Growth Report – Monday, September 11, 2017

EQUIFAX BREACH MAY IMPACT 44% of AMERICANS
Thursday evening, credit reporting agency Equifax disclosed that hackers had raided its databases this spring, accessing the personal information of up to 143 million people. Equifax believes that about 209,000 credit card numbers may have been collected in the process, plus numerous Social Security and driver’s license numbers. Consumers can visit equifaxsecurity2017.com to see if they may have been affected by the breach. Equifax is offering a free year of identity theft insurance and credit monitoring for those at risk.1

SERVICE SECTOR EXPANDS FASTER
At an August reading of 55.3, the Institute for Supply Management’s service sector purchasing manager index was 1.4 points improved from its July mark, indicating a quicker pace of expansion for non-manufacturing firms in the eighth month of the year. Readings above 50 indicate sector growth.2

DEBT CEILING RAISED, WITH December 15 Deadline
Congress passed a bill to lift the federal borrowing limit Friday, after the White House and congressional leaders agreed to extend the prior, late-September deadline. This measure approves two-and-a-half more months of funding for the federal government. A $15 billion aid package for hurricane victims was also included in the legislation.3

THREATS WEIGH ON EQUITIES
Investors were worried about hurricanes and North Korea last week, and major index performance reflected those concerns. Across four days of trading, the Dow Jones Industrial Average lost 0.84% to 21,797.79. The S&P 500 retreated 0.59% to 2,461.43, while the Nasdaq Composite fell 1.13% to 6,360.19.4,5

THIS WEEK: On Monday, nothing major is scheduled. Tuesday, Apple hosts its annual launch event. On Wednesday, the August Producer Price Index appears, plus earnings from Cracker Barrel Old Country Store. The August Consumer Price Index, the latest initial unemployment claims report, and Q3 results from Oracle attract the attention of investors Thursday. August retail sales data, a report on August industrial output, and September’s preliminary University of Michigan consumer sentiment index all arrive Friday.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +10.30 +17.95 +12.76 +6.62
NASDAQ +18.15 +20.93 +20.56 +14.79
S&P 500 +9.94 +12.84 +14.24 +6.93
REAL YIELD 9/8 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.25% 0.09% -0.68% 2.19%

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

WEEKLY QUOTE

“An unhurried sense of time is in itself a form of wealth.”

– Bonnie Friedman

WEEKLY TIP

Grandparents might want to look at this potential tax break: two-thirds of U.S. states offer a state income tax deduction for contributions to a 529 college savings plan. Grandparents are eligible to claim such a deduction if they live in the state hosting the plan.

WEEKLY RIDDLE

I walk and run on all fours, and I laugh while stalking my prey, but I seldom go in for the kill. What animal am I?

Last week’s riddle:
What has a neck, yet no head?

Last week’s answer:
A bottle.

Citations.
1 – wired.com/story/how-to-protect-yourself-from-that-massive-equifax-breach/ [9/7/17]
2 – briefing.com/investor/calendars/economic/2017/09/04-08 [9/8/17]
3 – nytimes.com/2017/09/08/us/politics/hurricane-aid-debt-ceiling.html [9/8/17]
4 – finance.google.com/finance?q=INDEXDJX%3A.DJI&ei=NPyyWaCWA8mPjAHysZxQ [9/8/17]
5 – markets.wsj.com/us [9/8/17]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F8%2F16&x=0&y=0 [9/8/17]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F8%2F16&x=0&y=0 [9/8/17]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F8%2F16&x=0&y=0 [9/8/17]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F7%2F12&x=0&y=0 [9/8/17]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F7%2F12&x=0&y=0 [9/8/17]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F7%2F12&x=0&y=0 [9/8/17]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F7%2F07&x=0&y=0 [9/8/17]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F7%2F07&x=0&y=0 [9/8/17]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F7%2F07&x=0&y=0 [9/8/17]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/8/17]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/8/17]

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.

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