Randy C. Benning, CFP Presents:

FEDERAL RESERVE MAKES ITS THIRD RATE HIKE OF 2018

The central bank set the target range for the federal funds rate at 2.00-2.25% last week, in a move that economists and investors widely expected. One development was unexpected: the Fed removed the word “accommodative” from its latest policy statement, a hint that it may be on the verge of altering its monetary policy outlook. The Fed dot-plot still shows one more interest rate hike for 2018 and three hikes in 2019.1

 

HOUSEHOLDS SEE A VERY STRONG ECONOMY

Both marquee U.S. consumer confidence indices finished September in good shape. The Conference Board’s index reached an 18-year peak of 138.4, rising 3.7 points from its August mark. The University of Michigan’s gauge declined 0.7 points to a still-impressive reading of 100.1.2,3

 

A PERSONAL SPENDING MISS; A NEW HOME SALES GAIN

Looking at other economic indicators in a data-heavy week, consumer spending rose 0.3% in August, falling short of the 0.4% gain forecast by economists polled by Briefing.com. While reporting that advance, the Commerce Department also announced an improvement of 0.3% for personal incomes in August. The National Association of Realtors said that its pending home sales index declined 1.8% in the eighth month of the year; in better real estate news, the Census Bureau found new home buying up 3.5% in August, measuring a 12.7% yearly increase in the pace of new home sales.3,4

 

NASDAQ ADVANCES FOR THE WEEK, BUT S&P AND DOW RETREAT

The S&P 500 finished the month at 2,913.98, losing 0.54% during a relatively calm week on Wall Street, which also saw the Dow Jones Industrial Average head 1.07% lower to 26,458.31. In contrast, the Nasdaq Composite gained 0.74% on the week to wrap up September at 8,046.35. Across the month, the S&P rose 0.43%, and the Dow, 1.90%, while the Nasdaq declined 0.78%. The small-cap Russell 2000 sank 2.62% in September, settling Friday at 1,695.10.5

 

 

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T I P   O F T H E   W E E K

When you inherit real estate, you immediately face some financial questions. Do you want to sell the property, rent it out, or keep it? What would each choice mean, tax-wise? Can you handle payments on an outstanding mortgage and maintenance costs? Talking to tax or real estate professionals is essential.

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THIS WEEK

Monday, the Institute for Supply Management presents its September manufacturing PMI. | Paychex and PepsiCo announce earnings Tuesday morning; just before the closing bell, Fed chairman Jerome Powell delivers a speech on the U.S. inflation and employment outlook in Boston. | On Wednesday, ADP’s latest payrolls report appears along with the latest ISM service sector PMI and earnings from Lennar. | The September Challenger job-cut report and a new weekly initial jobless claims snapshot arrive Thursday, plus earnings from Constellation Brands and Costco. | The Department of Labor issues its September employment report on Friday.

 

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Q U O T E   O F T H E  W E E K

“A pound of pluck is worth a ton of luck.”

JAMES GARFIELD

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% CHANGE	Y-T-D	1-YR CHG	5-YR AVG	10-YR AVG
DJIA	7.04	18.22	14.68	15.53
NASDAQ	16.56	24.68	22.56	30.56
S&P 500	8.99	16.09	14.45	16.34
REAL YIELD	9/28 RATE	1 YR AGO	5 YRS AGO	10 YRS AGO
10 YR TIPS	0.91	0.44	0.46	2.03

Randy C. Benning, CFP®, President, License # 0816882, Benning Financial Group, LLC. Investment Advisory Services offered through Benning Financial Group, LLC, A Registered Investment Advisor, Benning Financial Group, LLC 

Sources: wsj.com, bigcharts.com, treasury.gov – 9/28/185,6,7,8

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

---

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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 market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is a 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 a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. 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. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. 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 – businessinsider.com/federal-reserve-fomc-statement-and-interest-rate-decision-september-2018-2018-9 [9/26/18]

2 – conference-board.org/data/consumerconfidence.cfm [9/25/18]

3 – briefing.com/investor/calendars/economic/2018/09/24-28 [9/28/18]

4 – cnbc.com/2018/09/26/august-new-home-sales.html [9/26/18]

5 – markets.wsj.com/us [9/28/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F28%2F17&x=0&y=0 [9/28/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F28%2F17&x=0&y=0 [9/28/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F28%2F17&x=0&y=0 [9/28/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F27%2F13&x=0&y=0 [9/28/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F27%2F13&x=0&y=0 [9/28/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F27%2F13&x=0&y=0 [9/28/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F29%2F08&x=0&y=0 [9/28/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F29%2F08&x=0&y=0 [9/28/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F29%2F08&x=0&y=0 [9/28/18]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/28/18]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/28/18] 

Randy C. Benning, CFP Presents:

BLUE CHIPS HIT A 2018 HIGH

On Thursday, the Dow Jones Industrial Average saw its best close since January. Friday took the index even higher, to another record settlement of 26,743.50. That capped a 2.25% weekly advance. The Dow was not the only major benchmark shattering records last week. The S&P 500 also settled at a historic peak Thursday before drifting slightly lower to 2,929.67 a day later; in five days, it rose 0.85%. For the Nasdaq Composite, the story was different: it declined 0.29% last week to 7,986.96.1,2

 

