May

7

Growth Report – Monday, May 7, 2018

JOBLESS RATE HITS 18-YEAR LOW
Unemployment fell to 3.9% in April, the Department of Labor said Friday – the smallest percentage seen since late 2000. Additionally, the U-6 underemployment rate declined to 7.8%, a 17-year low. Payrolls expanded with 164,000 net new jobs last month; the economy has created an average of 200,000 jobs a month so far in 2018, compared to 177,000 a month in 2017.1

PERSONAL SPENDING IMPROVES 0.4%
The March gain reported by the Bureau of Economic Analysis was the best since the 0.5% advance in December. Personal wages increased 0.3% for March, replicating the gain from February.2

ISM INDICES RETREAT
Purchasing manager indices at the Arizona-based Institute for Supply Management showed the factory and service sectors of the economy cooling down in April from a red-hot degree of expansion. ISM’s manufacturing PMI fell 2.0 points to 57.3, and its non-manufacturing PMI dropped by the same amount to 56.8.3

NASDAQ RISES; DOW, S&P FALL SLIGHTLY
All three major Wall Street indices rallied on Friday, but only the Nasdaq Composite ended up higher on the week. Across five trading sessions, the tech-heavy benchmark gained 1.26% to 7,209.62. The S&P 500 declined 0.24% for the week to 2,663.42, while the Dow Jones Industrial Average lost 0.20% to settle at 24,262.51.4

THIS WEEK: AMC Entertainment, Andeavor, Hertz Global Holdings, Invacare, Sempra Energy, Sysco, and Tyson Foods announce earnings Monday. Before Tuesday’s open, Federal Reserve chair Jerome Powell comments on monetary policy in Switzerland; after the open, Wall Street considers earnings calls from Aramark, Dean Foods, Discovery, DISH Network, Electronic Arts, Etsy, La Quinta Holdings, Marriott, Monster, Papa John’s, Planet Fitness, TripAdvisor, U.S. Auto Parts, Valeant, Walt Disney Co., Wendy’s, and William Lyon Homes. April’s Producer Price Index arrives Wednesday, plus earnings from Anheuser-Busch, Coty, Green Dot, Groupon, Horizon Pharma, Hostess, Office Depot, Roku, Siemens AG, Spectra Energy Partners, Sunoco, 21st Century Fox, and Weibo. Thursday, the April Consumer Price Index and new initial claims figure complement earnings from AMC Networks, Duke Energy, News Corp., Nvidia, Symantec, TiVo, and Yelp. On Friday, the University of Michigan unveils its preliminary May consumer sentiment index, and ArcelorMittal and Thomson Reuters make earnings news.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA -1.85 +15.80 +12.41 +8.71
NASDAQ +4.44 +18.67 +22.68 +19.26
S&P 500 -0.38 +11.46 +13.00 +8.92
REAL YIELD 5/4 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.79% 0.50% -0.53% 1.53%

Sources: wsj.com, bigcharts.com, treasury.gov – 5/4/184,5,6,7
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

“Humor is also a way of saying something serious.”

– T.S. Eliot

WEEKLY TIP

Remember that there are two kinds of 529 plans: the prepaid tuition plan and the college savings plan. A prepaid tuition plan lets you pay some of the future cost of a university education today. A college savings plan offers you a choice of equity investments for your savings and has variable returns.

WEEKLY RIDDLE

I went into the woods and got it. I brought it home in my hand and removed it. What am I talking about?

Last week’s riddle:
It can be high or low;
it may run between your toes. It relates to the sun and the sky,
and it may make things fall and rise. What is it?

Last week’s answer:
The tide.

Citations.
1 – jamiedupree.blog.ajc.com/2018/05/04/nations-jobless-rate-drops-under-4-percent-for-first-time-since-2000/ [5/4/18]
2 – tradingeconomics.com/united-states/personal-spending [5/4/18]
3 – instituteforsupplymanagement.org/ISMReport/NonMfgROB.cfm?SSO=1 [5/4/18]
4 – markets.wsj.com/us [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F4%2F17&x=0&y=0 [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F4%2F17&x=0&y=0 [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F4%2F17&x=0&y=0 [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F3%2F13&x=0&y=0 [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F3%2F13&x=0&y=0 [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F3%2F13&x=0&y=0 [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F5%2F08&x=0&y=0 [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F5%2F08&x=0&y=0 [5/4/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F5%2F08&x=0&y=0 [5/4/18]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [5/4/18]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [5/4/18]

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 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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