GAINS IN NEW & EXISTING HOME SALES
According to the National Association of Realtors, the pace of resales improved 2.4% in September. NAR reported fewer sales of distressed properties and more home sales to families versus investors. The Census Bureau measured only a 0.2% rise in new home buying last month, but a 17.0% annualized advance.1
LITTLE INFLATION PRESSURE, LESS PRESSURE ON FED
September saw both the headline and core Consumer Price Index rise 0.1%, putting the yearly gain for each at 1.7%. If inflation continues to be so mild, the Federal Reserve may choose to stand pat on interest rates well into 2015. Food prices are up 3.0% over the past year, but energy prices have fallen 0.6%.2
LEADING INDICATORS STAGE SEPTEMBER CLIMB
The Conference Board’s Leading Economic Index rose 0.8% last month to 104.4 after a flat August, suggesting solid Q4 economic growth. It rose 1.1% back in July.3
STOCKS SURGE 4% IN A WEEK
Earnings beat forecasts, and investors bought back in: in five days, the S&P 500 rose 4.12% to 1,964.58, the Dow 2.59% to 16,805.41 and the Nasdaq 5.29% to 4,483.72.4
THIS WEEK: The NAR issues a new pending home sales report Monday, joining earnings from Allergan, Amgen, Burger King, Omega Healthcare, T-Mobile, Twitter, Merck, HealthSouth and Eastman Kodak. Tuesday offers the August Case-Shiller home price index, a new Conference Board consumer confidence index, September hard goods orders and earnings from Aetna, Aflac, Anadarko Petroleum, Ameriprise, Cummins, U.S. Steel, Whirlpool, BP, AutoNation, UBS, Macerich, Martin Marietta, Novartis, Panera, Marriott, Coach, Sirius XM, PG&E, Sherwin-Williams, Starwood Hotels, Spirit Airlines, Pfizer and Electronic Arts. The Federal Reserve makes a policy statement Wednesday, and Avis, Baidu, Kraft, Deutsche Bank, Hershey, Hyatt, Sodastream, WellPoint, Waste Management, VISA, Revlon, Goodyear, Kraft, LG, MetLife, Norwegian Cruises, LifeLock, Ralph Lauren, CBRE, Garmin and Barrick Gold all release earnings. Thursday brings a first estimate of Q3 GDP, a speech by Janet Yellen at a Fed conference, a new initial claims report and earnings from Altria, Avon, Constellation Software, Expedia, Fluor, Samsung, Royal Dutch Shell, GoPro, ConocoPhillips, Marathon Petroleum, Public Storage, Starbucks, Mosaic, Newmont Mining, CME, Groupon, MasterCard, Tesoro, Time Warner Cable, Cigna, Kellogg, Live Nation and LinkedIn. Friday, September’s personal spending report and the final University of Michigan consumer sentiment index appear along with earnings from Chevron, Clorox, Exxon Mobil, Hilton and Weyerhaeuser.
% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +1.38 +8.36 +13.70 +7.24
NASDAQ +7.35 +14.12 +21.62 +13.43
S&P 500 +6.29 +12.13 +16.39 +7.94
REAL YIELD 10/24 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.39% 0.36% 1.51% 1.63%
Sources: online.wsj.com, bigcharts.com, treasury.gov – 10/24/145,6,7,8
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.
WEEKLY QUOTE
“You don’t deteriorate from age, you age from deterioration.”
– Joe Weider
WEEKLY TIP
If you have served in our armed forces for 3+ years since 9/11, you can draw on the Post-9/11 GI Bill to pay for up to 4 years of in-state tuition and fees at a public college and as much as $17,500 per year of education costs at a private one. You may even be able to transfer those benefits to your spouse or kids if you have served this country for an extended period.
WEEKLY RIDDLE
What starts with P and ends with E and has thousands of letters in it?
Last week’s riddle:
When I lose my jacket, I become larger and louder – but I also weigh a little less. What am I?
Last week’s answer:
Popcorn.
Citations.
1 – csmonitor.com/Business/new-economy/2014/1024/New-home-sales-inch-up-to-a-six-year-high-in-September [10/24/14]
2 – 247wallst.com/economy/2014/10/22/september-cpi-avoids-deflation-fears/ [10/22/14]
3 – conference-board.org/data/bcicountry.cfm?cid=1 [10/23/14]
4 – markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [10/24/14]
5 – markets.wsj.com/us [10/24/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F24%2F13&x=0&y=0 [10/24/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F24%2F13&x=0&y=0 [10/24/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F24%2F13&x=0&y=0 [10/24/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F23%2F09&x=0&y=0 [10/24/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F23%2F09&x=0&y=0 [10/24/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F23%2F09&x=0&y=0 [10/24/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F25%2F04&x=0&y=0 [10/24/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F25%2F04&x=0&y=0 [10/24/14]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F25%2F04&x=0&y=0 [10/24/14]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [10/24/14]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [10/24/14]
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.
