Sep

17

Growth Report – Monday, September 17, 2018

CONSUMER SENTIMENT EXCEEDS EXPECTATIONS
In its initial September edition, the University of Michigan’s monthly consumer sentiment index rose 4.6 points to 100.8, a 6-month high. Economists polled by Bloomberg had forecast a reading of 96.6. Fifty-six percent of households responding to the survey said that they had made recent financial gains; the all-time high for the survey is 57%, recorded in both March 2018 and February 1998. The index’s future expectations gauge reached a 14-year peak of 91.1.1

RETAIL SALES ALMOST FLAT IN AUGUST
The 0.1% August advance was the smallest monthly gain since February. Core retail purchases (which exclude the automotive, food, and home improvement categories) rose by the same amount. The Department of Commerce did revise the July numbers upward: the overall retail sales increase in that month went to 0.7%; the core retail sales gain, to 0.8%.2

ANNUALIZED INFLATION DECREASES
August’s Consumer Price Index shows 12-month inflation at 2.7%, down from 2.9%. Yearly core inflation retreated similarly, lessening from 2.4% to 2.2% last month. The headline CPI rose 0.2% in August; the core CPI, 0.1%. Both the headline and core Producer Price Index declined 0.1% in August, significantly reducing their annualized gains. Twelve-month wholesale inflation shrank 0.5% to 2.8%, while yearly core wholesale inflation retreated to 2.3% from 2.7%.3

A POSITIVE FIVE DAYS FOR EQUITIES
All three major stock indices advanced last week. The Dow Industrials gained 0.92% to reach 26,154.67 at Friday’s close. Settling at 8,010.04 Friday, the Nasdaq Composite was up 1.36% for the week. The S&P 500 improved 1.16% to 2,904.98. The main barometer of Wall Street volatility, the CBOE VIX, fell 18.88% for the week to 12.07.4

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

If you recently received a promotion or raise, you need not spend more money simply because you have it. Counter the temptation to buy this or that with the question “Do I really need this?” Living within your means could leave you with more money to save and invest for the future.

THIS WEEK
FedEx announces earnings Monday. | AutoZone, Cracker Barrel, and General Mills present earnings Tuesday. | On Wednesday, the Census Bureau provides a snapshot of August residential construction activity, and Red Hat reports quarterly results. | Investors consider August existing home sales numbers, a new initial jobless claims report, and earnings from Darden Restaurants, Micron Technology, Steelcase, and Thor Industries on Thursday. | Nothing major is slated for Friday.

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

“The greatest pleasure in life is doing what people say you cannot do.”
Walter Bagehot

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

5.81

17.80

14.02

13.96

NASDAQ

16.03

24.59

23.04

26.74

S&P 500

8.65

16.40

14.42

14.36

REAL YIELD

9/14 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

0.89

0.35

0.80

1.70

Sources: wsj.com, bigcharts.com, treasury.gov – 9/14/184,5,6,7
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.

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

It takes a crew of eight workers four hours to dig a 30’ hole in the ground. How long would it take them to dig half a hole?

LAST WEEK’S RIDDLE: What is long and narrow, yet can look far and wide?
ANSWER: A telescope.

CITATIONS:
1 – bloomberg.com/news/articles/2018-09-14/u-s-consumer-sentiment-rises-to-six-month-high-above-estimate [9/14/18]
2 – cnbc.com/2018/09/14/us-retail-sales-august-2018.html [9/14/18]
3 – investing.com/economic-calendar/ [9/14/18]
4 – markets.wsj.com/us [9/14/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F14%2F17&x=0&y=0 [9/14/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F14%2F17&x=0&y=0 [9/14/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F14%2F17&x=0&y=0 [9/14/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F13%2F13&x=0&y=0 [9/14/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F13%2F13&x=0&y=0 [9/14/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F13%2F13&x=0&y=0 [9/14/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F15%2F08&x=0&y=0 [9/14/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F15%2F08&x=0&y=0 [9/14/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F15%2F08&x=0&y=0 [9/14/18]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/14/18]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/14/18]

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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