|John J. Barrios, CFP® Presents:|
“Like a welcome summer rain, humor may suddenly cleanse and cool the earth, the air and you.”
– Langston Hughes
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It has no body, but it has a copper head and copper tail. It can be found in the street and in just about any store. What is it?
Last week’s riddle:
Einstein’s Riddle: A man meets a bear in a wasteland. Both are startled. The man runs north and the bear runs west. Suddenly, the man aims his gun south and shoots the bear. What color is the bear?
Last week’s answer:
White; for the man to do what is described, he must be standing exactly on the North Pole, so the bear has to be a polar bear.
|HANDSHAKE OR STALEMATE AT THE FISCAL CLIFF?
President Obama addressed the dilemma of the fiscal cliff, saying Friday that he was “open to compromise” but noting that he would not accept “any approach that isn’t balanced.” Earlier, House Speaker John Boehner told ABC News that a deal including tax increases would be “unacceptable,” noting that tax code reform would be necessary for any movement. While negotiations between the President and Congressional leaders start this week, Obama and Boehner have held to their stances on the Bush-era tax cuts: on Friday, the President asked Congress to preserve the cuts for the middle class and raise taxes for the wealthiest 2% of Americans, while Speaker Boehner said that the cuts should be extended into 2013 in their entirety.1
SERVICE SECTOR GROWTH SLOWS
The Institute for Supply Management’s latest non-manufacturing index showed a 0.9% decline for October. The 54.2 reading reflected strong but slightly less robust expansion in the service sector. ISM’s non-manufacturing employment index rose for the third straight month, however.2
CONSUMER SENTIMENT METER CONTINUES ITS RISE
November’s initial University of Michigan consumer sentiment survey showed more improvement with a reading of 84.9, up from 82.6 in the final October survey. That surpassed the 82.9 consensus forecast of economists polled by Bloomberg.3
WORRIES HINDER STOCKS
Anxieties over the fiscal cliff prompted a flurry of selling on Wall Street last week. The Dow (-2.12% to 12,815.39), S&P 500 (-2.43% to 1,379.85) and NASDAQ (-2.59% to 2,904.87) retreated severely. NYMEX crude rose 1.43% across five days to settle at $86.07 Friday; COMEX gold gained 3.32% to conclude the week at $1,730.90.4,5
THIS WEEK: Most banks will be closed Monday in observance of Veterans Day; the stock market will be open, with earnings reports arriving from D.R. Horton and Beazer. Tuesday, Cisco, Dick’s Sporting Goods, Saks, Home Depot and TJX all issue earnings. Wednesday, the Census Bureau informs us about October retail sales and October’s PPI comes out along with the October 24 FOMC minutes; Q3 results come in from PetSmart, Abercrombie & Fitch, Staples, Tyco and Williams-Sonoma. In addition to initial claims reports, Thursday brings the October CPI and Q3 results from Sears, Ross, Gap, Dole Foods, GameStop, Intuit, Wal-Mart, Target, Viacom and Dell. Friday, the Federal Reserve issues its report on October industrial output and earnings are in from J.M. Smucker and Foot Locker.
Sources: money.msn.com, bigcharts.com, treasury.gov, treasurydirect.gov – 11/9/124,6,7,8
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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|John Barrios is registered to offer securities through First Heartland Capital, Inc. Member FINRA & SIPC, and offer advisory services through First Heartland Consultants, Inc. Barrios Financial Services is not affiliated with First Heartland Capital, Inc.
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1 – abcnews.go.com/Politics/OTUS/boehner-grips-deficit-2013/story?id=17679762 [11/9/12]
2 – www.ism.ws/ISMReport/NonMfgROB.cfm [11/5/12]
3 – www.sfgate.com/business/bloomberg/article/Michigan-Consumer-Sentiment-Index-Increased-More-4023708.php [11/9/12]
4 – money.msn.com/market-news/post.aspx?post=782e76c9-c90c-4ab2-8fff-26b13b3b7d89 [11/9/12]
5 – montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [11/9/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F9%2F11&x=0&y=0 [11/9/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F9%2F11&x=0&y=0 [11/9/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F9%2F11&x=0&y=0 [11/9/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F9%2F07&x=0&y=0 [11/9/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F9%2F07&x=0&y=0 [11/9/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F9%2F07&x=0&y=0 [11/9/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F8%2F02&x=0&y=0 [11/9/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F8%2F02&x=0&y=0 [11/9/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F8%2F02&x=0&y=0 [11/9/12]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/9/12]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/9/12]
8 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm71002.pdf [7/10/02]