Sep

24

Growth Report – Monday, September 24, 2018

BLUE CHIPS HIT A 2018 HIGH
On Thursday, the Dow Jones Industrial Average saw its best close since January. Friday took the index even higher, to another record settlement of 26,743.50. That capped a 2.25% weekly advance. The Dow was not the only major benchmark shattering records last week. The S&P 500 also settled at a historic peak Thursday before drifting slightly lower to 2,929.67 a day later; in five days, it rose 0.85%. For the Nasdaq Composite, the story was different: it declined 0.29% last week to 7,986.96.1,2

AUGUST WAS A FLAT MONTH FOR HOME BUYING
The National Association of Realtors declared the pace of existing home sales unchanged from July in its August snapshot of the residential real estate market. Economists surveyed by Reuters anticipated an advance of 0.3% after four consecutive months of retreats. Sales were down 1.5%, year-over-year, through August, but existing home inventory grew 2.7% during the same 12 months; that marked the first annualized increase in the supply of homes for sale since 2015. The median existing home price in August: $264,800, 4.6% higher than a year ago.3

HOUSING STARTS JUMP; BUILDING PERMITS FALL
Starts and permits went opposite ways during August, according to the Census Bureau’s latest look at U.S. residential construction activity. Groundbreaking increased 9.2% in the eighth month of the year, but permits for new developments declined by 5.7%.4

OIL CLIMBS TO A 2-MONTH PEAK
WTI crude settled at $70.78 per barrel on the New York Mercantile Exchange on Friday, charging 2.6% for the week. This was crude’s best closing price since July 13, preceding a critical meeting of OPEC nations and their allies to address potential supply problems in the fourth quarter.5

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

In a two-parent household, both parents may want to consider life insurance coverage, even if one of them does not work. Money from the life insurance policy can help a surviving spouse pay for child care and education expenses.

THIS WEEK
Monday offers no major earnings calls or economic reports. | The Conference Board’s latest consumer confidence index arrives Tuesday, plus a new S&P CoreLogic Case-Shiller home price index and earnings from Cintas, Jabil, KB Home, and Nike. | The Federal Reserve makes an interest rate decision Wednesday; in addition, August new home sales figures and earnings from Bed Bath & Beyond, CarMax, and Worthington Industries appear. | Accenture, ConAgra Brands, and Rite Aid present earnings Thursday, complementing the latest initial jobless claims numbers, the third estimate of Q2 economic expansion, and reports on August housing contract activity and hard goods orders. | Friday, August personal spending figures are released, plus the August PCE price index, the final September consumer sentiment index from the University of Michigan, and earnings from BlackBerry.

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

“Learning to ignore things is one of the great paths to inner peace.”
Robert J. Sawyer

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

8.19

19.61

14.62

14.28

NASDAQ

15.70

24.36

22.32

26.65

S&P 500

9.58

17.16

14.27

14.27

REAL YIELD

9/21 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

0.92

0.44

0.52

1.85

Sources: wsj.com, bigcharts.com, treasury.gov – 9/21/182,6,7,8
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.

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

You go into the forest and get it, you sit down to find it, and then you go home, just wanting to get it out. What is it?

LAST WEEK’S RIDDLE: It takes eight workers four hours to dig a 30’ hole in the ground. How long would it take them to dig half a hole?
ANSWER: No time at all, for you cannot dig half a hole.

CITATIONS:
1 – foxbusiness.com/markets/stock-futures-point-to-added-gains-after-record-day [9/21/18]
2 – markets.wsj.com/us [9/21/18]
3 – reuters.com/article/us-usa-economy-housing/u-s-existing-home-sales-unchanged-in-august-idUSKCN1M026A [9/20/18]
4 – investing.com/economic-calendar/ [9/21/18]
5 – marketwatch.com/story/us-oil-ends-week-at-2-month-high-books-second-straight-weekly-advance-2018-09-21 [9/21/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F21%2F17&x=0&y=0 [9/21/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F21%2F17&x=0&y=0 [9/21/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F21%2F17&x=0&y=0 [9/21/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F20%2F13&x=0&y=0 [9/21/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F20%2F13&x=0&y=0 [9/21/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F20%2F13&x=0&y=0 [9/21/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F22%2F08&x=0&y=0 [9/21/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F22%2F08&x=0&y=0 [9/21/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F22%2F08&x=0&y=0 [9/21/18]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/21/18]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/21/18]

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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