Apr

16

Growth Report – Monday, April 16, 2018

CONSUMER SENTIMENT INDEX DESCENDS SLIGHTLY
In its initial April edition, the University of Michigan’s survey of household sentiment saw its index decline to 97.8 from its final March reading of 101.4. The survey’s chief economist, Richard Curtin, believed that “uncertainty surrounding the evolving [U.S.] trade policy” affected the reading, but he added that “confidence still remains relatively high.”1

A SURPRISE RETREAT FOR THE HEADLINE CPI
Economists polled by Briefing.com assumed the Consumer Price Index would rise 0.1% in March. Instead, it fell by that amount, largely due to a dip in gasoline costs. Core consumer inflation increased 0.2% and matched their expectations. Looking at the big picture, the Department of Labor said that consumer prices were up 2.4% year-over-year through March.2,3

OIL SOARS AS POSSIBILITY OF SYRIA STRIKE LOOMS
Light sweet crude rose 8.6% in five days on the NYMEX, breaking a 2-week losing streak and settling at $67.39 Friday. That was oil’s best close since December 2014.4

StOCKS CLIMB AS EARNINGS SEASON BEGINS
Less anxiety about tariffs and renewed optimism about tech and financial shares led the market higher last week. The S&P 500 gained 1.99% in five days to settle at 2,656.30 Friday. The Dow Industrials rose 1.79% to a Friday close of 24,360.14, and the Nasdaq Composite added 2.77%, wrapping up Friday’s trading day at 7,106.65. Wall Street’s “fear index,” the CBOE VIX, declined 18.99% for the week.5

THIS WEEK: On Monday, Bank of America, Celanese, and Netflix present Q1 results, and March retail sales numbers also arrive. Tuesday, earnings from Comerica, CSX, Goldman Sachs, IBM, Johnson & Johnson, Northern Trust, and UnitedHealth appear, plus data on March construction activity. Wednesday’s earnings roll call includes Abbott Labs, Alcoa, American Express, Fred’s, Morgan Stanley, U.S. Bancorp, and United Rentals; investors will also consider a new Federal Reserve Beige Book. BoNY Mellon, BB&T, Blackstone Group, E*TRADE, GATX, KeyCorp, Novartis AG, Nucor, Pentair, Philip Morris, Quest Diagnostics, Snap-On, Sonoco Products, and W.W. Grainger report earnings on Thursday, when new initial jobless claims numbers are also released. GE, Honeywell International, Procter & Gamble, Regions Financial, Schlumberger, State Street, SunTrust Banks, and Waste Management announce earnings Friday.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA -1.45 +19.10 +12.78 +9.80
NASDAQ +2.94 +22.42 +23.14 +21.23
S&P 500 -0.65 +14.06 +13.44 +10.00
REAL YIELD 4/13 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.69% 0.32% -0.68% 1.23%

Sources: wsj.com, bigcharts.com, treasury.gov – 4/13/185,6,7,8
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 QUOTE

“Truth burns up error.”

– Sojourner Truth

WEEKLY TIP

As your career in the medical, legal, or tech sector progresses, you may build significant wealth, and you may need more than just term life insurance. Later in life, you could face issues that call for liquidity after your death. Permanent life insurance may help to address them.

WEEKLY RIDDLE

The oldest of two sisters is 4 years old. The little sister is half her age. When the big sister is 100, how old will the little sister be?

Last week’s riddle:
When you say its name, it is no longer there. What is it?

Last week’s answer:
Silence.

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.

Citations.
1 – sca.isr.umich.edu/ [4/13/18]
2 – briefing.com/investor/calendars/economic/2018/04/09-13 [4/13/18]
3 – foxbusiness.com/markets/us-consumer-prices-post-first-drop-in-10-months-on-weak-gasoline [4/11/18]
4 – marketwatch.com/story/oil-prices-post-first-weekly-gain-in-three-weeks-2018-04-13 [4/13/18]
5 – markets.wsj.com/us [4/13/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F13%2F17&x=0&y=0 [4/13/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F13%2F17&x=0&y=0 [4/13/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F13%2F17&x=0&y=0 [4/13/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F12%2F13&x=0&y=0 [4/13/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F12%2F13&x=0&y=0 [4/13/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F12%2F13&x=0&y=0 [4/13/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F14%2F08&x=0&y=0 [4/13/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F14%2F08&x=0&y=0 [4/13/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F14%2F08&x=0&y=0 [4/13/18]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/13/18]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/13/18]

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Category: Blog, Economic Updates

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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