Presented by Mark Lund, Investor Coach.
WEEKLY QUOTE
“People always call it luck when you’ve acted more sensibly than they have.”
– Anne Tyler
A TINY INCREASE IN CONSUMER SPENDING
Personal spending advanced by just 0.1% in October, the smallest gain in four months, as measured by the Commerce Department. Hopefully a strong Black Friday and Cyber Monday will make November a different story. In better news, personal incomes rose 0.4% last month, the best month for that statistic since March. America’s savings rate increased 0.2% to 3.5%.1
HOUSEHOLD CONFIDENCE RISES
Americans seems to be feeling less pessimistic about the economy. The final November Thomson Reuters/University of Michigan consumer sentiment survey came in at 64.1, much better than the final October mark of 60.9.1
HOME SALES, DURABLE GOODS ORDERS ENCOURAGE
The National Association of Realtors reported a 1.4% increase in existing home sales in October and a 2.2% monthly reduction in the backlog of unsold properties, taking the inventory down to 8.0 months. Overall hard goods orders declined 0.7% in October but were up 0.7% with transportation orders factored out; economists polled by Bloomberg News had expected a 1.2% overall monthly retreat.2,3,4
GOLD DIPS UNDER $1,700
The precious metal slipped2.27% last week, and it is down 5.71% in the past two weeks; prices settled at 1,685.50 an ounce. Oil lost 0.92% last week on the NYMEX to settle at $96.77 at closing. 5
BUYERS CROWD THE MALLS, BUT NOT WALL STREET
Stocks were hit hard during a short trading week by two developments: the failure of the “super committee” on Capitol Hill and a German bond auction at which 35% of the 10-year notes offered went unsold. The numbers for the week: DJIA, -4.78% to 11,231.78; S&P 500, -4.69% to 1,158.67; NASDAQ, -5.09% to 2,441.51.6
THIS WEEK: On Cyber Monday, the numbers on October new home sales come out. Tuesday, the latest S&P/Case-Shiller home price index is released along with the Conference Board’s November snapshot of U.S. consumer confidence; also, Tiffany issues 3Q results. Wednesday, we get data on October pending home sales from the National Association of Realtors and a new Federal Reserve Beige Book. Thursday brings the latest initial claims numbers, November’s ISM manufacturing index, data on auto sales from the Commerce Department and earnings from Kroger, Barnes & Noble and H&R Block. Friday, the October unemployment report is released and Big!Lots announces 3Q earnings.
% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA -2.99 +1.26 -1.71 +1.25
NASDAQ -7.97 -3.67 -0.15 +2.58
S&P 500 -7.87 -2.58 -3.46 +0.0001
REAL YIELD 11/25 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.05% 0.75% 2.27% 3.50%
Sources: usatoday.com, bigcharts.com, treasury.gov, treasurydirect.gov – 11/25/117,8,9,10 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.
WEEKLY TIP
Visiting the mall or the grocery store when you are depressed or hungry may encourage you to spend excessively and run up a tab you regret.
WEEKLY RIDDLE
We all have one, and even though it often demands an answer, it offers no question. What is this everyday item?
Last week’s riddle:
Gerald Ford was our 38th President, but he was actually the 37th man to take the job. Why was that?
Last week’s answer:
Grover Cleveland held two non-consecutive terms of office – he was both the 22nd and 24th U.S. President.
Citations.
1 – www.dailyfinance.com/2011/11/23/as-holiday-season-begins-a-mixed-bag-of-economic-news// [11/23/11]
2 – montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [11/25/11]
3 – http://realtors.org/press_room/news_releases/2011/11/ehs_oct [11/21/11]
4 – www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/11/23/bloomberg_articlesLV4AM307SXKX.DTL [11/23/11]
5 – blogs.wsj.com/marketbeat/2011/11/25/data-points-energy-metals-532/ [11/25/11]
6 – blogs.wsj.com/marketbeat/2011/11/25/data-points-u-s-markets-66/ [11/25/11]
7 – www.usatoday.com/money/index [11/25/11]
8 – www.google.com/finance/historical?cid=983582&startdate=Nov+26%2C+2010&enddate=Nov+26%2C+2010&num=30 [11/25/11]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F26F2%2F10&x=10&y=18 [11/25/11]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F26%2F10&x=0&y=0 [11/25/11]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F24%2F06&x=0&y=0 [11/25/11]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F24%2F06&x=0&y=0 [11/25/11]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F24%2F06&x=0&y=0 [11/25/11]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F26%2F01&x=0&y=0 [11/25/11]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F26%2F01&x=0&y=0 [11/25/11]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F26%2F01&x=0&y=0 [11/25/11]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/25/11]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/25/11]
10 – treasurydirect.gov/instit/annceresult/press/preanre/2001/ofm71101.pdf [7/11/01]
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., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. Stonecreek Wealth Advisors, Inc. a fee only registered investment advisor firm in Salt Lake City, Utah, providing wealth management services. Mark Lund is the author of The Effective Investor.