AUGUST WAS A FLAT MONTH FOR HOME BUYING

The National Association of Realtors declared the pace of existing home sales unchanged from July in its August snapshot of the residential real estate market. Economists surveyed by Reuters anticipated an advance of 0.3% after four consecutive months of retreats. Sales were down 1.5%, year-over-year, through August, but existing home inventory grew 2.7% during the same 12 months; that marked the first annualized increase in the supply of homes for sale since 2015. The median existing home price in August: $264,800, 4.6% higher than a year ago.3

 

HOUSING STARTS JUMP; BUILDING PERMITS FALL

Starts and permits went opposite ways during August, according to the Census Bureau’s latest look at U.S. residential construction activity. Groundbreaking increased 9.2% in the eighth month of the year, but permits for new developments declined by 5.7%.4

 

OIL CLIMBS TO A 2-MONTH PEAK

WTI crude settled at $70.78 per barrel on the New York Mercantile Exchange on Friday, charging 2.6% for the week. This was crude’s best closing price since July 13, preceding a critical meeting of OPEC nations and their allies to address potential supply problems in the fourth quarter.5

 

 

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T I P   O F T H E   W E E K

 

In a two-parent household, both parents may want to consider life insurance coverage, even if one of them does not work. Money from the life insurance policy can help a surviving spouse pay for child care and education expenses.

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THIS WEEK

Monday offers no major earnings calls or economic reports. | The Conference Board’s latest consumer confidence index arrives Tuesday, plus a new S&P CoreLogic Case-Shiller home price index and earnings from Cintas, Jabil, KB Home, and Nike. | The Federal Reserve makes an interest rate decision Wednesday; in addition, August new home sales figures and earnings from Bed Bath & Beyond, CarMax, and Worthington Industries appear. | Accenture, ConAgra Brands, and Rite Aid present earnings Thursday, complementing the latest initial jobless claims numbers, the third estimate of Q2 economic expansion, and reports on August housing contract activity and hard goods orders. | Friday, August personal spending figures are released, plus the August PCE price index, the final September consumer sentiment index from the University of Michigan, and earnings from BlackBerry.

 

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Q U O T E   O F T H E  W E E K

 

“Learning to ignore things is one of the great paths to inner peace.”

ROBERT J. SAWYER

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% CHANGE	Y-T-D	1-YR CHG	5-YR AVG	10-YR AVG
DJIA	8.19	19.61	14.62	14.28
NASDAQ	15.70	24.36	22.32	26.65
S&P 500	9.58	17.16	14.27	14.27
REAL YIELD	9/21 RATE	1 YR AGO	5 YRS AGO	10 YRS AGO
10 YR TIPS	0.92	0.44	0.52	1.85

Randy C. Benning, CFP®, President, License # 0816882, Benning Financial Group, LLC. Investment Advisory Services offered through Benning Financial Group, LLC, A Registered Investment Advisor, Benning Financial Group, LLC 

Sources: wsj.com, bigcharts.com, treasury.gov – 9/21/182,6,7,8

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

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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. The information herein has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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 market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is a 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 a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. 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. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. 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 – foxbusiness.com/markets/stock-futures-point-to-added-gains-after-record-day [9/21/18]

2 – markets.wsj.com/us [9/21/18]

3 – reuters.com/article/us-usa-economy-housing/u-s-existing-home-sales-unchanged-in-august-idUSKCN1M026A [9/20/18]

4 – investing.com/economic-calendar/ [9/21/18]

5 – marketwatch.com/story/us-oil-ends-week-at-2-month-high-books-second-straight-weekly-advance-2018-09-21 [9/21/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F21%2F17&x=0&y=0 [9/21/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F21%2F17&x=0&y=0 [9/21/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F21%2F17&x=0&y=0 [9/21/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F20%2F13&x=0&y=0 [9/21/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F20%2F13&x=0&y=0 [9/21/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F20%2F13&x=0&y=0 [9/21/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F22%2F08&x=0&y=0 [9/21/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F22%2F08&x=0&y=0 [9/21/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F22%2F08&x=0&y=0 [9/21/18]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/21/18]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/21/18]

Randy C. Benning, CFP Presents:

CONSUMER SENTIMENT EXCEEDS EXPECTATIONS

In its initial September edition, the University of Michigan’s monthly consumer sentiment index rose 4.6 points to 100.8, a 6-month high. Economists polled by Bloomberg had forecast a reading of 96.6. Fifty-six percent of households responding to the survey said that they had made recent financial gains; the all-time high for the survey is 57%, recorded in both March 2018 and February 1998. The index’s future expectations gauge reached a 14-year peak of 91.1.1

 

RETAIL SALES ALMOST FLAT IN AUGUST

The 0.1% August advance was the smallest monthly gain since February. Core retail purchases (which exclude the automotive, food, and home improvement categories) rose by the same amount. The Department of Commerce did revise the July numbers upward: the overall retail sales increase in that month went to 0.7%; the core retail sales gain, to 0.8%.2

 

ANNUALIZED INFLATION DECREASES

August’s Consumer Price Index shows 12-month inflation at 2.7%, down from 2.9%. Yearly core inflation retreated similarly, lessening from 2.4% to 2.2% last month. The headline CPI rose 0.2% in August; the core CPI, 0.1%. Both the headline and core Producer Price Index declined 0.1% in August, significantly reducing their annualized gains. Twelve-month wholesale inflation shrank 0.5% to 2.8%, while yearly core wholesale inflation retreated to 2.3% from 2.7%.3

