U.S. SERVICE SECTOR IS BOOMING
The Institute for Supply Management’s July non-manufacturing PMI came in at a stellar 58.7, indicating rapid expansion. It hadn’t been that high since December 2005, and its new orders sub-index reached a peak unseen since August 2005. On Wall Street, some investors worried that the Federal Reserve would take the news as additional grounds for raising short-term interest rates – but in the big picture, it expresses the strength of the recovery. ISM’s service sector PMI had a reading of 56.0 in June.1
FACTORY ORDERS RISE 1.1%
June’s gain far outshined the 0.5% increase forecast by analysts surveyed by Briefing.com. This was a nice comeback for the indicator after the (revised) 0.6% decline in orders that the Census Bureau recorded for May.2
HEADLINES BOOST GOLD PRICES; OIL PULLS BACK
Geopolitical risk in Eastern Europe and the Middle East meant more interest in the yellow metal last week as investors sought a place to park some cash. In New York, gold settled at $1,310.60 per ounce Friday, up 1.35% for the week. NYMEX crude actually lost 0.28% for the week, settling Friday at $97.35.3
FRIDAY RALLY TURNS DOWN WEEK AROUND
Reports that Russian troops were no longer conducting maneuvers near Ukraine’s border helped the S&P 500 climb 1.15% Friday. The broad benchmark gained 0.33% across 5 days, closing the week at 1,931.59. Minor weekly gains also came for the Nasdaq (0.42% to 4,370.90) and the Dow (0.37% to 16,553.93).4
THIS WEEK: Earnings season rolls on Monday as American Apparel, Aramark, Priceline.com, Tata Motors, Procter & Gamble and Sysco report quarterly results. Tuesday, the Street considers earnings from Prudential, Fossil, La Quinta Holdings, LoJack and Towers Watson. On Wednesday, reports on July retail sales and June business inventories complement earnings from Cisco, NetApp, Deere, Macy’s, Pinnacle Foods, RE/MAX and Silver Wheaton. In addition to the week’s report on initial jobless claims, Thursday brings earnings reports from Wal-Mart, Lenovo, Nordstrom, JC Penney, Red Robin, Applied Materials, Houghton Mifflin and Autodesk. Friday, the July PPI and July industrial output report appear along with Q2 results from Estee Lauder.
% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA -0.14 +6.81 +15.33 +6.87
NASDAQ +4.65 +19.13 +23.70 +14.63
S&P 500 +4.50 +13.79 +18.23 +8.13
REAL YIELD 8/8 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.19% 0.34% 1.88% 1.85%
Sources: online.wsj.com, bigcharts.com, treasury.gov – 8/8/144,5,6,7
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.
WEEKLY QUOTE
“The real voyage of discovery consists not in seeking new landscapes but in having new eyes.”
– Marcel Proust
WEEKLY TIP
Here’s a good reason not to prematurely withdraw funds from a qualified retirement plan: it will be some of the costliest money you can find. Taxes and penalties could leave you with very little of that money in the end.
WEEKLY RIDDLE
If I am used in an emergency, I can help the hero – yet when you multiply all the numbers on my face, all you get is zero. What am I?
Last week’s riddle:
Fill in the blank: if Ruby’s mom is Patricia, then Patricia is the ____ of Ruby’s mother.
Last week’s answer:
Name.
Citations.
1 – reuters.com/article/2014/08/06/us-usa-economy-idINKBN0G51LF20140806 [8/6/14]
2 – briefing.com/investor/calendars/economic/2014/08/04-08 [8/8/14]
3 – markets.on.nytimes.com/research/markets/commodities/commodities.asp [8/8/14]
4 – markets.wsj.com/us [8/8/14]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F8%2F13&x=0&y=0 [8/8/14]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F8%2F13&x=0&y=0 [8/8/14]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F8%2F13&x=0&y=0 [8/8/14]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F7%2F09&x=0&y=0 [8/8/14]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F7%2F09&x=0&y=0 [8/8/14]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F7%2F09&x=0&y=0 [8/8/14]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F9%2F04&x=0&y=0 [8/8/14]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F9%2F04&x=0&y=0 [8/8/14]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F9%2F04&x=0&y=0 [8/8/14]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/8/14]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/8/14]
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.
