HIRING CORRESPONDS TO EXPECTATIONS
Employers added 217,000 new jobs in May, just 1,000 less than analysts polled by Reuters had forecast. Over the past year, payrolls have expanded by average of 197,000 new hires a month. The jobless rate remained at 6.3% in May, but the U-6 rate (the unemployed + the underemployed) sank to 12.2%, a low unseen since October 2008.1
SERVICE SECTOR EXPANDS AT A FASTER PACE
At 56.3, the Institute for Supply Management’s non-manufacturing purchasing manager index rose 1.1 points to hit a 10-month high in May. ISM corrected its May manufacturing PMI twice last Tuesday; the final reading was at 55.4, up half a point from April’s mark. May also brought a 0.7% improvement in factory orders, following a (revised) 1.5% gain for April.2,3
PRECIOUS METALS RISE, OIL STAYS FLAT
Silver futures rose 1.7% last week on the COMEX, ending the week at $18.99 an ounce. Five days of trading left gold futures 0.5% higher at $1,252.50 an ounce at Friday’s close. In base metals, copper slipped 2.3%. As for NYMEX crude, it declined just 0.05% for the week to $102.66 a barrel.4,5
SUSTAINED CONFIDENCE ON WALL STREET
The market seems to have regained some momentum of late. At the closing bell Friday, the S&P 500 settled at 1,949.44, the Dow at 16,924.28. Respective weekly gains of 1.27% and 1.16% sent them to those levels. The Nasdaq rose 1.86% across five days, ending the week at 4,321.40.6
THIS WEEK: Monday brings a Commerce Department report on May wholesale inventories and Q1 results from Hertz and Casey’s General Stores. On Tuesday, Radio Shack reports earnings. Wednesday sees the Commerce Department release May retail sales figures and data on April business stockpiles; investors will also consider earnings from H&R Block. The University of Michigan’s preliminary June consumer sentiment index arrives Thursday, along with the May PPI, a new initial jobless claims report and earnings from Lululemon Athletica. Nothing major is slated stateside for Friday, but Wall Street will interpret China’s latest retail sales and industrial production reports.
% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +2.10 +12.52 +18.63 +6.29
NASDAQ +3.47 +26.21 +26.73 +11.39
S&P 500 +5.47 +20.15 +21.47 +7.09
REAL YIELD 6/6 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.40% -0.05% 1.88% 2.11%
Sources: USATODAY.com, bigcharts.com, treasury.gov – 6/6/147,8,9,10
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.
WEEKLY QUOTE
“That some achieve great success is proof to all that others can achieve it as well.”
– Abraham Lincoln
WEEKLY TIP
Is it rude to negotiate a discount for goods or services? It happens more often than you may think. Buying in bulk and arranging long-term agreements are keys.
WEEKLY RIDDLE
I run but never walk, often murmur, never talk, have a bed and never sleep, have a mouth and never eat. What am I?
Last week’s riddle:
What can go down a chimney when it is down, but can’t go up through a chimney when it is up?
Last week’s answer:
An umbrella.
Citations.
1 – tinyurl.com/mtm6eto [6/6/14]
2 – ism.ws/ISMReport/NonMfgROB.cfm [6/4/14]
3 – investing.com/economic-calendar/ [6/6/14]
4 – proactiveinvestors.com/companies/news/54617/gold-up-05-for-week-oil-settles-above-102-54617.html [6/6/14]
5 – money.cnn.com/data/commodities/ [6/6/14]
6 – fxstreet.com/news/forex-news/article.aspx?storyid=ac79bdcc-38d8-4531-94da-147b5408ec3a [6/6/14]
7 – usatoday.com/money/markets/overview/ [6/6/14]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F6%2F13&x=0&y=0 [6/6/14]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F6%2F13&x=0&y=0 [6/6/14]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F6%2F13&x=0&y=0 [6/6/14]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F5%2F09&x=0&y=0 [6/6/14]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F5%2F09&x=0&y=0 [6/6/14]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F5%2F09&x=0&y=0 [6/6/14]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F7%2F04&x=0&y=0 [6/6/14]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F7%2F04&x=0&y=0 [6/6/14]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F7%2F04&x=0&y=0 [6/6/14]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [6/6/14]
10 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [6/6/14]
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, The 401k Advisor, Investor Coach 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 private investment management services for professional athletes and select individuals. Stonecreek is located in Salt Lake City, Murray, West Jordan, Sandy, Draper, South Jordan, Provo, Orem, Lehi, Highland, Alpine, American Fork all in Utah.
