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WEEKLY ECONOMIC UPDATE 10-10-2011

October 12, 2011
WEEKLY ECONOMIC UPDATE

 

 

 

WEEKLY QUOTE

“Innovation is saying ‘no’ to 1,000 things.”

– Steve Jobs

 

 

WEEKLY TIP

Too many credit card offers in the mail? Did you know that you can opt-out of receiving those? In addition to reducing your mail, it also saves paper and might help to protect you from identity theft. Call 1-888-5-OPTOUT to learn more.

 

WEEKLY RIDDLE

Just twoU.S.states have capital cities whose names include the full name of the state. What states are they?

 

 

Last week’s riddle:
A rain gauge collects rainfall each day of a wet week beginning on Monday. Every day, the amount of rain in the gauge doubles. At Sunday’s end, the rain gauge is completely filled. So on which day is it half-filled?

 

 

Last week’s answer:

Saturday. The rain gauge is half-full on Saturday and the amount of rain in it doubles on Sunday so it becomes completely full.

October 10, 2011

 

HIRING IMPROVES…WITH A FOOTNOTE
Economists polled by MarketWatch had expected non-farm payrolls to increase by 59,000 for September. In a nice surprise, the economy added 103,000 jobs. However, 45,000 of those “hires” were actually striking Verizon employees returning to work. The unemployment rate remained at 9.1% for the third straight month. The Department of Labor revised the July and August jobs reports to include a cumulative 99,000 new hires.1

 

ONE ISM INDEx rises, another RETREATS
The start of the month brings fresh PMIs from the Institute for Supply Management. ISM’s service sector index lost 0.3 points between August and September, but the reading for last month came in at a decent 53.0. Its manufacturing index rose a full percentage point in September to 51.6.2

 

AUTO Sales PICK UP
September’s Commerce Department report showed big demand for domestic car brands: Ford sales rose 9%, GM sales 20% and Chrysler sales 27%. Overall U.S. auto sales were 9.9% improved from September 2010.3

 

RATES ON 30-YEAR FRMs DIP BELOW 4%
Those who can qualify for a refi or want to chance buying will find the lowest home loan rates on record right now. Freddie Mac’s October 6 Primary Mortgage Market Survey reported an average interest rate of 3.94% for conventional 30-year home loans and 3.26% for 15-year fixed-rate mortgages.4

OVERSEAS DECISIONS HELP STOCKS REBOUND
Last week, the European Central Bank announced it would address the EU debt crisis with year-long loans and covered bond purchases. That news and some mildly positive stateside indicators sent stocks higher. Last week’s performances: S&P 500, +2.1% to 1,155.46; DJIA, +1.7% to 11,103.12; NASDAQ, +2.7% to 2,479.35.5,6

 

THIS WEEK: Earnings season officially begins. Monday is Columbus Day; banks are closed, markets are open. Tuesday, Alcoa kicks things off; we also have interim earnings from Chevron and the latest FOMC minutes. Wednesday brings 3Q results from PepsiCo. Thursday, we get earnings from Google, JPMorgan Chase and Safeway and new initial claims figures. On Friday, the G20 finance ministers meet inParis and the initial October University of Michigan consumer sentiment survey comes out, along with Commerce Department reports on business inventories and retail sales; Mattel releases earnings, and the new iPhone is for sale.

 

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

-4.10

+1.41

-1.26

+2.24

NASDAQ

-6.54

+4.01

+1.56

+5.44

S&P 500

-8.12

-0.22

-2.88

+0.88

REAL YIELD

10/7 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

0.16%

0.48%

2.37%

3.50%

 

Sources: usatoday.com, online.wsj.com, bigcharts.com, treasury.gov, treasurydirect.gov – 10/7/115,6,7,8

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 – marketwatch.com/story/september-data-show-improvement-in-jobs-market-2011-10-07 [10/7/11]

2 – ism.ws/ISMReport/NonMfgROB.cfm [10/5/11]

3 – reuters.com/article/2011/10/03/autos-sales-idUSN1E7920NK20111003 [10/3/11]

4 – businessweek.com/ap/financialnews/D9Q717681.htm [10/6/11]

5 – usatoday.com/money/index [10/7/11]

6 – online.wsj.com/article/SB10001424052970203388804576616440244686706.html [10/7/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F7%2F10&x=0&y=0 [10/7/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F7F2%2F10&x=10&y=18 [10/7/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F7%2F10&x=0&y=0 [10/7/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F6%2F06&x=0&y=0 [10/7/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F6%2F06&x=0&y=0 [10/7/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F6%2F06&x=0&y=0 [10/7/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F8%2F01&x=0&y=0 [10/7/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F8%2F01&x=0&y=0 [10/7/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F8%2F01&x=0&y=0 [10/7/11]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [10/7/11]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [10/7/11]

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

10 – montoyaregistry.com/Financial-Market.aspx?financial-market=an-introduction-to-the-stock-market&category=29 [10/7/11]

 

 

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