SERVICE SECTOR LOOKS VERY HEALTHY
The Institute for Supply Management’s monthly services index improved 2.4 points in November to a 57.2 reading. Analysts polled by Briefing.com had expected a small gain to 55.6. It was the PMI’s best reading since October 2015, and it marked the 82nd consecutive month of expansion for the non-manufacturing segment of the economy.1
HOUSEHOLD SENTIMENT SOARS
Rising 4.2 points to a mark of 98.0, December’s initial University of Michigan consumer sentiment index came in just a tenth of a point below its most recent (2015) peak. This was one of the index’s three highest readings in the last 12 years. The main reason, in the words of University of Michigan economist Richard Curtin: “More consumers spontaneously mentioned the expected positive impact of new economic policies than ever before recorded in the long history of the surveys.”2
OIL FINISHES THE WEEK WITH A FLOURISH
WTI crude advanced 1.22% Friday, reaching $51.46 a barrel as Wall Street ended its trading day. Gold and silver respectively slipped 1.11% and 1.03% on the same day; gold ending the week at $1,159.40 an ounce, and silver, at $16.92 an ounce.3
WILL THE DOW HIT 20,000 BEFORE THE END OF 2016?
Investors are starting to wonder. As stocks closed at record highs Friday, the blue chips settled closer to that potential milestone at 19,756.85. The Dow gained 3.06% on the week. Five-day advances for the S&P 500 and Nasdaq Composite were even greater. The Nasdaq rose 3.59% to 5,444.50 during the week, while the S&P climbed 3.08% to 2,259.53. When the closing bell rang Friday, the S&P was up 4.39% month-over-month, the CBOE VIX volatility index down 17.08% in a month.3
THIS WEEK: Monday, Verifone Systems announces quarterly results. Nothing notable is slated for Tuesday. The Federal Reserve makes an interest rate decision on Wednesday, and in addition to that, Wall Street will react to the November Producer Price Index, reports on November retail sales and industrial output, and earnings from Pier 1 Imports, Progressive and Worthington Industries. November’s Consumer Price Index, and the latest initial jobless claims report arrive Thursday, as well as earnings from Adobe Systems, Jabil Circuit, Navistar, Oracle, and Rite Aid. Friday, the Census Bureau releases data on November groundbreaking and building permits, and Carnival presents a new earnings report.
% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +13.38 +12.95 +12.43 +6.05
NASDAQ +8.73 +8.39 +21.15 +12.34
S&P 500 +10.55 +10.35 +16.00 +6.03
REAL YIELD 12/9 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.51% 0.69% 0.05% 2.21%
Sources: wsj.com, bigcharts.com, treasury.gov – 12/9/163,4,5,6
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
“Art is science made clear.”
– Jean Cocteau
WEEKLY TIP
If you use your own car or truck for business purposes, that vehicle should be insured under a business policy.
WEEKLY RIDDLE
I have roads with no cars, forests with no trees, and cities without people. What am I?
Last week’s riddle:
Take away the first four letters of this word, and you have something to sleep on. Replace the last three letters with an L, and you have a month of the year. What is this seven-letter word?
Last week’s answer:
Apricot.
Citations.
1 – briefing.com/Investor/Calendars/Economic/Releases/napmserv.htm [12/5/16]
2 – sca.isr.umich.edu/ [12/9/16]
3 – markets.wsj.com/us [12/9/16]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F9%2F15&x=0&y=0 [12/9/16]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F9%2F15&x=0&y=0 [12/9/16]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F9%2F15&x=0&y=0 [12/9/16]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F9%2F11&x=0&y=0 [12/9/16]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F9%2F11&x=0&y=0 [12/9/16]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F9%2F11&x=0&y=0 [12/9/16]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F8%2F06&x=0&y=0 [12/9/16]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F8%2F06&x=0&y=0 [12/9/16]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F8%2F06&x=0&y=0 [12/9/16]
5 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [12/9/16]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [12/9/16]
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.
