- David Brinkley

WEEKLY TIP

When it comes to couples and money, a plan is better than an assumption. Discuss your financial goals together and stick to the strategy you make to pursue them.

WEEKLY RIDDLE

A train moving as fast as it can go strikes a man’s hand, yet he is uninjured and the train goes off its tracks. Under what circumstances could this happen?

Last week’s riddle:
The wind is blowing east through the mountains. A lone pine tree stands on a cliff. Which way do its leaves blow?

Last week’s answer:

A pine tree has needles, not leaves. So no leaves are blowing in the first place.

CONSUMER CONFIDENCE TAKES A DIP
The University of Michigan’s initial February consumer sentiment survey fell to 72.5 from its one-year peak of 75.0 at the end of January. Economists polled by Bloomberg News had expected a 74.8 reading. However, the percentage of consumers who felt the jobless rate would fall in future months was at the highest level the survey had seen in 28 years.³

GOLD SLIPS, OIL GAINS
Gold futures pulled back $14.60 last week, settling at $1,723.30 on the COMEX Friday; that left gold up 10.06% YTD. Oil is still hovering around $100: NYMEX crude finished Friday at $98.67, advancing 0.85% for the week.⁴

STOCKS RETREAT FOR THE WEEK ON FRIDAY LOSSES

When the Dow’s worst day of 2012 brings only an 89-point loss, it seems the year is off to a good start. That loss occurred Friday after another stall in the Greek debt negotiations. On the week, the major U.S. indices pulled back a bit: DJIA, -0.47% to 12,801.23; S&P 500, -0.17% to 1,342.64; NASDAQ, -0.06% to 2,903.88.^5,6

THIS WEEK: Monday, President Obama submits his 2013 fiscal budget proposal to Congress. Tuesday, the Census Bureau publishes January retail sales figures and MetLife issues Q4 earnings. Wednesday, the Fed issues the 1/25 FOMC minutes, the federal government comes out with figures on January industrial output and Q4 results arrive from Comcast, Deere, CBS, Abercrombie & Fitch and Nvidia. On Thursday, General Motors, Nordstrom and Baidu come out with earnings and new initial jobless claims are announced; January’s PPI is also released plus data on January housing starts, and Fed chairman Ben Bernanke speaks at an FDIC hearing. Friday, January’s CPI comes out along with the Conference Board’s newest leading economic indicator index; Q4 results come in from Heinz and Campbell’s Soup.

Sources: online.wsj.com, bigcharts.com, treasury.gov, treasurydirect.gov – 2/10/12^6,7,8,9

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

These returns do not include dividends.

Please feel free to forward this article to family, friends or colleagues.
If you would like us to add them to our distribution list, please reply with their address.
We will contact them first and request their permission to add them to our list.

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. 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 – abcnews.go.com/Business/feds-announce-25b-foreclosure-deal/story?id=15545458#.TzWEzOSX1c4 [2/9/12]

2 – www.thefiscaltimes.com/Articles/2012/02/10/What-the-$26-Billion-Bank-Deal-Means-to-You.aspx#page1 [2/10/12]

3 – www.businessweek.com/news/2012-02-10/consumer-sentiment-in-u-s-falls-more-than-forecast-economy.html [2/10/12]

4 – blogs.wsj.com/marketbeat/2012/02/10/data-points-energy-metals-546/ [2/10/12]

5 – montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [2/10/12]

6 – blogs.wsj.com/marketbeat/2012/02/10/data-points-u-s-markets-79/ [2/10/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F10%2F11&x=0&y=0 [2/10/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F10%2F11&x=0&y=0 [2/10/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F10%2F11&x=0&y=0 [2/10/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F9%2F07&x=0&y=0 [2/10/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F9%2F07&x=0&y=0 [2/10/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F9%2F07&x=0&y=0 [2/10/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F11%2F02&x=0&y=0 [2/10/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F11%2F02&x=0&y=0 [2/10/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F11%2F02&x=0&y=0 [2/10/12]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [2/10/12]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [2/10/12]

9 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02]

“If you would be loved, love and be lovable.”

- Benjamin Franklin

WEEKLY TIP

As your retirement progresses, your retirement strategy should be reviewed in light of budgeting and inflation concerns and the current financial climate.

WEEKLY RIDDLE

A lone pine tree stands on a cliff. The wind is blowing from the east through the mountains. Which way do the tree’s leaves blow?

Last week’s riddle:
It has no crown, yet when the chips are down it is more powerful than a king or queen. What is it?

Last week’s answer:

An ace in a deck of cards.

