HOME SALES PICK UP AGAIN
Economists, investors and homeowners welcomed the news that existing home sales improved 1.3% for April. Complementing that announcement from the National Association of Realtors, the Census Bureau said new home sales rose 6.4% in April. In annualized terms, the sales pace has flagged: new home sales have slowed 4.2% over the past 12 months, resales 6.8%. Still, house prices have appreciated nicely: the median price of an existing home sold in April was $201,700, up 5.2% in a year, while the median sales price for a new home last month was $275,800. According to NAR, most of the sales growth in the last 12 months has come at the high end of the market (existing homes valued at more than $750,000).1
HINTS OF A BETTER QUARTER
April brought the fourth straight monthly gain for the Conference Board’s index of leading economic indicators. It rose 0.4% in April, and its March gain was revised up to 1.0% (its largest gain since last September). The index looks at 10 factors to project the health of the American economy 3-6 months ahead.2
NYMEX CRUDE JUMPS 2% IN 5 DAYS
When Friday’s trading day ended, oil was valued at $104.35 a barrel in New York. Gasoline futures closed at $3.02 Friday, the highest settlement price since April 25. Gold eked out a 0.1% weekly gain to $1,291.70 Friday on the COMEX; copper futures advanced 0.6% on the week, silver and platinum futures 0.5%.3
S&P 500 ENDS WEEK ABOVE 1,900
Rising 1.21% in five days, the broad benchmark closed at 1,900.53 Friday – a new record. The Dow and Nasdaq also advanced on the week. The DJIA gained 0.70% for the week to settle at 16,606.27 Friday and the Nasdaq soared 2.33% to wrap up the week at 4,185.81.4
THIS WEEK: All U.S. financial markets are closed Monday in observance of Memorial Day. The Conference Board’s May consumer confidence index, the March S&P/Case-Shiller home price index and a report on April hard goods orders all arrive Tuesday, along with quarterly results from America’s Car-Mart and AutoZone. Wednesday offers earnings from Toll Brothers, Michael Kors, Cracker Barrel and Popeye’s. A fresh federal government estimate of Q1 GDP comes out on Thursday along with new initial claims figures, NAR’s report on April pending home sales and earnings from Lions Gate, Guess? and Costco. Friday brings the April consumer spending report from the Commerce Department and the University of Michigan’s final May consumer sentiment index.
% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +0.18 +8.58 +20.12 +6.68
NASDAQ +0.22 +21.00 +29.48 +11.76
S&P 500 +2.82 +15.15 +22.85 +7.35
REAL YIELD 5/23 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.32% -0.24% 1.72% 2.01%
Sources: USATODAY.com, bigcharts.com, treasury.gov – 5/23/145,6,7,8
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.
WEEKLY QUOTE
“Attempt the impossible in order to improve your work.”
– Bette Davis
WEEKLY TIP
Retirement planning should begin before middle age. Starting young gives your savings more years to grow and compound. The earlier you begin, the earlier you can ingrain a habit of saving.
WEEKLY RIDDLE
What always shows up in the middle of March and the middle of April?
Last week’s riddle:
A word appears, and six letters it contains. Subtract only one, then twelve remains. What is this word?
Last week’s answer:
Dozens.
Citations.
1 – abcnews.go.com/Business/wireStory/us-home-sales-rose-64-percent-april-23841519 [5/23/14]
2 – businessweek.com/news/2014-05-22/gain-in-u-dot-s-dot-leading-index-points-to-second-quarter-rebound [5/22/14]
3 – proactiveinvestors.com/companies/news/54315/gold-drops-01-on-week-oil-scores-over-2-weekly-gain-54315.html [5/23/14]
4 – thestreet.com/story/12720134/1/market-hustle-stocks-inch-higher-on-anticipation-of-better-home-sales.html [5/23/14]
5 – usatoday.com/money/markets/overview/ [5/23/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F23%2F13&x=0&y=0 [5/23/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F23%2F13&x=0&y=0 [5/23/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F23%2F13&x=0&y=0 [5/23/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F22%2F09&x=0&y=0 [5/23/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F22%2F09&x=0&y=0 [5/23/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F22%2F09&x=0&y=0 [5/23/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F24%2F04&x=0&y=0 [5/23/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F24%2F04&x=0&y=0 [5/23/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F24%2F04&x=0&y=0 [5/23/14]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [5/23/14]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [5/23/14]
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.
