a 3.4% March increase. March’s S&P/Case-Shiller home price index showed an overall 12.4% annualized gain in house prices – quite good, but down appreciably from the 12.9% yearly advance recorded in the February edition.2
Q1 GDP REVISED DOWN; BETTER NEWS FOR DURABLES
Reviewing declines in exports, business investment and business stockpiles, the Commerce Department said Thursday that the economy actually shrank 1.0% in the first quarter even with a 3.1% advance in personal spending. April’s durable goods orders surprised to the upside, however – they were up 0.8%. Economists polled by MarketWatch had forecast they would retreat 0.8%.2,3
WHO SOLD IN MAY?
There was no exodus from stocks last month. May saw a 2.10% gain for the S&P 500. In an abbreviated trading week, the S&P rose 1.20% to settle at 1,923.57 Friday; the Dow (+0.67% to 16,717.17) and the Nasdaq (+1.36% to 4,242.62) also advanced.4,5,6
THIS WEEK: On Monday, ISM’s May manufacturing PMI arrives plus earnings announcements from Quiksilver and Krispy Kreme. Tuesday brings the Commerce Department’s report on May auto sales and the Census Bureau’s report on April factory orders. Wall Street interprets the May ISM service sector index and the May ADP job change report Wednesday, plus a new Federal Reserve Beige Book and Q2 results from Hovnanian. May’s Challenger job cuts report appears Thursday along with earnings from J.M. Smucker and VeriFone and the latest initial claims numbers. The first Friday of June brings the Labor Department’s May employment report.
Sources: USATODAY.com, bigcharts.com, treasury.gov - 5/30/146,7,8,9
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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 - stltoday.com/business/local/consumer-sentiment-falls-more-than-forecast-in-may/article_63c11168-f904-5c91-872f-fafeebd1dc79.html [5/30/14]
2 - marketwatch.com/economy-politics/calendars/economic [5/30/14]
3 - finance.fortune.cnn.com/2014/05/29/gdp-drop-revision/ [5/29/14]
4 - google.com/finance?q=INDEXSP%3A.INX&ei=NvCIU7CEI_DLiQLzvID4Dw [5/30/14]
5 - google.com/finance?q=INDEXSP%3A.INX&ei=_PmIU9GyHuO8iwKloYF4 [5/30/14]
6 - usatoday.com/money/markets/overview/ [5/30/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F30%2F13&x=0&y=0 [5/30/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F30%2F13&x=0&y=0 [5/30/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F30%2F13&x=0&y=0 [5/30/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F29%2F09&x=0&y=0 [5/30/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F29%2F09&x=0&y=0 [5/30/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F29%2F09&x=0&y=0 [5/30/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F1%2F04&x=0&y=0 [5/30/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F1%2F04&x=0&y=0 [5/30/14]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F1%2F04&x=0&y=0 [5/30/14]
8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [5/30/14]
9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [5/30/14]
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Weekly Economic Update