JOBLESS RATE DOWN TO 8.3%

Are we seeing a trend here? The unemployment rate has now fallen 0.8% in the last six months. We haven’t seen a descent this sharp and swift since 1984. January hiring blew away forecasts: the Labor Department said the economy added 243,000 jobs last month, while economists polled by Briefing.com expected non-farm payrolls to grow by 155,000 positions. The labor force hasn’t grown so much in a month since last April, and the numbers are making analysts wonder if the Federal Reserve will tinker with interest rates months ahead of expectations.^1,2

HOUSEHOLDS SAVE FIRST, SPEND SECOND

Consumer spending was flat in December after gains of just 0.1% in November and October. More significantly, consumer incomes rose 0.5% for December and so did the personal savings rate. People essentially put the extra money in the bank. In related news, the federal government estimated 2011 GDP at 1.7%, about half of the economic growth seen in 2010.³

BOTH ISM INDEXES RISE
The Institute for Supply Management’s closely watched purchasing manager indexes signaled expanding service and manufacturing sectors in January. ISM’s service sector PMI improved 3.8% to 56.8. Its manufacturing PMI advanced 1.0% to 54.1.⁴

CASE-SHILLER INDEX DECLINES AGAIN
This was the third straight monthly dip for the 20-city roundup of residential home prices. The latest available edition (November) showed a 1.3% monthly retreat in prices with a 3.7% year-over-year drop.⁵

NASDAQ TOPS 2,900

The tech-heavy index closed at an 11-year high Friday: 2,905.66. The Dow settled at 12, 862.23 at week’s end, its best close since May 2008. The S&P 500 finished Friday at 1,344.90. The weekly gains: DJIA, 1.59%; S&P, 2.17%; NASDAQ, 3.16%.^1,6

THIS WEEK: Earnings take center stage in a stretch without much economic data. Monday brings Q4 results from Yum Brands, Humana and Hasbro. Tuesday, earnings arrive from Disney, UBS, Toyota, BP, Coca-Cola and Hartford Financial. Wednesday, Groupon, VISA, CVS, Sprint Nextel, Time Warner and Cisco join in. Thursday, the Bank of England and ECB wrap up policy meetings; new initial claims figures complement earnings reports from Expedia, PepsiCo, Dunkin’ Brands, Sirius XM Radio, Rio Tinto and Credit Suisse. Friday, the University of Michigan’s initial February consumer sentiment survey comes out plus Q4 results from Barclays.

 
Sources: money.msn.com, bigcharts.com, treasury.gov, treasurydirect.gov – 2/3/12^1,7,8,9

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

These returns do not include dividends.

Please feel free to forward this article to family, friends or colleagues.
If you would like us to add them to our distribution list, please reply with their address.
We will contact them first and request their permission to add them to our list.

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. 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 – money.msn.com/market-news/post.aspx?post=7c25b3c1-0028-46a6-a114-77f785c12529 [2/3/12]

2 – www.briefing.com/investor/calendars/economic/2012/01/30-03 [2/3/12]

3 – www.mercurynews.com/breaking-news/ci_19853130 [1/30/12]

4 – www.ism.ws/ISMReport/NonMfgROB.cfm [2/3/12]

5 – www.latimes.com/business/money/la-fi-mo-home-prices-decline-20120131,0,3490723.story [1/31/12]

6 – montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [2/3/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F3%2F11&x=0&y=0 [2/3/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F3%2F11&x=0&y=0 [2/3/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F3%2F11&x=0&y=0 [2/3/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F2%2F07&x=0&y=0 [2/3/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F2%2F07&x=0&y=0 [2/3/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F2%2F07&x=0&y=0 [2/3/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=2%2F4%2F02&x=0&y=0 [2/3/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=2%2F4%2F02&x=0&y=0 [2/3/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=2%2F4%2F02&x=0&y=0 [2/3/12]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [2/3/12]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [2/3/12]

9 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02]

“Judge each day not by the harvest you reap but by the seeds you plant.”

- Robert Louis Stevenson

WEEKLY TIP

Spending and value should go hand in hand. Reduce or forego spending money on things that don’t bring you much value.

WEEKLY RIDDLE

It has no crown, yet when the chips are down it is more powerful than a king or queen. What is it?

Last week’s riddle:
I’m usually standing on a city sidewalk, and I’ll always stand by your car. But if you don’t feed me, you may get into trouble. What am I?

Last week’s answer:

A parking meter.

