Growth Report – Monday, November 13, 2017

CONSUMER SENTIMENT INDEX DECLINES
The University of Michigan’s monthly gauge of U.S. household sentiment fell to 97.8 in its initial November edition; analysts polled by Bloomberg estimated it would tick up to 100.8. While the 2.9-point dip from its final October level was the largest drop in a year, the index remained near a 13-year peak. Sixty percent of the consumers surveyed felt that stocks would rise in 2018.1

Q3 Earnings: A LOOK AT THE SCORECARD
As of Friday, 87% of S&P 500 companies had reported third-quarter earnings. An analysis from Zacks Investment Research reveals that 73% have topped earnings forecasts; 67% have surpassed revenue estimates. So far, the earnings growth rate for S&P 500 firms in the third quarter is 6.8%, with revenues rising 6.2%. Zacks expects total earnings for the quarter to be 6.2% higher than Q3 2016, with year-over-year income growth at 5.7%.2

OIL CAPS OFF A STRONG WEEK
Light sweet crude rose to its highest level in 28 months last week before settling slightly lower: $56.67 was the NYMEX price at Friday’s NYSE closing bell. At that time, WTI crude was up 1.8% from its November 3 close.3

A SLIGHT PULLBACK ON WALL STREET
Uncertainty about the potential for tax code reform led to some weakness in stocks over the past five trading days. The S&P 500 fell 0.21% for the week to 2,582.30; the Nasdaq Composite retreated 0.20% to 6,750.94. Blue chips took a deeper loss: the Dow Jones Industrial Average declined 0.50% to 23,422.21. The week was much rougher for the Russell 2000, which gave back 1.31% on the way to a Friday settlement of 1,475.27. The CBOE VIX ended the week at 11.29, rising 23.52% in five days.4

THIS WEEK: Monday, Tyson Foods presents Q3 results. On Tuesday, the October Producer Price Index arrives as well as earnings from Aramark and Beazer Homes. Wall Street looks at last month’s retail sales figures and Consumer Price Index on Wednesday, plus earnings from Cisco, L Brands, NetEase, and Target. Thursday, reports on initial jobless claims and October industrial output complement earnings from Best Buy, Gap, Viacom, and Walmart. Friday, the Census Bureau issues a report on October housing starts and building permits.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +18.52 +24.53 +16.55 +7.96
NASDAQ +25.41 +29.61 +26.48 +15.69
S&P 500 +15.34 +19.14 +17.43 +7.76
REAL YIELD 11/10 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.52% 0.27% -0.83% 1.82%

Sources: wsj.com, bigcharts.com, treasury.gov – 11/10/174,5,6,7
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

“I have found the best way to give advice to your children is to find out what they want and then advise them to do it.”

– Harry S. Truman

WEEKLY TIP

You may know a young adult who is so unsure about the investment world that they refrain from investing at all. Share what you know, or introduce them to a financial professional who can provide knowledge.

WEEKLY RIDDLE

Wherever you notice me, I’ll be in a row. My name has no letters, but my initials are MNO. What am I?

Last week’s riddle:
I am heartless and spineless, and spend most of my time in the dark. When you encounter me, I may try to sting you. What am I?

Last week’s answer:
A jellyfish.

Citations.
1 – bloomberg.com/news/articles/2017-11-10/u-s-consumer-sentiment-unexpectedly-drops-amid-price-concerns [11/10/17]
2 – nasdaq.com/article/7-retail-stocks-to-steal-the-show-with-q3-earnings-beat-cm875644 [11/10/17]
3 – marketwatch.com/story/oil-steadies-after-climb-toward-2-year-highs-2017-11-10 [11/10/17]
4 – markets.wsj.com/us [11/10/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F10%2F16&x=0&y=0 [11/10/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F10%2F16&x=0&y=0 [11/10/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F10%2F16&x=0&y=0 [11/10/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F9%2F12&x=0&y=0 [11/10/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F9%2F12&x=0&y=0 [11/10/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F9%2F12&x=0&y=0 [11/10/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F9%2F07&x=0&y=0 [11/10/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F9%2F07&x=0&y=0 [11/10/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F9%2F07&x=0&y=0 [11/10/17]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/10/17]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/10/17]

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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