Sep

10

Growth Report – Monday, September 10, 2018

LATEST JOBS REPORT cONFIRMS WAGE GROWTH IS ACCELERATING
According to the Department of Labor’s newest employment report, average pay for U.S. private sector workers improved 2.9% in the 12 months ending in August. That is the best annualized wage boost since the end of the Great Recession in 2009 and an improvement from 2.7% in July. The economy added 201,000 net new jobs last month. The headline jobless rate remained at 3.9%; the U-6 rate, which includes both unemployed and underemployed Americans, declined 0.1% to 7.4%, a 17-year low.1

STRONG AUGUST SHOWINGS FOR THE ISM INDICES
Both purchasing manager indices maintained by the Arizona-based Institute for Supply Management rebounded last month. ISM’s PMI tracking the U.S. service sector rose 2.8 points to 58.5, and its factory sector PMI climbed to an impressive 61.3 from the previous mark of 58.1.2

OIL TAKES A WEEKLY LOSS
Retreating 2.9% in four trading days, West Texas Intermediate crude ended the week at $67.75 on the NYMEX. Light sweet crude had its first down week since August, and its Friday closing value was its lowest since August 21. The big concern: the potential impact of tariffs on global oil demand.3

STOCKS DECLINE; POSSIBLE NEW TARIFFS ON CHINA ANNOUNCED
Friday, President Trump told reporters that he was willing to authorize import taxes on another $267 billion of Chinese goods entering the U.S.; this would effectively put an across-the-board tax on Chinese imports in place. This development and a broad tech selloff impacted Wall Street during a shortened trading week. In trading Tuesday through Friday, the S&P 500 fell 1.02%, to 2,871.68; the Dow Jones Industrial Average 0.27%, to 25,916.54; the Nasdaq Composite 2.30%, to 7,902.54.4,5,6

T I P O F T H E W E E K

If you plan to age in place, think about the future upkeep of your home. Could the cost of maintenance and “senior upgrades” to enhance safety and accessibility prove too much to handle financially? Or does it appear to be manageable?

THIS WEEK
Hovnanian Enterprises and Sonos present earnings on Monday. | Tuesday, nothing major is scheduled. | On Wednesday, Apple holds its iPhone XS launch event, and the August Producer Price Index and a new Federal Reserve Beige Book appear. | Thursday, investors pay attention to the August Consumer Price Index and quarterly results from Kroger. | On Friday, Wall Street considers August retail sales figures and the preliminary September consumer sentiment index from the University of Michigan.

Q U O T E O F T H E W E E K

“Part of being a hero is knowing when you don’t need to be one anymore.”
Alan moore

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

4.84

18.97

14.73

12.52

NASDAQ

14.47

23.52

23.18

24.82

S&P 500

7.41

16.49

14.70

12.65

REAL YIELD

9/7 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

0.84

0.26

0.87

1.68

Sources: wsj.com, bigcharts.com, treasury.gov – 9/7/186,7,8,9
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.

T H E W E E K L Y R I D D L E

What is long and narrow, yet can look far and wide?

LAST WEEK’S RIDDLE: It can hurt and make people bleed, but in another environment, its smaller version can also be instrumental in making them well. What is it?
ANSWER: A knife.

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 – bloomberg.com/news/articles/2018-09-07/u-s-payrolls-rise-201-000-while-wage-gains-accelerate-to-2-9 [9/7/18]
2 – instituteforsupplymanagement.org/ISMReport/NonMfgROB.cfm?SSO=1 [9/6/18]
3 – marketwatch.com/story/oil-price-stabilizes-after-retreat-on-rising-product-inventories-2018-09-07 [9/7/18]
4 – nytimes.com/2018/09/07/business/trump-china-trade-war-tariffs.html [9/7/18]
5 – forexlive.com/technical-analysis/!/us-stocks-end-lower-nasdaq-worst-week-since-march-23rd-20180907 [9/7/18]
6 – markets.wsj.com/us [9/7/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F7%2F17&x=0&y=0 [9/7/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F7%2F17&x=0&y=0 [9/7/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F7%2F17&x=0&y=0 [9/7/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F6%2F13&x=0&y=0 [9/7/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F6%2F13&x=0&y=0 [9/7/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F6%2F13&x=0&y=0 [9/7/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F8%2F08&x=0&y=0 [9/7/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F8%2F08&x=0&y=0 [9/7/18]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F8%2F08&x=0&y=0 [9/7/18]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/7/18]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/7/18]

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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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