242,000 NEW JOBS CREATED IN FEBRUARY
Hiring picked up in America last month. In reporting this sizable net job gain in the second month of the year, the Labor Department also revised December and January hiring totals upward by a total of 30,000. That means payrolls have expanded by an average of 228,000 hires over the past three months. The headline unemployment rate remained at 4.9% last month while the U-6 rate including the underemployed fell to 9.7%. A year ago, the U-6 rate was at 11.0%.1
ISM INDICES BEAT EXPECTATIONS
The Institute for Supply Management’s manufacturing PMI rose 1.3 points in February to 49.5; its non-manufacturing PMI showed a February reading of 53.4. While the latest number on the manufacturing PMI still indicated contraction, both indices surpassed the forecasts of economists polled by MarketWatch, who expected a 48.5 reading for the manufacturing PMI and a 53.0 reading for the service sector PMI.2
PENDING HOME SALES DECLINED IN JANUARY
For 17 consecutive months, the housing contract activity index, maintained by the National Association of Realtors, has shown a year-over-year gain. January saw the index fall 2.5%, reducing the annualized advance for pending home sales to only 1.4%. Analysts surveyed by MarketWatch thought the index would rise 0.5% in January.2,3
DJIA REGAINS 17,000 LEVEL
Blue chips rose for a third consecutive week. The Dow Jones Industrial Average settled at a 2-month peak of 17,006.77 Friday, up 2.20% in five days. The S&P 500 and Nasdaq Composite respectively advanced 2.67% and 2.76% for the week; the S&P closed at 1,999.99 Friday, the NASDAQ at 4,717.02. All three major indices left correction territory Friday. Oil prices were also up for a third straight week, a first since last May. A 9.58% weekly NYMEX advance took WTI crude to a Friday close of $35.92.4
THIS WEEK: The slate of releases is rather light. Monday features earnings from Casey’s General Stores, Del Taco, Shake Shack, and Urban Outfitters. On Tuesday, Dick’s Sporting Goods and Navistar present earnings. Wednesday, investors assess earnings from Express, Hovnanian, Rosetta Stone, Smart & Final, and Square. Thursday will offer earnings announcements from Bon-Ton Stores, Dollar General, El Pollo Loco, Jamba, Marcus & Millichap, Stein Mart, and VeriFone in addition to the latest initial jobless claims figures. Nothing major is scheduled for Friday.
% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA -2.40 -6.02 +7.95 +5.43
NASDAQ -5.80 -5.04 +13.88 +10.49
S&P 500 -2.15 -4.70 +10.28 +5.54
REAL YIELD 3/4 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.37% 0.25% 1.00% 2.07%
Sources: wsj.com, bigcharts.com, treasury.gov – 3/4/165,6,7,8
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
“A tough lesson in life that one has to learn is that not everybody wishes you well.”
– Dan Rather
WEEKLY TIP
Simplify things for your tax preparer or CPA by organizing your financial records into three categories: income statements, expenses and deductions, and investments.
WEEKLY RIDDLE
You drop a coin into a bottle through its opening. Then, you push a cork into that same bottle opening to seal the opening. How do you get the coin out of the bottle without breaking the bottle or taking out the cork?
Last week’s riddle:
I go back and forth constantly, but I never go forward. What am I?
Last week’s answer:
A pendulum.
Citations.
1 – forbes.com/sites/samanthasharf/2016/03/04/jobs-report-242000-jobs-added-in-february-unemployment-rate-steady-at-4-9/ [3/4/16]
2 – marketwatch.com/economy-politics/calendars/economic [3/4/16]
3 – cnbc.com/2016/02/29/pending-home-sales-fell-in-january.html [2/29/16]
4 – cnbc.com/2016/03/04/us-markets.html [3/4/16]
5 – markets.wsj.com/us [3/4/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F4%2F15&x=0&y=0 [3/4/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F4%2F15&x=0&y=0 [3/4/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F4%2F15&x=0&y=0 [3/4/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F4%2F11&x=0&y=0 [3/4/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F4%2F11&x=0&y=0 [3/4/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F4%2F11&x=0&y=0 [3/4/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F3%2F06&x=0&y=0 [3/4/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F3%2F06&x=0&y=0 [3/4/16]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F3%2F06&x=0&y=0 [3/4/16]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [3/4/16]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [3/4/16]
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.
