Weekly Economic Update – March 12, 2018


“Focusing is about saying no.” – Steve Jobs


Small business budgeting includes defining your risks. As a first step, detail your monthly, guaranteed income and expenses to help determine your level of liquidity. This may help you recognize potential long-term and short-term risks.


Nate gets messages every day from people who want his services, yet he gets paid when he drives away his customers. What does he do for a living?

Last week’s riddle:

It can hold back cattle, pets, and even people, but never with an order or a command. What is it?

Last week’s answer:

A fence.


Payroll growth was truly impressive last month. According to the latest Department of Labor report, employers added 313,000 net new jobs, including 61,000 in the construction industry; economists polled by Reuters projected a total February gain of 200,000. With the labor force participation rate reaching a 6-month high, the headline jobless rate stayed at 4.1% and the broader U-6 rate at 8.2%. Yearly wage growth declined to 2.6%.1


The Institute for Supply Management’s February snapshot of service industry growth was quite positive. ISM’s non-manufacturing purchasing manager index did wane slightly, losing 0.4 points to 59.5, but the reading shows a very healthy service sector. January’s 59.9 mark was the best seen since August 2005.2


As Wall Street’s closing bell sounded Friday, oil settled at $62.04. A 3% Friday gain left the commodity up for the week, even after the Energy Information Agency said that daily U.S. output had increased to nearly 10.4 million barrels, a record.3


A strong jobs report surpassed forecasts, and the dip in annualized wage growth hinted at manageable inflation. The Dow Jones Industrial Average jumped 441 points Friday. The blue chips gained 3.25% in five days to wrap up the week at 25,335.74. Across five trading sessions, the S&P 500 rose 3.54% to 2,786.57, while the Nasdaq Composite advanced 4.17% to 7,560.81 – a new record close for that tech-heavy benchmark.4,5

THIS WEEK: Nothing major is slated for Monday. February’s Consumer Price Index arrives Tuesday, plus quarterly results from Dick’s Sporting Goods and DSW. Investors consider reports on February retail sales and wholesale inflation on Wednesday, along with earnings news from Del Taco, Smart & Final, Smith Micro, Stein Mart, Tailored Brands, and Williams-Sonoma. Wall Street looks at new initial claims figures Thursday, and earnings from Broadcom Ltd., Dollar General, Jabil, and Lifetime Brands. On Friday, the Census Bureau releases data on February housing starts and building permits, the University of Michigan publishes its preliminary March consumer sentiment index, and Kirkland’s, Perry Ellis, and Tiffany & Co. make earnings announcements.

DJIA  +2.49  +21.47  +15.20  +11.58 
NASDAQ  +9.52  +29.49  +26.61  +24.85 
S&P 500  +4.22  +17.83  +15.93  +11.88 
10 YR TIPS  0.78%  0.60%  -0.50%  0.90% 

Sources: wsj.com, bigcharts.com, treasury.gov – 3/9/184,6,7,8

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.

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

E-Mail: greg@solisweatlh.com
E-Mail: bob@soliswealth.com
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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 – cnbc.com/2018/03/09/nonfarm-payrolls-february.html [3/9/18]
2 – briefing.com/Investor/Calendars/Economic/Releases/napmserv.htm [3/9/18]
3 – investing.com/news/commodities-news/crude-oil-prices-settle-higher-as-us-oil-rigs-fall-for-first-time-in-7-weeks-1334831 [3/9/18]
4 – markets.wsj.com/us [3/9/18]
5 – reuters.com/article/us-usa-tech-stocks/high-performance-u-s-tech-stocks-drive-nasdaq-to-record-high-idUSKCN1GL2QC [3/9/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F9%2F17&x=0&y=0 [3/9/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F9%2F17&x=0&y=0 [3/9/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F9%2F17&x=0&y=0 [3/9/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F8%2F13&x=0&y=0 [3/9/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F8%2F13&x=0&y=0 [3/9/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F8%2F13&x=0&y=0 [3/9/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F10%2F08&x=0&y=0 [3/9/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F10%2F08&x=0&y=0 [3/9/18]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F10%2F08&x=0&y=0 [3/9/18]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [3/9/18]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [3/9/18]