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13 Nov 2017

Weekly Economic Update for November 13, 2017

by Benning Financial Group | in Economic Update, News

Randy C. Benning, CFP Presents:

CONSUMER SENTIMENT INDEX DECLINES

The University of Michigan’s monthly gauge of U.S. household sentiment fell to 97.8 in its initial November edition; analysts polled by Bloomberg estimated it would tick up to 100.8. While the 2.9-point dip from its final October level was the largest drop in a year, the index remained near a 13-year peak. Sixty percent of the consumers surveyed felt that stocks would rise in 2018.1

  

Q3 EARNINGS: A LOOK AT THE SCORECARD

As of Friday, 87% of S&P 500 companies had reported third-quarter earnings. An analysis from Zacks Investment Research reveals that 73% have topped earnings forecasts; 67% have surpassed revenue estimates. So far, the earnings growth rate for S&P 500 firms in the third quarter is 6.8%, with revenues rising 6.2%. Zacks expects total earnings for the quarter to be 6.2% higher than Q3 2016, with year-over-year income growth at 5.7%.2

  

OIL CAPS OFF A STRONG WEEK

Light sweet crude rose to its highest level in 28 months last week before settling slightly lower: $56.67 was the NYMEX price at Friday’s NYSE closing bell. At that time, WTI crude was up 1.8% from its November 3 close.3

  

A SLIGHT PULLBACK ON WALL STREET

Uncertainty about the potential for tax code reform led to some weakness in stocks over the past five trading days. The S&P 500 fell 0.21% for the week to 2,582.30; the Nasdaq Composite retreated 0.20% to 6,750.94. Blue chips took a deeper loss: the Dow Jones Industrial Average declined 0.50% to 23,422.21. The week was much rougher for the Russell 2000, which gave back 1.31% on the way to a Friday settlement of 1,475.27. The CBOE VIX ended the week at 11.29, rising 23.52% in five days.4

     

THIS WEEK: Monday, Tyson Foods presents Q3 results. On Tuesday, the October Producer Price Index arrives as well as earnings from Aramark and Beazer Homes. Wall Street looks at last month’s retail sales figures and Consumer Price Index on Wednesday, plus earnings from Cisco, L Brands, NetEase, and Target. Thursday, reports on initial jobless claims and October industrial output complement earnings from Best Buy, Gap, Viacom, and Walmart. Friday, the Census Bureau issues a report on October housing starts and building permits.

 

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +18.52 +24.53 +16.55 +7.96
NASDAQ +25.41 +29.61 +26.48 +15.69
S&P 500 +15.34 +19.14 +17.43 +7.76
REAL YIELD 11/10 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.52% 0.27% -0.83% 1.82%

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, is not affiliated with Triad Advisors. Securities offered through Triad Advisors Member FINRA, SIPC

Sources: wsj.com, bigcharts.com, treasury.gov – 11/10/174,5,6,7

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/2017-11-10/u-s-consumer-sentiment-unexpectedly-drops-amid-price-concerns [11/10/17]

2 – nasdaq.com/article/7-retail-stocks-to-steal-the-show-with-q3-earnings-beat-cm875644 [11/10/17]

3 – marketwatch.com/story/oil-steadies-after-climb-toward-2-year-highs-2017-11-10 [11/10/17]

4 – markets.wsj.com/us [11/10/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F10%2F16&x=0&y=0 [11/10/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F10%2F16&x=0&y=0 [11/10/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F10%2F16&x=0&y=0 [11/10/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F9%2F12&x=0&y=0 [11/10/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F9%2F12&x=0&y=0 [11/10/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F9%2F12&x=0&y=0 [11/10/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F9%2F07&x=0&y=0 [11/10/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F9%2F07&x=0&y=0 [11/10/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F9%2F07&x=0&y=0 [11/10/17]

6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/10/17]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/10/17]

06 Nov 2017

Weekly Economic Update for November 6, 2017

by Benning Financial Group | in Economic Update, News

Randy C. Benning, CFP Presents:

HIRING REBOUNDS, INDUSTRIES EXPAND

According to the Department of Labor, October brought a net gain of 261,000 jobs. (Last month’s net loss of 33,000 was revised to a net gain of 18,000.) The headline unemployment rate ticked down to 4.1%, while the broader U-6 rate fell to 7.9% (down 1.3% in 12 months). Wages were up 2.4% year-over-year. The Institute for Supply Management’s purchasing manager indices alternately rose and fell in October. The readings were strong: 58.7 for the factory PMI (down 2.1 points), 60.1 for the service sector PMI (up 0.3 points).1,2

