Jan

29

Growth Report – Monday, January 29, 2018

THE ECONOMY EXPANDED 2.6% in Q4
The Department of Commerce’s first estimate of fourth-quarter gross domestic product was 0.6% below the Q3 number, but still well above the 2.1% rate the nation has averaged in the recovery from the Great Recession. America saw 2.3% economic growth in 2017, according to the report.1

HOME SALES RETREATED DURING THE HOLIDAYS
Winter chill possibly encouraged the decline as much as high prices and low inventory. The National Association of Realtors noted a 3.6% slump in resales in December, while the Census Bureau said that new home purchases fell 9.3% last month. Existing home sales improved 1.1% during 2017; new home sales, 8.3%.2

OIL REBOUNDS, REACHES $66
WTI crude advanced 4.5% in five trading days, settling at $66.14 Friday on the NYMEX. That was its highest close in more than three years. Crude prices have risen for five of the past six weeks.3

KEY STOCK INDICES CLIMB
Wall Street’s big three performed well last week, as these advances show: Dow 30, +2.09% to 26,616.71; S&P 500, +2.23% to 2,872.97; Nasdaq Composite, +2.31% to 7,505.77. Meanwhile, the NYSE Arca Biotech benchmark rose an astounding 9.16%.4

THIS WEEK: Monday, December personal spending figures appear, plus earnings from Lockheed Martin and Seagate. The latest Conference Board consumer confidence index surfaces Tuesday in addition to earnings from Aetna, Ally Financial, Chubb, Corning, Electronic Arts, Harley-Davidson, McDonalds, Nucor, Pfizer, Pulte Group, Stryker, and T. Rowe Price. Wednesday, the Federal Reserve wraps up a policy meeting; the Street also considers December pending home sales, an ADP payrolls report, and earnings from Aflac, Anthem, Arcelor Mittal, AT&T, Avery Dennison, Boeing, Citrix, D.R. Horton, eBay, Facebook, Ingersoll-Rand, Eli Lilly, MetLife, Microsoft, Mondelez, PayPal, Pitney Bowes, Qualcomm, Symantec, U.S. Steel, and Xerox. ISM’s January factory PMI arrives Thursday, along with earnings from Alibaba, Alphabet, Altria Group, Amazon, Amgen, Apple, AutoNation, Cigna, ConocoPhillips, DowDuPont, GoPro, Hershey, International Paper, Marathon Petroleum, MasterCard, Mattel, Motorola Solutions, Nokia, Parker Hannifin, Quest Diagnostics, Ralph Lauren, Regis, Royal Dutch Shell, Time Warner, Valero Energy, and Visa. The Department of Labor’s January jobs report and the final January University of Michigan consumer sentiment index roll out Friday, plus earnings from Chevron, Clorox, Estee Lauder, ExxonMobil, Honda, Merck, Phillips 66, Sony, Sprint, and Weyerhaeuser.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +7.68 +32.42 +18.31 +11.80
NASDAQ +8.73 +32.72 +27.66 +22.27
S&P 500 +7.45 +25.09 +18.23 +11.59
REAL YIELD 1/26 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.57% 0.43% -0.56% 1.34%

Sources: wsj.com, bigcharts.com, treasury.gov – 1/26/184,5,6,7
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

“It is the mark of an educated mind to be able to entertain a thought without accepting it.”

– Aristotle

WEEKLY TIP

Before accepting a job offer, ask what maternity, paid leave, and short-term disability benefits are included.

WEEKLY RIDDLE

Frank got behind the wheel and traveled from Fort Lauderdale to Norfolk without any tires. How did he pull this off?

Last week’s riddle:
Rob looks out at a boat full of people in a harbor. He is in disbelief when his friend Christine looks at the same boat and says there is not a single person on board. Is Rob seeing things? How could Christine be right in her assertion?

Last week’s answer:
The boat is taking married couples on a harbor cruise.

Citations.
1 – nytimes.com/2018/01/26/business/economy/gdp-economy.html [1/26/18]
2 – apnews.com/721aacbd0d354c2e8c4e32d6daf332da [1/25/18]
3 – marketwatch.com/story/oil-takes-to-split-path-as-dollar-rally-fades-2018-01-26 [1/26/18]
4 – markets.wsj.com/us [1/26/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F26%2F17&x=0&y=0 [1/26/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F26%2F17&x=0&y=0 [1/26/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F26%2F17&x=0&y=0 [1/26/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F25%2F13&x=0&y=0 [1/26/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F25%2F13&x=0&y=0 [1/26/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F25%2F13&x=0&y=0 [1/26/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F25%2F08&x=0&y=0 [1/26/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F25%2F08&x=0&y=0 [1/26/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F25%2F08&x=0&y=0 [1/26/18]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [1/26/18]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [1/26/18]

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. a fiduciary, independent, fee-only, Registered Investment Advisor firm providing investment and retirement planning for individuals and 401k consulting for small businesses. Cities served but not limited to are: 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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About the Author ()

Mark K. Lund is the firms 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 CPA’s.  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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