YELLEN EMPHASIZES FURTHER EASING
While conceding that the Federal Reserve’s current stimulus effort “will not continue indefinitely,” Federal Reserve chair nominee Janet Yellen sounded decidedly dovish at her confirmation hearing in the Senate last week. “Supporting the recovery today is the surest path to returning to a more normal approach to monetary policy,” she noted, which global markets took as a signal that tapering was not in the immediate future. The S&P 500 hit a new record close after her comments Thursday; gold and silver futures and the MSCI Emerging Markets Index all rose 1.4% on the day.1
HEALTHCARE ENROLLMENT ISSUES LINGER
While demand was reasonably high at the new online health insurance exchanges in October (975,000+ people found that they were eligible for coverage), total enrollment for the month was just 106,000. As tweaks continued to be made to healthcare.gov, President Obama announced that insurers don’t yet have to cancel plans that fail to meet Affordable Care Act standards. Friday, the House passed a GOP bill that would let insurers offer such policies to new customers as well as existing ones in 2014; President Obama has indicated he will veto this bill.2,3
EARNINGS GROWTH SURPASSES ESTIMATES
As of Friday, 461 firms in the S&P 500 had reported earnings – and according to Bloomberg, 75% of them had beaten profit forecasts. Bloomberg projects S&P 500 earnings up 4.9% for Q3 and 5.8% for Q4.4
DOW…16,000? S&P…1,800? NASDAQ…4,000?
Soon, the major U.S. indices could top those psychologically important levels. Friday saw another record close for the S&P 500: 1,798.18. The Dow settled Friday at 15,961.70 (also a new record close), the NASDAQ at 3,985.97. Weekly performances were as follows: S&P, +1.56%; DJIA, +1.27%; NASDAQ, +1.70%.5
THIS WEEK: Monday brings earnings from Salesforce, Tyson Foods and Urban Outfitters and the November NAHB Housing Market Index. Tuesday offers earnings from Campbell Soup Co., TJX, Best Buy, Home Depot and Medtronic. Wednesday, NAR publishes October existing home sales numbers, and the federal government issues the October CPI, the October FOMC minutes and the report on October retail sales; ADT, Lowe’s, JCPenney, J.M. Smucker, Deere and Staples announce earnings. Thursday, October’s PPI and new initial claims figures complement earnings from Abercrombie & Fitch, Target, Gap, Gamestop, Ross, Intuit and Dollar Tree. Friday, PetSmart announces Q3 results.
% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +21.81 +27.26 +17.57 +6.34
NASDAQ +32.01 +40.50 +32.56 +10.65
S&P 500 +26.08 +32.87 +21.18 +7.12
REAL YIELD 11/15 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.53% -0.80% 2.87% 1.87%
Sources: USATODAY.com, bigcharts.com, treasury.gov – 11/15/136,7,8,9
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.
WEEKLY QUOTE
“We become what we think about.”
– Earl Nightingale
WEEKLY TIP
A good FICO score can really pay off. A credit score of 750 or higher may help you get a home loan at the best available interest rate, positioning you to save tens of thousands of dollars in the long run.
WEEKLY RIDDLE
What common English-language word becomes shorter when you make it longer?
Last week’s riddle:
I am only one syllable long and too heavy for one person to lift, but if you reverse me I am not. What am I?
Last week’s answer:
A ton.
Citations.
1 – bloomberg.com/news/2013-11-13/asian-futures-heed-u-s-rally-as-yelen-boosts-treasuries.html [11/13/13]
2 – washingtonpost.com/blogs/plum-line/wp/2013/11/13/what-the-obamacare-enrollment-numbers-really-tell-us/ [11/13/13]
3 – usatoday.com/story/news/politics/2013/11/15/house-cancelled-plans-bill/3576071/ [11/15/13]
4 – sfgate.com/business/bloomberg/article/U-S-Stocks-Rise-on-Fed-Bets-Amid-Industrial-4985720.php [11/15/13]
5 – fxstreet.com/news/forex-news/article.aspx?storyid=5f3ccc1a-1b74-482b-b7fe-37046d8e5fc4 [11/15/13]
6 – usatoday.com/money/markets/overview/ [11/15/13]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F15%2F12&x=0&y=0 [11/15/13]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F15%2F12&x=0&y=0 [11/15/13]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F15%2F12&x=0&y=0 [11/15/13]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F14%2F08&x=0&y=0 [11/15/13]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F14%2F08&x=0&y=0 [11/15/13]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F14%2F08&x=0&y=0 [11/15/13]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F14%2F03&x=0&y=0 [11/15/13]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F14%2F03&x=0&y=0 [11/15/13]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F14%2F03&x=0&y=0 [11/15/13]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/15/13]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/15/13]
All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Please note – investing involves risk, and past performance is no guarantee of future results. 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 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. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. This material was prepared by MarketingLibrary.Net Inc., for Mark Lund an independent fee-only Investment Advisor, Investor Coach and the author of The Effective Investor. Located in Salt Lake City and Provo Utah.
