WALL STREET HAS ITS BEST WEEK OF 2016
Across four trading days, the S&P 500 rose 2.84% and the Dow Jones Industrial Average, 2.62%; the Nasdaq Composite beat them both with a 3.85% gain. The Friday settlements: Dow Jones, 16,391.99; Nasdaq, 4,504.43; S&P, 1,917.78. WTI crude settled at $29.64 on the NYMEX Friday and gold at $1,230.80 on the COMEX.1
WHOLESALE PRICES OUTPACE CONSUMER PRICES
Core producer prices rose o.4% in January according to the Bureau of Labor Statistics, with the headline Producer Price Index up 0.1%. The Consumer Price Index was flat in January, with the core index up 0.3%; core consumer prices rose 2.2% across the 12 months ending in January.2
BUILDERS STARTED FEWER PROJECTS LAST MONTH
January saw a 0.2% decline in building permits and a 3.8% dip in housing starts. Permits are still outpacing starts, so both Commerce Department indicators could see gains in February.3
INDUSTRIAL OUTPUT IMPROVES 0.9% IN JANUARY
This was the largest monthly increase reported by the Federal Reserve since November 2014, and it included a 0.5% advance for the manufacturing sector. Prior to January, five months had passed without a gain in industrial production.3
THIS WEEK: Wall Street looks at earnings from Allergan, Dillard’s, Fitbit, Motorola Solutions, and Republic Airways on Monday. January existing home sales figures, the December Case-Shiller home price index, and the Conference Board consumer confidence index appear Tuesday, plus earnings from Avis Budget Group, Cablevision, Cracker Barrel, Dollar Tree, HealthSouth, Home Depot, J.M. Smucker, Macy’s, Office Depot, Papa John’s, Popeye’s, and Toll Bros. Wednesday sees January new home sales numbers and earnings from Chesapeake Energy, Etsy, L Brands, La Quinta Holdings, Lowe’s, NetEase, Sunoco, Target, TJX, and Transocean. Thursday offers reports on initial claims and January capital goods orders, plus earnings from AMC Networks, Baidu, Best Buy, Campbell Soup, Domino’s, Gap, Health Net, Healthways, Icahn Enterprises, iHeart Media, Ingram Micro, Intuit, Kohl’s, Kraft Heinz, Live Nation, Monster Beverage, Pinnacle Foods, Sears Holdings, Palo Alto Networks, and Sprouts. January personal spending figures, the second estimate of Q4 GDP, and the University of Michigan’s final January consumer sentiment index arrive Friday, plus earnings from Berkshire Hathaway, Foot Locker, Hilton Worldwide Holdings, J.C. Penney, KBR, and Sempra Energy.
% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA -5.93 -8.86 +6.46 +4.81
NASDAQ -10.04 -8.53 +11.79 +9.91
S&P 500 -6.17 -8.57 +8.56 +4.95
REAL YIELD 2/19 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.50% 0.37% 1.25% 2.03%
Sources: wsj.com, bigcharts.com, treasury.gov – 2/19/164,5,6,7
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.
Citations.
1 – cnbc.com/2016/02/19/us-markets.html [2/19/16]
2 – investing.com/economic-calendar/ [2/19/16]
3 – reuters.com/article/us-usa-economy-idUSKCN0VQ1NV [2/17/16]
4 – markets.wsj.com/us [2/19/16]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F19%2F15&x=0&y=0 [2/19/16]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F19%2F15&x=0&y=0 [2/19/16]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F19%2F15&x=0&y=0 [2/19/16]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F18%2F11&x=0&y=0 [2/19/16]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F18%2F11&x=0&y=0 [2/19/16]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F18%2F11&x=0&y=0 [2/19/16]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F21%2F06&x=0&y=0 [2/19/16]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F21%2F06&x=0&y=0 [2/19/16]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F21%2F06&x=0&y=0 [2/19/16]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [2/19/16]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [2/19/16]
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 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 401k consulting for small businesses and financial Advisor services for professional athletes and individuals. 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.