ECONOMY GROWS 2.8% in Q4

While this is the best GDP reading since Q2 2010, the initial estimate from the Bureau of Economic Analysis still disappointed the markets. Many economists and investors were looking for growth of 3.0% or better. The majority of the growth actually came from increased inventories. Consumer spending rose 2.0% last quarter, with auto sales being the biggest factor. Durable goods orders did see 3.0% growth in December, putting them 45% above the recession low hit in April 2009.^1,2,3

DIPS IN New & PENDING HOME SALES

The number of signed home sale contracts fell 3.5% in December, according to the National Association of Realtors. Separately, a Census Bureau report showed that new home sales declined 2.2% in December.^4,5

MARQUEE sentiment INDEX at 11-MONTH PEAK
The Thomson Reuters/University of Michigan consumer sentiment index ended January at 75.0. This was way up from December’s 69.9 mark, and it beat the 74.1 reading forecast by economists surveyed by Reuters.^6,7

PRECIOUS METALS GAIN ALLURE
At Friday’s COMEX close, gold was +10.56% YTD, copper +13.18% YTD and silver +21.05% YTD. Crude futures finished last week at $99.56 per barrel on the NYMEX, putting oil merely at +0.74% YTD. (Retail gas prices were +3.67% for the month as of Friday.)²

A STRONG MONTH COMES TO A CLOSE

With just a couple of trading days left, January is shaping up to be the best month for U.S. equities since October (see the YTD numbers below). Across last week, the S&P 500 rose 0.07% to 1,316.33 and the NASDAQ gained 1.07% to 2,816.55; the Dow slipped 0.47% to fall to 12,660.46.¹

THIS WEEK: The December consumer spending report comes out Monday. On Tuesday, earnings reports arrive from Amazon.com, Broadcom, ExxonMobil, UPS, Pfizer and Eli Lilly – and we also get the latest S&P/Case-Shiller home price index and the Conference Board’s January consumer confidence poll. Wednesday, Q4 results roll in from Qualcomm, Electronic Arts, Aetna and Marathon Oil and the latest ISM manufacturing index appears. Besides new initial claims figures, Thursday brings Q4 results from Unilever, Sony, Deutsche Bank, Merck and Beazer Homes. Friday, the January unemployment report is out along with ISM’s service sector index and data on December factory orders; Clorox also issues Q4 results.

Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov – 1/27/12^1,8,9,10

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

These returns do not include dividends.

Please feel free to forward this article to family, friends or colleagues.
If you would like us to add them to our distribution list, please reply with their address.
We will contact them first and request their permission to add them to our list.

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. 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 – www.cnbc.com/id/46162429 [1/27/12]

2 – money.msn.com/market-news/post.aspx?post=6e802a2f-f50a-4ae4-948b-7bc9555ff5f6&_nwpt=1 [1/27/12]

3 – www.npr.org/2012/01/26/145895744/durable-goods-orders-signal-business-investment [1/26/12]

4 – www.reuters.com/article/2012/01/25/us-usa-economy-idUSTRE7BM0AB20120125 [1/25/12]

5 – www.startribune.com/business/138174364.html [1/26/12]

6 – montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [1/27/12]

7 – www.cnbc.com/id/46162624/ [1/27/12]

8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F27%2F11&x=0&y=0 [1/27/12]

8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F27%2F11&x=0&y=0 [1/27/12]

8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F27%2F11&x=0&y=0 [1/27/12]

8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F26%2F07&x=0&y=0 [1/27/12]

8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F26%2F07&x=0&y=0 [1/27/12]

8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F26%2F07&x=0&y=0 [1/27/12]

8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F28%2F02&x=0&y=0 [1/27/12]

8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F28%2F02&x=0&y=0 [1/27/12]

8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F28%2F02&x=0&y=0 [1/27/12]

9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [1/27/12]

9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [1/27/12]

10 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02]

“Sweet are the slumbers of the virtuous man.”
– Joseph Addison

WEEKLY TIP

If your monthly bank statement comes with a fee disclosure, it may be a big hint that fee hikes are coming your way.

WEEKLY RIDDLE

Create a 13-letter word using all 13 of the following letters: O A I I S T T R R D N A M.

Last week’s riddle:
What is worn by the foot and often bought by the yard?

Last week’s answer:

Carpet.

AN UNDERWHELMING RETAIL SALES REPORT
Holiday shopping was strong … or was it? The Census Bureau’s newest monthly retail sales data indicated only a 0.1% gain for December. Yet in the big picture, 2011 was the best year for retail sales since 1999. Total retail sales rose 7.7% last year, online and catalog sales were up 10.6% and overall sales have now improved about 20% from the depths hit during the Great Recession.^1,2

CONSUMER SENTIMENT INDEX INCREASES

The University of Michigan’s preliminary January consumer sentiment survey showed further improvement, with a gain from 69.9 to 74.0; the best reading since last May and better than the 71.5 economists polled by Reuters anticipated.³

NEW BEIGE BOOK NOTES IMPROVING ECONOMY
The Federal Reserve’s new economic snapshot of its 12 banking districts showed 11 noting economic growth. The anecdotal survey noted improvement in auto and retail sales, manufacturing and consumer spending in the last six weeks of 2011.⁴

S&P CUTS CREDIT RATINGS OF 9 EU NATIONS
After U.S. markets closed Friday, Standard & Poor’s downgraded a third of the European Union: it took France from AAA to AA+, cut ratings for Austria, Slovakia, Slovenia and Malta by a notch and booted the ratings of Italy, Portugal, Spain and Cyprus down two notches. S&P said the EU’s debt reduction plan lacks “sufficient size or scope”. Additionally, EU talks on restructuring Greek debt fell apart Friday.⁵

