Growth Report for Monday, July 25, 2016

GAINS IN HOME BUYING & HOUSING STARTS
June brought a 1.1% rise in existing home sales. Analysts, polled by the Wall Street Journal, had forecast a 0.7% decline. In its new report, the National Association of Realtors said 33% of June sales involved first-time buyers, which was a 4-year peak. New Department of Commerce data showed housing starts up 4.8% last month.1

SOME EARLY EARNINGS SEASON NUMBERS
According to the latest Zacks Earnings Trend report, 68.9% of 103 S&P 500 companies reporting so far this season have beaten estimates and 56.3% have topped revenue projections. Zacks now forecasts a 3.6% year-over-year decline in earnings for S&P member firms, better than its 6.2% appraisal of two weeks ago.2

A DOWN WEEK FOR OIL & GOLD FUTURES
Wrapping up the week at a NYMEX price of $44.19, WTI crude slipped 3.8% across the five trading days ending Friday. Gold futures gave back 0.3% last week on the COMEX, settling Friday at $1,323.40.3,4

AGING BULL SHOWS CONTINUED STRENGTH
All three U.S. benchmarks posted gains last week. During July 18-22, the S&P 500 rose 0.61% to 2,175.03; the Nasdaq Composite, 1.40% to 5,100.16; and the Dow Jones Industrial Average, 0.29% to 18,570.85.5

THIS WEEK: On Monday, Celanese, CoreLogic, Express Scripts, Gilead Sciences, Kimberly-Clark, Smith Micro, Sprint, and Texas Instruments announce earnings. June new home sales data, July’s Conference Board consumer confidence index, and May’s Case-Shiller home price index arrive Tuesday, plus earnings from 3M, Ally Financial, Ameriprise Financial, Anadarko Petroleum, Apple, Avery Dennison, Caterpillar, Chubb, Citrix, Eli Lilly, Freeport-McMoRan, JetBlue, McDonald’s, Panera, Sirius XM, Twitter, U.S. Steel, Valero Energy, and Verizon. Wednesday, a Federal Reserve policy meeting wraps up; Wall Street also considers June pending home sales and capital goods orders and earnings from Altria, Amgen, Anthem, Boeing, Coca-Cola, Comcast, Dr. Pepper Snapple, Exelon, Facebook, Garmin, GlaxoSmithKline, Goodyear, GoPro, Hilton, Ingersoll-Rand, Marriott, NextEra Energy, Noble Corp., Northrop Grumman, Owens Corning, Public Storage, Ryder, Six Flags, T-Mobile, and Waste Management. Thursday’s earnings parade includes Aflac, Alphabet, Amazon, Bristol-Myers Squibb, Celgene, ConocoPhillips, Dow Chemical, Edison International, Expedia, Hershey, Marathon Petroleum, MasterCard, Raytheon, and Virgin America. Friday offers the first Q2 GDP estimate, July’s final University of Michigan consumer sentiment index, and earnings from Chevron, ExxonMobil, Phillips 66, Spirit Airlines, UPS, and Xerox.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +6.58 +4.03 +9.29 +7.09
NASDAQ +1.85 -1.38 +15.68 +15.24
S&P 500 +6.41 +2.88 +12.34 +7.53
REAL YIELD 7/22 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.06% 0.53% 0.61% 2.49%

Sources: wsj.com, bigcharts.com, treasury.gov – 7/22/165,6,7,8
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

“Never harbor grudges; they sour your stomach and do no harm to anyone else.”

– Robertson Davies

WEEKLY TIP

Some parents spend thousands of dollars each year in support of their children’s athletic pursuits. Reducing such expenses could be wise; the money saved could go toward college tuition or retirement.

WEEKLY RIDDLE

Take the number 3 and add another number 3, and you get 6 … but how can you get 8 from a pair of threes?

Last week’s riddle:
Can you name three consecutive days without using the words Monday, Tuesday, Wednesday, Thursday, Friday, Saturday, or Sunday?

Last week’s answer:
Yesterday, today and tomorrow.

Citations.
1 – tinyurl.com/jnqb3ej [7/21/16]
2 – zacks.com/stock/news/224604/2-conglomerates-earnings-to-watch-on-jul-25-dhr-cr [7/22/16]
3 – marketwatch.com/story/oil-futures-settle-nearly-4-lower-for-the-week-2016-07-22 [7/22/16]
4 – marketwatch.com/story/gold-stumbles-on-track-for-back-to-back-weekly-loss-2016-07-22 [7/22/16]
5 – markets.wsj.com/us [7/8/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F22%2F15&x=0&y=0 [7/22/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F22%2F15&x=0&y=0 [7/22/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F22%2F15&x=0&y=0 [7/22/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F22%2F11&x=0&y=0 [7/22/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F22%2F11&x=0&y=0 [7/22/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F22%2F11&x=0&y=0 [7/22/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F21%2F06&x=0&y=0 [7/22/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F21%2F06&x=0&y=0 [7/22/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F21%2F06&x=0&y=0 [7/22/16]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [7/22/16]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [7/22/16]

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. an independent, fee-only, Registered Investment Advisor firm providing investment and retirement planning for individuals and 401k consulting for small businesses. Stonecreek is located in 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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