CONSUMER PRICES ADVANCE 0.2%
In reviewing March’s mild increase in household inflation, two statistics stand out. The Consumer Price Index measured a 2.7% year-over-year rise in shelter costs (the largest annual gain in six years). Americans also paid 0.4% for food last month. Annualized consumer inflation reached 1.5% in March, up from 1.1% for February.1
MARCH PUTS HOUSEHOLDS IN A BUYING MOOD
Retail sales rose 1.1% last month, bettering the (revised) 0.7% advance in February. Census Bureau data showed core retail sales (minus auto buying) up 0.7% for March; they increased 0.3% a month earlier.2
FACTORIES & BUILDERS GROW BUSIER
According to Federal Reserve data, March was another solid month for industrial output – production rose 0.7%, and the Fed revised the February advance to 1.2%. Groundbreaking by builders increased 2.8% in March, though the Census Bureau also measured a 2.4% decline in building permits.2,3
BULLS RUN AGAIN
Stocks got a lift last week as the pace of China’s economic growth topped forecasts and Fed chair Janet Yellen stated that the central bank has a “continuing commitment” to supporting the economy. The weekly gains: NASDAQ, 2.39% to 4,095.52; Dow, 2.37% to 16,408.54; S&P 500, 2.71% to 1,864.85.4,5,6
THIS WEEK: On Monday, earnings roll in from Kimberly-Clark, Netflix and Hasbro and the Conference Board’s March LEI also appears. Tuesday brings March existing home sales figures, the April FHFA home price index and earnings from Bank of NY Mellon, Amgen, Harley-Davidson, Comcast, McDonald’s, Travelers, Xerox, AT&T, Discover Financial, Yum Brands, Lockheed Martin and Lexmark. March new home sales numbers are out Wednesday, plus quarterly results from Dow Chemical, Owens Corning, Boeing, Procter & Gamble, Facebook, Ericsson, Northrop Grumman, TD Ameritrade, Ingersoll-Rand, E*Trade, Zynga, Texas Instruments, Snapple, Delta Airlines, Raymond James, Safeway and Qualcomm. Thursday, earnings from Broadcom, Under Armour, Starbucks, Jet Blue, Altria, General Motors, Starwood, Microsoft, Amazon.com, Caterpillar, Verizon, 3M, UPS, T. Rowe Price, Novartis, PulteGroup, Raytheon, AstraZeneca, Occidental Petroleum, Eli Lilly, Dunkin Brands, DR Horton and Pandora arrive plus data on March hard goods orders and a new initial claims report. Friday, the University of Michigan’s final April consumer sentiment index comes out, plus earnings from State Street, Colgate-Palmolive, Ford, Goodyear, Honda, Weyerhaeuser and Tyco.
% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA -1.01 +12.24 +20.36 +5.70
NASDAQ -1.94 +27.80 +28.96 +10.52
S&P 500 +0.89 +20.16 +22.89 +6.44
REAL YIELD 4/17 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.52% -0.64% 1.70% 1.87%
Sources: USATODAY.com, bigcharts.com, treasury.gov – 4/17/146,7,8,9
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.
WEEKLY QUOTE
“The worst days of those who enjoy what they do are better than the best days of those who don’t.”
– Jim Rohn
WEEKLY TIP
Moving to a new state? Double-check your estate planning documents to see if any changes need to be made.
WEEKLY RIDDLE
I have a horn and am almost as large as a car, but I will never honk my horn or outrun a car or truck. What might I be?
Last week’s riddle:
I can certainly run, but I will never be able to walk by myself. Wherever I go, thoughts are close behind me. What am I?
Last week’s answer:
A nose.
Citations.
1 – marketwatch.com/story/consumer-prices-rise-02-in-march-2014-04-15 [4/15/14]
2 – briefing.com/investor/calendars/economic/2014/04/14-18 [4/17/14]
3 – latimes.com/business/money/la-fi-mo-housing-starts-20140416,0,4151864.story [4/16/14]
4 – bloomberg.com/news/2014-04-16/u-s-stocks-maintain-gains-as-yellen-signals-support.html [4/16/14]
5 – google.com/finance?q=INDEXDJX:.DJI&ei=5IRQU7iUAaSsiQK1Kw [4/17/14]
6 – usatoday.com/money/markets/overview/ [4/17/14]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F17%2F13&x=0&y=0 [4/17/14]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F17%2F13&x=0&y=0 [4/17/14]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F17%2F13&x=0&y=0 [4/17/14]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F17%2F09&x=0&y=0 [4/17/14]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F17%2F09&x=0&y=0 [4/17/14]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F17%2F09&x=0&y=0 [4/17/14]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F16%2F04&x=0&y=0 [4/17/14]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F16%2F04&x=0&y=0 [4/17/14]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F16%2F04&x=0&y=0 [4/17/14]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/17/14]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/17/14]
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 professional athletes and select individuals. Stonecreek is located in Salt Lake City, Murray, West Jordan, Sandy, Draper, South Jordan, Provo, Orem, Lehi, Highland, Alpine, American Fork all in Utah.