  

CONSUMER SPENDING, CONFIDENCE IMPRESS

Personal spending rose 1.0% in September, helped by households replacing vehicles and goods damaged in hurricanes and floods. This was the largest monthly advance in more than eight years. Personal wages improved 0.4%. The Conference Board’s consumer confidence index climbed 6.1 points to 125.9 in October; economists surveyed by MarketWatch expected a reading of 121.3.2,3

  

JEROME POWELL NOMINATED TO LEAD FED

If his nomination is approved, the Federal Reserve governor and former investment banker will become chairman when Janet Yellen’s term ends in February. He is expected to maintain the Fed’s current strategy for normalizing monetary policy. The central bank held interest rates steady at its November meeting. Bloomberg puts the odds of a December rate hike at 85%.4,5

  

ANOTHER ADVANCE FOR STOCKS

All three major indices rose last week, with the gains paralleling those of the previous week. The respective improvements: S&P 500, 0.26% to 2,587.84; Nasdaq Composite, 0.94% to 6,764.44; Dow Jones Industrial Average, 0.45% to 23,539.19.6

     

THIS WEEK: On Monday, AMC Entertainment, Avis Budget Group, CVS Health, Etsy, GoDaddy, Michael Kors, Priceline, Sysco, TripAdvisor, and Weight Watchers announce earnings. Tuesday’s earnings roll call includes news from Container Store, Dean Foods, Extended Stay America, Green Dot, Invacare, Marcus & Millichap, Marriott International, Snap, Take-Two Interactive, Valeant Pharmaceuticals, and Zynga. AmeriGas, Hostess Brands, Humana, Square, Starwood Hotels & Resorts, Twenty-First Century Fox, Valvoline, and Wendy’s release earnings Wednesday. Thursday, earnings news streams in from AstraZeneca, D.R. Horton, Walt Disney Co., Hertz Global Holdings, Lionsgate, News Corp., and Time. November’s initial University of Michigan consumer sentiment index appears Friday, plus Q3 results from ArcelorMittal.

 

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +19.11 +31.28 +15.96 +7.31
NASDAQ +25.66 +33.73 +25.37 +14.07
S&P 500 +15.59 +23.90 +16.60 +7.14
REAL YIELD 11/3 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.48% 0.14% -0.73% 1.92%

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, is not affiliated with Triad Advisors. Securities offered through Triad Advisors Member FINRA, SIPC

Sources: wsj.com, bigcharts.com, treasury.gov – 11/3/176,7,8,9

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 – forbes.com/sites/maggiemcgrath/2017/11/03/payrolls-rebound-from-hurricane-losses-adding-261000-jobs-in-october/ [11/3/17]

2 – marketwatch.com/economy-politics/calendars/economic [11/3/17]

3 – bloomberg.com/news/articles/2017-10-30/u-s-consumer-spending-rises-most-since-2009-on-auto-purchases [10/30/17]

4 – csmonitor.com/USA/Politics/2017/1103/Trump-taps-Jerome-Powell-for-Federal-Reserve-chair [11/3/17]

5 – businessinsider.com/fed-statement-november-2017-11 [11/1/17]

6 – markets.wsj.com/us [11/3/17]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F3%2F16&x=0&y=0 [11/3/17]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F3%2F16&x=0&y=0 [11/3/17]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F3%2F16&x=0&y=0 [11/3/17]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F2%2F12&x=0&y=0 [11/3/17]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F2%2F12&x=0&y=0 [11/3/17]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F2%2F12&x=0&y=0 [11/3/17]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F2%2F07&x=0&y=0 [11/3/17]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F2%2F07&x=0&y=0 [11/3/17]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F2%2F07&x=0&y=0 [11/3/17]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/3/17]

9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/3/17]

30 Oct 2017

Weekly Economic Update for October 30, 2017

by Benning Financial Group | in Economic Update, News

Randy C. Benning, CFP Presents:

THIRD QUARTER SAW SOLID ECONOMIC GROWTH

Friday, the Bureau of Economic Analysis issued its first estimate of Q3 GDP: 3.0%. Its report showed increases in personal spending and business stockpiling offsetting a dip in home building. The economy grew 3% or more for a second straight quarter for the first time since 2014. Growth has averaged 2.2% per quarter since the end of the recession in 2009.1