 

A POSITIVE FIVE DAYS FOR EQUITIES

All three major stock indices advanced last week. The Dow Industrials gained 0.92% to reach 26,154.67 at Friday’s close. Settling at 8,010.04 Friday, the Nasdaq Composite was up 1.36% for the week. The S&P 500 improved 1.16% to 2,904.98. The main barometer of Wall Street volatility, the CBOE VIX, fell 18.88% for the week to 12.07.4

 

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T I P   O F T H E   W E E K

If you recently received a promotion or raise, you need not spend more money simply because you have it. Counter the temptation to buy this or that with the question “Do I really need this?” Living within your means could leave you with more money to save and invest for the future.

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THIS WEEK

FedEx announces earnings Monday. | AutoZone, Cracker Barrel, and General Mills present earnings Tuesday. | On Wednesday, the Census Bureau provides a snapshot of August residential construction activity, and Red Hat reports quarterly results. | Investors consider August existing home sales numbers, a new initial jobless claims report, and earnings from Darden Restaurants, Micron Technology, Steelcase, and Thor Industries on Thursday. | Nothing major is slated for Friday.

 

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Q U O T E   O F T H E  W E E K

 

“The greatest pleasure in life is doing what people say you cannot do.”

WALTER BAGEHOT

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% CHANGE	Y-T-D	1-YR CHG	5-YR AVG	10-YR AVG
DJIA	5.81	17.80	14.02	13.96
NASDAQ	16.03	24.59	23.04	26.74
S&P 500	8.65	16.40	14.42	14.36
REAL YIELD	9/14 RATE	1 YR AGO	5 YRS AGO	10 YRS AGO
10 YR TIPS	0.89	0.35	0.80	1.70

Randy C. Benning, CFP®, President, License # 0816882, Benning Financial Group, LLC. Investment Advisory Services offered through Benning Financial Group, LLC, A Registered Investment Advisor, Benning Financial Group, LLC 

Sources: wsj.com, bigcharts.com, treasury.gov – 9/14/184,5,6,7

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

---

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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 market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is a 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 a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. 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. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. 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 – bloomberg.com/news/articles/2018-09-14/u-s-consumer-sentiment-rises-to-six-month-high-above-estimate [9/14/18]

2 – cnbc.com/2018/09/14/us-retail-sales-august-2018.html [9/14/18]

3 – investing.com/economic-calendar/ [9/14/18]

4 – markets.wsj.com/us [9/14/18]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F14%2F17&x=0&y=0 [9/14/18]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F14%2F17&x=0&y=0 [9/14/18]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F14%2F17&x=0&y=0 [9/14/18]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F13%2F13&x=0&y=0 [9/14/18]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F13%2F13&x=0&y=0 [9/14/18]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F13%2F13&x=0&y=0 [9/14/18]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F15%2F08&x=0&y=0 [9/14/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F15%2F08&x=0&y=0 [9/14/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F15%2F08&x=0&y=0 [9/14/18]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/14/18]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/14/18]   

Randy C. Benning, CFP Presents:

LATEST JOBS REPORT CONFIRMS WAGE GROWTH IS ACCELERATING

According to the Department of Labor’s newest employment report, average pay for U.S. private sector workers improved 2.9% in the 12 months ending in August. That is the best annualized wage boost since the end of the Great Recession in 2009 and an improvement from 2.7% in July. The economy added 201,000 net new jobs last month. The headline jobless rate remained at 3.9%; the U-6 rate, which includes both unemployed and underemployed Americans, declined 0.1% to 7.4%, a 17-year low.1

 

STRONG AUGUST SHOWINGS FOR THE ISM INDICES

Both purchasing manager indices maintained by the Arizona-based Institute for Supply Management rebounded last month. ISM’s PMI tracking the U.S. service sector rose 2.8 points to 58.5, and its factory sector PMI climbed to an impressive 61.3 from the previous mark of 58.1.2

 

OIL TAKES A WEEKLY LOSS

Retreating 2.9% in four trading days, West Texas Intermediate crude ended the week at $67.75 on the NYMEX. Light sweet crude had its first down week since August, and its Friday closing value was its lowest since August 21. The big concern: the potential impact of tariffs on global oil demand.3

 

STOCKS DECLINE; POSSIBLE NEW TARIFFS ON CHINA ANNOUNCED

Friday, President Trump told reporters that he was willing to authorize import taxes on another $267 billion of Chinese goods entering the U.S.; this would effectively put an across-the-board tax on Chinese imports in place. This development and a broad tech selloff impacted Wall Street during a shortened trading week. In trading Tuesday through Friday, the S&P 500 fell 1.02%, to 2,871.68; the Dow Jones Industrial Average 0.27%, to 25,916.54; the Nasdaq Composite 2.30%, to 7,902.54.4,5,6

 

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T I P   O F T H E   W E E K

 

If you plan to age in place, think about the future upkeep of your home. Could the cost of maintenance and “senior upgrades” to enhance safety and accessibility prove too much to handle financially? Or does it appear to be manageable?

