Weekly Economic Update
|Mader Wealth Presents: |
|WEEKLY ECONOMIC UPDATE |
| |
| | |
| |October 12, 2015 |
|WEEKLY QUOTE | |
| |SEPTEMBER FED MINUTES SHOW CAUTION |
|“True originality consists not |Minutes from last month’s Federal Open Market Committee meeting provided a bit more insight into the Federal |
|in a new manner but in a new |Reserve’s decision not to tighten monetary policy in September. Fed officials opted to “wait for additional |
|vision.” |information” before making a move, noting that “recent global economic and financial developments may have |
| |increased the downside risks to economic activity somewhat.” Even so, most FOMC members thought it appropriate to |
|- Edith Wharton |raise rates “before the end of the year”, believing that slowing economies elsewhere had not “materially altered” |
| |the economic outlook for America.1 |
| | |
|WEEKLY TIP |ISM SERVICES INDEX FALLS SHORT OF EXPECTATIONS |
| |According to the Institute for Supply Management, the U.S. service sector grew at a solid pace last month – the |
|If you are divorced and |September reading for ISM’s non-manufacturing purchasing manager index was 56.9. Still, that was down from 59.0 in|
|currently single, but the |August. Analysts polled by expected a September reading of 58.0.2 |
|marriage lasted 10 years or | |
|longer, you may be eligible to |WTI CRUDE, GOLD BOTH RALLY |
|collect spousal benefits from |Oil closed at $49.63 a barrel on the NYMEX Friday, gaining 9.0% in five days. A 1.0% advance on Friday took gold |
|Social Security after you and |to a Friday COMEX settlement of $1,155.90 an ounce – its highest close since August. For the week, the yellow |
|your former spouse both turn 62|metal gained 1.7%.3 |
|– even if they’ve remarried. | |
|Visit to learn more. |DOVISH FED STANCE HELPS STOCKS JUMP |
| |The bulls certainly came back to Wall Street last week: the S&P 500 had its best five days in some time, rising |
| |3.26% to a Friday close of 2,014.89. Across October 5-9, tech shares rallied to send the Nasdaq 2.61% higher to |
|WEEKLY RIDDLE |4,830.47. The Dow rose 3.72% to 17,084.49 in that time frame.4 |
| | |
|What has hundreds or even |THIS WEEK: Monday is Columbus Day, a federal holiday; the stock market will be open, but the bond market will be |
|thousands of ears but hears |closed. On Tuesday, eBay, Fastenal, Intel, Johnson & Johnson, JPMorgan Chase and Kinder Morgan all report |
|absolutely nothing? |earnings. Wednesday offers earnings from Bank of America, BlackRock, Delta Air Lines, Netflix and Wells Fargo, |
| |along with a new Federal Reserve Beige Book, September’s PPI and September retail sales numbers. The latest |
| |initial claims report and the September CPI come out Thursday, plus earnings from BB&T, Blackstone Group, Charles |
|Last week’s riddle: |Schwab, Citigroup, First Republic, Goldman Sachs, Mattel, Philip Morris, Schlumberger, U.S. Bancorp, UnitedHealth,|
|What wintry thing flies as it |WD-40 and Winnebago. On Friday, earnings from Comerica, General Electric, Honeywell International, Progressive and|
|is born, lies when alive, and |SunTrust Banks arrive, plus October’s initial University of Michigan consumer sentiment index and a report on |
|runs when dead? |September industrial output. |
| | |
|Last week’s answer: |% CHANGE |
|A snowflake. |Y-T-D |
| |1-YR CHG |
| |5-YR AVG |
| |10-YR AVG |
| | |
| |DJIA |
| |-4.14 |
| |+2.55 |
| |+11.04 |
| |+6.69 |
| | |
| |NASDAQ |
| |+1.99 |
| |+10.33 |
| |+20.22 |
| |+13.24 |
| | |
| |S&P 500 |
| |-2.14 |
| |+4.49 |
| |+14.59 |
| |+6.97 |
| | |
| |REAL YIELD |
| |10/9 RATE |
| |1 YR AGO |
| |5 YRS AGO |
| |10 YRS AGO |
| | |
| |10 YR TIPS |
| |0.58% |
| |0.37% |
| |0.45% |
| |1.92% |
| | |
| | |
| | |
| |Sources: , , - 10/9/155,6,7,8 |
| |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. |
| |
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|Securities and Advisory Services Offered through SII Investments, Inc, Member FINRA/SIPC and a Registered Investment Advisor. SII and Mader |
|Wealth Inc. are separate and unrelated companies. |
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|This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This|
|information has been derived from sources believed to be accurate. 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. 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. This material represents an assessment of the market environment at a specific point in time and is not |
|intended to be a forecast of future events, or a guarantee of future results. Past performance is no guarantee of future results. Investments |
|will fluctuate and when redeemed may be worth more or less than when originally invested. 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. |
| |
|Citations. |
|1 - 2015/10/08/fed-minutes-members-worried-about-slower-global-growth.html [10/8/15] |
|2 - investor/calendars/economic/2015/10/05-09 [10/9/15] |
|3 - investing/2015/10/09/the-4-stocks-that-lifted-the-djia-on-friday-5/ [10/9/15] |
|4 - markets.on.research/markets/usmarkets/usmarkets.asp [10/9/15] |
|5 - markets.us [10/9/15] |
|6 - bigcharts.historical/default.asp?symb=DJIA&closeDate=10%2F9%2F14&x=0&y=0 [10/9/15] |
|6 - bigcharts.historical/default.asp?symb=COMP&closeDate=10%2F9%2F14&x=0&y=0 [10/9/15] |
|6 - bigcharts.historical/default.asp?symb=SPX&closeDate=10%2F9%2F14&x=0&y=0 [10/9/15] |
|6 - bigcharts.historical/default.asp?symb=DJIA&closeDate=10%2F8%2F10&x=0&y=0 [10/9/15] |
|6 - bigcharts.historical/default.asp?symb=COMP&closeDate=10%2F8%2F10&x=0&y=0 [10/9/15] |
|6 - bigcharts.historical/default.asp?symb=SPX&closeDate=10%2F8%2F10&x=0&y=0 [10/9/15] |
|6 - bigcharts.historical/default.asp?symb=DJIA&closeDate=10%2F10%2F05&x=0&y=0 [10/9/15] |
|6 - bigcharts.historical/default.asp?symb=COMP&closeDate=10%2F10%2F05&x=0&y=0 [10/9/15] |
|6 - bigcharts.historical/default.asp?symb=SPX&closeDate=10%2F10%2F05&x=0&y=0 [10/9/15] |
|7 - resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [10/9/15] |
|8 - resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [10/9/15] |
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