Weekly Economic Update – July 20, 2015

WEEKLY QUOTE
“Have regard for your name, since it will remain for you longer than a great store of gold.”
– Ecclesiasticus

WEEKLY TIP
Savings should be the bedrock of any college financing strategy, not gifts, student loans or student income.

WEEKLY RIDDLE
Live without it and you will not prevail, but if you have too much of it, you will surely fail. What is it?

Last week’s riddle:
Jacquie and her daughter Amanda walk past a man in a café. Amanda says “Hello, father” – and a split-second later, so does Jacquie. How are they both able to make this remark to him without any confusion or embarrassment?

Last week’s answer:
The man is a priest.

CONSUMER & WHOLESALE PRICES INCREASE

The Labor Department announced a 0.3% June rise in the headline Consumer Price Index, following the 0.4% advance for May. This left annualized consumer inflation positive for the first time in six months (+0.1%). June brought a 0.2% gain for the core CPI, which is now up 1.8% across the past year. Last month also saw the Producer Price Index ascend 0.4%; in May, it climbed 0.5%.1,2

HOUSEHOLD SENTIMENT, RETAIL SALES COOL

Retail sales fell 0.3% last month after a 1.0% rise in May, according to the Commerce Department. Analysts polled by MarketWatch felt sales would pick up 0.2% in June. The University of Michigan’s initial July consumer sentiment index slipped 2.8 points to a 93.3 reading.2

LAST MONTH SAW A JUMP IN CONSTRUCTION

Census Bureau data showed housing starts up 9.8% in June. Building permits rose 7.4% to an 8-year peak; permits for single-family homes hit a 7½-year high.3

GREEK DEBT DEAL, EARNINGS TAKE STOCKS NORTH

Upside surprises and the approval of a third Greek bailout by European leaders led to impressive weekly gains for the major indices. The S&P 500 rose 2.41% to 2,126.64, the Dow 1.84% to 18,086.45 and the Nasdaq 4.25% to 5,210.14.4

THIS WEEK: Monday’s earnings reports: Halliburton, Hasbro, HealthStream, Morgan Stanley and Unisys. Tuesday’s earnings: Apple, Microsoft, Hanesbrands, BoNY Mellon, Chipotle, Yahoo!, GoPro, Harley-Davidson, Kaiser Aluminum, Lexmark, Lockheed Martin, Fifth Third, Manpower, Skechers, and Travelers Companies. Wednesday offers June existing home sales and earnings from Abbott Labs, Altera, American Express, Ameriprise Financial, AutoNation, Boeing, SanDisk, Cheesecake Factory, Coca-Cola, Discover, Dolby Labs, Equifax, Northern Trust, Owens Corning, Qualcomm, Royal Caribbean, Six Flags, Smart & Final, Texas Instruments, Whirlpool, Tupperware, and United Rentals. Thursday offers the Conference Board LEI, a new initial claims report and earnings from 3M, Ace Hardware, Alaska Airlines, Amazon, AT&T, BJ’s, Boise Cascade, Capital One, Caterpillar, Celgene, Chubb, Bristol-Myers Squibb, Comcast, CoreLogic, Dow Chemical, Dr. Pepper Snapple, Eli Lilly, E*TRADE, Dunkin’ Brands, GM, Invacare, Kimberly-Clark, Macerich, McDonald’s, Pandora, PulteGroup, Quest Diagnostics, Raytheon, Southwest Airlines, Starbucks, T. Rowe Price, TripAdvisor, Under Armour, Union Pacific, VISA, and Waste Management. Friday brings June new home sales plus earnings from American Airlines, Biogen, Spirit Airlines, and Xerox.

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

+1.48

+6.54

+15.82

+7.10

NASDAQ

+10.01

+19.40

+27.82

+14.29

S&P 500

+3.29

+8.61

+19.94

+7.42

REAL YIELD

7/17 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

0.51%

0.24%

1.25%

1.98%

 

Sources: wsj.com, bigcharts.com, treasury.gov – 7/17/155,6,7,8

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.

Best regards,
Greg R. Solis, AIF®
President

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

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

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DISCLOSURES

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. 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. 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 indices are unmanaged and are not illustrative of any particular investment.

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 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.

Citations.

1 – bloomberg.com/news/articles/2015-07-17/consumer-prices-in-u-s-increase-in-june-paced-by-higher-rents [7/17/15]

2 – marketwatch.com/economy-politics/calendars/economic [7/17/15]

3 – fxstreet.com/news/forex-news/article.aspx?storyid=c7fac744-9b01-4e72-9558-09281f70d6e7 [7/17/15]

4 – markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [7/17/15]

5 – markets.wsj.com/us [7/17/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F17%2F14&x=0&y=0 [7/17/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F17%2F14&x=0&y=0 [7/17/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F17%2F14&x=0&y=0 [7/17/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F16%2F10&x=0&y=0 [7/17/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F16%2F10&x=0&y=0 [7/17/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F16%2F10&x=0&y=0 [7/17/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F18%2F05&x=0&y=0 [7/17/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F18%2F05&x=0&y=0 [7/17/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F18%2F05&x=0&y=0 [7/17/15]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [7/17/15]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [7/17/15]