STOCKS ON A WINNING STREAK

The S&P 500 posted its second straight weekly gain across January 9-13, rising 0.88% to 1,289.09. The DJIA rose 1.67% to 12,422.06 and the NASDAQ gained 1.36% to 2,710.67. Last week also saw gains for the U.S. Dollar Index (0.24%) and COMEX gold (0.87%).^5,6

THIS WEEK: U.S. financial markets are closed Monday for the federal holiday honoring Martin Luther King, Jr. Tuesday, Wells Fargo, Citigroup and Charles Schwab issue earnings reports. Wednesday, the December PPI arrives and we will have Q4 earnings from eBay and assorted financial heavy hitters: Goldman Sachs, Bank of NY Mellon, State Street, Northern Trust, PNC Bank and US Bancorp. Thursday, we have December’s CPI, a new initial jobless claims report and Q4 results from more big names: Bank of America, Morgan Stanley, AmEx, IBM, Microsoft, Google, Sony Ericsson, UnitedHealth and Capital One. Friday, last month’s existing home sales figures will be released along with earnings from GE.

 
Sources: money.msn.com, bigcharts.com, treasury.gov, treasurydirect.gov – 1/13/12^1,5,7,8,9

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

These returns do not include dividends.

Please feel free to forward this article to family, friends or colleagues.
If you would like us to add them to our distribution list, please reply with their address.
We will contact them first and request their permission to add them to our list.

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. 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 – www.census.gov/retail/marts/www/marts_current.pdf [1/12/12]

2 – www.chron.com/business/article/Retail-had-record-year-but-eased-in-December-2490293.php [1/12/12]

3 – www.nytimes.com/2012/01/14/business/economy/trade-deficit-and-consumer-sentiment-rise.html [1/14/12]

4 – www.usatoday.com/money/economy/fed/beigebook/story/2012-01-11/fed-beige-book-january/52500550/1 [1/11/12]

5 – money.msn.com/market-news/post.aspx?post=a677f0ec-38f9-432c-bbc1-fb98c5362013 [1/13/12]

6 – montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [1/13/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F13%2F11&x=0&y=0 [1/13/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F13%2F11&x=0&y=0 [1/13/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F13%2F11&x=0&y=0 [1/13/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F12%2F07&x=0&y=0 [1/13/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F12%2F07&x=0&y=0 [1/13/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F12%2F07&x=0&y=0 [1/13/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F14%2F02&x=0&y=0 [1/13/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F14%2F02&x=0&y=0 [1/13/12]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F14%2F02&x=0&y=0 [1/13/12]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [1/13/12]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [1/13/12]

9 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02]

“You must do the thing you think you cannot do.”

– Eleanor Roosevelt

WEEKLY TIP

It may be a good idea to make your 2012 IRA contribution at the start of the year, rather than waiting until the tax filing deadline of the following year. That way the contributed assets will have more time to compound.

WEEKLY RIDDLE

They can run side by side for thousands of miles; they are made of steel. While they constantly touch the ground, they seldom meet or touch each other. What are they?

Last week’s riddle:
They are sometimes stomped on, yet they can also be very tasty and sweet. What are they?

Last week’s answer:

Grapes.

STOCKS IN 2011: DJIA +5.5%, S&P 500 ENDS FLAT
The Dow Jones Industrial Average bucked a global trend and advanced in 2011. The index rose 11.95% in the fourth quarter, a move that separated it from a pack of overseas benchmarks that finished the year with double-digit percentage losses. In terms of price return, the S&P 500 recorded its smallest annual change since 1947 (see below). The S&P’s total return for 2011 was +2.11%. With all the fears about Europe and the Federal Reserve keeping interest rates incredibly low, long-term Treasuries had their best year since 2008 with a total return of 33%.^1,2,3

CONSUMER CONFIDENCE BAROMETER RISES

The Conference Board’s index of consumer confidence saw a big jump north in December, soaring 9.3 points to 64.5. Economists surveyed by Reuters had expected it to come in at 58.3.⁴

HOME SALE PRICES DOWN, HOME SALE CONTRACTS UP
The good news? The National Association of Realtors said its pending home sales index reached a 19-month peak in November, moving to 100.1 for a 5.9% annual gain. The bad news? The October edition of the S&P/Case-Shiller Home Price Index slipped 1.2% from its September level.^4,5

HIGHS & LOWS IN KEY COMMODITIES FOR 2011
Gold lost 10.48% for the month but went +10.23% for the year, in contrast to copper (-22.73%) and silver (-9.77%). Crude oil advanced 8.15% in 2011, while retail gas prices rose 6.41%. Notable yearly dives were made by natural gas (-32.15%) and cotton (-36.69%). The U.S. Dollar Index gained 1.56% on the year.²

