The Mark Lund Growth Report for Monday, November 28, 2016

STOCKS SETTLE AT ALL-TIME HIGHS
An abbreviated trading week was also a historic week on Wall Street, as the four key U.S. equity indices all reached new peaks. At Friday’s closing bell, the Russell 2000 settled at a record 1,347.20 after its fifteenth straight day of gains; it was up 2.37% for the week. The Dow advanced 1.47% on the week to a Friday close of 19,152.14. Adding 1.42% in three-and-a-half days, the Nasdaq ended the week at 5,398.92. The S&P 500, which finished Friday up more than 3% since the election, rose 1.40% on the week to 2,213.35.1,2,5

EXISTING HOME SALES RISE, NEW HOME SALES FALL
The National Association of Realtors announced a 2.0% gain for resales in October. Existing home sales have kept their momentum, even with inventory down 4.3% and the median sale price up 6.0% in the past year. According to the Census Bureau, new home sales declined 1.9% in October, but were still up 12.7% year-over-year.3

CONSUMER SENTIMENT IMPROVES
At a final November mark of 93.8, the University of Michigan’s household sentiment index surpassed the consensus forecast of economists polled by MarketWatch, who expected a 92.0 reading. The index’s initial November edition had a reading of 91.6.4

DURABLE GOODS ORDERS RISE 4.8%
October’s gain in capital goods orders was the largest measured by the Department of Commerce in a year. A 94% increase in commercial aircraft orders was a major factor. Business investment rose 0.4% in October.3,4

THIS WEEK: Shoe Carnival and Thor Industries announce earnings on Monday. On Tuesday, the federal government releases its second estimate of Q3 growth, the Conference Board’s November consumer confidence index and the September S&P/Case-Shiller home price index both appear, and Autodesk and Tiffany present Q3 results. Wednesday brings ADP’s November employment change report, October consumer spending figures, the October PCE price index, a new Beige Book from the Federal Reserve, the NAR’s latest pending home sales index, and earnings from American Eagle Outfitters, Guess, and La-Z-Boy. Thursday, investors look at the latest initial jobless claims figures, the November Challenger job-cut report, November’s ISM manufacturing PMI, and earnings from Dollar General, Express, Five Below, Kroger, Land’s End, Sears Holdings, and Smith & Wesson. The November employment report from the Department of Labor arrives Friday, along with earnings from Big Lots and Fred’s.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +9.91 +7.52 +14.10 +5.60
NASDAQ +7.82 +5.53 +24.23 +11.94
S&P 500 +8.29 +5.96 +18.21 +5.80
REAL YIELD 11/25 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.47% 0.62% 0.05% 2.27%

Sources: wsj.com, bigcharts.com, treasury.gov – 11/25/165,6,7,8
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

“One accurate measurement is worth a thousand expert opinions.”

– Grace Hopper

WEEKLY TIP

If you are giving cash gifts to relatives this holiday season, make sure that the gifts do not force you into making financial compromises. In helping others, you should not seriously hurt your own finances.

WEEKLY RIDDLE

A rope ladder dangles over the railing of a boat docked at a lake; its bottom end, 4 inches above the water. One day, the lake waters rise 4 inches. How high off of the water is the rope ladder now?
Last week’s riddle:
Kathryn decides to donate $10 million to charity. After she makes the donation, she becomes a multi-millionaire. How is this possible?

Last week’s answer:
She was a billionaire before making the donation; after donating the $10 million, her net worth fell below $1 billion.

Citations.
1 – marketwatch.com/story/dow-poised-for-fresh-record-highs-black-friday-boost-in-view-2016-11-25/ [11/25/16]
2 – google.com/finance?q=INDEXSP:.INX&ei=TqE4WIO4F4eu2AaDyayACQ [11/25/16]
3 – usatoday.com/story/money/business/2016/11/23/economy-manufacturing-durable–goods-jobless-claims/94329992/ [11/23/16]
4 – marketwatch.com/economy-politics/calendars/economic [11/25/16]
5 – markets.wsj.com/us [11/25/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F25%2F15&x=0&y=0 [11/25/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F25%2F15&x=0&y=0 [11/25/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F25%2F15&x=0&y=0 [11/25/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F25%2F11&x=0&y=0 [11/25/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F25%2F11&x=0&y=0 [11/25/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F25%2F11&x=0&y=0 [11/25/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F24%2F06&x=0&y=0 [11/25/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F24%2F06&x=0&y=0 [11/25/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F24%2F06&x=0&y=0 [11/25/16]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/25/16]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/25/16]

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 a Wealth Advisor, 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 investment and retirement planning for individuals and 401k consulting for small businesses. Stonecreek is located in Salt Lake City, Murray City, West Jordan City, Sandy City, Draper City, South Jordan City, Provo City, Orem City, Lehi City, Highland City, Alpine City, and American Fork City in Utah.

Category: Blog, Growth Report