Weekly Economic Update – April 17, 2017

WEEKLY QUOTE

“If you would be wealthy, think of saving as well as getting.” – Ben Franklin

WEEKLY TIP

Public school employees and state and local government employees may participate in both a 457(b) plan and a 403(b) plan if their employer offers both plans.

WEEKLY RIDDLE

Rick was born on December 4th, yet he claims his birthday always occurs in the summer. How is this possible?

Last week’s riddle:

I was born as a rock, being molded to great degree. I dance around a fiery neighbor, who does not dance with me. Instead, it provides my people with some long-lasting energy. What am I?

Last week’s answer:

The earth.

PRICES DECLINE IN MARCH

In March, the Consumer Price Index retreated for the first time in 13 months. Its 0.3% dip left annualized consumer inflation at a moderate 2.4%. Fuels, autos, and groceries have all become less expensive recently, according to Bureau of Labor Statistics data. Core consumer prices were up 2.0% in the year ending in March. The Producer Price Index fell just 0.1% in March, with the yearly PPI gain left at 2.3%.1,2

RETAIL SALES FALL

March’s 0.2% decrease followed a 0.3% pullback in February. The silver lining? Minus gas and vehicle sales, retail sales were up 0.1% last month. Core retail sales were flat for March.2

AN IMPROVEMENT FOR CONSUMER SENTIMENT

Rising to an initial April reading of 98.0, the University of Michigan’s consumer sentiment index improved 2.1 points from its final March level. The index’s current conditions component increased 2.0 points to an outstandingly high 115.2.2

A VOLATILE WEEK FOR STOCKS

Selling outweighed buying during this past, abbreviated market week. Across four trading days, the S&P 500 fell 1.12% as U.S. investors considered both corporate earnings and global tensions. The Nasdaq Composite’s weekly losses were slightly deeper at 1.21%; the Dow Jones Industrial Average declined only 0.97%. Friday’s settlements: Dow, 20,453.25; Nasdaq, 5,805.15; S&P, 2,328.95.3,4

THIS WEEK: Earnings from Celanese, DISH Network, J.B. Hunt, and Netflix appear Monday. Tuesday, investors review earnings from Bank of America, Charles Schwab, Citrix, Goldman Sachs, Harley-Davidson, IBM, Johnson & Johnson, Kinder Morgan, UnitedHealth, W.W. Grainger, and Yahoo!, along with data on March housing starts, building permits, and industrial output; also, Facebook’s F8 conference begins. Earnings announcements from Abbott Labs, American Express, BlackRock, CSX, eBay, Kaiser Aluminum, Morgan Stanley, Qualcomm, TD Ameritrade, and U.S. Bancorp emerge Wednesday, plus a new Federal Reserve Beige Book. On Thursday, the earnings parade includes Alliance Data, American Airlines, BB&T, BONY Mellon, Briggs & Stratton, D.R. Horton, E*TRADE, GATX, Imax, KeyCorp, Mattel, Nucor, PPG, Philip Morris, Sherwin-Williams, Snap-On, Travelers Companies, Unilever, Verizon, and Visa. March existing home sales figures are out Friday, along with earnings from General Electric, Honeywell International, Rockwell Collins, Schlumberger, Stanley Black & Decker, and SunTrust Banks.

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +3.49 +14.10 +11.83 +6.22
NASDAQ +7.84 +17.37 +18.56 +13.30
S&P 500 +4.03 +11.82 +13.99 +6.03
REAL YIELD 4/14 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.32% 0.24% -0.25% 2.31%

Sources: wsj.com, bigcharts.com, treasury.gov – 4/14/174,5,6,7

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.

Best regards,

Greg R. Solis, AIF®
President and CEO

Bob Medler, CRPC, CMFC, AIF®
Wealth Advisor / Investment Analyst

78-075 Main Street
Suite 204
La Quinta, CA 92253
Office: (760) 771-3339
Fax: (760) 771-3181

www.soliswealth.com
E-Mail: greg.solis@lpl.com
E-Mail: robert.medler@lpl.com
CA Insurance License #0795867

The Wealth Advisors of Solis Wealth Management are also Registered Representatives with and securities and advisory services are offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC

The information contained in this email message is being transmitted to and is intended for the use of only the individual(s) to whom it is addressed. If the reader of this message is not the intended recipient, you are hereby advised that any dissemination, distribution or copying of this message is strictly prohibited. If you have received this message in error, please immediately delete.

P.S. You have my permission to forward this commentary to family, friends, or colleagues. If you would like us to add them to the list, please reply to this e-mail with their e-mail address and we will ask for their permission to be added.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. 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. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results.

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. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. 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 – marketwatch.com/story/inflation-falls-for-first-time-in-13-months-cpi-shows-2017-04-14 [4/14/17]
2 – investing.com/economic-calendar [4/14/17]
3 – google.com/finance?q=INDEXDJX%3A.DJI&ei=4PbwWNn_O8-w2AbUyJ7ICQ [4/14/17]
4 – markets.wsj.com/us [4/14/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F14%2F16&x=0&y=0 [4/14/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F14%2F16&x=0&y=0 [4/14/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F14%2F16&x=0&y=0 [4/14/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F13%2F12&x=0&y=0 [4/14/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F13%2F12&x=0&y=0 [4/14/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F13%2F12&x=0&y=0 [4/14/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F13%2F07&x=0&y=0 [4/14/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F13%2F07&x=0&y=0 [4/14/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F13%2F07&x=0&y=0 [4/14/17]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/14/17]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/14/17]