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THIS WEEK

Hovnanian Enterprises and Sonos present earnings on Monday. | Tuesday, nothing major is scheduled. | On Wednesday, Apple holds its iPhone XS launch event, and the August Producer Price Index and a new Federal Reserve Beige Book appear. | Thursday, investors pay attention to the August Consumer Price Index and quarterly results from Kroger. | On Friday, Wall Street considers August retail sales figures and the preliminary September consumer sentiment index from the University of Michigan.

 

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Q U O T E   O F T H E  W E E K

 

“Part of being a hero is knowing when you don’t need to be one anymore.”

ALAN MOORE

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% CHANGE	Y-T-D	1-YR CHG	5-YR AVG	10-YR AVG
DJIA	4.84	18.97	14.73	12.52
NASDAQ	14.47	23.52	23.18	24.82
S&P 500	7.41	16.49	14.70	12.65
REAL YIELD	9/7 RATE	1 YR AGO	5 YRS AGO	10 YRS AGO
10 YR TIPS	0.84	0.26	0.87	1.68

Randy C. Benning, CFP®, President, License # 0816882, Benning Financial Group, LLC. Investment Advisory Services offered through Benning Financial Group, LLC, A Registered Investment Advisor, Benning Financial Group, LLC 

Sources: wsj.com, bigcharts.com, treasury.gov – 9/7/186,7,8,9

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

---

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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 market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is a 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 a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. 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. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. 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 – bloomberg.com/news/articles/2018-09-07/u-s-payrolls-rise-201-000-while-wage-gains-accelerate-to-2-9 [9/7/18]

2 – instituteforsupplymanagement.org/ISMReport/NonMfgROB.cfm?SSO=1 [9/6/18]

3 – marketwatch.com/story/oil-price-stabilizes-after-retreat-on-rising-product-inventories-2018-09-07 [9/7/18]

4 – nytimes.com/2018/09/07/business/trump-china-trade-war-tariffs.html [9/7/18]

5 – forexlive.com/technical-analysis/!/us-stocks-end-lower-nasdaq-worst-week-since-march-23rd-20180907 [9/7/18]

6 – markets.wsj.com/us [9/7/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F7%2F17&x=0&y=0 [9/7/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F7%2F17&x=0&y=0 [9/7/18]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F7%2F17&x=0&y=0 [9/7/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F6%2F13&x=0&y=0 [9/7/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F6%2F13&x=0&y=0 [9/7/18]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F6%2F13&x=0&y=0 [9/7/18]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F8%2F08&x=0&y=0 [9/7/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F8%2F08&x=0&y=0 [9/7/18]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F8%2F08&x=0&y=0 [9/7/18]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/7/18]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/7/18]

Randy C. Benning, CFP Presents:

OPTIMISM REIGNS ON MAIN STREET

In August, the Conference Board’s respected consumer confidence index made a remarkable leap, rising 5.5 points to 133.4. This was its highest reading in almost 18 years. (Economists surveyed by Briefing.com forecast an August reading of 126.5.) The University of Michigan’s consumer sentiment index also improved in its final August edition, ending the month at a mark of 96.2, 0.9 points above its preliminary reading.1,2

 

STRONG SHOWING FOR PERSONAL SPENDING, IMPROVEMENT FOR Q2 GDP

Households boosted their outlays by 0.4% in July, according to the Department of Commerce. The seventh month of the year also saw a 0.3% gain in personal incomes. In June, both indicators displayed an advance of 0.4%. The Department also issued its first revision to second-quarter economic growth last week, taking the number up 0.1% to an even stronger 4.2%.1

 

WILL NAFTA BE REPLACED NEXT YEAR?

Last week, the U.S., Mexico, and Canada progressed toward a new trade deal that would supplant the North American Free Trade Agreement. The proposed new accord, which would be in place for the next 16 years and reviewed every six years, stipulates that 75% of the value of a vehicle sold in North America must be produced in either America, Canada, or Mexico, up from 62.5%. It would require Mexico to put higher wages in place for workers, while keeping Mexican farm exports free from U.S. tariffs. By law, President Trump must give Congress 90 days of notice prior to signing any new trade deal. The Trump administration urged Canada to join the new agreement by September 1, but it actually has until the end of this month to submit a fully detailed trade pact to Congress for review. Capitol Hill lawmakers are unlikely to vote on the deal until mid-2019.3,4

 

NASDAQ PUSHES PAST 8,000

Another week, another market milestone: the tech benchmark settled at 8,109.68 Wednesday, a record. It ended the week just a hair lower at 8,109.54, advancing 2.06% in five trading sessions. Up 0.93% for the week, the S&P 500 closed out August at 2,901.52. Rising 0.68% in five days, the Dow Industrials finished the month at 25,964.82.5,6

 

 

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T I P   O F T H E   W E E K

 

Retirement plans should be updated with time. As your financial situation changes, your plan should change and evolve.

---

 

THIS WEEK

Monday is Labor Day, so Wall Street has the day off. | The Institute for Supply Management’s August manufacturing PMI appears Tuesday. | Nothing major is scheduled for Wednesday. | ADP’s August payrolls report, the latest Challenger job-cut numbers, a fresh Department of Labor initial jobless claims snapshot, and a new ISM service sector PMI all surface Thursday. | On Friday, the Department of Labor presents its August employment report.

 

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Q U O T E   O F T H E  W E E K

 

“Look before you leap.”