  

NEW HOME SALES LEAP UP

Unexpectedly, new home buying increased by 18.9% in September; the Census Bureau said that the sales pace reached a ten-year peak. The surge put the year-over-year gain for new home purchases at 17.0%.2

  

CONSUMERS RETAIN THEIR OPTIMISM

The University of Michigan’s consumer sentiment index finished October at 100.7, just 0.1 points beneath the forecast of economists polled by MarketWatch. That very high reading was below the initial October mark of 101.1, however.3

  

NASDAQ CLIMBS 144 POINTS IN A DAY

Impressive earnings news sent the tech benchmark up 2.20% Friday to a close of 6,701.26; it gained 1.09% for the week. The S&P 500 added 0.23% last week, settling Friday at 2,581.07; the Dow Industrials rose 0.45% to 23,434.19 in the same span.4

     

THIS WEEK: Monday, September’s personal spending numbers and PCE price index appear, along with earnings from CNA Financial, Edison International, Kemper, Loews, Mondelez, Nautilus, Rent-A-Center, and Sempra Energy. The Conference Board’s latest consumer confidence index surfaces Tuesday, plus earnings from Aetna, Anadarko Petroleum, Archer Daniels Midland, BP, Cummins, Electronic Arts, Kellogg, MasterCard, Pfizer, Regis Corp., Under Armour, and Voya Financial. On Wednesday, a Federal Reserve policy statement, the October ADP payrolls report, and a new ISM factory PMI arrive; earnings emerge from Allergan, Allstate, Brinker International, Clorox, Estee Lauder, Facebook, Garmin, GoPro, Hanesbrands, Honda, Kraft Heinz, La Quinta Holdings, Marathon Oil, MetLife, Molson Coors, Prudential Financial, Qualcomm, Shake Shack, Symantec, Tesla, Transocean, and Yelp. Thursday’s earnings parade includes Activision Blizzard, Alibaba, AMC Networks, Apple, AutoNation, CBS, Chesapeake Energy, Cigna, Exelon, Fluor, Genworth Financial, Hyatt, Live Nation, Motorola Solutions, Pandora Media, Parker-Hannifin, Ralph Lauren, Starbucks, Vulcan Materials, Wayfair, and Yum! Brands. The Department of Labor’s October jobs report rolls out Friday as well as the October ISM services PMI and earnings from Bloomin’ Brands, CBRE Group, Duke Energy, Revlon, and Shell Midstream Partners.

 

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +18.58 +28.97 +15.76 +6.97
NASDAQ +24.49 +28.48 +24.86 +13.90
S&P 500 +15.29 +21.00 +16.56 +6.81
REAL YIELD 10/27 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.54% 0.13% -0.69% 2.05%

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, is not affiliated with Triad Advisors. Securities offered through Triad Advisors Member FINRA, SIPC

Sources: wsj.com, bigcharts.com, treasury.gov – 10/27/174,5,6,7

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 – tinyurl.com/ybkdsjh3 [10/27/17]

2 – marketwatch.com/story/new-home-sales-roar-to-a-10-year-high-in-september-2017-10-25 [10/25/17]

3 – marketwatch.com/economy-politics/calendars/economic [10/27/17]

4 – markets.wsj.com/us [10/27/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F27%2F16&x=0&y=0 [10/27/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F27%2F16&x=0&y=0 [10/27/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F27%2F16&x=0&y=0 [10/27/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F26%2F12&x=0&y=0 [10/27/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F26%2F12&x=0&y=0 [10/27/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F26%2F12&x=0&y=0 [10/27/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F26%2F07&x=0&y=0 [10/27/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F26%2F07&x=0&y=0 [10/27/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F26%2F07&x=0&y=0 [10/27/17]

6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [10/27/17]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [10/27/17]

23 Oct 2017

Weekly Economic Update for October 23, 2017

by Benning Financial Group | in Economic Update, News

Randy C. Benning, CFP Presents:

SEPTEMBER SAW SLIGHTLY MORE HOME BUYING

Existing home sales advanced 0.7% last month, according to a National Association of Realtors report. This gain broke a 3-month streak of retreats. Single-family home sales rose 1.1%. Housing inventory increased 1.6% last month, but it was still 6.4% under year-ago levels.1

  

GROUNDBREAKING FALLS TO A 12-MONTH LOW

Housing starts slumped 4.7% in September, the Census Bureau reported last week. Building permits also declined, decreasing 4.5%. Fall hurricanes may have slowed construction activity, but investment in homebuilding was also down 7.3% year-over-year during the second quarter.2

   

DOW SURGES ABOVE 23,000; GOLD DROPS

Across last week, the Dow Industrials climbed 2.00% to 23,328.63. The Nasdaq Composite advanced 0.35% to 6,629.05, while the S&P 500 gained 0.86% to 2,575.21. Gold had its worst week in a month, slipping 1.9% to a Friday COMEX settlement of $1,280.50.3,4

     

THIS WEEK: Monday’s earnings parade includes news from Halliburton, Hasbro, Kimberly-Clark, Lennox International, Logitech, Seagate, and VF Corporation. Tuesday, earnings arrive from 3M, Akamai, Ameriprise Financial, AT&T, Biogen, Canon, Capital One, Caterpillar, Chipotle, Corning, Discover Financial Services, Express Scripts, Fiat Chrysler, Fifth Third, General Motors, Infosys, JetBlue, Eli Lilly, Lockheed Martin, McDonalds, Novartis, Pentair, Regions Financial, Ryder Systems, Sherwin-Williams, Stanley Black & Decker, and TD Ameritrade. September new home sales numbers appear Wednesday, plus earnings from Aflac, Alaska Air, Ally Financial, Amgen, Anthem, Avery Dennison, Boeing, Coca-Cola, Freeport-McMoRan, GlaxoSmithKline, W.R. Grace, Ingersoll Rand, Norfolk Southern, Northrop Grumman, O’Reilly, Penske, Public Storage, Sirius XM, Six Flags, SkyWest Airlines, Suncor, Visa, and Walgreens Boots Alliance. Thursday’s earnings include Alphabet, Altria, Amazon, American Airlines, Anheuser-Busch, Baidu, Bayer, Bristol-Myers, Celgene, Chubb, Conoco-Phillips, Dunkin’ Brands, Ford Motor Co., Gilead Sciences, The Hartford, HealthSouth, Hershey, Hilton Worldwide, IMAX, Intel, Marathon Petroleum, Mattel, Microsoft, Nokia, Pinnacle Foods, Praxair, Raytheon, Stryker, Twitter, Union Pacific, UPS, Valero Energy, Waste Management, and Xerox; September pending home sales and new initial claims figures also emerge. The first estimate of Q3 GDP and the month’s final University of Michigan consumer sentiment index surface Friday, plus earnings from Chevron, Colgate-Palmolive, Exxon Mobil, Goodyear, Huntsman, Merck, Phillips 66, Rockwell Collins, and Weyerhaeuser.

 

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +18.04 +28.44 +14.97 +7.25
NASDAQ +23.15 +26.46 +24.11 +14.33
S&P 500 +15.02 +20.26 +15.94 +7.16
REAL YIELD 10/20 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.52% 0.08% -0.71% 2.09%

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, is not affiliated with Triad Advisors. Securities offered through Triad Advisors Member FINRA, SIPC

Sources: wsj.com, bigcharts.com, treasury.gov – 10/20/174,5,6,7

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 – 247wallst.com/housing/2017/10/20/september-existing-home-sales-inventory-post-first-gains-in-4-months/ [10/20/17]

2 – reuters.com/article/us-usa-economy-housingstarts/u-s-housing-starts-hit-one-year-low-building-permits-tumble-idUSKBN1CN1QS [10/20/17]

3 – markets.wsj.com/us [10/20/17]

4 – marketwatch.com/story/gold-drops-to-2-week-low-as-dollar-gains-strength-on-tax-reform-hopes-2017-10-20/ [10/20/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F20%2F16&x=0&y=0 [10/20/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F20%2F16&x=0&y=0 [10/20/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F20%2F16&x=0&y=0 [10/20/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F19%2F12&x=0&y=0 [10/20/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F19%2F12&x=0&y=0 [10/20/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F19%2F12&x=0&y=0 [10/20/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F19%2F07&x=0&y=0 [10/20/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F19%2F07&x=0&y=0 [10/20/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F19%2F07&x=0&y=0 [10/20/17]

6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [10/20/17]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [10/20/17]

16 Oct 2017

Weekly Economic Update for October 16, 2017

by Benning Financial Group | in Economic Update, News

Randy C. Benning, CFP Presents:

