Anthony A. Davidson, Investment Advisor Representative Presents:
WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE
“Rules too soft are seldomly followed; rules too harsh are seldomly executed.”
– Ben Franklin
WEEKLY TIP
In retirement, one of your goals should be to grow your assets faster than inflation devalues them. You must sustain your purchasing power.
WEEKLY RIDDLE
Robert will paint unit numbers on 100 storage units today. In the course of painting a number from 1 to 100 on the door of each unit, how many times will he have to paint the numeral 3 today?
Last week’s riddle:
Until it is measured it is not accurately known, yet you may miss it when it has flown. What is it?
Last week’s answer:
Time.
October 26, 2015
EXISTING HOME SALES ACCELERATE
The National Association of Realtors measured a 4.7% gain in residential resales for September, and the annualized sales pace of 5.55 million units was the second best seen since February 2007. Over the past 12 months, existing home sales are up 8.8% with the average sale price up 6.1% (September’s median sale price was $221,900).1
MORE HOUSING STARTS IN SEPTEMBER
Last month saw a 6.5% increase in groundbreaking according to the Census Bureau. That brought the 12-month increase in housing starts to 17.5%. The rate of building permits issued fell by 5.0% in September, but that still left a 4.7% yearly gain.2
OIL & GOLD RETREAT
On the COMEX, gold settled at $1,162.80 Friday, marking a 1.7% weekly loss. WTI crude dropped 5.6% last week, settling Friday at $44.60 on the NYMEX.3
S&P TURNS POSITIVE YTD; NASDAQ BACK ABOVE 5,000
More easing by China’s central bank and strong earnings from tech giants helped equities. The Nasdaq rose 2.97% for the week to a Friday close of 5,031.86. The Dow rose 2.50% on the week to 17,646.70, the S&P 500 2.07% to 2,075.15.3,4
THIS WEEK: September new home sales figures arrive Monday, plus earnings from Cheesecake Factory, MGM Resorts and Xerox. Tuesday brings September’s durable goods report, August’s Case-Shiller home price index, the latest Conference Board consumer confidence index and earnings from Airgas, Anadarko Petroleum, Alibaba, Apple, Big 5, Bristol-Myers Squibb, Coach, Comcast, Corning, Cummins, Express Scripts, Ford Motor Co., Edison International, JetBlue, Lexmark, Macerich, Magellan Health, Merck, NCR, Panera, Pfizer, Revlon, Spirit Airlines, T-Mobile, Twitter and Waste Management. A new Federal Reserve policy statement appears Wednesday plus earnings from Amgen, Anthem, AutoNation, Buffalo Wild Wings, Ferrari, General Dynamics, Garmin, GoPro, IMAX, Hanesbrands, HealthSouth, Hershey, Hilton Worldwide, LifeLock, Marriott, PG&E, Norfolk Southern, O’Reilly, Public Storage, Starwood Hotels & Resorts, Tesoro, Valero, Western Digital and Yelp. Thursday offers the first estimate of Q3 GDP, a new initial claims report, and earnings from Aetna, Altria, Baidu, Coca-Cola, ConocoPhillips, Electronic Arts, Expedia, Fluor, LinkedIn, Live Nation, MasterCard, Starbucks, Sherwin-Williams, Time Warner Cable, Virgin America and Western Union. Friday, new personal spending figures and October’s final University of Michigan consumer sentiment index are out, plus earnings from Chevron, Colgate-Palmolive, CVS Health, ExxonMobil, Phillips 66, Seagate and Weyerhaeuser.
% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA -0.99 +5.81 +11.70 +6.99
NASDAQ +6.25 +13.00 +20.59 +13.78
S&P 500 +0.79 +6.37 +15.08 +7.30
REAL YIELD 10/23 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.58% 0.38% 0.50% 1.93%
Sources: wsj.com, bigcharts.com, treasury.gov – 10/23/155,6,7,8
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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Anthony A. Davidson is a Representative with Securities America, Inc. and Securities America Advisors, Inc., and may be reached at www.wealthhappens.net, 859-245-5880 or Anthony@wealthhappens.net.
Trading instructions sent via e-mail may not be honored. Please contact my office at 859-245-5880 or contact Securities America, Inc. at 800-747-6111 for all buy/sell orders. Please be advised that communications regarding trades in your account are for informational purposes only. You should continue to rely on confirmations and statements received from the custodian(s) of your assets.
Securities offered through Securities America, Inc., member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc., An SEC Registered Investment Advisory Firm. Davidson Financial Services and the Securities America companies are unaffiliated.
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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 – cnbc.com/2015/10/22/existing-home-sales-hit-555m-units-in-sept-vs-expectations-of-538m.html [10/22/15]
2 – 247wallst.com/housing/2015/10/20/housing-starts-rose-less-than-expected-in-september/ [10/20/15]
3 – 247wallst.com/investing/2015/10/23/the-4-stocks-that-dominated-the-dow-on-friday/ [10/23/15]
4 – markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [10/23/15]
5 – markets.wsj.com/us [10/23/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F23%2F14&x=0&y=0 [10/23/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F23%2F14&x=0&y=0 [10/23/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F23%2F14&x=0&y=0 [10/23/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F22%2F10&x=0&y=0 [10/23/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F22%2F10&x=0&y=0 [10/23/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F22%2F10&x=0&y=0 [10/23/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F24%2F05&x=0&y=0 [10/23/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F24%2F05&x=0&y=0 [10/23/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F24%2F05&x=0&y=0 [10/23/15]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [10/23/15]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [10/23/15]
