Growth Report for Monday, September 8, 2014

WALL STREET TAKES JOBS DATA IN STRIDE
In August, a notable hiring streak ended: for the first time since January, the economy failed to create 200,000 new jobs during a month. Investors were disappointed by the news from the Labor Department, but it came with a silver lining: the moderation in job gains may give the Federal Reserve a bit less incentive to adjust interest rates down the road. The jobless rate ticked down to 6.1% last month; the U-6 rate (underemployed & unemployed) declined from 12.2% to 12.0%. August also saw 0.2% wage growth.1

FACTORY & SERVICE SECTOR GROWTH TOPS ESTIMATES
Both the manufacturing and non-manufacturing PMIs overseen by the Institute for Supply Management posted August gains. ISM’s purchasing manager index for the service sector reached 59.6 last month while its factory sector PMI hit 59.0. Analysts polled by Briefing.com thought the services PMI would come in at 57.8, the factory PMI at 57.0. Word also came last week from the Commerce Department that factory orders were up 10.5% in July.2

GOLD & OIL BEAT RETREATS
NYMEX crude dropped 2.7% last week, losing 1.3% Friday alone to settle at $93.32 a barrel; it didn’t do as badly as natural gas, which sank 6.9% last week. COMEX gold ended the week at $1,267.20 an ounce, representing a 4-day loss of 1.6%. Silver closed Friday at $19.17 an ounce, also falling 1.6% for the trading week.3

STOCKS POST SMALL GAINS IN A SHORT WEEK
Rising another 0.22% across four days, the S&P 500 settled at 2,007.71 Friday. The NASDAQ and Dow also pushed higher: the former gained 0.55% in the abbreviated market week to close at 4,582.90 and the latter went north 0.34% to end the week at 17,137.36.4

THIS WEEK: Monday brings quarterly results from Campbell Soup and Casey’s General Stores. All eyes will be on Apple Tuesday, as it will likely unveil the iPhone 6 at its 9.9.14 media event; Wall Street will also consider earnings from Krispy Kreme, Barnes & Noble, Burlington Stores and Comverse. Wednesday marks the release of the July wholesale inventories report and earnings from Men’s Wearhouse and Restoration Hardware. On Thursday, China releases its August inflation data, a new initial claims report comes out, and Lululemon Athletica and Kroger announce earnings. Friday sees the release of the University of Michigan’s preliminary September consumer sentiment index plus the August retail sales numbers and the July business inventories report from the Commerce Department.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +3.38 +14.73 +16.30 +6.57
NASDAQ +9.73 +25.26 +25.40 +14.66
S&P 500 +8.62 +21.31 +19.51 +7.91
REAL YIELD 9/5 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.31% 0.92% 1.70% 1.86%

Sources: online.wsj.com, bigcharts.com, treasury.gov – 9/5/145,6,7,8
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.

WEEKLY QUOTE

“People say that money is not the key to happiness, but I always figured if you have enough money, you can have a key made.”

– Joan Rivers

WEEKLY TIP

When you graduated from college, did you understand the stock market? Did you know how to budget, invest or manage debt? If your child or grandchild has left campus for the “real world” this year, see that he or she has an adequate grasp of these matters.

WEEKLY RIDDLE

What flies without wings, fuel, muscles, feet or a fuselage?

Last week’s riddle:
Glittering points that southward thrust. Sparkling spears that cannot rust. What are they?

Last week’s answer:
Icicles.

Citations.
1 – marketwatch.com/story/hiring-slows-as-us-adds-142000-jobs-in-august-2014-09-05 [9/5/14]
2 – briefing.com/investor/calendars/economic/2014/09/01-05 [9/5/14]
3 – livetradingnews.com/gold-silver-crude-oil-nat-gas-week-69596.htm [9/5/14]
4 – markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [9/5/14]
5 – markets.wsj.com/us [9/5/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F5%2F13&x=0&y=0 [9/5/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F5%2F13&x=0&y=0 [9/5/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F5%2F13&x=0&y=0 [9/5/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F4%2F09&x=0&y=0 [9/5/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F4%2F09&x=0&y=0 [9/5/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F4%2F09&x=0&y=0 [9/5/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F7%2F04&x=0&y=0 [9/5/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F7%2F04&x=0&y=0 [9/5/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F7%2F04&x=0&y=0 [9/5/14]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/5/14]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/5/14]

This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This material was prepared by MarketingLibrary.Net Inc., for Mark Lund, The 401k Advisor, Investor Coach and author of The Effective Investor. Mark offers investment advisory services through Stonecreek Wealth Advisors, Inc. an independent, fee-only, Registered Investment Advisor firm providing 401k consulting for small businesses and private investment management services for professional athletes and select individuals. Stonecreek is located in Salt Lake City, Murray, West Jordan, Sandy, Draper, South Jordan, Provo, Orem, Lehi, Highland, Alpine, American Fork all in Utah.

Category: Blog, Growth Report