Presented by Mark Lund, The Investor Coach.
Quote of the week. “Live in such a way that you would not be ashamed to sell your parrot to the town gossip.”– Will Rogers
We’re buying more. Retail sales rose 1.3% in November, and that is the third increase that the Commerce Department has measured in that category in the last four months of data. The gain was more than twice as large as that predicted by the consensus forecast of economists.1,2
Confidence is increasing. At least lately it is – the newest Reuters/University of Michigan consumer sentiment survey shot north to 73.4 from the previous 67.4 reading. Economists polled by Briefing.com thought it would come in at 69.0.2,3
The inventory story. Wholesale inventories increased in October. The 0.3% gain marked the first in 13 m0nths. Manufacturing inventories expanded by 0.4% for October, and business inventories grew by 0.2% (retail inventories were flat).4
TARP cheaper than thought? President Obama now claims that the TARP program will cost taxpayers $200 billion less than expected. Funds previously directed to TARP may now go to small business loans and FHA programs, and efforts to pay down the $1.4 trillion U.S. deficit. TARP was extended until October 2010 last week.5
Pumped-up buck doesn’t hurt Dow. Last week, the dollar hit a two-month high against the euro, gold slid below $1,120 an ounce and oil fell below $70 per barrel, and the DJIA managed a nice gain (0.80% across five trading days) to settle Friday at 10,471.50. As for the S&P 500 and the NASDAQ, things were pretty flat: the NASDAQ lost 0.18% during the week and the S&P 500 gained 0.04%.6
% Change |
Y-T-D |
1-Yr Chg |
5-Yr Avg |
10-Yr Avg |
DJIA |
+19.31 |
+22.26 |
-0.14 |
-0.67 |
NASDAQ |
+38.89 |
+45.26 |
+0.58 |
-3.95 |
S&P 500 |
+22.49 |
+26.65 |
-1.37 |
-2.19 |
Real Yield |
12/11 |
1 Yr Ago |
5 Yrs Ago |
10 Yrs Ago |
10YrTIPS |
1.41% |
2.35% |
1.66% |
4.14% |
(Source: CNNMoney.com, ustreas.gov, bls.gov, 12/11/09)7,8,9
Indices are unmanaged, do not incur fees or expenses, and cannot be
invested into directly. These returns do not include dividends.
Riddle of the week. You spend 20% of the money in your wallet. Then you spend 20% of what remains in your wallet after that. You spend $72.00 total. How much money did you originally have in your wallet?
Contact my office or see next week’s Update for the answer.
Last week’s riddle: How many 9s are in the range of numbers from 1 to 100? (Remember, the number 99 has two 9s in it.)
Last week’s riddle answer: 20, as follows: 9, 19,29, 39, 49, 59, 69, 79, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98 and 99 (note two 9s in that last numeral).
Citations.
1 marketwatch.com/story/retail-sales-sparkle-in-november-2009-12-11 [12/11/09]
2 briefing.com/Investor/Public/Calendars/EconomicCalendar.htm [12/11/09]
3 marketwatch.com/story/consumer-sentiment-soars-in-early-dec-2009-12-11 [12/11/09]
4 thestreet.com/story/10644022/1/business-inventories-turn-up-in-october.html?cm_ven=GOOGLEN [12/11/09]
5 abcnews.go.com/print?id=9289977 [12/9/09]
6 cnbc.com/id/34382988 [12/11/09]
7 money.cnn.com/data/markets/dow/ [12/11/09]
7 money.cnn.com/data/markets/nasdaq/ [12/11/09]
7 money.cnn.com/data/markets/sandp/? [12/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F11%2F08&mode=add&symb=DJIA [12/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F10%2F04&mode=add&symb=DJIA [12/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F10%2F99&mode=add&symb=DJIA [12/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F11%2F08&mode=add&symb=COMP [12/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F10%2F04&mode=add&symb=COMP [12/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F10%2F99&mode=add&symb=COMP [12/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F11%2F08&mode=add&symb=SPX [12/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F10%2F04&mode=add&symb=SPX [12/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F10%2F99&mode=add&symb=SPX [12/11/09]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [12/11/09]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [12/11/09]
9 treasurydirect.gov/instit/annceresult/press/preanre/1999/ofn100699.pdf [10/6/99]
These views are those of Peter Montoya Inc., and not the presenting Representative or the Representative’s Broker/Dealer, and should not be construed as investment advice. 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. 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. The 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 other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards.