Nov

20

Growth Report – Monday, November 20, 2017

YEARLY INFLATION BACK AT 2.0%
Consumer costs ticked up just 0.1% in October, according to the Department of Labor. The marginal monthly gain left the annualized increase in the headline Consumer Price Index at 2.0%, down from 2.2% a month earlier. The core CPI has risen 1.8% in 12 months. Gasoline prices influenced the October headline number: they fell 2.4% in October after a 13.1% September leap.1

RETAIL SALES BEAT EXPECTATIONS
Analysts surveyed by MarketWatch thought retail sales would be flat for October after their huge surge in September. That was not so. They surprised to the upside with a gain of 0.2%. Minus auto buying, the advance was 0.1%.2

DEVELOPERS PICK UP THE PACE AS FALL BEGINS
Newly released Census Bureau data shows a 13.7% monthly increase in housing starts in October as well as a 5.9% rise for building permits. Single-family home construction strengthened 5.3% last month.3

NASDAQ OUTPERFORMS DOW, S&P 500
After a volatile five days, the Nasdaq Composite closed 0.47% higher on November 17 than it had on November 10: 6,782.79. The trading week was tougher for the Dow Jones Industrial Average, which declined 0.27% to 23,358.24, and the S&P 500, which lost 0.13% on the way to a Friday settlement of 2,578.85. The Russell 2000 added 1.19% to wrap up the week at 1,492.82. Wall Street’s hottest index over the past year has been the PHLX Semiconductor – as of Friday, it had gained 49.77% in the past 52 weeks.4

THIS WEEK: Monday, Agilent Technologies and Urban Outfitters reveal Q3 results. On Tuesday, investors consider earnings announcements from Campbell Soup, Hormel Foods, and Lowe’s, plus the latest new home sales report from the National Association of Realtors; also, Federal Reserve chair Janet Yellen stops by New York University for a moderated Q&A session. The Fed releases the minutes from its November policy meeting on Wednesday; Wall Street will also keep an eye out for the final November consumer sentiment index from the University of Michigan, a new report on durable goods orders, and earnings from Deere & Co. On Thursday, U.S. financial markets are closed for Thanksgiving. Friday, Wall Street reopens for a shortened trading session ending at 1:00pm EST.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +18.19 +23.56 +17.11 +7.73
NASDAQ +26.00 +27.16 +27.55 +15.72
S&P 500 +15.19 +17.91 +17.93 +7.68
REAL YIELD 11/17 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.49% 0.42% -0.81% 1.80%

Sources: wsj.com, bigcharts.com, treasury.gov – 11/17/174,5,6,7
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

“Humor is just another defense against the universe.”

– Mel Brooks

WEEKLY TIP

The classic way to balance a household budget is to reduce expenses. But what about earning more money? In this strong economy, consider asking for a raise at work or creating another income stream.

WEEKLY RIDDLE

They can darken the dark; they can also lighten the intensity of the light. What are they?

Last week’s riddle:
Wherever you notice me, I’ll be in a row. My name has no letters, but my initials are MNO. What am I?

Last week’s answer:
The 6 key on a phone keypad.

Citations.
1 – cnbc.com/2017/11/15/us-consumer-price-index-oct-2017.html [11/15/17]
2 – marketwatch.com/economy-politics/calendars/economic [11/17/17]
3 – builderonline.com/money/economics/housing-starts-permits-jump-in-october_o [11/17/17]
4 – markets.wsj.com/us [11/17/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F17%2F16&x=0&y=0 [11/17/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F17%2F16&x=0&y=0 [11/17/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F17%2F16&x=0&y=0 [11/17/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F16%2F12&x=0&y=0 [11/17/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F16%2F12&x=0&y=0 [11/17/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F16%2F12&x=0&y=0 [11/17/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F16%2F07&x=0&y=0 [11/17/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F16%2F07&x=0&y=0 [11/17/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F16%2F07&x=0&y=0 [11/17/17]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/17/17]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/17/17]

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 Park City, 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.

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Category: Blog, Economic Updates

About the Author ()

Mark K. Lund is the Chief Advisor, CEO, and author of The Effective Investor. 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, and Newsmax.com, just to name a few.  Mark publishes two newsletters called, “The Mark Lund Growth Report" and "Mark Lund on Money.”  Mark regularly provides CE (continuing education) courses for CPA’s. You may also have seen him on KUTV channel 2, or as a guest speaker at a local association or business.  Mark's focus is to help people with their investments and retirement plans. In Mark’s spare time he enjoys riding his dirt bike, playing with his kids, fishing, reading, writing, and going on walks with his best friend, his wife. To learn more about Mark please visit his personal website at www.TheEffectiveInvestor.com

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