Weekly Economic Update for October 26, 2015

Presented by, Mike Fassi

 

WEEKLY ECONOMIC UPDATE
 

WEEKLY QUOTE

 

“Rules too soft are seldomly followed; rules too harsh are seldomly executed.”

– Ben Franklin

WEEKLY TIP

 

In retirement, one of your goals should be to grow your assets faster than inflation devalues them. You must sustain your purchasing power.

WEEKLY RIDDLE

 

Robert will paint unit numbers on 100 storage units today. In the course of painting a number from 1 to 100 on the door of each unit, how many times will he have to paint the numeral 3 today?

Last week’s riddle:

Until it is measured it is not accurately known, yet you may miss it when it has flown. What is it?

Last week’s answer:

Time.

 

 

 

 

October 26, 2015

EXISTING HOME SALES ACCELERATE

The National Association of Realtors measured a 4.7% gain in residential resales for September, and the annualized sales pace of 5.55 million units was the second best seen since February 2007. Over the past 12 months, existing home sales are up 8.8% with the average sale price up 6.1% (September’s median sale price was $221,900).1

MORE HOUSING STARTS IN SEPTEMBER

Last month saw a 6.5% increase in groundbreaking according to the Census Bureau. That brought the 12-month increase in housing starts to 17.5%. The rate of building permits issued fell by 5.0% in September, but that still left a 4.7% yearly gain.2

 

OIL & GOLD RETREAT

On the COMEX, gold settled at $1,162.80 Friday, marking a 1.7% weekly loss. WTI crude dropped 5.6% last week, settling Friday at $44.60 on the NYMEX.3

S&P TURNS POSITIVE YTD; NASDAQ BACK ABOVE 5,000

More easing by China’s central bank and strong earnings from tech giants helped equities. The Nasdaq rose 2.97% for the week to a Friday close of 5,031.86. The Dow rose 2.50% on the week to 17,646.70, the S&P 500 2.07% to 2,075.15.3,4

 

THIS WEEK: September new home sales figures arrive Monday, plus earnings from Cheesecake Factory, MGM Resorts and Xerox. Tuesday brings September’s durable goods report, August’s Case-Shiller home price index, the latest Conference Board consumer confidence index and earnings from Airgas, Anadarko Petroleum, Alibaba, Apple, Big 5, Bristol-Myers Squibb, Coach, Comcast, Corning, Cummins, Express Scripts, Ford Motor Co., Edison International, JetBlue, Lexmark, Macerich, Magellan Health, Merck, NCR, Panera, Pfizer, Revlon, Spirit Airlines, T-Mobile, Twitter and Waste Management. A new Federal Reserve policy statement appears Wednesday plus earnings from Amgen, Anthem, AutoNation, Buffalo Wild Wings, Ferrari, General Dynamics, Garmin, GoPro, IMAX, Hanesbrands, HealthSouth, Hershey, Hilton Worldwide, LifeLock, Marriott, PG&E, Norfolk Southern, O’Reilly, Public Storage, Starwood Hotels & Resorts, Tesoro, Valero, Western Digital and Yelp. Thursday offers the first estimate of Q3 GDP, a new initial claims report, and earnings from Aetna, Altria, Baidu, Coca-Cola, ConocoPhillips, Electronic Arts, Expedia, Fluor, LinkedIn, Live Nation, MasterCard, Starbucks, Sherwin-Williams, Time Warner Cable, Virgin America and Western Union. Friday, new personal spending figures and October’s final University of Michigan consumer sentiment index are out, plus earnings from Chevron, Colgate-Palmolive, CVS Health, ExxonMobil, Phillips 66, Seagate and Weyerhaeuser.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA -0.99 +5.81 +11.70 +6.99
NASDAQ +6.25 +13.00 +20.59 +13.78
S&P 500 +0.79 +6.37 +15.08 +7.30
REAL YIELD 10/23 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.58% 0.38% 0.50% 1.93%

Sources: wsj.com, bigcharts.com, treasury.gov – 10/23/155,6,7,8

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

 

 

Mike Fassi may be reached at mike@fassifinancialnetwork.com, or 970.416.0088

 

Mike Fassi is a Registered Principal/Advisory Associate. Securities and advisory services offered through Centaurus Financial Inc., a Registered Investment Advisor Member FINRA/SIPC.

 

Citations.

1 – cnbc.com/2015/10/22/existing-home-sales-hit-555m-units-in-sept-vs-expectations-of-538m.html [10/22/15]

2 – 247wallst.com/housing/2015/10/20/housing-starts-rose-less-than-expected-in-september/ [10/20/15]

3 – 247wallst.com/investing/2015/10/23/the-4-stocks-that-dominated-the-dow-on-friday/ [10/23/15]

4 – markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [10/23/15]

5 – markets.wsj.com/us [10/23/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F23%2F14&x=0&y=0 [10/23/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F23%2F14&x=0&y=0 [10/23/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F23%2F14&x=0&y=0 [10/23/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F22%2F10&x=0&y=0 [10/23/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F22%2F10&x=0&y=0 [10/23/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F22%2F10&x=0&y=0 [10/23/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F24%2F05&x=0&y=0 [10/23/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F24%2F05&x=0&y=0 [10/23/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F24%2F05&x=0&y=0 [10/23/15]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [10/23/15]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [10/23/15]

 

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Weekly Economic Update for October 26, 2015
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Weekly Economic Update for October 26, 2015
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