Growth Report – Monday, October 30, 2017

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%

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.

WEEKLY QUOTE

“It’s a rare person who wants to hear what he doesn’t want to hear.”

– Dick Cavett

WEEKLY TIP

One way to save money on auto insurance premiums: raise your deductible. In some cases, that could lower your yearly premium by 10% or more. Of course, you must be able to handle the larger deductible if damage occurs.

WEEKLY RIDDLE

Isabella’s mother has three children. The first child’s name is April. The second child’s name is May. What is the third child’s name?

Last week’s riddle:
What time of day can be written the same way forwards or backwards?

Last week’s answer:
Noon.

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]

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

About the Author ()

Mark K. Lund is the author of The Effective Investor, a #1 Best Seller, and founder of Stonecreek Wealth Advisors, Inc. an independent, fee-only, Registered Investment Advisory firm. He has provided articles for or been quoted in: The Wall Street Journal, The Salt Lake Tribune, The Enterprise Newspaper, The Utah Business Connect Magazine, US News & World Report, and Newsmax.com, just to name a few.  Mark publishes two newsletters called, “The Mark Lund Growth Report” and “Mark Lund on Money.”  Mark provides CPE (continuing professional education) courses for CPAs.  You may also have seen him on KUTV Channel 2, or as a guest speaker at a local association or business. Mark provides investment and retirement planning services for individuals and 401(k) consulting for small businesses. In his book, The Effective Investor, Mark exposes the false narrative magazines, media, big Wall Street firms, and most advisors want you to believe. The good news is that Mark will show you that you don’t need their speculative ways of investing in order to be a successful investor. Get a free copy when you schedule your initial consultation.

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