Growth Report – Monday, April 23, 2018

CONSUMERS BOUGHT MORE IN MARCH
According to a report from the Department of Commerce, retail sales jumped 0.6% last month. That was the biggest monthly gain recorded since November (and the first monthly advance of 2018). Sales of cars and trucks were up 2.0%, making March the best month for that category since September.1

CONSTRUCTION ACTIVITY INCREASES
New Census Bureau data shows housing starts improved 1.9% in March; also, building permits rose 2.5%. In February, permits fell 4.1% and starts declined 3.3%.2

INDUSTRIAL OUTPUT RISES 0.5%
This March gain reported by the Federal Reserve followed a (revised) 1.0% advance for February. Industrial production was up 4.3% year-over-year through March.2

GAINS ON WALL STREET
All three key U.S. equity indices advanced last week: the Nasdaq Composite rose 0.56%; the S&P 500, 0.52%; the Dow Industrials, 0.42%. Friday’s settlements: Nasdaq, 7146.13; S&P, 2,670.14; Dow, 24,462.94. The yield on the 10-year note hit 2.96% Friday, a high unmatched since January 2014.3,4

THIS WEEK: Alaska Air, Alphabet, Ameriprise Financial, Halliburton, Hasbro, Kimberly-Clark, TD Ameritrade, and Whirlpool announce earnings on Monday, when investors will also eye the latest existing home sales numbers. March new home sales figures and a new Conference Board consumer confidence index are out Tuesday, plus earnings news from 3M, Biogen, Capital One, Caterpillar, Chubb, Coca-Cola, Corning, Eli Lilly, Fifth Third, Freeport-McMoRan, JetBlue, Lockheed Martin, NextEra Energy, Pulte Group, Ryder, Texas Instruments, Travelers, and Verizon. On Wednesday, Aflac, Anthem, AT&T, Boeing, Chipotle, Comcast, eBay, Facebook, Ford Motor Co., Goodyear, Ingersoll-Rand, Kaiser Aluminum, Norfolk Southern, Northrop Grumman, Owens Corning, PayPal, Peabody Energy, Penske, Public Storage, Qualcomm, Raymond James, Rockwell Automation, Twitter, Universal Health Services, Viacom, Visa, and W.R. Grace report results. Thursday, earnings emerge from Ally, Altria, Amazon, Amgen, Bristol-Myers, ConocoPhillips, D.R. Horton, Discover, Domino’s, Dunkin’ Brands, Expedia, Fiat Chrysler, General Motors, Hilton Worldwide, Intel, MGM Resorts, Microsoft, Nokia, PepsiCo, Raytheon, Royal Dutch Shell, SkyWest, Southwest Airlines, Spirit Airlines, Starbucks, Time Warner, Union Pacific, and Western Digital. Friday, earnings from Chevron, Colgate-Palmolive, ExxonMobil, Honda, Philips 66, Spectrum, and Weyerhaeuser coincide with the University of Michigan’s final April consumer sentiment index and the first estimate of Q1 GDP.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA -1.04 +18.87 +13.63 +9.07
NASDAQ +3.52 +20.78 +24.58 +19.68
S&P 500 -0.13 +13.34 +14.34 +9.23
REAL YIELD 4/20 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.79% 0.39% -0.59% 1.44%

Sources: wsj.com, bigcharts.com, treasury.gov – 4/20/183,5,6,7
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

“Don’t bother just to be better than your contemporaries or predecessors. Try to be better than yourself.”

– William Faulkner

WEEKLY TIP

If you are a single parent, prioritize saving for retirement over paying college tuition. Helping your child with college costs is great, but not if it places your retirement at risk.

WEEKLY RIDDLE

It is clear, yet it muddies things. It arrives, but it falls down and quickly runs away. What is it?

Last week’s riddle:
The oldest of two sisters is 4 years old. The little sister is half her age. When the big sister is 100, how old will the little sister be?

Last week’s answer:
98 years old.

Citations.
1 – tinyurl.com/y6u52yj4 [4/16/18]
2 – investing.com/economic-calendar/ [4/17/18]
3 – markets.wsj.com/us [4/20/18]
4 – marketwatch.com/story/treasurys-continue-to-sell-off-as-10-year-yield-hits-more-than-four-year-high-2018-04-20 [4/20/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F20%2F17&x=0&y=0 [4/20/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F20%2F17&x=0&y=0 [4/20/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F20%2F17&x=0&y=0 [4/20/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F19%2F13&x=0&y=0 [4/20/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F19%2F13&x=0&y=0 [4/20/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F19%2F13&x=0&y=0 [4/20/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F21%2F08&x=0&y=0 [4/20/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F21%2F08&x=0&y=0 [4/20/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F21%2F08&x=0&y=0 [4/20/18]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/20/18]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/20/18]

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. a fiduciary, independent, fee-only, Registered Investment Advisor firm providing investment and retirement planning for individuals and 401k consulting for small businesses. Cities served but not limited to are: Park City, 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