Economic Update September 30, 2013

September 30, 2013  |   News

Tony Dale Inc. Presents:

 

WEEKLY ECONOMIC UPDATE

 

 

WEEKLY QUOTE

 

“No man really becomes a fool until he stops asking questions.”

 

- Charles P. Steinmetz

 

 

WEEKLY TIP

            

If you are over 50 and eager to start your own business, see if it can become a profitable hobby first. 

 

 

WEEKLY RIDDLE

 

8549176320 is a large number, and unique for two reasons. It presents all of the numerical digits from 0-9 without a repeat; what is the other reason?

 

 

Last week’s riddle:

In the morning, I lie at your feet. I almost vanish in midday sun. But I’ll be with you all day as you stand, walk, leap a run. What am I? 

 

Last week’s answer:

Your shadow.

 

 

September 30, 2013

 

HOUSEHOLDS BOOST THEIR SPENDING

August saw a 0.3% gain in personal spending, and the Commerce Department also noted a 0.4% rise in personal income – the largest monthly increase since February. Consumer spending accounts for about 70% of GDP, and analysts widely expect about 2% growth in Q3; Q2 growth was pegged at 2.5% last week in the federal government’s final estimate. In other economic news out of Washington, durable goods orders rose 0.1% in August, a nice change from the 8.1% dive in July.1,2

 

NEW HOME SALES UP, PENDING HOME SALES DOWN

July was the worst month for new home buying since October 2012, so the 7.9% sales gain in August was welcome. New home inventory rose 3.6% in August to the highest level since March 2011, the Commerce Department noted. The National Association of Realtors reported a 1.6% decline in pending home sales in August. July’s S&P/Case-Shiller Home Price Index showed a 12.4% yearly rise in home values across 20 cities – the best 12-month increase since February 2006.3,4

 

ASSESSMENTS OF CONSUMER SENTIMENT DIFFER

September’s Conference Board consumer confidence index came in at 79.7, down notably from the August reading of 81.8. The University of Michigan’s final consumer sentiment index for the month offered a 77.5 reading, the lowest mark for the index in almost five months; even so, it beat the final August mark of 76.8 and the Briefing.com consensus forecast of 77.0.2,5

 

STOCKS DIP DURING ANXIOUS WEEK

With a last-minute showdown over the federal budget looming in Congress and consumers and business owners trying to learn more about the healthcare exchanges slated to open October 1, there was a lot to concern Wall Street and Main Street last week. The Dow (-1.25 to 15,258.24) and S&P 500 (-1.06% to 1,691.75) made weekly retreats, but the NASDAQ rose 0.18% in five days to settle at 3,781.59 Friday.5

 

THIS WEEK: No major economic releases are scheduled for Monday; Wall Street’s eyes will be on Congress. Tuesday, ISM presents its September manufacturing index, August auto sales numbers are out from the Commerce Department, and Walgreens and Global Payments present earnings. Wednesday brings ADP’s employment change report for September and earnings from Monsanto; Ben Bernanke speaks (briefly) at the St. Louis Fed. Thursday offers ISM’s September non-manufacturing index, the September Challenger job-cut report, the latest initial jobless claims figures, a report on August factory orders and earnings from Constellation Brands. Friday sees the release of the Labor Department’s September employment report.

 

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

+16.44

+13.14

+7.39

+6.38

NASDAQ

+25.24

+20.56

+14.64

+11.10

S&P 500

+18.62

+16.90

+7.89

+7.18

REAL YIELD

9/27 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

0.46%

-0.78%

2.10%

1.99%

 

Sources: cnbc.com, bigcharts.com, treasury.gov – 9/27/135,6,7,8

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

These returns do not include dividends.

 

 

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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 – boston.com/business/news/2013/09/27/consumers-boost-spending-percent-august/WyHqaMk2ryd7OwGcGLQ8kK/story.html [9/27/13]

2 – briefing.com/investor/calendars/economic/2013/09/23-27 [9/27/13]

3 – dailyfinance.com/2013/09/25/higher-mortgage-rates-dent-new-home-sales-housing-market/ [9/25/13]

4 – bloomberg.com/news/2013-09-26/pending-sales-of-existing-homes-in-u-s-decreased-1-6-in-august.html [9/26/13]

5 – tinyurl.com/m9uq9ow [9/27/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F27%2F12&x=0&y=0 [9/27/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F27%2F12&x=0&y=0 [9/27/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F27%2F12&x=0&y=0 [9/27/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F26%2F08&x=0&y=0 [9/27/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F26%2F08&x=0&y=0 [9/27/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F26%2F08&x=0&y=0 [9/27/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F26%2F03&x=0&y=0 [9/27/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F26%2F03&x=0&y=0 [9/27/13]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F26%2F03&x=0&y=0 [9/27/13]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/27/13]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/27/13]

 

 

 

 

 

 

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