Weekly Economic Update
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July 29, 2013
CONSUMER SENTIMENT CONTINUES TO RISE
In 12 months, the University of Michigan’s index of consumer sentiment has gained almost 13 points. At 85.1, July’s final edition of the index was up 1.0 points from the final June reading. Two notable details: the percentage of respondents saying their home values had increased hit a six-year peak, and more respondents expected their inflation-adjusted incomes to rise in the coming year than at any time since 2007.1
TWO DIFFERENT HOME SALES STORIES
Existing home sales declined 1.2% in June with shrinking inventory, but the median sale price was up 13.5% from a year ago, according to the National Association of Realtors. Even as supply fell short of demand, anticipation of rising mortgage rates no doubt contributed to an 8.3% jump in new home buying in June, as well as the greatest yearly improvement in new home sales since 1992 – a 38.1% annual gain.2
DURABLE GOODS ORDERS UP 4.2%
June’s impressive overall advance didn’t tell the whole story. Minus the oft-volatile transportation category, core hard goods orders were flat last month.3
DOW ADVANCES FOR A FIFTH STRAIGHT WEEK
While the S&P 500 lost 0.03% across five days to settle at 1,691.65 Friday, the DJIA (+0.10% to 15,558.83) and NASDAQ (+0.71% to 3,613.16) pulled higher. Gold settled at $1,321.70 on the COMEX Friday, oil at $104.70 on the NYMEX.4,5
THIS WEEK: Earnings from Express Scripts, Hertz, Hartford Financial and Herbalife arrive Monday, and NAR reports June pending home sales. Tuesday brings earnings from Symantec, BP, Chrysler/Fiat, Take Two Interactive, NYSE Euronext, Pfizer, Barclays, Deutsche Bank, Merck, UBS, Aetna, Amgen and Aflac; May’s Case-Shiller Home Price Index and the Conference Board’s July consumer confidence poll also appear. The Federal Reserve makes a policy announcement Wednesday; the end of the month also brings the July ADP employment report, the federal government’s first estimate of Q2 GDP, and earnings from MetLife, Comcast, Honda, MasterCard, Hess, Humana, Sodastream, Allstate, CBS, Marriott, Whole Foods, Dreamworks Animation and Yelp. ISM’s July manufacturing index comes out Thursday, plus the July Challenger job-cut report, new initial claims figures, and earnings from P&G, LinkedIn, Time Warner Cable, Clorox, AstraZeneca, Cigna, ConocoPhillips, ExxonMobil, Royal Dutch Shell, Barrick Gold, AIG, Kraft Foods and Leap Wireless. Friday sees the release of the Labor Department’s July jobs report and the Commerce Department’s June consumer spending report, plus quarterly results from Chevron, Toyota and Viacom.
Sources: cnbc.com, bigcharts.com, treasury.gov - 7/26/135,6,7,8
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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. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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.
1 - tinyurl.com/ke8ykkl [7/26/13]
2 - bloomberg.com/news/2013-07-24/new-home-sales-in-u-s-rise-more-than-forecast-to-five-year-high.html [7/24/13]
3 - briefing.com/investor/calendars/economic/2013/07/22-26 [7/26/13]
4 - tinyurl.com/kgkofub [7/26/13]
5 - tinyurl.com/lpca2gz [7/26/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F26%2F12&x=0&y=0 [7/26/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F26%2F12&x=0&y=0 [7/26/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F26%2F12&x=0&y=0 [7/26/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F25%2F08&x=0&y=0 [7/26/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F25%2F08&x=0&y=0 [7/26/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F25%2F08&x=0&y=0 [7/26/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F25%2F03&x=0&y=0 [7/26/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F25%2F03&x=0&y=0 [7/26/13]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F25%2F03&x=0&y=0 [7/26/13]
7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [7/26/13]
8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [7/26/13]
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Weekly Economic Update