RETAIL SALES, SENTIMENT NUMBERS IMPRESS

Two economic indicators stood out last week. Retail purchases rose 1.6% during September as households and businesses replaced cars and trucks damaged in hurricanes. This was the best monthly advance recorded by the Department of Commerce since March 2015, and the gain was 1.0% even with auto buying removed. The University of Michigan’s initial October consumer sentiment index displayed a reading of 101.1, which was nearly a 14-year high. Economists polled by Briefing.com had forecast just a half-point improvement to 95.6.1,2

 

GAS PRICES DRIVE UP INFLATION

A 13.1% spike in retail gasoline costs accounted for 75% of the 0.5% September increase in the Consumer Price Index. Not since January has the CPI risen so much in a month. Still, the core CPI was up just 0.2%. In yearly terms, headline inflation now stands at 2.2%; core inflation, at 1.7%.3

  

SOCIAL SECURITY BENEFITS TO INCREASE 2% IN 2018

Friday, the Social Security Administration announced the largest cost-of-living adjustment to retirement benefits since 2012. Next year, Social Security payments will get a 2.0% boost, meaning the average retired Social Security recipient will receive $27.40 more per month.4

 

MINOR ADVANCES BY MAJOR INDICES

From October 9-13, that was the story on Wall Street. The Dow 30 rose 0.43% to 22,871.72, the Nasdaq Composite added 0.24% to 6,605.80, and the S&P 500 gained 0.15% to 2,553.17. The CBOE VIX ended the week down at 9.66.5

   

THIS WEEK: Netflix presents Q3 results on Monday. On Tuesday, Comerica, CSX, Goldman Sachs, W.W. Grainger, Harley-Davidson, Johnson & Johnson, and UnitedHealth offer earnings news. Earnings emerge from Abbott Labs, Alcoa, American Express, and U.S. Bancorp Wednesday, and Wall Street will also review September housing starts and building permits and a new Federal Reserve Beige Book. On Thursday, BB&T, KeyCorp, Philip Morris International, Quest Diagnostics, Travelers Companies, and Verizon join the earnings parade, and a new initial claims report surfaces. September existing home sales numbers appear Friday, plus earnings from BHGE, Daimler AG, General Electric, Schlumberger, and SunTrust Bank; also, Fed chair Janet Yellen speaks on monetary policy Friday night in Washington, D.C.

 

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +15.73 +26.37 +14.32 +6.23
NASDAQ +22.71 +26.71 +23.40 +13.54
S&P 500 +14.04 +19.72 +15.74 +6.35
REAL YIELD 10/13 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.43% 0.12% -0.78% 2.36%

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, is not affiliated with Triad Advisors. Securities offered through Triad Advisors Member FINRA, SIPC

Sources: wsj.com, bigcharts.com, treasury.gov – 10/13/175,6,7,8

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 – briefing.com/investor/calendars/economic/2017/10/09-13 [10/13/17]

2 – tinyurl.com/ychmlgup [10/13/17]

3 – reuters.com/article/us-usa-economy-inflation/gasoline-boosts-u-s-consumer-prices-underlying-inflation-tame-idUSKBN1CI1NZ [10/13/17]

4 – marketwatch.com/story/social-security-checks-expected-to-increase-2-in-2018-2017-10-13/ [10/13/17]

5 – markets.wsj.com/us [10/13/17]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F13%2F16&x=0&y=0 [10/13/17]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F13%2F16&x=0&y=0 [10/13/17]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F13%2F16&x=0&y=0 [10/13/17]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F12%2F12&x=0&y=0 [10/13/17]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F12%2F12&x=0&y=0 [10/13/17]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F12%2F12&x=0&y=0 [10/13/17]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F12%2F07&x=0&y=0 [10/13/17]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F12%2F07&x=0&y=0 [10/13/17]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F12%2F07&x=0&y=0 [10/13/17]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [10/13/17]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [10/13/17]

09 Oct 2017

Weekly Economic Update for October 9, 2017

by Benning Financial Group | in Economic Update, News

Randy C. Benning, CFP Presents:

HURRICANES HURT SEPTEMBER JOB NUMBERS

For the first time in seven years, the economy went a month without payroll growth. The Department of Labor’s September employment report revealed the impact of Hurricanes Harvey and Irma: it showed 33,000 fewer people working. Average hourly wages rose 0.5% to take the annualized gain to 2.9%, but this may have been an effect of the net loss of 105,000 lower-paying bar and restaurant jobs. In a statistical fluke, the headline jobless rate fell to 4.2%, and the U-6 rate, counting the underemployed, declined to 8.3%, even as slightly more Americans looked for work.1

