Weekly Economic Update – July 27, 2015

WEEKLY QUOTE
“The highest result of education is tolerance.”
– Helen Keller

WEEKLY TIP
If your company matches your retirement plan contribution, put enough into your account each pay period to earn the match. If you do, your account value may still rise nicely even when markets retreat.

WEEKLY RIDDLE
They are captured by mud and snow, left behind but never taken, and rarely seen in isolation. What are they?

Last week’s 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 answer:
Confidence.

EXISTING HOME SALES UP, NEW HOME SALES DOWN

According to the National Association of Realtors, residential resales increased 3.2% in June with the median home value hitting an all-time peak of $236,400, 6.5% higher than a year ago. New home buying subsided 6.8% last month with the median sales price at $281,800, representing a 1.8% year-over-year decline. Even so, the pace of new home sales improved 21.2% across the first six months of 2015.1

LEADING INDICATOR INDEX RISES 0.6%

This June advance for the Conference Board’s LEI followed its 0.8% May gain; the LEI has risen at least 0.6% for the past three months. Six of its 10 indicators improved in June; only one declined.2

TRYING WEEK FOR STOCKS, GOLD & OIL

Earnings letdowns sent the Dow down 2.86% last week, the Nasdaq down 2.33%, and the S&P 500 down 2.21%. Friday, the Dow settled at 17,568.53, the Nasdaq at 5,088.63, and the S&P at 2,079.65. Gold closed Friday at its lowest level since early June: $1,085.50. Futures fell 2.3% for the week on the COMEX. West Texas Intermediate crude prices slipped 5.4% in five days to a Friday close of $48.14.3,4

THIS WEEK: Earnings from Baidu, Norfolk Southern,Norwegian Cruise Line, Plantronics, Rent-A-Center, The Hartford, and Wynn Resorts arrive Monday plus a report on June durables. Tuesday, the Conference Board’s July consumer confidence index and May’s Case-Shiller home price index complement earnings from Airgas, Akamai, Aflac, Ally Financial, Anadarko Petroleum, Buffalo Wild Wings, Cummins, D.R. Horton, Express Scripts, Ford Motor Co., Ingersoll-Rand, JetBlue, Merck, Panera, Pfizer, Twitter, UPS, U.S. Steel, Sirius XM, and Yelp.Wednesday, the Federal Reserve issues its latest policy statement, NAR provides its June pending home sales index, and earnings appear from Altria, Anthem, BlackRock, Callaway, CBRE, Garmin, Choice Hotels, Constellation Software, DIRECTV, Exelon, Facebook, General Dynamics, Goodyear, HealthSouth, Hilton, Humana, LifeLock, Marriott, MasterCard, MetLife, Noble Corp., Northrop Grumman, NutriSystem, O’Reilly, PG&E, Public Storage, Revlon, and Whole Foods.New initial claims numbers arrive Thursday plus the first estimate of Q1 GDP and earnings from Amgen, Avon, Cigna, Coca-Cola, Colgate-Palmolive, ConocoPhillips, Diebold, Edison, Electronic Arts, Expedia, Fiat Chrysler, LinkedIn, Monster, Occidental Petroleum, Pitney Bowes, Procter & Gamble, Starwood Hotels & Resorts, T-Mobile, Time Warner Cable, Universal Health, Valero, Fluor, Ingram Micro, and Virgin America. Friday, July’s final University of Michigan consumer index appears, plus earnings from Chevron, ExxonMobil, Royal Caribbean, Seagate, Tyco, and Weyerhaeuser.

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

-1.43

+2.84

+13.71

+6.58

NASDAQ

+7.44

+13.79

+24.84

+13.49

S&P 500

+1.01

+4.61

+17.72

+6.92

REAL YIELD

7/24 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

0.51%

0.25%

1.24%

1.94%

 Sources: wsj.com, bigcharts.com, treasury.gov – 7/24/155,6,7,8

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

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 receivedthis 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.

Disclosure

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 – cbsnews.com/news/new-home-sales-hit-june-slump/ [7/24/15]

2 – usnews.com/news/business/articles/2015/07/23/gauge-of-future-health-of-economy-up-06-percent-in-june [7/23/15]

3 – markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [7/24/15]

4 – proactiveinvestors.com/companies/news/62576/gold-declines-08-to-1085ounce-wti-sheds-06-to-4814barrel-62576.html [7/24/15]

5 – markets.wsj.com/us [7/24/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F24%2F14&x=0&y=0 [7/24/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F24%2F14&x=0&y=0 [7/24/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F24%2F14&x=0&y=0 [7/24/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F23%2F10&x=0&y=0 [7/24/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F23%2F10&x=0&y=0 [7/24/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F23%2F10&x=0&y=0 [7/24/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F25%2F05&x=0&y=0 [7/24/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F25%2F05&x=0&y=0 [7/24/15]

6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F25%2F05&x=0&y=0 [7/24/15]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [7/24/15]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [7/24/15]