Growth Report for Monday, August 3, 2015

July brought an 8.9-point drop for the Conference Board’s consumer confidence index; it fell to 90.9. The University of Michigan’s consumer sentiment index held up better, losing 3.0 points in July to descend to a mark of 93.1.1,2

The National Association of Realtors announced a 1.8% fall for pending home sales in June; analysts polled by MarketWatch saw a 0.6% gain. May’s S&P/Case-Shiller home price index showed an overall 4.4% yearly rise, up from 4.3% in April.1

While the first Bureau of Economic Analysis estimate of Q2 growth fell 0.5% short of a MarketWatch consensus forecast, it bettered the 0.6% growth tallied in Q1. The Labor Department’s Employment Cost Index showed just 0.2% Q2 growth in wages and benefits, however. Headline hard goods orders rose 3.4% in June.1,2

As expected, the Federal Reserve left interest rates alone last week. Could the tiny Q2 wage gain change the Fed’s mind about a September rate hike? The market took comfort in that thought even as earnings disappointed: on the week, the S&P 500 rose 1.16% to 2,103.84, the Nasdaq 0.78% to 5,128.28 and the Dow 0.69% to 17,689.86. NYMEX crude lost 2.9% Friday, settling at $47.12; it sank 21% in July.2,3

THIS WEEK: June consumer spending figures and ISM’s factory PMI arrive Monday, plus earnings from Allstate, AIG, Clorox, CNA, Tyson Foods, Noble Energy, Loews, and Omega Healthcare. Tuesday, the Street awaits a June factory orders report and earnings from Aetna, Archer Daniels Midland, Beazer Homes, Coach, Caesars Entertainment, CVS Health, Genworth Financial, HealthNet, Hyatt Hotels, KBR, Kellogg, Parker Hannifin, Red Lion Hotels, Sempra Energy, Sprint, USANA, and Walt Disney. Wednesday brings ISM’s services PMI, July’s ADP jobs report and earnings from Alamo Group, Herbalife, Chesapeake Energy, DISH Network, Dun & Bradstreet, Motorola Solutions, Progressive, Prudential Financial, Questar, Ralph Lauren, Rosetta Stone, SodaStream, Spectra Energy, Sunoco, Tesoro, Time Warner, Transocean, Valero Energy, Wendy’s, and GoDaddy. Thursday provides earnings from Allergan, Alliance HealthCare, Kemper, AMC Networks, Brinker International, ConEdison, Duke Energy, Jamba, Lions Gate, LoJack, Marathon Oil, Michael Kors, Molson Coors, Monster, Nvidia, Orbitz, Universal Corp., and Zynga plus new initial claims numbers and the July Challenger job cuts report. The Labor Department’s July jobs report arrives Friday plus results from Scripps Co., Hershey, and Sotheby’s.

DJIA -0.75 +6.80 +13.80 +6.65
NASDAQ +8.28 +17.36 +25.49 +13.36
S&P 500 +2.18 +8.97 +18.20 +7.03
10 YR TIPS 0.46% 0.29% 1.14% 1.95%

Sources:,, – 7/31/154,5,6,7
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.


“You gain strength, courage and confidence by every experience in which you really stop to look fear in the face.”

– Eleanor Roosevelt


Flexible spending accounts (FSA)s let you use pre-tax dollars to pay for everything from dependent care to out-of-pocket medical costs, helping you to save some money.


Simply talk about it, and you will break it. What is it?

Last week’s riddle:
They are captured by mud and snow, left behind but never taken, and rarely seen in isolation. What are they?

Last week’s answer:

1 – [7/31/15]
2 – [7/31/15]
3 – [7/31/15]
4 – [7/31/15]
5 – [7/31/15]
5 – [7/31/15]
5 – [7/31/15]
5 – [7/31/15]
5 – [7/31/15]
5 – [7/31/15]
5 – [7/31/15]
5 – [7/31/15]
5 – [7/31/15]
6 – [7/31/15]
7 – [7/31/15]

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, 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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