WEEKLY QUOTE
“Whatever you fear most has no power – it is your fear that has the power.”
– Oprah Winfrey
WEEKLY TIP
If you and your child are visiting some prospective colleges this summer, ask if you can chat with someone in their financial aid offices. The contacts you make (and the notes you take) could prove important for the future.
WEEKLY RIDDLE
What has no arms, legs or form, yet goes up without ever coming down?
Last week’s riddle:
Constantly hungry, I must always be fed – and any finger I touch will soon turn red. What am I?
Last week’s answer:
Fire.
WALL STREET HANGS ON AS GREECE DEFAULTS
When Greece revealed it would miss its July 1 debt payment to the International Monetary Fund last Tuesday, the Dow lost 2% for the day while the CBOE VIX gained more than 35%. (To add to the drama, the commonwealth of Puerto Rico stated that its debts were “not payable” on the same day.) Any further bailout of Greece may hinge on its July 5 national popular vote, in which Greeks will decide whether or not to stay in the euro. Stocks did rebound mildly, resulting in the following weekly performances for the major indices: DJIA, -1.22% t0 17,730.11; NASDAQ, -1.90% to 5,009.21; S&P 500, -1.29% to 2,076.78.1,2,5
ANOTHER SOLID JOBS REPORT, WITH AN ASTERISK
Employers added 223,000 more jobs in June, Labor Department data revealed Friday. The headline jobless rate fell to 5.3% and the U-6 rate measuring “total” unemployment declined to 10.5%, but that was partly due to the labor force participation rate hitting a 38-year low of 62.6.3
FACTORIES WERE A BIT BUSIER IN JUNE
So indicated the Institute for Supply Management’s newest manufacturing purchasing manager index. ISM’s factory PMI rose 0.7 points in May to a mark of 53.5, another indication of an economy picking up momentum in spring.4
KEY CONFIDENCE BAROMETER RISES
The Conference Board’s consumer confidence index beat expectations by topping the century mark in June. It rose 6.8 points from its (revised) May level to 101.4.4
NAR, CASE-SHILLER INDICES DISAPPOINT
Last week’s real estate indicators were a touch underwhelming. Analysts polled by Briefing.com thought April’s 20-city Case-Shiller home price index would show a 5.6% overall yearly gain; instead, the 12-month improvement was 4.9%. The National Association of Realtors said its pending home sales index rose 0.9% in May; the consensus in the same poll was for a 1.4% increase.4
THIS WEEK: Monday, Wall Street will react to the Greek bailout referendum and consider ISM’s June non-manufacturing PMI. Nothing major is slated for Tuesday. Wednesday, the June Federal Reserve policy meeting minutes arrive and Alcoa releases Q2 results to kick off the new earnings season. On Thursday, the Street looks at new initial claims figures plus earnings from PepsiCo, Barracuda Networks and PriceSmart. Friday, Fed chair Janet Yellen speaks on the U.S. economic outlook in Cleveland; also, a Census Bureau report on May’s wholesale inventories appears.
|
% CHANGE |
Y-T-D |
1-YR CHG |
5-YR AVG |
10-YR AVG |
|
DJIA |
-0.52 |
+4.44 |
+16.61 |
+7.21 |
|
NASDAQ |
+5.77 |
+12.37 |
+27.89 |
+14.35 |
|
S&P 500 |
+0.87 |
+5.17 |
+20.62 |
+7.39 |
|
REAL YIELD |
7/2 RATE |
1 YR AGO |
5 YRS AGO |
10 YRS AGO |
|
10 YR TIPS |
0.49% |
0.38% |
1.27% |
1.75% |
Sources: wsj.com, bigcharts.com, treasury.gov – 7/2/155,6,7,8
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
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 – cbsnews.com/news/rising-grexit-risk-is-beating-down-stocks/ [6/30/15]
2 – thestreet.com/story/13207489/1/stocks-close-lower-ahead-of-greek-vote-on-bailout.html [7/2/15]
3 – tinyurl.com/nquvoqy [7/2/15]
4 – briefing.com/investor/calendars/economic/2015/06/29-03 [7/2/15]
5 – markets.wsj.com/us [7/2/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F2%2F14&x=0&y=0 [7/2/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F2%2F14&x=0&y=0 [7/2/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F2%2F14&x=0&y=0 [7/2/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F2%2F10&x=0&y=0 [7/2/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F2%2F10&x=0&y=0 [7/2/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F2%2F10&x=0&y=0 [7/2/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=7%2F1%2F05&x=0&y=0 [7/2/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=7%2F1%2F05&x=0&y=0 [7/2/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=7%2F1%2F05&x=0&y=0 [7/2/15]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [7/2/15]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [7/2/15]