 

ISM FACTORY PMI TOPS 60

Rising 2.0 points for September, the Institute for Supply Management’s factory purchasing manager index hit 60.8, its best mark since May 2004. ISM’s service sector PMI also made a nice leap in September, ascending 4.5 points to 59.8, its highest result since August 2005. Analysts polled by the Wall Street Journal expected the services PMI to tick down to 55.2 last month.2

  

OIL HAS FIRST DOWN WEEK IN MORE THAN A MONTH

WTI crude settled at $49.29 on the NYMEX Friday, slipping 4.6% lower for the week. While Tropical Storm Nate put a drag on Gulf Coast oil production, traders also sensed OPEC members may retain caps on crude output through 2018.3

 

STOCKS START THE QUARTER WITH GAINS

Blue chips set the pace in the first trading week of October. Across five days, the Dow Jones Industrial Average advanced 1.65% to 22,773.67. The Nasdaq Composite rose 1.45% to 6,590.18 last week, while the S&P 500 gained 1.19% to 2,549.33.4

   

THIS WEEK: Monday is Columbus Day, so many government offices are closed; Wall Street is open for trading, with no major news scheduled. Nothing major is slated for Tuesday, either. On Wednesday, minutes from last month’s Federal Reserve policy meeting arrive, plus Q3 results from Fastenal. The fall earnings season kicks off Thursday with announcements from Citigroup and JPMorgan Chase; investors will also consider the September Producer Price Index and a new initial claims report. On Friday, the Street will study September’s Consumer Price Index, the initial October University of Michigan consumer sentiment index, September retail sales, and earnings from Bank of America, PNC Financial Services Group, and Wells Fargo. In addition, Fed chair Janet Yellen delivers a speech on monetary policy at the G30 conference in Washington, D.C. on Sunday morning.

 

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +15.24 +24.66 +13.47 +6.19
NASDAQ +22.42 +24.18 +22.03 +13.70
S&P 500 +13.87 +17.98 +14.90 +6.37
REAL YIELD 10/6 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.50% 0.11% -0.82% 2.34%

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, is not affiliated with Triad Advisors. Securities offered through Triad Advisors Member FINRA, SIPC

Sources: wsj.com, bigcharts.com, treasury.gov – 10/6/174,5,6,7

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.

02 Oct 2017

Weekly Economic Update for October 2, 2017

by Benning Financial Group | in Economic Update, News

Randy C. Benning, CFP Presents:

PERSONAL SPENDING BARELY IMPROVES

Consumer spending increased by only a seasonally adjusted 0.1% in August, while consumer incomes rose 0.2%. Those gains precisely matched the projections of economists surveyed by the Wall Street Journal. Factoring in inflation, household spending actually retreated 0.1% during August. Hurricane Harvey may be partly to blame for these numbers.1

 

ROUNDING UP REAL ESTATE INDICATORS

Census Bureau data shows new home buying down 3.4% in August; this dip comes on the heels of a (revised) 5.5% fall in July. Pending home sales, as measured by a National Association of Realtors index, slipped 2.6% in August after retreating 0.8% a month earlier. The 12-month gain for the S&P/Case-Shiller home price index improved 0.2% to 5.8% in the July edition (released last week).2

  

CONSUMER OUTLOOK WEATHERS STORMS

The University of Michigan’s consumer sentiment index and the Conference Board’s consumer confidence index both declined for September, but not drastically. The university’s gauge fell 1.7 points to a reading of 95.1, right where analysts polled by MarketWatch thought it would land; that left it 4.3 points above where it was in September 2016. At a mark of 119.8, the CB index was just 0.6 points lower than its August reading.2,3

 

WALL STREET WRAPS UP A GOOD WEEK & MONTH

The three major indices all advanced last week. Taking the lead, the Nasdaq Composite posted a 5-day gain of 1.07% on the way to a Friday close of 6,495.96. In the same period, the Dow Jones Industrial Average improved 0.25% to 22,405.09; the S&P 500, 0.68% to 2,519.36. At the close on September 29, the Nasdaq had added 0.94% month-over-month; the Dow, 1.90%; the S&P, 1.73%; the Russell 2000, an impressive 5.47%. The CBOE VIX ended the month at just 9.51.4

   

THIS WEEK: Monday sees the release of ISM’s September manufacturing PMI. Tuesday, Lennar and Paychex announce quarterly earnings. ISM’s September service sector PMI and ADP’s latest payrolls snapshot arrive Wednesday, plus Q3 earnings from Monsanto and PepsiCo; in addition, Federal Reserve chair Janet Yellen will speak briefly at the St. Louis Fed’s community banking conference. Thursday offers new initial claims numbers, the September Challenger job-cut report, and Q3 results from Constellation Brands and Costco. On Friday, the Department of Labor issues its September jobs report.

