LATEST JOBS REPORT BRINGS GOOD NEWS
U.S. payrolls swelled with 209,000 net new workers in July, according to the Department of Labor. That beat the 183,000 estimate by analysts surveyed by Reuters. About 53,000 of the hires were at restaurants and bars, with another 49,000 in the professional and business services category. While yearly wage growth remained at 2.5%, the headline jobless rate ticked back down to 4.3%. The U-6 rate (which includes the underemployed) stayed at 8.6%.1
A MEAGER GAIN IN CONSUMER SPENDING
The 0.1% June advance reported by the Department of Commerce matched the (low) expectations of economists surveyed by MarketWatch. Consumer incomes were flat in June; the same group of forecasters thought they would improve 0.3%. Personal spending had increased 0.2% in May, with income up 0.3%.2
ISM PMIS SHOW CONTINUED BUSINESS Growth
In June, both purchasing manager indices at the Institute for Supply Management were above 57. Their July readings were lower, but still indicated significant sector expansion as both numbers were well above 50. The manufacturing PMI fell 1.5 points to 56.3, and the service sector PMI dropped 3.5 points to a mark of 53.9.3
BLUE CHIPS TOP 22,000
In a mixed week for the major Wall Street indices, the Dow Jones Industrial Average seized the headlines. It reached a new milestone, thanks to its 5-day advance of 1.20%, settling Friday at 22,092.81. The S&P 500 finished the week at 2,476.83, adding 0.19%; the Nasdaq Composite fell 0.36% to settle at 6,351.56 Friday.4
THIS WEEK: Avis Budget Group, CBS, Marriott International, and Tyson Foods post earnings Monday. Andeavor, CVS Health, Dean Foods, Discovery Communications, GoDaddy, Green Dot, Hertz Global, Hostess Brands, Icahn Enterprises, Lions Gate, Michael Kors, Monster Beverage, Norwegian Cruise Line, Priceline, Ralph Lauren, Sunoco, TripAdvisor, Valeant Pharmaceuticals, Vivint Solar, and Walt Disney Co. present earnings news on Tuesday. Crocs, Kelly Services, Live Nation, Office Depot, Planet Fitness, Real Goods Solar, Starwood Hotels & Resorts, 21st Century Fox, Weibo, and Wendy’s offer earnings Wednesday. On Thursday, the July PPI and a new initial claims report arrive, plus earnings from Blue Apron, Brinker International, Camping World, Kohl’s, Macy’s, Nordstrom, Nvidia, and Snap. On Friday, the July CPI appears, and JC Penney reports Q2 results.
% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +11.79 +20.38 +13.74 +6.76
NASDAQ +17.99 +22.94 +22.80 +15.29
S&P 500 +10.63 +14.44 +15.61 +7.28
REAL YIELD 8/4 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.47% 0.04% -0.66% 2.44%
Sources: wsj.com, bigcharts.com, treasury.gov – 8/4/174,5,6,7
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
“Whatever you are by nature, keep to it; never desert your line of talent. Be what nature intended you for and you will succeed.”
– Sydney Smith
WEEKLY TIP
If you are in your twenties, saving should be your top financial goal: saving for emergencies, for investment, and for retirement.
WEEKLY RIDDLE
What is the only type of “worm” that will never risk ending up on a hook?
Last week’s riddle:
They had weight in their stomachs, tall trees on their backs, nails in their ribs, yet feet they lacked. The world saw thousands of them centuries ago. What were they?
Last week’s answer:
Sailing ships.
Citations.
1 – cnbc.com/2017/08/04/us-nonfarm-payrolls-july-2017.html [8/4/17]
2 – marketwatch.com/economy-politics/calendars/economic [8/4/17]
3 – instituteforsupplymanagement.org/ISMReport/NonMfgROB.cfm?SSO=1 [8/3/17]
4 – markets.wsj.com/us [8/4/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F4%2F16&x=0&y=0 [8/4/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F4%2F16&x=0&y=0 [8/4/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F4%2F16&x=0&y=0 [8/4/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F3%2F12&x=0&y=0 [8/4/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F3%2F12&x=0&y=0 [8/4/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F3%2F12&x=0&y=0 [8/4/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F3%2F07&x=0&y=0 [8/4/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F3%2F07&x=0&y=0 [8/4/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F3%2F07&x=0&y=0 [8/4/17]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/4/17]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/4/17]
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.
