CONSUMER CONFIDENCE DIPS SLIGHTLY
The University of Michigan and Conference Board consumer confidence indices descended a little last month, but remained in great shape. The CB index displayed an April reading of 120.6, down from 124.9 in March. Slipping a point from its initial April mark, the Michigan barometer fell to 97.0.1
LATEST HOUSING DATA IS MOSTLY POSITIVE
New home sales rose 5.8% in March, the Census Bureau noted last week; headline sales were 15.6% improved from a year earlier. The latest 20-city S&P/Case-Shiller home price index (January) showed 5.8% average yearly house price appreciation, up from 5.6% in December. Pending home sales retreated 0.8% in March, the National Association of Realtors reported.1,2
FIRST QUARTER SAW LITTLE ECONOMIC GROWTH
According to the Bureau of Economic Analysis, America’s economy expanded at a pace of 0.7% in Q1, well below the 2.1% growth seen in Q4. Economists polled by MarketWatch had projected a 0.8% Q1 GDP reading.1
NASDAQ POSTS SIXTH WINNING MONTH IN A ROW
The tech benchmark added 2.32% this past week and 2.30% for April, shattering the 6,000 ceiling in the process. Upbeat earnings news and talk of corporate tax cuts also aided the S&P 500 – that index rose 0.91% for April, capping things off with a 1.51% weekly gain. How did the blue chips perform? The Dow advanced 1.34% on the month and 1.91% during April’s last five trading sessions. Friday, the big three settled like so: Dow, 20,940.51; Nasdaq, 6,047.61; S&P, 2,384.20.3,4
THIS WEEK: Monday, investors study March personal spending figures, ISM’s April factory PMI, and earnings from Edison International. Earnings announcements from Altria, Anadarko Petroleum, Apple, ConocoPhillips, Cummins, Gilead Sciences, Hilton Worldwide, MasterCard, Merck, PG&E, Pfizer, and Twenty-First Century Fox appear Tuesday. Wednesday, the Street considers the latest Federal Reserve policy statement, ISM’s March service sector index, the April ADP payrolls report, and earnings from Alibaba, Allstate, Estee Lauder, Facebook, Humana, Kraft Heinz, MetLife, Prudential Financial, Tesla, Time Warner, and Yum! Brands. Thursday offers a new Challenger job-cut report, initial jobless claims numbers, and earnings from Activision Blizzard, Anheuser-Busch, Berkshire Hathaway, Occidental Petroleum, and Viacom. March employment figures are out Friday, along with earnings from Cigna; also, Federal Reserve chair Janet Yellen speaks at Brown University in Rhode Island.
% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +5.96 +17.44 +11.66 +5.96
NASDAQ +12.34 +25.85 +19.41 +13.65
S&P 500 +6.49 +14.86 +13.98 +5.96
REAL YIELD 4/28 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.37% 0.12% -0.30% 2.25%
Sources: wsj.com, bigcharts.com, treasury.gov – 4/28/174,5,6,7
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.
WEEKLY QUOTE
“Never suffer youth to be an excuse for inadequacy, nor age and fame to be an excuse for indolence.”
– Benjamin Haydon
WEEKLY TIP
Young adults who receive sudden wealth should realize the threats that could end up eroding it: their inexperience handling such large sums of money, their possibly inadequate financial literacy, and the pressure to overspend in our culture. For these reasons, they should chat with an investment advisor.
WEEKLY RIDDLE
I have hands, my hands move, but you will never hear me clap. What am I?
Last week’s riddle:
They can hear you, you can touch them, but they will never see you. What are they?
Last week’s answer:
Your ears.
Citations.
1 – marketwatch.com/economy-politics/calendars/economic [4/28/17]
2 – blogs.barrons.com/incomeinvesting/2017/04/25/new-home-sales-move-into-higher-gear/ [4/28/17]
3 – marketwatch.com/story/us-stocks-face-a-muted-start-even-as-amazon-alphabet-get-set-to-roar-2017-04-28/ [4/28/17]
4 – markets.wsj.com/us [4/28/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F28%2F16&x=0&y=0 [4/28/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F28%2F16&x=0&y=0 [4/28/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F28%2F16&x=0&y=0 [4/28/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F27%2F12&x=0&y=0 [4/28/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F27%2F12&x=0&y=0 [4/28/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F27%2F12&x=0&y=0 [4/28/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F27%2F07&x=0&y=0 [4/28/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F27%2F07&x=0&y=0 [4/28/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F27%2F07&x=0&y=0 [4/28/17]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/28/17]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/28/17]
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 a Wealth Advisor, 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 investment and retirement planning for individuals and 401k consulting for small businesses. Stonecreek is located in Salt Lake City, Murray City, West Jordan City, Sandy City, Draper City, South Jordan City, Provo City, Orem City, Lehi City, Highland City, Alpine City, and American Fork City in Utah.
