Growth Report – Monday, September 5, 2017

SEPTEMBER BRINGS A MEDIOCRE JOBS REPORT
The Department of Labor’s latest employment snapshot shows payrolls expanding by 156,000 net new jobs in August. This was a retreat from the job gains of 200,000+ reported in both June and July. The headline jobless rate ticked up to 4.4%; the U-6 rate, which factors in the underemployed, held steady at 8.6%. Annualized wage growth remained stuck at 2.5%.1

POSITIVE NEWS FROM MAIN STREET
Climbing once again, the Conference Board’s consumer confidence index ascended 2.9 points to 122.9 in August. That topped the forecast of economists surveyed by MarketWatch, who anticipated a 122.5 reading. Additionally, the Department of Commerce said that consumer spending advanced 0.3% in July, up from 0.2% in June. Household incomes rose 0.4% in July; they were unchanged in June.2

ISM: FACTORY SECTOR IN FINE SHAPE
Can the Institute for Supply Management’s manufacturing purchasing manager index top 60 soon? It rose 2.5 points to 58.8 in August, indicating a high degree of expansion. This was the best reading on the index since April 2011. So far in 2017, the factory PMI has averaged a reading of 56.7.3

WALL STREET ENDS THE SUMMER WITH A RALLY
All three major U.S. stock benchmarks gained ground last week. Out in front was the Nasdaq Composite, which added 2.71% in five days to settle at 6,435.33 Friday. The S&P 500 rose 1.37% for the week, closing September 1 at 2,476.55. As for the Dow Jones Industrial Average, it moved north 0.80% to 21,987.56. The CBOE VIX dropped 10.02% in five days to 10.15 at Friday’s closing bell. One last detail worth noting: the NYSE Arca Biotech index jumped 8.98% last week to go up 37.65% on the year.4

THIS WEEK: Wall Street is closed Monday for the Labor Day holiday. Investors consider earnings from Casey’s General Stores, Hewlett Packard Enterprise, and the Hudson’s Bay Company on Tuesday, plus a report on July factory orders. A new Federal Reserve Beige Book and the August ISM service sector PMI arrive Wednesday, along with earnings releases from Fred’s and Navistar. Thursday, earnings arrive from Barnes & Noble, Dell Technologies, Hovnanian Enterprises, and Verifone, and a new initial unemployment claims report surfaces. On Friday, Kroger reports quarterly results.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +11.26 +19.37 +13.59 +6.46
NASDAQ +19.55 +23.11 +21.97 +14.79
S&P 500 +10.62 +14.08 +15.21 +6.80
REAL YIELD 9/1 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.37% 0.12% -0.68% 2.34%

Sources: wsj.com, bigcharts.com, treasury.gov – 9/1/174,5,6,7
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

“Courage is doing what you’re afraid to do. There can be no courage unless you’re scared.”

– Eddie Rickenbacker

WEEKLY TIP

Has your emergency fund or checking account taken a hit lately? Consider setting up a monthly automatic transfer to help you replenish it.

WEEKLY RIDDLE

What has a neck, yet no head?

Last week’s riddle:
Jon drove past the college where he was enrolled at 60mph, but he wasn’t pulled over or cited, even though a police officer was right behind him. Why?

Last week’s answer:
He was driving on a highway with a speed limit above 60mph.

Citations.
1 – foxbusiness.com/markets/2017/09/01/us-hiring-cools-off-with-156000-new-jobs-in-august.html [9/1/17]
2 – marketwatch.com/economy-politics/calendars/economic [9/1/17]
3 – instituteforsupplymanagement.org/ISMReport/MfgROB.cfm [9/1/17]
4 – markets.wsj.com/us [9/1/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F1%2F16&x=0&y=0 [9/1/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F1%2F16&x=0&y=0 [9/1/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F1%2F16&x=0&y=0 [9/1/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F31%2F12&x=0&y=0 [9/1/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F31%2F12&x=0&y=0 [9/1/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F31%2F12&x=0&y=0 [9/1/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F31%2F07&x=0&y=0 [9/1/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F31%2F07&x=0&y=0 [9/1/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F31%2F07&x=0&y=0 [9/1/17]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/1/17]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/1/17]

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, Newsletters

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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