Jun

11

Growth Report – Monday, June 11, 2018

100 MONTHS OF GROWTH FOR SERVICE BUSINESSES
The Institute for Supply Management announced this milestone as it revealed a 58.6 May reading for its non-manufacturing purchasing manager index. That excellent reading was well north of the 56.8 mark seen in April. Fourteen of the fifteen service industries followed by the PMI reported expansion in May; the information sector was the only outlier.1

Q2 GDP OUTLOOK BRIGHTENS
Is the economy now expanding at the rate of 5% a year? The bold new estimate by the Federal Reserve Bank of Atlanta nearly says as much. The Atlanta Fed projects a 4.6% GDP reading for Q2. The first quarter saw a 2.2% rate of growth, and the economy grew 2.3% for all of 2017.2

SOCIAL SECURITY TO TAP ITS RESERVES THIS YEAR
Last week, Social Security’s trustees announced that the program needs to dip into its trust funds for the first time in 36 years in order to fully fund itself in 2018. In their annual report, the trustees noted that monthly benefits could be reduced as much as 23% by 2034 if no legislative action is taken on Capitol Hill between now and then. The report also noted that Medicare’s hospital insurance fund risks being depleted by 2026; barring a fix, Medicare might only pay out 91% of hospital costs at that point.3

NASDAQ ATTAINS RECORD TERRITORY AGAIN
Finishing Friday at 7,645.51, the Nasdaq Composite retreated from its historic closes on Monday, Tuesday, and Wednesday of last week. Even so, it gained 1.21% across five trading sessions. The S&P 500 added 1.62% last week to settle at 2,779.03 Friday. The Dow Jones Industrial Average? It rose 2.77% for the week, reaching 25,316.53 at Friday’s closing bell.4,5

THIS WEEK: Nothing major is scheduled on Monday. The May Consumer Price Index appears Tuesday, plus earnings from H&R Block. Wednesday, Wall Street awaits a Federal Reserve interest rate decision and considers the May Producer Price Index. May retail sales numbers appear Thursday, in addition to a new initial jobless claims report and quarterly results from Michaels Companies. On Friday, the University of Michigan releases its preliminary June consumer sentiment index.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +2.42 +19.52 +13.21 +10.62
NASDAQ +10.75 +20.94 +24.08 +21.09
S&P 500 +3.94 +14.19 +13.82 +10.41
REAL YIELD 6/8 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.82% 0.41% 0.03% 1.54%

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

“Reflect on your present blessings, of which every man has many; not on your past misfortunes, of which all men have some.”

– Charles Dickens

WEEKLY TIP

If you get an email asking for your personal or financial information from what appears to be the Internal Revenue Service, it is probably a scam. The I.R.S. does not use emails, text messages, or social media to make initial inquiries about these matters.

WEEKLY RIDDLE

I am plain, thin, and lonely, but you use me all the time. I can appear with one keystroke or just one movement when you write. What am I?

Last week’s riddle:
You can put me on a table and cut me, but you will never eat me. What am I?

Last week’s answer:
A deck of cards.

Citations.
1 – nytimes.com/aponline/2018/06/05/us/politics/ap-us-economy-services.html [6/5/18]
2 – cnbc.com/2018/06/08/gdp-for-second-quarter-on-track-to-double-2018-full-year-pace-of-2017.html [6/8/18]
3 – marketwatch.com/story/new-warnings-about-cuts-to-social-security-and-medicare-are-a-reason-to-worry-2018-06-07 [6/7/18]
4 – reuters.com/article/us-usa-stocks/tesla-drives-fourth-day-of-gains-for-nasdaq-banks-up-idUSKCN1J21E8 [6/6/18]
5 – markets.wsj.com/us [6/8/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F8%2F17&x=0&y=0 [6/8/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F8%2F17&x=0&y=0 [6/8/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F8%2F17&x=0&y=0 [6/8/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F7%2F13&x=0&y=0 [6/8/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F7%2F13&x=0&y=0 [6/8/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F7%2F13&x=0&y=0 [6/8/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F9%2F08&x=0&y=0 [6/8/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F9%2F08&x=0&y=0 [6/8/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F9%2F08&x=0&y=0 [6/8/18]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [6/8/18]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [6/8/18]

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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