AESOP

---

 

% CHANGE	Y-T-D	1-YR CHG	5-YR AVG	10-YR AVG
DJIA	5.04	18.30	15.06	12.54
NASDAQ	17.47	26.15	25.18	24.52
S&P 500	8.52	17.39	15.54	12.71
REAL YIELD	8/31 RATE	1 YR AGO	5 YRS AGO	10 YRS AGO
10 YR TIPS	0.78	0.36	0.68	1.68

Randy C. Benning, CFP®, President, License # 0816882, Benning Financial Group, LLC. Investment Advisory Services offered through Benning Financial Group, LLC, A Registered Investment Advisor, Benning Financial Group, LLC 

Sources: wsj.com, bigcharts.com, treasury.gov – 8/31/186,7,8,9

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

---

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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 market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is a 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 a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. 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. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. 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 – briefing.com/investor/calendars/economic/2018/08/27-31 [8/31/18]

2 – cbsnews.com/news/consumer-confidence-hits-18-year-high/ [8/28/18]

3 – reuters.com/article/us-trade-nafta-factbox/winners-and-losers-from-the-new-nafta-deal-idUSKCN1LF2O9 [8/30/18]

4 – washingtonpost.com/business/2018/08/30/friday-isnt-real-deadline-nafta [8/30/18]

5 – tinyurl.com/y7gfl9dq [8/31/18]

6 – markets.wsj.com/us [8/31/18]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F31%2F17&x=0&y=0 [8/31/18]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F31%2F17&x=0&y=0 [8/31/18]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F31%2F17&x=0&y=0 [8/31/18]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F30%2F13&x=0&y=0 [8/31/18]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F30%2F13&x=0&y=0 [8/31/18]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F30%2F13&x=0&y=0 [8/31/18]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F2%2F08&x=0&y=0 [8/31/18]

 

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F2%2F08&x=0&y=0 [8/31/18]

 

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F2%2F08&x=0&y=0 [8/31/18]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/31/18]

9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/31/18] 

Randy C. Benning, CFP Presents:

BULL MARKET MAKES HISTORY

At the close on August 22, the current bull marked its 3,453th day, a record by S&P Dow Jones standards. Between March 9, 2009 and last Wednesday, the S&P 500 advanced 323%, with an annualized return of about 19%. Besides optimism, four other factors drove the market higher in the last nine-and-a-half years: easing by the Federal Reserve, earnings growth (corporate profits have improved in 30 of the past 35 quarters, with the only slump happening in 2015-16), share repurchases, and dip-buying on the assumption that stocks would recover from declines.1

HOME SALES WEAKEN

New National Association of Realtors data shows existing home sales fell 0.7% during July. Last month, the sales pace was the slowest recorded since February 2016. New home buying declined 1.7% in July after a 2.4% June drop, with the sales rate hitting a 9-month low.2,3

OIL FUTURES JUMP 5% IN FIVE DAYS

Crude just left its 7-week losing streak behind. Oil rose 5.4% on the NYMEX last week, settling at $68.72 after a 1.3% advance during the Friday trading session. News indicating Iran’s output might fall with the imposition of U.S. sanctions helped the commodity.4

S&P 500, NASDAQ SETTLE AT NEW PEAKS

The S&P gained 0.86% last week to finish at 2,874.69, surpassing its record close of January 26. Entering fresh record territory of its own, the Nasdaq Composite pushed toward the 8,000 level, closing at 7,945.98 on Friday after advancing 1.66% across five days. The week was good to the blue chips as well: the Dow Jones Industrial Average added 0.47%, settling Friday at 25,790.35. The CBOE VIX fell 4.67% across the week to 12.05.5,6

 

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T I P   O F T H E   W E E K

 

Certain life insurance policies now offer long-term care riders. If premiums for a standalone LTC policy seem too expensive, consider these policies as alternatives.

---

THIS WEEK

Monday, nothing major is scheduled. | BMO Financial Group and Best Buy present earnings on Tuesday, while the Conference Board’s August consumer confidence index and the latest S&P CoreLogic Case-Shiller home price index also arrive. | The federal government’s second estimate of Q2 economic growth appears Wednesday, as do the NAR’s July pending home sales index and quarterly results from Dick’s Sporting Goods. | Thursday offers July personal spending figures, the July PCE price index, and a new initial unemployment claims report. | On Friday, the University of Michigan releases its final August consumer sentiment index.

 

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Q U O T E   O F T H E  W E E K

 

“He who learns but does not think, is lost. He who thinks but does not learn is in great danger.”

