IS THE PRODUCER PRICE INDEX SENDING A MESSAGE?
Wholesale prices climbed 0.6% in April according to Labor Department data. That tripled the increase projected by economists polled by MarketWatch, and it took the annual advance in the PPI to 2.1%, a two-year peak. The PPI also pushed north 0.5% in March, so higher consumer prices could be directly ahead. In April, consumer prices rose 0.3%; that gain matched the MarketWatch consensus forecast.1,2
RETAIL SALES BARELY RISE
Warmer weather didn’t prompt shoppers to boost their spending. The 0.1% April advance was a letdown following March’s 1.5% improvement. Minus auto buying, retail sales were flat last month.1
HOUSEHOLD SENTIMENT GAUGE DECLINES
With a reading of 81.8, the University of Michigan’s initial May consumer sentiment index slipped 2.3 points from its final April mark. Analysts polled by MarketWatch had predicted a slight rise in the index to 85.0.1,3
SPRING BRINGS MORE GROUNDBREAKING
Housing starts were up 13.2% in April, paced by a 39.6% jump in multifamily starts. The Census Bureau’s monthly report also showed an 8.0% increase in building permits for April; they reached a level unseen since June 2008.3
NASDAQ FARES BEST DURING A CHOPPY WEEK
The mood of Wall Street changed frequently last week, yet the tech-heavy benchmark managed to rise 0.50% to a Friday close of 4,090.59. Retreating just 0.03% on the week, the S&P 500 settled Friday at 1,877.86. The Dow lost 0.60% in five days to close at 16,491.31 Friday.4
THIS WEEK: Wall Street considers earnings from Urban Outfitters, Sport Chalet, Pandora and Campbell Soup on Monday. Tuesday brings quarterly results from TJX, Red Robin, Intuit, Salesforce, Dick’s Sporting Goods and Staples. Minutes from the April 30 Federal Reserve policy meeting arrive Wednesday, complementing earnings from Hewlett-Packard, Goodyear, L Brands, Hormel and NetApp. Thursday offers the April existing home sales report from NAR, a new initial unemployment claims report, the Conference Board’s April index of leading indicators and earnings from Best Buy, GameStop and Perry Ellis. On Friday, the Census Bureau releases April new home sales data.
% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA -0.51 +8.26 +19.89 +6.65
NASDAQ -2.06 +18.05 +28.69 +11.80
S&P 500 +1.60 +13.78 +22.54 +7.32
REAL YIELD 5/16 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.34% -0.40% 1.66% 2.07%
Sources: USATODAY.com, bigcharts.com, treasury.gov – 5/16/145,6,7,8
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.
WEEKLY QUOTE
“The secret of getting ahead is getting started.”
– Mark Twain
WEEKLY TIP
Sometimes blood relatives will try and challenge a will left by one member of an unmarried couple. This is why it is often a good idea for unmarried couples to videotape their last wishes with an attorney present.
WEEKLY RIDDLE
A word appears, and six letters it contains. Subtract only one, then twelve remains. What is this word?
Last week’s riddle:
James has two kids. If the eldest is a girl, what are the chances that the youngest is also a girl?
Last week’s answer:
Fifty percent.
Citations.
1 – marketwatch.com/economy-politics/calendars/economic [5/16/14]
2 – azcentral.com/story/money/business/2014/05/14/us-producer-prices-jumped-percent-april/2138956/ [5/14/14]
3 – tinyurl.com/kgl7rzl [5/16/14]
4 – money.msn.com/business-news/article.aspx?feed=OBR&date=20140516&id=17594831 [5/16/14]
5 – usatoday.com/money/markets/overview/ [5/16/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F16%2F13&x=0&y=0 [5/16/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F16%2F13&x=0&y=0 [5/16/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F16%2F13&x=0&y=0 [5/16/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F15%2F09&x=0&y=0 [5/16/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F15%2F09&x=0&y=0 [5/16/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F15%2F09&x=0&y=0 [5/16/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F17%2F04&x=0&y=0 [5/16/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F17%2F04&x=0&y=0 [5/16/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F17%2F04&x=0&y=0 [5/16/14]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [5/16/14]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [5/16/14]
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.
