RETAIL SALES RISE 0.6%
All of this December gain can be attributed to increased car buying and gasoline purchases; in fact, retail sales were flat with those two categories removed. Analysts surveyed by MarketWatch had projected a 0.8% December advance. Census Bureau data shows that online sales rose 13.2% in 2016, while department store sales fell 8.4%.1,2
CONSUMERS MAINTAIN OPTIMISM AS 2017 BEGINS
The University of Michigan’s preliminary January consumer sentiment index was little changed from the final December edition – just a tenth of a point lower at 98.1. In January 2016, the index was at 92.0. The current conditions component of the index reached 112.5, its highest mark since 2004.3
PRODUCER PRICES CLIMB AGAIN
After heading north 0.4% in November, the Producer Price Index advanced another 0.3% in December, perhaps hinting that an extended period of minimal wholesale inflation is now history. The December increase left both the headline and core PPI up 1.6% year-over-year.1
A GOOD WEEK FOR TECH SHARES
Across January 9-13, the Nasdaq Composite added 0.96% to settle at 5,574.12. Wall Street’s other two major indices went red for the week – the Dow Jones Industrial Average shed 0.39%; the S&P 500, 0.10%. Friday, the Dow settled at 19,885.73; the S&P, at 2,274.64.4
THIS WEEK: Wall Street observes Martin Luther King, Jr. Day Monday – U.S. stock and bond markets are closed. Morgan Stanley and UnitedHealth Group announce earnings Tuesday. On Wednesday, Federal Reserve chair Janet Yellen speaks about monetary policy goals in San Francisco, the December CPI and a new Fed Beige Book appear, and investors examine earnings from Charles Schwab, Citigroup, Fastenal, Goldman Sachs, Netflix, Northern Trust, Raymond James, and U.S. Bancorp. Earnings from Alaska Air, American Express, BB&T, Celanese, IBM, J.B. Hunt, Nautilus, and Union Pacific arrive Thursday, along with new data on initial claims, housing starts, and building permits; that night, Janet Yellen talks about the U.S. economic outlook in a California speech. Friday is Inauguration Day: federal offices in Washington, D.C. and its vicinity are closed, but Wall Street is open for business as General Electric, Regions Financial, Schlumberger, and SunTrust Banks present earnings.
% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +0.62 +23.12 +12.02 +5.84
NASDAQ +3.55 +23.16 +21.13 +12.27
S&P 500 +1.60 +20.33 +15.29 +5.90
REAL YIELD 1/13 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.41% 0.65% -0.14% 2.49%
Sources: wsj.com, bigcharts.com, treasury.gov – 1/13/174,5,6,7
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.
WEEKLY QUOTE
“The best ideas come as jokes. Make your thinking as funny as possible.”
– David Ogilvy
WEEKLY TIP
In a two-parent household, both parents should have life insurance coverage, even if one of them does not work. If one spouse dies, the money from the life insurance policy can help the surviving spouse pay for child care and education expenses.
WEEKLY RIDDLE
It is a home with no doors, and when its occupant leaves it cracks and it is no more. What is it?
Last week’s riddle:
It lacks fingers, yet it points. It lacks feet, yet it constantly runs. It lacks arms, yet it may periodically strike. What is it?
Last week’s answer:
A clock.
Citations.
1 – investing.com/economic-calendar/ [1/13/17]
2 – marketwatch.com/story/retail-sales-climb-06-in-december-2017-01-13/ [1/13/17]
3 – sca.isr.umich.edu/ [1/13/17]
4 – markets.wsj.com/us [1/13/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F13%2F16&x=0&y=0 [1/13/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F13%2F16&x=0&y=0 [1/13/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F13%2F16&x=0&y=0 [1/13/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F13%2F12&x=0&y=0 [1/13/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F13%2F12&x=0&y=0 [1/13/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F13%2F12&x=0&y=0 [1/13/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F12%2F07&x=0&y=0 [1/13/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F12%2F07&x=0&y=0 [1/13/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F12%2F07&x=0&y=0 [1/13/17]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [1/13/17]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [1/13/17]
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.