KONG QIU (CONFUCIUS)

---

 

% CHANGE	Y-T-D	1-YR CHG	5-YR AVG	10-YR AVG
DJIA	4.33	18.39	14.36	12.65
NASDAQ	15.10	26.70	23.45	23.59
S&P 500	7.52	17.86	14.56	12.69
REAL YIELD	8/24 RATE	1 YR AGO	5 YRS AGO	10 YRS AGO
10 YR TIPS	0.73	0.44	0.69	1.64

Randy C. Benning, CFP®, President, License # 0816882, Benning Financial Group, LLC. Investment Advisory Services offered through Benning Financial Group, LLC, A Registered Investment Advisor, Benning Financial Group, LLC 

Sources: wsj.com, bigcharts.com, treasury.gov – 8/24/185,7,8,9

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

---

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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 market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is a 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 a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. 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. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. 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 – businessinsider.com/stock-bull-market-longest-on-record-4-main-reasons-for-longevity-2018-8 [8/22/18]

2 – marketwatch.com/story/housing-is-another-brick-in-the-wall-of-worry-stock-analyst-says-2018-08-24 [8/24/18]

3 – investing.com/economic-calendar/ [8/23/18]

4 – marketwatch.com/story/us-oil-futures-climb-more-than-5-for-the-week-2018-08-24 [8/24/18]
5 – markets.wsj.com/us [8/24/18]
6 – cnbc.com/2018/08/24/us-stocks-china-trade-talks-end-powell-to-speak-at-jackson-hole.html [8/24/18]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F24%2F17&x=0&y=0 [8/24/18]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F24%2F17&x=0&y=0 [8/24/18]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F24%2F17&x=0&y=0 [8/24/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F23%2F13&x=0&y=0 [8/24/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F23%2F13&x=0&y=0 [8/24/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F23%2F13&x=0&y=0 [8/24/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F25%2F08&x=0&y=0 [8/24/18]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F25%2F08&x=0&y=0 [8/24/18]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F25%2F08&x=0&y=0 [8/24/18]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/24/18]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/24/18]

Randy C. Benning, CFP Presents:

MID-SUMMER MEANT BUYING FOR CONSUMERS

According to new Census Bureau data, retail sales were 0.5% improved in July. Core retail sales (all categories except car and truck buying) rose 0.6% last month. The only sour note was the revision the Bureau made to June’s headline and core retail sales advances. The overall June retail sales gain was reduced to 0.2% from 0.5%; the core gain, to 0.2% from 0.4%.1,2

HOUSEHOLD SENTIMENT GAUGE DISAPPOINTS

In its initial August edition, the University of Michigan’s index of consumer sentiment fell 2.6 points to 95.3. That was a miss: analysts polled by Briefing.com expected a reading of 97.8. This preliminary August reading was also an 11-month low for the index.1,2

A MINOR JULY GAIN FOR HOUSING STARTS

A new federal government report showed residential construction activity up 0.9% last month. Building permits increased 1.5% after three months of retreats.3

DOW LEADS THE WAY ON WALL STREET

Ascending 1.41% over five market days, the Dow Jones Industrial Average closed Friday’s trading session at 25,669.32. The S&P 500 also had a positive week, advancing 0.59% to 2,850.13. The same was not true for the Nasdaq Composite. The tech-heavy benchmark lost 0.29% last week to finish at 7,816.33, Friday. Also notable: gold’s weekly loss of 2.9%. A strong dollar has put pressure on the yellow metal of late, and this past week was gold’s worst on the COMEX in 15 months.2,4

 

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T I P   O F T H E   W E E K

 

Many people plan for retirement without giving much thought to life expectancy. What if you live much longer than you think you will? As you near retirement, take this possibility into account.

---

THIS WEEK

On Monday, Estee Lauder presents second-quarter results. | Tuesday’s earnings roll call includes announcements from Coty, Kohl’s, La-Z-Boy, Medtronic, J.M. Smucker, and Urban Outfitters. | Analog Devices, Lowe’s, Stein Mart, and Target offer earnings on Wednesday; in addition, investors will consider minutes from the most recent Federal Reserve policy meeting and July existing home sales figures. | July new home sales data is out Thursday, plus the latest initial claims report and earnings from Alibaba Group, Gap, Hormel Foods, HP, Intuit, and Toro. | Federal Reserve Chairman Jerome Powell gives a speech on monetary policy Friday morning at the Kansas City Fed’s annual Jackson Hole economic policy symposium; away from Jackson Hole, Foot Locker announces quarterly earnings and data on July hard goods orders arrives.

 

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Q U O T E   O F T H E  W E E K

“Nature does nothing uselessly.”

ARISTOTLE

---

 

% CHANGE	Y-T-D	1-YR CHG	5-YR AVG	10-YR AVG
DJIA	3.84	18.02	14.04	12.36
NASDAQ	13.22	25.63	23.39	22.34
S&P 500	6.60	17.30	14.43	12.29
REAL YIELD	8/17 RATE	1 YR AGO	5 YRS AGO	10 YRS AGO
10 YR TIPS	0.79	0.42	0.68	1.67

Randy C. Benning, CFP®, President, License # 0816882, Benning Financial Group, LLC. Investment Advisory Services offered through Benning Financial Group, LLC, A Registered Investment Advisor, Benning Financial Group, LLC 

Sources: wsj.com, bigcharts.com, treasury.gov – 8/17/184,5,6,7

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

---

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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 market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is a 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 a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. 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. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. 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 – briefing.com/investor/calendars/economic/2018/08/13-17 [8/17/18]

2 – marketwatch.com/story/weaker-gold-heads-for-3-weekly-drop-2018-08-17 [8/17/18]

3 – reuters.com/article/us-usa-economy-housingstarts/us-housing-starts-rise-less-than-expected-in-july-idUSKBN1L11FI [8/16/18]

4 – markets.wsj.com/us [8/17/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F17%2F17&x=0&y=0 [8/17/18]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F17%2F17&x=0&y=0 [8/17/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F17%2F17&x=0&y=0 [8/17/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F16%2F13&x=0&y=0 [8/17/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F16%2F13&x=0&y=0 [8/17/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F16%2F13&x=0&y=0 [8/17/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F18%2F08&x=0&y=0 [8/17/18]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F18%2F08&x=0&y=0 [8/17/18]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F18%2F08&x=0&y=0 [8/17/18]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/17/18]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/17/18]     

Randy C. Benning, CFP Presents:

INFLATION AT 2.9%, CORE INFLATION AT 2.4%

Friday, the Department of Labor reported these annualized gains through July of this year for the Consumer Price Index. Both the headline and core CPIs rose 0.2% last month, matching the consensus forecast of economists polled by Reuters. The yearly core inflation increase is the largest on record since September 2008. (The core inflation reading leaves out food and energy costs.) The Producer Price Index was flat in July, with the yearly advance declining slightly to 3.4%; the core PPI rose 0.3%, resulting in a 2.8% annualized gain.1,2

 

HOW IS EARNINGS SEASON GOING?

Ninety-one percent of S&P 500 companies have reported Q2 results so far. FactSet, the respected stock market analytics firm, reports that 72% have surprised to the upside in terms of sales and 79% have topped earnings expectations. Weighing actual earnings results and future projections, FactSet estimates a 24.6% “blended” earnings growth rate for the second quarter. On Friday, the forward 12-month P/E ratio for the S&P 500 was 16.6; that compares to an average of 16.2 across the past five years.3

 

OIL FALLS FOR A SIXTH STRAIGHT WEEK

WTI crude last suffered such a losing streak in 2015. Friday, it settled at $67.63 on the NYMEX, even after a 1.2% advance during Friday’s trading session. Some commodities investors believe that the emerging trade war will reduce demand for energy products.4

 

NASDAQ ADVANCES, S&P AND DOW RETREAT

The possibility of the U.S. doubling tariffs on Turkish aluminum and steel sent stocks skidding worldwide, Friday, as diplomatic disagreements between the countries took on an economic aspect. Of the three major Wall Street indices, only the Nasdaq Composite posted a weekly gain, rising 0.35% to 7,839.11. The S&P 500 fell 0.25% in five days, settling at 2,833.28 Friday. The Dow Jones Industrial Average ended the week 0.59% lower at 25,313.14.5,6

 

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T I P   O F T H E   W E E K

 

This year, the Internal Revenue Service eased the “use it or lose it” rule on Flexible Spending Accounts (FSAs). In the past, funds you directed into an FSA had to be spent by the end of a year or else they would be forfeited. The I.R.S. now permits you to carry over as much as $500 in FSA funds into the next year, but your employer must elect to allow this option.

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THIS WEEK

Sysco announces Q2 results Monday. | Advance Auto Parts, Agilent Technologies, and Home Depot present earnings on Tuesday. | On Wednesday, July retail sales numbers are out, along with earnings from Briggs & Stratton and Cisco. | Nordstrom, Nvidia, and Walmart share quarterly results on Thursday, as Wall Street also considers new data on initial jobless claims and July homebuilding activity. | The University of Michigan’s initial August consumer sentiment index appears on Friday, plus the Conference Board’s latest leading indicators index and earnings from Deere & Co.

 

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Q U O T E   O F T H E  W E E K

 

“Do not accustom yourself to use big words for little matters.”

SAMUEL JOHNSON

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% CHANGE	Y-T-D	1-YR CHG	5-YR AVG	10-YR AVG
DJIA	2.40	15.88	12.82	11.48
NASDAQ	13.55	26.09	22.84	22.13
S&P 500	5.97	16.20	13.50	11.71
REAL YIELD	8/10 RATE	1 YR AGO	5 YRS AGO	10 YRS AGO
10 YR TIPS	0.78	0.40	0.33	1.80

Randy C. Benning, CFP®, President, License # 0816882, Benning Financial Group, LLC. Investment Advisory Services offered through Benning Financial Group, LLC, A Registered Investment Advisor, Benning Financial Group, LLC 

Sources: wsj.com, bigcharts.com, treasury.gov – 8/10/186,7,8,9

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

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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. The information herein has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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 market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is a 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 a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. 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. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. 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 – cnbc.com/2018/08/10/us-cpi-july-2018.html [8/10/18]

2 – reuters.com/article/us-usa-economy-inventories/u-s-producer-prices-unchanged-in-july-idUSKBN1KU1JH [8/9/18]   

3 – factset.com/hubfs/Resources%20Section/Research%20Desk/Earnings%20Insight/EarningsInsight_081018.pdf [8/10/18]  

4 – bloomberg.com/news/articles/2018-08-10/oil-set-for-sixth-weekly-loss-as-u-s-china-trade-war-escalates [8/10/18]

5 – thestreet.com/markets/stocks-slide-amid-currency-crisis-in-turkey-14679908 [8/10/18]

6 – markets.wsj.com/us [8/10/18]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F10%2F17&x=0&y=0 [8/10/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F10%2F17&x=0&y=0 [8/10/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F10%2F17&x=0&y=0 [8/10/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F9%2F13&x=0&y=0 [8/10/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F9%2F13&x=0&y=0 [8/10/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F9%2F13&x=0&y=0 [8/10/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F11%2F08&x=0&y=0 [8/10/18]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F11%2F08&x=0&y=0 [8/10/18]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F11%2F08&x=0&y=0 [8/10/18]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/10/18]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/10/18]