A MINOR RETREAT TO END THE YEAR

All three major U.S. stock indices lost ground in the last trading week of 2011. The four-day performances across December 27-30: DJIA, -0.62% to 12,217.56; NASDAQ, -0.52% to 2,605.15; S&P 500, -0.61% to 1,257.60.^1,6

THIS WEEK: The NYSE is closed Monday in celebration of the New Year’s Day holiday. Tuesday, the ISM manufacturing index for December is released, plus the most recent FOMC minutes. No major economic releases are scheduled on Wednesday. On Thursday, Monsanto, Amgen and Family Dollar announce earnings, ISM issues its December service sector PMI and new initial claims figures arrive. Friday brings the December jobs report from the Labor Department.

 
Sources: online.wsj.com, bigcharts.com, treasury.gov, treasurydirect.gov – 12/30/11^1,7,8,9

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

These returns do not include dividends.

Please feel free to forward this article to family, friends or colleagues.
If you would like us to add them to our distribution list, please reply with their address.
We will contact them first and request their permission to add them to our list.

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. 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 – blogs.wsj.com/marketbeat/2011/12/30/data-points-u-s-markets-71/ [12/30/11]

2 – money.msn.com/market-news/post.aspx?post=7a929e98-4d99-44cb-98c9-a0ef1c3151c4 [12/30/11]

3 – blogs.wsj.com/marketbeat/2011/12/30/for-the-sp-500-2011-bascially-never-happened/ [12/30/11]

4 – www.reuters.com/article/2011/12/27/us-economy-idUSTRE7BE12S20111227 [12/27/11]

5 – www.realtor.org/press_room/news_releases/2011/12/phs_nov [12/29/11]

6 – montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [12/30/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F29%2F06&x=0&y=0 [12/30/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F29%2F06&x=0&y=0 [12/30/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F29%2F06&x=0&y=0 [12/30/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F31%2F01&x=0&y=0 [12/30/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F31%2F01&x=0&y=0 [12/30/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F31%2F01&x=0&y=0 [12/30/11]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [12/30/11]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [12/30/11]

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

“Life is an adventure in forgiveness.”

– Norman Cousins

WEEKLY TIP

If 2012 is a year in which you start a business, remember three essentials to have on hand: an emergency fund, a year’s worth of operating capital and the support of your spouse or partner.

WEEKLY RIDDLE

They are sometimes stomped on, yet they can also be very tasty and sweet. What are they?

Last week’s riddle:
A man leaves home and makes three left turns. He comes home again and sees two masked men waiting for him, but he jogs straight toward them with a smile as others cheer. Why is this man so unafraid?

Last week’s answer:

He is a baseball player who has just hit a home run. The masked men are the umpire and the other team’s catcher.

PAYROLL TAX HOLIDAY EXTENDED FOR 2 MONTHS
Friday, President Obama signed an extension of the payroll tax cut lasting through February 29. The stopgap legislation also extends long-term unemployment benefits through that date and postpones a 27% reduction in Medicare payments to doctors. The federal government will pay for the extenders by having Fannie Mae and Freddie Mac hike guarantee fees on new mortgages, a cost that will be passed on to those buying or refinancing a home in 2012.¹

GAINS IN HARD GOODS ORDERS, CONSUMER SPENDING

November’s consumer spending increase was tiny: 0.1%. Wages advanced just 0.1% as well. However, last month also saw a 3.8% rise in durable goods orders (the best month for that indicator since July).^2,3

IMPROVED HOME SALES, HOUSING STARTS
The Census Bureau reported a 1.6% increase in new home purchases in November, with the new home inventory at its smallest since March 2006. Housing starts hit a 19-month peak in November, soaring 9.3% on the month. Existing home sales also improved notably in November, rising 4.0%; according to the National Association of Realtors, that was the best month since January.³

CONSUMERS FEELING MERRIER
December’s final Thomson Reuters/University of Michigan consumer sentiment survey came in at 69.9 compared with November’s final 64.1 mark. That also beat the 68.0 estimate forecast by economists Reuters had surveyed.⁴

A YEAR-END RALLY GETS ROLLING

Stocks showed definite momentum last week. The 5-day performances: DJIA, +3.60% to 12,294.00: NASDAQ, +2.48% to 2,618.64; S&P 500, +3.74% to 1,265.33. At the close on Friday, oil settled at $99.68 on the NYMEX, gold closed at $1,606.00 on the COMEX, retail gasoline prices had fallen 2.15% in the past 30 days and natural gas futures were at lows unseen in four years.^2,5

THIS WEEK: No major economic releases are on tap for Monday, Wednesday or Friday. Tuesday, the October edition of the S&P/Case-Shiller home price index arrives plus the Conference Board’s newest consumer confidence poll. Thursday, the National Association of Realtors issues its November report on pending home sales and we get the latest initial claims figures.

