8/5/13 Weekly Update
WEEKLY QUOTE
“Europe was created by history. America was created by philosophy.”
- Margaret Thatcher
WEEKLY TIP
Create a plan for the distribution of your retirement savings. You will use up a significant portion of those assets; have a withdrawal strategy defined.
WEEKLY RIDDLE
I am usually only as wide as a thumb, and I typically travel across the nation for less than a dollar, all while lying flat. What am I? (Share your answer below)
Last week’s riddle:
What has two hands but will never clap?
Last week’s answer:
A clock.
JOBS REPORT SENDS MIXED SIGNALS
Unemployment sank to a 4½-year low of 7.4% last month, even as the pace of hiring declined a bit from spring. The Labor Department’s July report showed non-farm payrolls expanding by 162,000 jobs, with retail, bar and restaurant hires accounting for most of the gain. The ranks of the self-employed grew 2.6% last month. With jobs data like this, some analysts are wondering if the Federal Reserve will reconsider its plan to reduce asset purchases later this year.1
HOUSEHOLD SPENDING MEETS EXPECTATIONS
Consumer spending rose 0.5% in June, matching the consensus forecast of economists polled by Reuters; consumer incomes grew 0.3%. The Commerce Department also said the economy grew at a 1.7% annual pace in Q2, up from 1.1% in Q1. July’s Conference Board consumer confidence index came in at 80.3 last week; economists polled by MarketWatch had expected a reading of 81.1.2,3
ISM FINDS JUMP IN MANUFACTURING GROWTH
The Institute for Supply Management’s manufacturing index hit 55.4% in July, much improved from 50.9% in June. Economists surveyed by MarketWatch had anticipated a 52.0 reading.3
HOME SALE CONTRACTS DECREASE, BUT PRICES RISE
The National Association of Realtors said pending home sales dipped 0.4% for June after rising 5.8% for May. May’s edition of the S&P/Case-Shiller Home Price Index offered better news, however: a 12.2% overall annualized gain.3
MORE RECORDS SET ON WALL STREET
On Friday, the S&P 500 settled at 1,709.67 – its highest close ever – thanks to a 1.07% weekly advance. The Dow closed at 15,658.36 Friday, the NASDAQ at 3,689.59; they respectively gained 0.64% and 2.12% last week.4,5
Citations.
1 - tinyurl.com/mjef2t3 [8/2/13]
2 - tinyurl.com/lh438e5 [8/2/13]
3 - marketwatch.com/Economy-Politics/Calendars/Economic [8/1/13]
4 - tinyurl.com/mqc7vx6 [8/2/13]
5 - usatoday.com/money/markets/overview/ [8/2/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F2%2F12&x=0&y=0 [8/2/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F2%2F12&x=0&y=0 [8/2/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F2%2F12&x=0&y=0 [8/2/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F1%2F08&x=0&y=0 [8/2/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F1%2F08&x=0&y=0 [8/2/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F1%2F08&x=0&y=0 [8/2/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F1%2F03&x=0&y=0 [8/2/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F1%2F03&x=0&y=0 [8/2/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F1%2F03&x=0&y=0 [8/2/13]
7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/2/13]
8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/2/13]