 

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +13.37 +23.49 +13.35 +6.12
NASDAQ +20.67 +23.28 +21.69 +14.05
S&P 500 +12.53 +17.12 +14.97 +6.50
REAL YIELD 9/29 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.49% 0.02% -0.77% 2.27%

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, is not affiliated with Triad Advisors. Securities offered through Triad Advisors Member FINRA, SIPC

Sources: wsj.com, bigcharts.com, treasury.gov – 9/29/174,5,6,7

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.

Citations.

1 – foxbusiness.com/features/2017/09/29/u-s-consumer-spending-soft-in-august.html [9/29/17]

2 – investing.com/economic-calendar/ [9/29/17]

3 – marketwatch.com/story/consumer-sentiment-eases-but-stays-strong-in-the-face-of-hurricanes-and-politics-2017-09-29 [9/29/17]

4 – markets.wsj.com/us [9/29/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F29%2F16&x=0&y=0 [9/29/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F29%2F16&x=0&y=0 [9/29/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F29%2F16&x=0&y=0 [9/29/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F28%2F12&x=0&y=0 [9/29/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F28%2F12&x=0&y=0 [9/29/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F28%2F12&x=0&y=0 [9/29/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F28%2F07&x=0&y=0 [9/29/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F28%2F07&x=0&y=0 [9/29/17]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F28%2F07&x=0&y=0 [9/29/17]

6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/29/17]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/29/17]

25 Sep 2017

Weekly Economic Update for September 25, 2017

by Benning Financial Group | in Economic Update, News

Randy C. Benning, CFP Presents:

FEDERAL RESERVE: UNWINDING WILL BE GRADUAL

Last Wednesday, the country’s central bank detailed how it would shrink its mammoth balance sheet. During the fourth quarter, the Fed will unload $10 billion of maturing bonds per month; in each subsequent quarter, the monthly runoff will increase by $10 billion until reaching a limit of $50 billion. Fed chair Janet Yellen said that this schedule is set in stone, barring a “sufficiently great” economic threat. The Fed made no interest rate move last week, but 12 of 16 Fed officials do project a hike before 2017 ends.1

 

HOME SALES RETREAT AGAIN

In August, existing home sales fell for the fourth time in five months. Resales decreased 1.7% to a seasonally adjusted annual pace of 5.35 million, a 12-month low, according to the National Association of Realtors. Two factors hindered would-be buyers: a median house price of $253,500 and a 2.1% monthly reduction in inventory (the supply of homes for sale was 6.5% greater in August 2016).2

  

BUILDING PERMITS UP 5.7% IN AUGUST

This good news was countered by last month’s 0.8% reduction in groundbreaking. The Census Bureau’s report on August construction activity showed the rate of issuance for permits 8.3% above where it was a year earlier; the pace of starts was 1.4% improved. Starts for single-family homes were up 17.1% in 12 months.3

 

A MIXED WEEK FOR EQUITIES

Leading the way among the three major indices last week, the Dow Jones Industrial Average rose 0.36% in five days to 22,349.59. The S&P 500 made a smaller advance of 0.08% to 2,502.22. The Nasdaq Composite took a weekly loss of 0.33%, settling Friday at 6,426.92.4

   

THIS WEEK: On Monday, Red Hat reports quarterly results. August new home sales numbers, the latest S&P/Case-Shiller home price index, the September Conference Board consumer confidence index, and earnings from Cintas, Darden Restaurants, Micron Technology, and Nike all arrive on Tuesday. Earnings announcements from Jabil Circuit, Pier 1 Imports, Thor Industries, and Worthington Industries complement reports on August durable goods orders and pending home sales, Wednesday. Thursday, the federal government’s second estimate of Q2 GDP and a new initial jobless claims report appear; also, Accenture, Blackberry, Conagra Brands, KB Home, and Rite Aid present earnings. The August personal spending report, the Federal Reserve’s August PCE price index, and the final September University of Michigan consumer sentiment index surface Friday.