 
Sources: money.msn.com, bigcharts.com, treasury.gov, treasurydirect.gov – 12/23/11^2,6,7,8

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

These returns do not include dividends.

Please feel free to forward this article to family, friends or colleagues.
If you would like us to add them to our distribution list, please reply with their address.
We will contact them first and request their permission to add them to our list.

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. 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 – money.cnn.com/2011/12/23/news/economy/payroll_tax_cut_deal/ [12/23/11]

2 – money.msn.com/market-news/post.aspx?post=ef94fe40-0c3a-4fc1-bbe6-e6f3f7345f37 [12/23/11]

3 – www.businessweek.com/news/2011-12-23/sales-of-u-s-new-homes-in-november-rise-to-315-000-rate.html [12/23/11]

4 – www.reuters.com/article/2011/12/22/us-usa-economy-sentiment-idUSTRE7BL0YR20111222 [12/13/11]

5 – montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [12/23/11]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F23%2F10&x=0&y=0 [12/23/11]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F23F2%2F10&x=10&y=18 [12/23/11]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F23%2F10&x=0&y=0 [12/23/11]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F22%2F06&x=0&y=0 [12/23/11]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F22%2F06&x=0&y=0 [12/23/11]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F22%2F06&x=0&y=0 [12/23/11]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F24%2F01&x=0&y=0 [12/23/11]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F24%2F01&x=0&y=0 [12/23/11]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F24%2F01&x=0&y=0 [12/23/11]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [12/23/11]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [12/23/11]

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

“Comedy is simply a funny way of being serious.”

– Peter Ustinov

WEEKLY TIP

About to do some holiday shopping? Try keeping your credit cards at home. The interest you save can be a financial gift to yourself.

WEEKLY RIDDLE

A man leaves home and makes three left turns. He comes home again and sees two masked men waiting for him, but he jogs straight toward them with a smile as others cheer. Why is this man so unafraid?

Last week’s riddle:
Seven people stand in a square room which measures 30′ x 30′. Each one can see the entire room and everyone in it without making any physical movement (aside from eye movement). Where inside this room can you place an apple so that all but one person can see it?

Last week’s answer:

Place the apple on one person’s head.

JOBLESS CLAIMS FALL TO 3½-YEAR LOW
Last Thursday, the Labor Department announced that 366,000 Americans filed initial jobless claims in the week ending December 10, the lowest weekly figure since March 2008. This was a drop of 19,000 from the preceding week and refuted the expectations of some economists. This may be a sign that the jobless rate, currently at 8.6%, could be poised to fall further.¹

HAS INFLATION PEAKED?
The federal government’s Consumer Price Index was flat in November after a 0.1% retreat in October. While core inflation rose 0.2% last month, the Federal Reserve now expects 1.7% inflation across 2012 compared to a projected 2.8% for 2011. Producer prices were up 0.3% in November; core PPI advanced 0.1%. The year-over-year rise in wholesale prices was 5.7%, the smallest 12-month gain since March.^2,3

RETAIL SALES RISE 0.2% in NOVEMBER
While many economists hoped for a bigger advance, the November increase marked the sixth straight monthly gain for the indicator. Lower gas prices may have left consumers with greater discretionary funds: on Friday, AAA said a gallon of regular unleaded averaged $3.25 nationally, 18.4% below a peak hit in early May.^2,4

GOLD & OIL TAKE A HIT
Gold lost a whopping 6.93% last week; oil fell 5.49%. Gold settled at $1,597.90 on the COMEX and oil closed Friday’s NYMEX trading day at $93.87.²

STOCKS PULL BACK
Citing “the absence of a credible financial backstop” in the EU debt crisis, Fitch Ratings downgraded France Friday and placed the credit ratings of Spain and Italy on review. It was a wan note to end a rough week, as these numbers point out: DJIA, -2.61% to 11,866.39; S&P 500, -2.83% t0 1,219.66; NASDAQ, -3.46% to 2,555.33.^2,5,6

THIS WEEK: No major U.S. economic releases are scheduled for Monday. On Tuesday, we learn about November housing starts and earnings reports arrive from Nike, Oracle, ConAgra and General Mills. Wednesday brings the NAR report on November existing home sales plus earnings out of CarMax, Bed Bath & Beyond and Walgreen’s. Thursday we get the final December consumer sentiment survey from the University of Michigan, the Conference Board’s LEI for November, initial claims numbers and the final 3Q GDP estimate from Washington. Friday brings three big reports: November new home sales, durable goods orders and consumer spending.

 
Sources: money.msn.com, bigcharts.com, treasury.gov, treasurydirect.gov – 12/16/11^2,7,8,9

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

These returns do not include dividends.

