Weekly Economic Update

August 26, 2013

    

ARE COSTLIER MORTGAGES IMPACTING HOME SALES?

On Friday, the Census Bureau announced an unexpected 13.4% drop in new home purchases for July. In contrast to that news, the National Association of Realtors stated that existing home sales rose 6.5% last month. So what is the takeaway here? Most new home purchase contracts close months in the future, and many buyers of existing homes may have locked in the rates of home loans in spring. Is the dip in new home buying a direct, alarming reflection of the recent jump in mortgage rates? Will it give the Federal Reserve pause about tapering?1

LEADING INDICATORS RISE IN JULY

The 0.6% increase in the Conference Board Leading Economic Index was a nice change after its flat June reading. The LEI now stands at 96.0, edging closer to its original mark of 100. From February to July, it rose 2.0%; in the preceding six months, it rose 1.1%.2

GOLD CLIMBS BACK TOWARD $1,400

Friday’s COMEX settlement price was the highest since June: $1,395.80 per ounce. The troubling news about new home sales may have had an effect. NYMEX crude also gained $1.39 Friday, settling at $106.42.3

STOCKS REGAIN SOME MOMENTUM

Last week saw two unusual occurrences in the financial world: a three-hour trading interruption for the NASDAQ on Thursday, and a Federal Reserve symposium in Jackson Hole, WY without the presence of Ben Bernanke. The S&P 500 rose 0.46% in five days to settle at 1,663.50 Friday. The NASDAQ also advanced; its 1.52% weekly rise brought it to 3,657.79 at week’s end. As for the Dow, it declined 0.47% across five days to 15,010.51.4

THIS WEEK: Monday brings the July durable goods orders report from the Census Bureau. The June S&P/Case-Shiller Home Price Index and the Conference Board’s August consumer confidence poll both arrive Tuesday. Wednesday, the National Association of Realtors provides numbers on July pending home sales. The second estimate of Q2 GDP appears Thursday, courtesy of the Bureau of Economic Analysis; the latest initial jobless claims figures also become available. On Friday, August ends with the month’s final consumer sentiment index from the University of Michigan and the Commerce Department’s report on July consumer spending.

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

+14.55

+14.96

+5.82

+6.06

NASDAQ

+21.14

+19.79

+10.30

+10.72

S&P 500

+16.64

+18.65

+5.75

+6.75

REAL YIELD

8/23 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

0.69%

-0.62%

1.69%

2.26%

 

Sources: usatoday.com, bigcharts.com, treasury.gov – 8/23/135,6,7,8

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.

These returns do not include dividends.

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. 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. 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 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.

 

Citations.

1 – nasdaq.com/article/what-happened-to-new-home-sales-real-time-insight-cm269852 [8/23/13]

2 – tinyurl.com/lhm84lb [8/22/13]

3 – abcnews.go.com/Business/wireStory/corn-prices-drop-percent-metals-oil-rise-20041509 [8/23/13]

4 – thestreet.com/story/12017038/1/stocks-opens-higher-as-microsoft-jumps.html [8/23/13]

5 – usatoday.idmanagedsolutions.com/stocks/overview.idms?index=DJIA [8/23/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F23%2F12&x=0&y=0 [8/23/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F23%2F12&x=0&y=0 [8/23/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F23%2F12&x=0&y=0 [8/23/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F22%2F08&x=0&y=0 [8/23/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F22%2F08&x=0&y=0 [8/23/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F22%2F08&x=0&y=0 [8/23/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F22%2F03&x=0&y=0 [8/23/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F22%2F03&x=0&y=0 [8/23/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F22%2F03&x=0&y=0 [8/23/13]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/23/13]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/23/13]

The Retirement Group is not affiliated with nor endorsed by fidelity.com, netbenefits.fidelity.com, hewitt.com, resources.hewitt.com, access.att.com, Chevron, , Northrop Grumman, Raytheon, ExxonMobil, Glaxosmithkline, Merck, Pfizer, Verizon, Hughes, Bank of America, ING Retirement, AT&T, Qwest, Alcatel-Lucent or by your employer. We are an independent financial advisory group that specializes in transition planning and lump sum distribution. Please call our office at 800-900-5867 if you have additional questions or need help in the retirement planning process.

This material was prepared by Peter Montoya Inc, and does not necessarily represent the views of Albert Aizin and The Retirement Group or FSC Financial Corp. This information should not be construed as investment advice. Neither the named Representatives nor Broker/Dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information or call 800-900-5867.

Albert Aizin is a Representative with FSC Securities and may be reached at http://www.theretirementgroup.com.

 

Advertisements