Randy C. Benning, CFP Presents:

ECONOMY ADDS 157,000 NET NEW JOBS

Employers expanded their payrolls in July, but new Department of Labor data showed the hiring pace slowing down. May and June gains, however, were revised up by a combined 59,000, bringing average monthly job growth over the past three months to 224,000. Even with fewer hires, the headline unemployment rate ticked down to 3.9%, and the U-6 rate (factoring in underemployed workers) dropped 0.3% to 7.5%, underneath where it was in July 2017. Last month, wages had improved 2.7%, year-over-year.1

 

GOOD NEWS FOR CONSUMER SPENDING AND CONSUMER CONFIDENCE

Personal spending, according to the Department of Commerce, rose 0.4% during June on the heels of a 0.5% May climb. Personal incomes improved by 0.4% in June, duplicating the number from May. Beating the 127.0 forecast of analysts surveyed by MarketWatch, the Conference Board’s July consumer confidence index rose 0.3 points to 127.4.2

 

ISM PURCHASING MANAGER INDICES DECLINE

While still in fine shape, the Institute for Supply Management’s twin gauges measuring economic activity in the factory and service sectors fell last month. The Institute’s manufacturing PMI went from a 60.2 June reading to a 58.1 July mark. ISM’s non-manufacturing PMI lost 3.4 points on the month, heading down to 55.7.3

 

STOCKS ADVANCE FOR A FIFTH STRAIGHT WEEK

Up 0.76% over five trading sessions, the S&P 500 settled at 2,840.35, Friday. The Nasdaq Composite added 0.96% for the week, reaching 7,812.01 at Friday’s closing bell. Blue chips were flat for the week: the Dow Industrials gained but 0.05% to 25,462.58. All three indices were positive for Friday, even with news that China planned to levy import taxes on $60 billion more of American exports.4,5

 

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T I P   O F T H E   W E E K

Usually, there is little point in trying to negotiate a financial aid package for a student at one university by referencing another offer made by a different school. Most colleges have tight financial aid budgets to begin with and firm award guidelines for financial aid officers to follow.

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THIS WEEK

Monday’s earnings parade includes announcements from Andeavor, Boise Cascade, Hertz Global Holdings, Marriott International, Mosaic, Sempra Energy, Tyson Foods, and Weight Watchers. | Tuesday, Wall Street considers earnings from Aramark, Avis Budget Group, Camping World, Dean Foods, Discovery Channel, Hostess Brands, Invacare, Office Depot, Papa John’s, Snap, Walt Disney Co., and Wendy’s. | Earnings from CVS Health, Green Dot, Horizon Pharma, Keurig Dr. Pepper, Manulife, Michael Kors, Monster Beverage, Roku, Sinclair Broadcasting, Starwood Hotels & Resorts, Sunoco, TiVo, Twenty-First Century Fox, U.S. Auto Parts, Weibo, Wyndham Destinations, and Yelp appear Wednesday. | Thursday, the July Producer Price Index arrives, along with a new initial jobless claims report and earnings from Gannett, Lions Gate, News Corp., Norwegian Cruise Line, Planet Fitness, Tronc, Viacom, and Vista Outdoor. | Friday marks the appearance of the July Consumer Price Index.

 

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Q U O T E   O F T H E  W E E K

 

“The greatest obstacle to discovery is not ignorance – it is the illusion of knowledge.”

DANIEL BOORSTIN

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% CHANGE	Y-T-D	1-YR CHG	5-YR AVG	10-YR AVG
DJIA	3.01	15.60	12.52	12.56
NASDAQ	13.16	23.21	22.35	24.18
S&P 500	6.24	14.89	13.23	12.74
REAL YIELD	8/3 RATE	1 YR AGO	5 YRS AGO	10 YRS AGO
10 YR TIPS	0.83	0.46	0.42	1.64

Randy C. Benning, CFP®, President, License # 0816882, Benning Financial Group, LLC. Investment Advisory Services offered through Benning Financial Group, LLC, A Registered Investment Advisor, Benning Financial Group, LLC 

Sources: wsj.com, bigcharts.com, treasury.gov – 8/3/185,6,7,8

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

---

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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 market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is a 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 a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. 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. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. 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 – nbcnews.com/business/economy/price-rising-employment-slow-wage-growth-trade-risks-n897461 [8/3/18]

2 – marketwatch.com/economy-politics/calendars/economic [8/3/18]

3 – instituteforsupplymanagement.org/ISMReport/NonMfgROB.cfm [8/3/18]

4 – foxbusiness.com/markets/stock-futures-cautiously-lower-ahead-of-july-jobs-report [8/3/18]

5 – markets.wsj.com/us [8/3/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F3%2F17&x=0&y=0 [8/3/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F3%2F17&x=0&y=0 [8/3/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F3%2F17&x=0&y=0 [8/3/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F2%2F13&x=0&y=0 [8/3/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F2%2F13&x=0&y=0 [8/3/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F2%2F13&x=0&y=0 [8/3/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F4%2F08&x=0&y=0 [8/3/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F4%2F08&x=0&y=0 [8/3/18]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F4%2F08&x=0&y=0 [8/3/18]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/3/18]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/3/18]