 

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +13.09 +21.51 +12.92 +6.17
NASDAQ +19.39 +20.37 +20.42 +14.06
S&P 500 +11.76 +14.93 +14.27 +6.40
REAL YIELD 9/22 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.42% 0.08% -0.71% 2.31%

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, is not affiliated with Triad Advisors. Securities offered through Triad Advisors Member FINRA, SIPC

Sources: wsj.com, bigcharts.com, treasury.gov – 9/22/174,5,6,7

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.

 

18 Sep 2017

Weekly Economic Update for September 18, 2017

by Benning Financial Group | in Economic Update, News

Randy C. Benning, CFP Presents:

INFLATION SPIKED IN AUGUST

Economists had long assumed consumer prices would rise abruptly at some point, and they certainly did last month. The Consumer Price Index increased 0.4% in August, its biggest one-month advance since its 0.6% gain in January. Higher gas prices were a major influence: they rose 6.3% for August. Core inflation was up 0.2% after four straight 0.1% monthly gains. Yearly consumer inflation is now at 1.9%. Wholesale inflation, as measured by the Producer Price Index, rose 0.2% in August to an annualized pace of 2.4%.1,2

 

RETAIL SALES STAGE A LATE-SUMMER RETREAT

Americans cut back on retail purchases during August. Retail sales declined 0.2%, a disappointment after the 0.3% July gain. The silver lining: the core number, minus gasoline and auto buying, rose 0.2%.2

  

CONSUMER SENTIMENT INDEX DIPS SLIGHTLY

The University of Michigan’s twice-monthly barometer of the American consumer’s mood fell 1.5 points in its initial September edition. At a mark of 95.3, the index was still 4.5% above where it was a year earlier. While the index’s current conditions component hit its highest level in nearly 17 years, 9% of survey respondents believed that Hurricanes Irma and Harvey had hurt the overall economy.3

 

A MILESTONE FOR THE S&P 500

Recording its highest close ever, the broad equities benchmark settled at 2,500.23 Friday, capping off a 5-day gain of 1.58% and attaining its third round-number highpoint of 2017. The Nasdaq Composite advanced 1.39% for the week to 6,448.47. Setting the pace for the big three, the Dow Jones Industrial Average added 2.16% last week to close Friday at 22,268.34. The Russell 2000 had an even better week, rising 2.31% to 1,431.71; the CBOE VIX again neared historic lows, dropping 16.09% in five days to 10.17.4,5

   

THIS WEEK: On Monday, Steelcase shares quarterly results. Earnings calls Tuesday include announcements from Adobe Systems, AutoZone, Bed Bath & Beyond, and FedEx, and investors will also look at the Census Bureau’s August report on new residential construction. Wednesday, the Federal Reserve could reveal plans for unwinding its balance sheet as it wraps up a monetary policy meeting; Wall Street will also consider August existing home sales numbers and Q3 results from General Mills. A new initial unemployment claims report arrives Thursday. CarMax and Finish Line present earnings Friday.

 

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +12.68 +22.27 +12.76 +6.57
NASDAQ +19.79 +22.84 +20.51 +14.78
S&P 500 +11.68 +16.44 +14.11 +6.85
REAL YIELD 9/15 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.35% 0.22% -0.76% 2.20%

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, is not affiliated with Triad Advisors. Securities offered through Triad Advisors Member FINRA, SIPC

Sources: wsj.com, bigcharts.com, treasury.gov – 9/15/175,6,7,8

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.

Citations.

1 – cnbc.com/2017/09/14/us-consumer-price-index-aug-2017.html [9/14/17]

2 – investing.com/economic-calendar/ [9/15/17]

3 – sca.isr.umich.edu/ [9/15/17]

4 – bloomberg.com/news/articles/2017-09-15/u-s-stocks-reach-another-milestone-as-s-p-500-vaults-past-2-500 [9/15/17]

5 – markets.wsj.com/us [9/15/17]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F15%2F16&x=0&y=0 [9/15/17]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F15%2F16&x=0&y=0 [9/15/17]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F15%2F16&x=0&y=0 [9/15/17]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F14%2F12&x=0&y=0 [9/15/17]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F14%2F12&x=0&y=0 [9/15/17]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F14%2F12&x=0&y=0 [9/15/17]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F14%2F07&x=0&y=0 [9/15/17]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F14%2F07&x=0&y=0 [9/15/17]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F14%2F07&x=0&y=0 [9/15/17]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/15/17]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/15/17]