Q1 GDP: +2.2%
The federal government’s initial estimate disappointed many analysts, even with plenty of potential for upward revision later. After all, Q4 2011 had brought growth of 3.0%. Economists polled by Briefing.com expected the Q1 estimate to come in at +2.5%. Personal spending rose by 2.9% for the quarter, with car sales playing the largest role in the gain; subtract vehicle purchases, and the consumption increase was 1.1%, the smallest in four quarters.1,2
KEY CONSUMER SENTIMENT SURVEY TOPS ESTIMATES
The final April Reuters/University of Michigan consumer sentiment survey came in at 76.4, 0.7% higher than the prior 75.7 reading. Economists polled by Briefing.com thought there would be no advance. March’s final survey had a 76.2 reading.2,3
MORE HOME SALES CONTRACTS INKED IN MARCH
Pending home sales improved by 4.1% in March to reach their highest level since April 2010, according to a report from the National Association of Realtors. Another bit of good news was unexpected: February’s S&P/Case-Shiller Home Price Index showed prices rising 0.2% overall, the first advance recorded in ten months. Last week, Zillow said the median U.S. home value had increased 0.5% in March, the best monthly gain in six years. The sour note in last week’s real estate roundup was new home sales. The Census Bureau said they were down 7.1% in March. However, the median sale price was up 6.3% year-over-year.4,5
NASDAQ HAS BEST WEEK IN NEARLY 3 MONTHS
The tech-heavy index rose 2.29% across April 23-27 to settle at 3,069.20 Friday. The Dow gained 1.53% across the same stretch to finish the week at 13,228.31, while the S&P 500 advanced 1.80% last week to 1,403.36 at Friday’s close. With one market day to go in April, only the Dow is in positive territory for the month.3,6
THIS WEEK: March personal spending data arrives Monday, and so do Q1 results from NYSE Euronext, Shutterfly and Anadarko Petroleum. Tuesday, ISM’s April manufacturing PMI is out, plus data on April auto sales and earnings from BP, Pfizer, Motorola Mobility, Sirius XM Radio, Broadcom, Chesapeake Energy and CBS. Wednesday brings news on March factory orders and earnings from Marathon Oil, MasterCard, Comcast, Time Warner, UBS, Barrick Gold, CVS, DreamWorks, Green Mountain Coffee, Clorox, Sunoco, Transocean, Visa and Whole Foods. Thursday, we get ISM’s non-manufacturing PMI for April, new initial claims data, and results from General Motors, AIG, Kraft and LinkedIn. Friday, the April unemployment report is released and Berkshire Hathaway announces earnings.
% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +8.27 +4.23 +0.16 +3.35
NASDAQ +17.81 +6.95 +4.00 +8.45
S&P 500 +11.59 +3.52 -1.21 +3.04
REAL YIELD 4/27 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS -0.30% 0.81% 2.25% 3.48%
Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov – 4/27/123,7,8,9 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.
WEEKLY QUOTE
“Don’t ever take a fence down until you know why it was put up.”
– Robert Frost
WEEKLY TIP
A good will should propose at least a few executors, as there is always the possibility that your first choice for executor might not outlive you.
WEEKLY RIDDLE
Four grown men decided to play on the sidewalk for three hours. No one chided them for childish or immature behavior; many appreciated the noise they made. They even went home a bit richer. What were these men doing?
Last week’s riddle:
They have no bodies, but you could say they have tails and heads. What are they?
Last week’s answer:
Coins.
Citations.
1 – money.msn.com/market-news/post.aspx?post=4ffe3e5e-7c95-4a95-8b82-e0848c9771de [4/27/12]
2 – briefing.com/investor/calendars/economic/2012/04/23-27 [4/27/12]
3 – www.cnbc.com/id/47204037 [4/27/12]
4 – www.nydailynews.com/life-style/real-estate/rebuilding-home-resales-highest-2010-article-1.1068578 [4/27/12]
5 – briefing.com/Investor/Calendars/Economic/Releases/newhom.htm [4/27/12]
6 – montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [4/27/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F27%2F11&x=0&y=0 [4/27/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F27%2F11&x=0&y=0 [4/27/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F27%2F11&x=0&y=0 [4/27/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F27%2F07&x=0&y=0 [4/27/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F27%2F07&x=0&y=0 [4/27/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F27%2F07&x=0&y=0 [4/27/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F26%2F02&x=0&y=0 [4/27/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F26%2F02&x=0&y=0 [4/27/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F26%2F02&x=0&y=0 [4/27/12]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/27/12]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/27/12]
9 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02]
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 Stonecreek Wealth Advisors, Inc. an independent fee only Registered Investment Advisor firm. Salt Lake City and Provo Utah. Mark Lund is the author of The Effective Investor.
