Weekly Economic Update – October 23, 2017


“Too much rest is rust.” – Sir Walter Scott


Small business owners applying for home loans should know that if they own 25% or more of the voting stock of a corporation, they are technically classified as self-employed. They will need to provide the lender with a corporate tax return.


What time of day can be written the same way forwards or backwards?

Last week’s riddle:

A Saab travels along an avenue at 50mph, a Subaru at 30mph. The Subaru passes by the Saab, without speeding up to do so. How is this possible?

Last week’s answer:

They are traveling in opposite directions.


Existing home sales advanced 0.7% last month, according to a National Association of Realtors report. This gain broke a 3-month streak of retreats. Single-family home sales rose 1.1%. Housing inventory increased 1.6% last month, but it was still 6.4% under year-ago levels.1


Housing starts slumped 4.7% in September, the Census Bureau reported last week. Building permits also declined, decreasing 4.5%. Fall hurricanes may have slowed construction activity, but investment in homebuilding was also down 7.3% year-over-year during the second quarter.2


Across last week, the Dow Industrials climbed 2.00% to 23,328.63. The Nasdaq Composite advanced 0.35% to 6,629.05, while the S&P 500 gained 0.86% to 2,575.21. Gold had its worst week in a month, slipping 1.9% to a Friday COMEX settlement of $1,280.50.3,4

THIS WEEK: Monday’s earnings parade includes news from Halliburton, Hasbro, Kimberly-Clark, Lennox International, Logitech, Seagate, and VF Corporation. Tuesday, earnings arrive from 3M, Akamai, Ameriprise Financial, AT&T, Biogen, Canon, Capital One, Caterpillar, Chipotle, Corning, Discover Financial Services, Express Scripts, Fiat Chrysler, Fifth Third, General Motors, Infosys, JetBlue, Eli Lilly, Lockheed Martin, McDonalds, Novartis, Pentair, Regions Financial, Ryder Systems, Sherwin-Williams, Stanley Black & Decker, and TD Ameritrade. September new home sales numbers appear Wednesday, plus earnings from Aflac, Alaska Air, Ally Financial, Amgen, Anthem, Avery Dennison, Boeing, Coca-Cola, Freeport-McMoRan, GlaxoSmithKline, W.R. Grace, Ingersoll Rand, Norfolk Southern, Northrop Grumman, O’Reilly, Penske, Public Storage, Sirius XM, Six Flags, SkyWest Airlines, Suncor, Visa, and Walgreens Boots Alliance. Thursday’s earnings include Alphabet, Altria, Amazon, American Airlines, Anheuser-Busch, Baidu, Bayer, Bristol-Myers, Celgene, Chubb, Conoco-Phillips, Dunkin’ Brands, Ford Motor Co., Gilead Sciences, The Hartford, HealthSouth, Hershey, Hilton Worldwide, IMAX, Intel, Marathon Petroleum, Mattel, Microsoft, Nokia, Pinnacle Foods, Praxair, Raytheon, Stryker, Twitter, Union Pacific, UPS, Valero Energy, Waste Management, and Xerox; September pending home sales and new initial claims figures also emerge. The first estimate of Q3 GDP and the month’s final University of Michigan consumer sentiment index surface Friday, plus earnings from Chevron, Colgate-Palmolive, Exxon Mobil, Goodyear, Huntsman, Merck, Phillips 66, Rockwell Collins, and Weyerhaeuser.

DJIA +18.04 +28.44 +14.97 +7.25
NASDAQ +23.15 +26.46 +24.11 +14.33
S&P 500 +15.02 +20.26 +15.94 +7.16
10 YR TIPS 0.52% 0.08% -0.71% 2.09%

Sources: wsj.com, bigcharts.com, treasury.gov – 10/20/174,5,6,7

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, 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
CA Insurance License #0795867 & 0C05523

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 received this 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.

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.

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. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. 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.


1 – 247wallst.com/housing/2017/10/20/september-existing-home-sales-inventory-post-first-gains-in-4-months/ [10/20/17]
2 – reuters.com/article/us-usa-economy-housingstarts/u-s-housing-starts-hit-one-year-low-building-permits-tumble-idUSKBN1CN1QS [10/20/17]
3 – markets.wsj.com/us [10/20/17]
4 – marketwatch.com/story/gold-drops-to-2-week-low-as-dollar-gains-strength-on-tax-reform-hopes-2017-10-20/ [10/20/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F20%2F16&x=0&y=0 [10/20/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F20%2F16&x=0&y=0 [10/20/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F20%2F16&x=0&y=0 [10/20/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F19%2F12&x=0&y=0 [10/20/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F19%2F12&x=0&y=0 [10/20/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F19%2F12&x=0&y=0 [10/20/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F19%2F07&x=0&y=0 [10/20/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F19%2F07&x=0&y=0 [10/20/17]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F19%2F07&x=0&y=0 [10/20/17]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [10/20/17]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [10/20/17]