Please feel free to forward this article to family, friends or colleagues.
If you would like us to add them to our distribution list, please reply with their address.
We will contact them first and request their permission to add them to our list.

»

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. 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 – money.cnn.com/2011/12/15/news/economy/unemployment_benefits/index.htm [12/15/11]

2 – money.msn.com/market-news/post.aspx?post=3a7b4ee5-c1fb-4eda-8bd3-901a162aeaed [12/16/11]

3 – www.latimes.com/business/la-fi-wholesale-prices-20111215,0,6933077.story [12/15/11]

4 – www.usatoday.com/money/industries/retail/story/2011-12-13/retail-sales-november/51866224/1 [12/13/11]

5 – montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [12/16/11]

6 – www.brisbanetimes.com.au/business/world-business/france-rating-outlook-lowered-spain-italy-on-review-fitch-20111217-1ozhg.html [12/17/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F16%2F10&x=0&y=0 [12/16/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F16F2%2F10&x=10&y=18 [12/16/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F16%2F10&x=0&y=0 [12/16/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F15%2F06&x=0&y=0 [12/16/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F15%2F06&x=0&y=0 [12/16/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F15%2F06&x=0&y=0 [12/16/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F17%2F01&x=0&y=0 [12/16/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F17%2F01&x=0&y=0 [12/16/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F17%2F01&x=0&y=0 [12/16/11]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [12/16/11]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [12/16/11]

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

“Education is the transmission of civilization.”

– Will Durant

WEEKLY TIP

In search of a sizable tax deduction? One idea: donate clothes, electronics and other household items to an IRS-approved charity before 2012 arrives. There are free online tools that can help you keep track of itemized deductions.

WEEKLY RIDDLE

Seven people stand in a square room which measures 30′ x 30′. Each one can see the entire room and everyone in it without making any physical movement (aside from eye movement). Where inside this room can you place an apple so that all but one person can see it?

Last week’s riddle:
Alexandra’s mom had four children. The first one was named May, the second was named June, and the third was named August. What was the fourth child’s name?

Last week’s answer:

Alexandra.

CONSUMERS FEEL BETTER IN EARLY DECEMBER
December’s initial University of Michigan consumer sentiment index is in, and the reading of 67.7 represents a six-month high. This is a 3.6% increase from the final November survey. The sub-index of consumer expectations (which some regard as an indicator of future consumer spending) improved from 55.4 to 61.1. In other positive news for households, retail gas prices hit a low unseen since February on December 5, according to the American Automobile Association, $3.27 was the national average for a gallon of regular unleaded.¹

SERVICE SECTOR GROWTH MODERATES
The 52.0 reading on the Institute for Supply Management’s November service sector index was the lowest since January 2010. Anything above 50 still denotes expansion, but the reading disappointed investors; economists polled by Reuters had forecast a 0.6% gain to 53.5.²

MORTGAGE APPS RISE ALMOST 13%
The Mortgage Bankers Association reports that home loan demand hit a four-month peak in the week of November 28-December 2. According to Freddie Mac’s latest figures, the average rate on the 15-year FRM was 3.27% last week; interest rates on 30-year FRMs averaged 3.99%.³

GOLD & OIL RETREAT FOR THE WEEK
Despite strong Friday gains, oil and gold both had down weeks. Oil futures slipped 1.54% across five days to $99.41 while gold futures lost $34.20 across the same time frame to settle at $1,712.80 per ounce on the COMEX December 9.⁴

RALLY REACHES TWO WEEKS
A new EU fiscal treaty helped stocks push north Friday, (even with the UK opting out of the deal). Across December 5-9, the DJIA gained 1.37%, the S&P 500 0.88% and the NASDAQ 0.76%. At the close on Friday, the Dow was at 12,184.26, the S&P at 1,255.19, and the NASDAQ at 2,646.85.^5,6

THIS WEEK: No major economic news is scheduled for Monday (at least not stateside). On Tuesday, the Census Bureau issues retail sales data for November, a Federal Reserve FOMC meeting occurs and we have 3Q earnings from Best Buy. Wednesday, an OPEC meeting concludes. Thursday, a plethora of earnings reports roll out (Adobe, FedEx, RIM, RiteAid, Discover and Accenture) and we also get the November PPI, the latest weekly jobless claims and a report on industrial output. Friday brings November’s CPI and a speech from ECB president Mario Draghi.

 
Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov – 12/9/11^5,7,8,9

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

These returns do not include dividends.

Please feel free to forward this article to family, friends or colleagues.
If you would like us to add them to our distribution list, please reply with their address.
We will contact them first and request their permission to add them to our list.

