“Shut out all of your past except that which will help you weather your tomorrows.” – William Osler
One option that might help you leave more of your assets to charity when you pass away: put provisions in your estate planning documents that allow heirs to individually disclaim some or all of their inheritance in favor of a charitable donation. The disclaimed portion of the inheritance that is donated to charity will not be subject to estate tax.
I often stand straight and tall. I can illuminate your wall or hall. If you push me, I may fall. What am I?
Last week’s riddle:
What 10-letter word has three consecutive pairs of letters in its middle? (It starts with the letter B.)
Last week’s answer:
AN UPBEAT REPORT ON THE SERVICE SECTOR
The Institute for Supply Management’s May non-manufacturing purchasing manager index displayed a reading of 56.9 last week, showing expansion in U.S. service industries for an eighty-ninth straight month. Although the gauge declined 0.6 points from its April mark, it signaled a solid pace of growth. The index’s employment component rose 6.4 points to a mark of 57.8, as 15 industries added workers in May. The PMI has averaged a reading of 55.9 over the past 12 months.1
FACTORY ORDERS DECLINED IN APRIL
According to a new Census Bureau report, they decreased 0.2%. That marked their first month-over-month retreat of 2017. The 0.2% gain for March factory orders, however, was revised up to 1.0%. Orders increased by an average of 0.7% per month in the first quarter.2
ABUNDANT SUPPLY HURTS OIL
WTI crude lost 3.8% during June 5-9, tumbling to a $45.83 settlement on the NYMEX Friday. The U.S. rig count rose again last week, as it has every week for the past five months. While OPEC has vowed to reduce production by 1.2 million barrels per day, daily American oil output has increased by almost 600,000 barrels, so far, this year.3
TWO MAJOR INDICES RETREAT; A THIRD RISES
Last week, the Nasdaq Composite fell 1.55% to 6,207.92, while the S&P 500 dipped 0.30% to 2,431.76. On the other hand, the Dow Jones Industrial Average managed to gain 0.31% on its way to a Friday close of 21,271.28. The CBOE VIX volatility index soared 17.03% for the week, settling Friday at 11.41.4
THIS WEEK: Nothing major is scheduled for Monday. The Bureau of Labor Statistics releases the May Producer Price Index on Tuesday; in addition, H&R Block and Wiley announce quarterly results. Wednesday, investors react to the Federal Reserve’s latest monetary policy decision, the May Consumer Price Index, the May retail sales report, and quarterly results from Jabil and Liberty Tax. A new initial jobless claims report arrives on Thursday, plus a report on May industrial output and earnings announcements from Bob Evans Farms and Kroger. On Friday, the University of Michigan’s preliminary June consumer sentiment index appears, along with data on May housing starts and building permits.
|% CHANGE||Y-T-D||1-YR CHG||5-YR AVG||10-YR AVG|
|REAL YIELD||6/9 RATE||1 YR AGO||5 YRS AGO||10 YRS AGO|
|10 YR TIPS||0.43%||0.12%||-0.50%||2.69%|
Sources: wsj.com, bigcharts.com, treasury.gov – 6/9/174,5,6,7
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.
Greg R. Solis,
President and CEO
Bob Medler, CRPC®, CMFC®
Wealth Advisor / Investment Analyst
78-075 Main Street
La Quinta, CA 92253
Office: (760) 771-3339
Fax: (760) 771-3181
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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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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.
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1 – instituteforsupplymanagement.org/ISMReport/NonMfgROB.cfm [6/5/17]
2 – briefing.com/Investor/Calendars/Economic/Releases/facord.htm [6/5/17]
3 – marketwatch.com/story/oil-prices-pinned-down-by-strong-dollar-supply-worries-2017-06-09 [6/9/17]
4 – markets.wsj.com/us [6/9/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F9%2F16&x=0&y=0 [6/9/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F9%2F16&x=0&y=0 [6/9/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F9%2F16&x=0&y=0 [6/9/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F8%2F12&x=0&y=0 [6/9/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F8%2F12&x=0&y=0 [6/9/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F8%2F12&x=0&y=0 [6/9/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=6%2F8%2F07&x=0&y=0 [6/9/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=6%2F8%2F07&x=0&y=0 [6/9/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=6%2F8%2F07&x=0&y=0 [6/9/17]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [6/9/17]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [6/9/17]