Growth Report for Monday, March 10, 2014

ECONOMY ADDS 175,000 MORE JOBS
February’s payroll growth was decent, and seemingly unimpeded by the weather. Last month’s net jobs gain approximated the 12-month average of 179,000 recorded by the Labor Department, which also revised January and December totals north by a collective 25,000 hires. Few of the 264,000 new participants in the job hunt found work last month, so the unemployment rate ticked up to 6.7%. The average hourly wage rose $0.09 in February, the largest monthly increase since June.1

CONSUMER SPENDING BEATS EXPECTATIONS
Last month saw personal spending increase 0.4% and personal incomes rise 0.3%. Economists polled by MarketWatch felt that February’s Commerce Department report would show 0.2% gains for each category. Personal spending was up only 0.1% in January.2

FEBRUARY PMIs RISE & FALL
According to the Institute for Supply Management, growth in the manufacturing sector accelerated last month while service sector growth moderated. ISM recorded a 1.9% rise in its manufacturing PMI for February to a mark of 53.2, but the Institute’s non-manufacturing PMI slipped 2.4% last month to a reading of 51.6.2

BULL MARKET TURNS FIVE, S&P HITS ANOTHER PEAK
Having gained 1.00% across five days, the S&P 500 settled at 1.878.04 Friday, yet another record close. Friday’s positive jobs data also factored into weekly advances for the Nasdaq (+0.65% to 4,336.22) and Dow (+0.79% to 16,452.72).3,4

THIS WEEK: Stateside, no major economic releases are scheduled for Monday; China reports February trade surplus and inflation figures, and Urban Outfitters reports earnings. Tuesday brings a Commerce Department report on January wholesale inventories and earnings from VeriFone, Dick’s Sporting Goods and American Eagle Outfitters. Wednesday’s earnings include Williams-Sonoma, Men’s Wearhouse and Krispy Kreme. Thursday offers data on February retail sales and January business inventories, plus earnings from Volkswagen, Dollar General and Aeropostale and the latest initial jobless claims figures; overseas, China releases February industrial output and retail sales data. Friday sees the release of the February PPI, the preliminary March consumer sentiment index from the University of Michigan and Q4 results from Leap Wireless.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA -0.75 +14.82 +29.65 +5.63
NASDAQ +3.82 +34.16 +47.03 +11.59
S&P 500 +1.61 +21.61 +34.96 +6.37
REAL YIELD 3/7 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.57% -0.56% 2.02% 1.43%

Sources: USATODAY.com, bigcharts.com, treasury.gov – 3/7/144,5,6,7
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.

WEEKLY QUOTE

“Only a life lived for others is a life worthwhile.”

– Albert Einstein

WEEKLY TIP

Some couples establish residency in separate states in pursuit of tax advantages. If you are considering this move, keep precise track of how many days each of you spend in each state.

WEEKLY RIDDLE

Lidia immediately went bankrupt after the car she was pushing around stopped in front of a hotel. It sounds sad, but she wasn’t upset. What was she doing?

Last week’s riddle:
I have rosy cheeks, I am round and cute – yet debate persists over whether I am vegetable or fruit. What might I be?

Last week’s answer:
A tomato.

Citations.
1 – blogs.wsj.com/five-things/2014/03/07/5-takeaways-from-the-february-employment-report/ [3/7/14]
2 – marketwatch.com/economy-politics/calendars/economic [3/7/14]
3 – fxstreet.com/news/forex-news/article.aspx?storyid=07021240-1a71-41ed-9cea-d7e8041b0495 [3/7/14]
4 – usatoday.com/money/markets/overview/ [3/7/14]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F7%2F13&x=0&y=0 [3/7/14]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F7%2F13&x=0&y=0 [3/7/14]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F7%2F13&x=0&y=0 [3/7/14]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F6%2F09&x=0&y=0 [3/7/14]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F6%2F09&x=0&y=0 [3/7/14]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F6%2F09&x=0&y=0 [3/7/14]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F8%2F04&x=0&y=0 [3/7/14]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F8%2F04&x=0&y=0 [3/7/14]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F8%2F04&x=0&y=0 [3/7/14]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [3/7/14]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [3/7/14]

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, The 401k Advisor, Investor Coach 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 401k consulting for small businesses and private investment management services for select individuals. Stonecreek is located in Salt Lake City and Provo Utah.

Category: Blog, Growth Report