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. 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 – www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/12/09/bloomberg_articlesLVY38O0UQVI9.DTL [12/9/11]

2 – www.reuters.com/article/2011/12/05/us-usa-economy-services-idUSTRE7B415X20111205 [12/5/11]

3 – www.usatoday.com/money/economy/housing/story/2011-12-08/mortgage-rates-hover-near-lows/51740400/1 [12/8/11]

4 – blogs.wsj.com/marketbeat/2011/12/09/data-points-energy-metals-534/ [12/9/11]

5 – www.cnbc.com/id/45611888 [12/9/11]

6 – montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [12/9/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F9%2F10&x=0&y=0 [12/9/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F9F2%2F10&x=10&y=18 [12/9/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F9%2F10&x=0&y=0 [12/9/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F8%2F06&x=0&y=0 [12/9/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F8%2F06&x=0&y=0 [12/9/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F8%2F06&x=0&y=0 [12/9/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F10%2F01&x=0&y=0 [12/9/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F10%2F01&x=0&y=0 [12/9/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F10%2F01&x=0&y=0 [12/9/11]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [12/9/11]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [12/9/11]

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

“A lie can travel halfway around the world while the truth is putting on its shoes.”

– Charles Spurgeon

WEEKLY TIP

Dropping a landline and just using your cell phone might save you as much as $300 annually. Using a broadband phone system might give you even greater savings.

WEEKLY RIDDLE

Alexandra’s mom had four children. The first one was named May, the second was named June, and the third was named August. What was the fourth child’s name?

Last week’s riddle:
We all have one, and even though it often demands an answer, it offers no question. What is this device?

Last week’s answer:

A phone.

JOBLESS RATE FALLS TO 8.6%
In November, U.S. unemployment hit its lowest level since March 2009. November’s net job gain was 120,000. While the Bureau of Labor Statistics report showed that the majority of the new hires were made by retailers and temp agencies, this is still a sign of recovery. The underemployment rate fell to 15.6% from the prior 16.2%.¹

SOME (MOSTLY) POSITIVE HOUSING NEWS
Pending home sales soared 10.4% in October, the National Association of Realtors reported. New home sales also were up 1.3% in that month according to the Census Bureau. The September edition of the S&P/Case-Shiller Home Price Index showed price gains in 14 of 20 metro markets; the index gained 0.1% in the third quarter, but was down 3.9% from a year ago.²

MANUFACTURING SECTOR EXPANDS
The Institute for Supply Management’s manufacturing index showed sector growth in November. It came in at 52.7; economists polled by Briefing.com had forecast it would read 51.0.³

OIL TOPS $100 AGAIN, GOLD ADVANCES
Crude prices ended the week at $100.96 on the NYMEX, going up 4.33% in five days. Gold futures had their best week in more than a month (+3.64%) and settled at $1747.00 Friday.⁴

S&P 500 GAINS 7.4% IN 5 DAYS
The index had its best week since March 2009, going +7.39% to settle at 1,244.28 Friday. A coordinated central bank move to make cheaper dollar loans available to EU lenders set off a massive Dow rally Wednesday, a big factor behind great weeks for the DJIA (+7.01 to 12,019.42) and NASDAQ (+7.59% to 2,626.93).^5,6

THIS WEEK: All eyes will be on Europe late next week, as there will be an EU summit and we could see notable developments regarding EU member fiscal policies and the future of the euro. Stateside, Monday brings the latest ISM report on the service sector, a look at October factory orders and earnings from Dollar General. Tuesday, Toll Brothers comes out with 3Q results. No major economic releases are slated for Wednesday. Thursday, the Bank of England and European Central Bank conclude policy meetings and Costco announces 3Q results. Friday, we have the conclusion of the EU summit meeting and the initial December consumer sentiment survey from the University of Michigan.

 
Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov – 12/2/11^5,7,8,9

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

These returns do not include dividends.

Please feel free to forward this article to family, friends or colleagues.
If you would like us to add them to our distribution list, please reply with their address.
We will contact them first and request their permission to add them to our list.

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. 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 – www.businessweek.com/news/2011-12-02/payroll-gains-speed-up-as-u-s-jobless-rate-drops-economy.html [12/2/11]

2 – www.thestreet.com/story/11325945/1/pending-home-sales-surge-in-october.html [11/30/11]

3 – www.briefing.com/Investor/Calendars/Economic/Releases/napm.htm [12/1/11]

4 – blogs.wsj.com/marketbeat/2011/12/02/data-points-energy-metals-533/ [12/2/11]

5 – www.cnbc.com/id/45523080 [12/2/11]

6 – montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [12/2/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F02%2F10&x=0&y=0 [12/2/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F2F2%2F10&x=10&y=18 [12/2/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F2%2F10&x=0&y=0 [12/2/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F1%2F06&x=0&y=0 [12/2/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F1%2F06&x=0&y=0 [12/2/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F1%2F06&x=0&y=0 [12/2/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F3%2F01&x=0&y=0 [12/2/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F3%2F01&x=0&y=0 [12/2/11]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F3%2F01&x=0&y=0 [12/2/11]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [12/2/11]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [12/2/11]

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