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WEEKLY ECONOMIC UPDATE – June 27, 2011

June 28, 2011
John Jastremski Presents:

 

WEEKLY ECONOMIC UPDATE – June 27, 2011

 

 

 

WEEKLY QUOTE

“It is better to be absolutely ridiculous then absolutely boring.”
– Marilyn Monroe

 

 

WEEKLY TIP

Don’t “fake it to make it” – that is, don’t live as if you are wealthy to create a perception of success. This is a very good way to get into debt, and to live according to your wants instead of your needs or goals.

 

 

WEEKLY RIDDLE

Wilson, Xavier, Yolanda, and Zach are standing in line at the market. See if you can figure out their order from these clues: Yolanda is betweenWilsonand Xavier, Zach is next toWilson, and Xavier is not first.

 

 

Last week’s riddle:
How much dirt is in a 2-foot diameter hole that is 4 feet deep?

 

 

Last week’s answer:

None – there is no dirt at all in the hole you have dug.

June 27, 2011

 

PEAK HOMEBUYING SEASON, BUT FEWER HOME SALES
The National Association of Realtors reported a 3.8% dip in existing home sales in May, and the Census Bureau noted a 2.1% reduction in new home purchases last month. The good news? New home sales were up 13.5% from last May, with the average price of a new home up $1,400 to $266,400. However, existing home sales were down 15.3% from a year before while the median existing home price was down 4.6% across the past 12 months.1,2

 

IEA RELEASE SHIFTS SENTIMENT IN OIL MARKET

Thursday, the International Energy Agency decided that major oil-producing countries should release oil from their reserves to address a global shortfall. The U.S.will supply half of the 60 million barrels from its Strategic Petroleum Reserve, with the balance coming from nations in Europe and Asia. On Friday, oil  in Europe slipped about 8% and settled at a four-month low; in the U.S.oil lost only 2.4% on the week and settled at $91.16 a barrel on the NYMEX.3

 

POSITIVE SIGNALS FOR BUSINESS INVESTMENT
The Commerce Department reported a 1.9% increase in durable goods orders for May. That’s a nice news item in itself, but consider the last few quarters and you notice that business investment is really ramping up: data from the Census Bureau has orders for new capital equipment rising at a 28% annualized pace during the last three months, and shipments of new capital equipment are up 15% in that span.4,5

 

NASDAQ GLIDES THROUGH VOLATILE WEEK
The tech-heavy index pulled out a 1.39% advance across June 20-24 to settle at 2,652.89 Friday, having a very different week from the Dow (-0.58% to 11,934.58) and the S&P 500 (-0.24% to 1,268.44).6

 

THIS WEEK: Monday, we get the Commerce Department’s report on consumer spending for May, plus earnings from Nike. Tuesday offers the April edition of the S&P Case-Shiller home price index and the Conference Board’s June look at consumer confidence. Wednesday, we have 2Q results from General Mills, Family Dollar, KB Home and Monsanto plus the NAR’s report on May pending home sales. June ends on Thursday, and QE2 ends with it; of course, the latest initial and continuing claims figures will be released. Friday, July begins with theUniversity ofMichigan’s final June consumer sentiment survey, the June ISM manufacturing index, and data on May construction spending.

 

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

+3.08

+17.55

+1.72

+1.36

NASDAQ

+.000008

+19.64

+5.00

+2.94

S&P 500

+0.86

+18.14

+0.38

+0.41

REAL YIELD

6/24 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

0.64%

1.23%

2.64%

3.52%

 

Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov – 6/24/116,7,8,9

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 Peter Montoya Inc, and does not necessarily represent the views of John Jastremski, Jeremy Keating, Erik J Larsen, Frank Esposito, Patrick Ray, Robert Welsch, Michael Reese, Brent Wolf, Andy Starostecki 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.

 

The Retirement Group is not affiliated with nor endorsed by fidelity.com, netbenefits.fidelity.com, hewitt.com, resources.hewitt.com,  access.att.com, ING Retirement, AT&T, Qwest, Chevron, Hughes, Northrop Grumman, Raytheon, ExxonMobil, Glaxosmithkline, Merck, Pfizer, Verizon, Bank of America, 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.

 

John Jastremski is a Representative with FSC Securities and may be reached at www.theretirementgroup.com.

 

Citations.

1 – money.cnn.com/2011/06/23/real_estate/new_home_sales/?section=money_latest [6/23/11]

2 – nytimes.com/2011/06/22/business/economy/22econ.html [6/22/11]

3 – bloomberg.com/news/2011-06-24/oil-fluctuates-in-n-y-on-u-s-durable-goods-orders-iea-reserve-release.html [6/24/11]

4 – marketwatch.com/story/us-durable-goods-orders-rise-19-for-may-2011-06-24 [6/24/11]

5 – marketwatch.com/story/business-investment-is-strengthening-2011-06-24 [6/24/11]

6 – cnbc.com/id/43528501 [6/24/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F24%2F10&x=0&y=0 [6/24/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F24%2F10&x=10&y=18 [6/24/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F24%2F10&x=0&y=0 [6/24/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F23%2F06&x=0&y=0 [6/24/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F23%2F06&x=0&y=0 [6/24/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F23%2F06&x=0&y=0 [6/24/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F25%2F01&x=0&y=0 [6/24/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F25%2F01&x=0&y=0 [6/24/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F25%2F01&x=0&y=0 [6/24/11]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [6/24/11]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [6/24/11]

9 – treasurydirect.gov/instit/annceresult/press/preanre/2001/ofm11001.pdf [1/10/01]

10 -montoyaregistry.com/Financial-Market.aspx?financial-market=tax-loss-harvesting&category=31 [6/26/11]

 

 

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