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WEEKLY ECONOMIC UPDATE – July 11, 2011

July 13, 2011
John Jastremski Presents:

 

WEEKLY ECONOMIC UPDATE – July 11, 2011

 

 

 

WEEKLY QUOTE

“A mistake is to commit a misunderstanding.”

– Bob Dylan

 

 

WEEKLY TIP

As you shop for groceries, how many impulsive purchases do you make? Impulsive buying might negate the dollars you are saving through coupons and preferred customer cards.

 

 

WEEKLY RIDDLE

A librarian finds that pages have been ripped out of a novel. Pages 28, 29, 148, 211 and 212 are torn out. Given this, how many separate sheets of paper have been torn from the book?

 

 

Last week’s riddle:
What is the number missing within this sequence? 4, 7, 11, 18, 29, 47, __, 123, 199, 322.

 

 

Last week’s answer:

76. Starting with the third number in the sequence, each number equals the sum of the two preceding numbers.

July 11, 2011

 

MINIMAL JOB CREATION IN JUNE
The Labor Department issued a disappointing unemployment report Friday. In June, non-farm payrolls expanded by just 18,000 jobs. (May’s net job gain was revised down from 54,000 to 25,000.) The unemployment rate was 9.2% in June; it has increased in each month since March.1

 

SERVICE SECTOR GROWS FOR 19th STRAIGHT MONTH

The Institute for Supply Management’s June non-manufacturing index decreased to 53.3 from May’s 54.6 reading, falling a bit below the 54.0 consensus forecast of economists surveyed by Reuters. Prices paid by service-sector companies fell to their lowest level since August, a sign of reduced inflation pressure.2

 

MORE CAPITAL INVESTMENT IN MAY

Factory orders increased by 0.8% in that month. The Commerce Department also noted a 1.6% improvement in non-defense capital goods orders, a 1.8% increase in non-defense capital goods shipments, and a 2.1% rise in demand for hard goods. Separately, the Federal Reserve estimated that factory output rose by 0.4% in May.3

 

IMPRESSIVE WEEK FOR OIL & GOLD
Gold advanced 3.97% across July 5-8 to settle at $1,541.20 on the COMEX Friday. It was gold’s first weekly gain since mid-June. Oil prices rose 1.33% last week to get to at $96.20 a barrel at the NYMEX’s closing bell Friday.4

 

A WIN STREAK BEGINS ON WALL STREET
The S&P 500 advanced 0.31% last week to close at 1,343.80 Friday. The Dow wrapped up the week at 12,657.20; its weekly gain was 0.59%. The NASDAQ was the pacesetter, rising 1.55% across four market days to a Friday close of 2,859.81.5

 

THIS WEEK: Monday is the start of earnings season as Alcoa kicks things off with 2Q results. Tuesday, the Federal Reserve releases the minutes from the June FOMC meeting. Wednesday, Fed chairman Ben Bernanke will present the Fed’s Semiannual Monetary Policy Report to Congress and Yum Brands announces 2Q earnings. Chairman Bernanke’s testimony continues on Thursday, a day with plenty of other news items: we get the June PPI, data on June retail sales from the Commerce Department and fresh initial and continuing claims reports. Friday brings the June CPI, the initial July consumer sentiment survey from theUniversity ofMichigan, a report on June industrial output and earnings from Citigroup and Mattel.

 

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

+9.33

+24.84

+2.82

+2.29

NASDAQ

+7.80

+31.46

+6.85

+4.11

S&P 500

+6.85

+25.56

+1.24

+1.21

REAL YIELD

7/8 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

0.69%

1.25%

2.55%

3.50%

 

Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov – 7/8/115,6,7,8

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 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 – latimesblogs.latimes.com/money_co/2011/07/unemployment-june.html [7/8/11]

2 – chicagotribune.com/business/breaking/chi-service-sector-growth-slows-in-june-ism-reports-20110706,0,6790985.story / [7/6/11]

3 – businessweek.com/news/2011-07-05/orders-to-u-s-factories-rose-0-8-in-may-on-capital-goods.html [7/5/11]

4 – blogs.wsj.com/marketbeat/2011/07/08/data-points-energy-metals-496/ [7/8/11]

5 – cnbc.com/id/43683574 [7/8/11]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F8%2F10&x=0&y=0 [7/8/11]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F8%2F10&x=10&y=18 [7/8/11]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F8%2F10&x=0&y=0 [7/8/11]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F7%2F06&x=0&y=0 [7/8/11]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F7%2F06&x=0&y=0 [7/8/11]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F7%2F06&x=0&y=0 [7/8/11]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F9%2F01&x=0&y=0 [7/8/11]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F9%2F01&x=0&y=0 [7/8/11]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F2%9F01&x=0&y=0 [7/8/11]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [7/8/11]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [7/8/11]

8 – treasurydirect.gov/instit/annceresult/press/preanre/2001/ofm71101.pdf [7/11/01]

9 – montoyaregistry.com/Financial-Market.aspx?financial-market=private-wealth-management&category=4 [7/10/11]

 

 

 

 

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