Growth Report for Monday, August 17, 2015

SHOPPERS SPEND MORE IN JULY
Retail sales rose 0.6% last month according to Commerce Department data, topping the 0.5% gain projected in a Briefing.com poll of economists. This was great news after the flat June reading (which was initially recorded as an 0.3% decline).1

A SLIGHT DIP IN HOUSEHOLD SENTIMENT
Falling 0.2 points to a mark of 92.9, the initial August University of Michigan consumer sentiment index nearly matched the 92.8 reading projected by economists surveyed by MarketWatch. Although this was the index’s second-lowest reading of 2015, it was still 10.4 points above where it was a year earlier.2,3

WHOLESALE INFLATION INCREASED IN JULY
The Labor Department reported a 0.2% gain for the Producer Price Index last month, following the 0.4% advance in June. The core PPI also rose 0.2% in July. Annualized wholesale inflation was still at -0.8% through July thanks to falling energy prices. U.S. automakers boosted production 10.6% in July, leading to the 0.6% rise in overall industrial output reported by the Federal Reserve.3

WALL STREET HOLDS UP AFTER YUAN WEAKENS
China devalued its currency for three straight days last week, but U.S. equities withstood that surprise. The S&P 500 advanced 0.68% for the week to 2,091.54, the Nasdaq 0.09% to 5,048.24 and the Dow 0.61% to 17,477.40. The devalued yuan certainly helped gold – the yellow metal had its best week in almost a month, rising 1.7% on the COMEX to a Friday close of $1,112.70. Light sweet crude, on the other hand, declined another 3.1% to a Friday NYMEX settlement of $42.50.3,4,5

THIS WEEK: Monday, Q2 results arrive from Estee Lauder and Urban Outfitters. Tuesday, July housing starts and building permits reports accompany earnings from Dick’s Sporting Goods, Home Depot, La-Z-Boy, TJX, and Walmart. Minutes from the July FOMC policy meeting appear Wednesday, along with July’s CPI, and earnings from American Eagle Outfitters, Hormel, L Brands, Lowe’s, NetApp, Popeye’s, Staples, and Target. Thursday brings NAR’s report on July existing home sales, new initial jobless claims numbers, the Conference Board’s July LEI, and earnings from America’s Car-Mart, Fresh Market, Gap, Hewlett-Packard, Kirkland’s, Perry Ellis, Regis Corp., Ross Stores, Salesforce, Stein Mart, Stage Stores, Intuit, Sears Holdings, and Toro. Friday offers Q2 results from Deere and Foot Locker.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA -1.94 +4.57 +13.93 +6.43
NASDAQ +6.59 +13.37 +26.45 +13.30
S&P 500 +1.59 +6.97 +18.76 +6.95
REAL YIELD 8/14 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.58% 0.19% 0.95% 1.92%

Sources: wsj.com, bigcharts.com, treasury.gov – 8/14/155,6,7,8
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.

WEEKLY QUOTE

“The family is the country of the heart.”

– Giuseppe Mazzini

WEEKLY TIP

Marrying soon? Just married? If you are good with money and your spouse is not, your ability to pay the bills from a joint checking or savings account may one day be impeded. Think about maintaining a separate savings or checking account for yourself; that may even help your credit rating.

WEEKLY RIDDLE

It grows down, yet it also grows up. What is it?

Last week’s riddle:
There is a 7-letter word that starts with BR and ends in G, and if you put an E in it, you get an 8-letter word that sounds the same yet has a different meaning. Name these two words.

Last week’s answer:
Braking and breaking.

Citations.
1 – briefing.com/investor/calendars/economic/2015/08/10-14 [8/14/15]
2 – marketwatch.com/story/consumer-sentiment-edged-lower-in-august-reports-say-2015-08-14 [8/14/15]
3 – thestreet.com/story/13256747/1/stocks-close-week-with-gains-despite-signs-of-fed-hike.html [8/14/15]
4 – proactiveinvestors.com/companies/news/62973/gold-drops-03-to-111270-wti-rises-06-to-4250barrel-62973.html [8/14/15]
5 – markets.wsj.com/us [8/14/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F14%2F14&x=0&y=0 [8/14/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F14%2F14&x=0&y=0 [8/14/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F14%2F14&x=0&y=0 [8/14/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F13%2F10&x=0&y=0 [8/14/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F13%2F10&x=0&y=0 [8/14/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F13%2F10&x=0&y=0 [8/14/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F15%2F05&x=0&y=0 [8/14/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F15%2F05&x=0&y=0 [8/14/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F15%2F05&x=0&y=0 [8/14/15]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/14/15]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/14/15]

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, Mark is known as The 401k Advisor, Investor Coach, The Financial Advisor, The Financial Planner 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 financial Advisor services for professional athletes and individuals. Stonecreek is located in Salt Lake City, Murray, West Jordan, Sandy, Draper, South Jordan, Provo, Orem, Lehi, Highland, Alpine, and American Fork in Utah.

Category: Blog, Growth Report