Mar

29

Growth Report for Monday, March 29, 2015

HOME SALES PICK UP
Existing home sales accelerated 1.2% to an annual pace of 4.88 million in February, the National Association of Realtors announced. Sales had slowed markedly in January. February also brought a big jump in new home buying – a 7.8% increase according to the Census Bureau, taking the year-over-year gain to 24.8%.1,2

FEBRUARY BRINGS AN ADVANCE IN THE CPI
The 0.2% gain represented the first monthly rise in consumer prices since October; a 2.4% increase in gasoline prices made a demonstrable difference. Even so, this left the headline CPI flat year-over-year. The core CPI rose 0.2% in February, taking its annualized gain to 1.7%.3

UMICH INDEX STAGES MARCH RETREAT
At a mark of 93.0, March’s final University of Michigan consumer sentiment index declined 2.4 points from its final February reading. It has still improved vastly in the past year – last March, it was at 80.0.4

FINAL Q4 GDP: 2.2%
The third estimate of fourth-quarter growth by the Bureau of Economic Analysis was unchanged from the second; economists polled by Briefing.com expected an upward revision to 2.4%. Last week also brought news of a 1.4% slip in hard goods orders; even minus transportation orders, durables still declined 0.4%.2

WALL STREET WORRIES ABOUT A STRONG DOLLAR
Pessimism about the oncoming earnings season contributed to market choppiness and weekly losses for the big three. Across March 23-27, the Dow fell 2.29%, the Nasdaq 2.69% and the S&P 500 2.23%. Friday, the Dow settled at 17,712.66, the Nasdaq at 4,891.22 and the S&P at 2,061.02.5

THIS WEEK: Monday, the Commerce Department releases February personal spending numbers and the NAR issues February pending home sales data. The January S&P/Case-Shiller home price index and the Conference Board’s March consumer confidence survey arrive Tuesday. On Wednesday, ISM’s March factory PMI and ADP’s March employment report appear and Monsanto announces earnings. Thursday brings the March Challenger job-cut report, new initial claims totals, February factory orders data and earnings from CarMax and Perry Ellis. On Friday, the Labor Department presents its March jobs report and Federal Reserve chair Janet Yellen speaks briefly at a Fed research conference.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA -0.62 +8.91 +12.65 +6.89
NASDAQ +3.28 +17.83 +20.84 +14.55
S&P 500 +0.10 +11.46 +15.33 +7.55
REAL YIELD 3/27 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.19% 0.56% 1.62% 1.94%

Sources: online.wsj.com, bigcharts.com, treasury.gov – 3/27/155,6,7,8
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

WEEKLY TIP

Own a business? Negotiating with vendors may help you save a few hundred dollars in monthly operating costs. It doesn’t hurt to try it; any vendor would prefer a satisfied customer over a search for a new one.

WEEKLY RIDDLE

A man bet his neighbor that his dog could jump higher than his neighbor’s hedge. The neighbor accepted the bet and lost. Why?

Last week’s riddle:
Its body of stone shields a fiery heart. Under sufficient pressure, its head will depart. What is it?

Last week’s answer:
A volcano.

Citations.
1 – housingwire.com/articles/33325-new-home-sales-rebound-25-in-february [3/24/15]
2 – briefing.com/investor/calendars/economic/2015/03/23-27 [3/27/15]
3- nytimes.com/2015/03/25/business/rising-gas-costs-help-lift-us-consumer-prices.html [3/25/15]
4 – tinyurl.com/o9am74a [3/27/15]
5 – tinyurl.com/onrf6g7 [3/27/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F27%2F14&x=0&y=0 [3/27/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F27%2F14&x=0&y=0 [3/27/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F27%2F14&x=0&y=0 [3/27/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F26%2F10&x=0&y=0 [3/27/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F26%2F10&x=0&y=0 [3/27/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F26%2F10&x=0&y=0 [3/27/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F28%2F05&x=0&y=0 [3/27/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F28%2F05&x=0&y=0 [3/27/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F28%2F05&x=0&y=0 [3/27/15]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [3/27/15]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [3/27/15]

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, Mark is known as The 401k Advisor, Investor Coach, The Financial Advisor, The Financial Planner 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 financial Advisor services for professional athletes and individuals. Stonecreek is located in Salt Lake City, Murray, West Jordan, Sandy, Draper, South Jordan, Provo, Orem, Lehi, Highland, Alpine, and American Fork in Utah.

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About the Author ()

Mark K. Lund is the firm's founder, CEO and author of The Effective Investor, a #1 Best Seller. He has written articles for or been quoted in: The Wall Street Journal, The Salt Lake Tribune, The Enterprise Newspaper, The Utah Business Connect Magazine, US News & World Report, and Newsmax.com, just to name a few.  Mark publishes two newsletters called, “The Mark Lund Growth Report” and “Mark Lund on Money.”  Mark provides CPE (continuing professional education) courses for CPAs.  You may also have seen him on KUTV Channel 2, or as a guest speaker at a local association or business. Mark provides investment and retirement planning services for individuals and 401(k) consulting for small businesses. In his book, The Effective Investor, Mark exposes the false narrative magazines, media, big Wall Street firms, and most advisors want you to believe. The good news is that Mark will show you that you don’t need their speculative ways of investing in order to be successful. Get a free copy when you schedule your initial consultation.

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