WEEKLY QUOTE

“Don’t ever take a fence down until you know why it was put up.”
-Robert Frost

 WEEKLY TIP

A good will should propose at least a few executors, as there is always the possibility that your first choice for executor might not outlive you.

 WEEKLY RIDDLE

Four grown men decided to play on the sidewalk for three hours. No one chided them for childish or immature behavior; many appreciated the noise they made. They even went home a bit richer. What were these men doing?

 Last week’s riddle:

They have no bodies, but you could say they have tails and heads. What are they?

 Last week’s answer:

Coins.

Q1 GDP: +2.2%

The federal government’s initial estimate disappointed many analysts, even with plenty of potential for upward revision later. After all, Q4 2011 had brought growth of 3.0%. Economists polled by Briefing.com expected the Q1 estimate to come in at +2.5%. Personal spending rose by 2.9% for the quarter, with car sales playing the largest role in the gain; subtract vehicle purchases, and the consumption increase was 1.1%, the smallest in four quarters.

KEY CONSUMER SENTIMENT SURVEY TOPS ESTIMATES
The final April Reuters/University of Michigan consumer sentiment survey came in at 76.4, 0.7% higher than the prior 75.7 reading. Economists polled by Briefing.com thought there would be no advance. March’s final survey had a 76.2 reading.

MOre HOME SALES CONTRACTS INKED IN MARCH

Pending home sales improved by 4.1% in March to reach their highest level since April 2010, according to a report from the National Association of Realtors. Another bit of good news was unexpected: February’s S&P/Case-Shiller Home Price Index showed prices rising 0.2% overall, the first advance recorded in ten months. Last week, Zillow said the median U.S. home value had increased 0.5% in March, the best monthly gain in six years. The sour note in last week’s real estate roundup was new home sales. The Census Bureau said they were down 7.1% in March. However, the median sale price was up 6.3% year-over-year.

NASDAQ HAS BEST WEEK IN NEARLY 3 MONTHS

The tech-heavy index rose 2.29% across April 23-27 to settle at 3,069.20 Friday. The Dow gained 1.53% across the same stretch to finish the week at 13,228.31, while the S&P 500 advanced 1.80% last week to 1,403.36 at Friday’s close. With one market day to go in April, only the Dow is in positive territory for the month.

THIS WEEK: March personal spending data arrives Monday, and so do Q1 results from NYSE Euronext, Shutterfly and Anadarko Petroleum. Tuesday, ISM’s April manufacturing PMI is out, plus data on April auto sales and earnings from BP, Pfizer, Motorola Mobility, Sirius XM Radio, Broadcom, Chesapeake Energy and CBS. Wednesday brings news on March factory orders and earnings from Marathon Oil, MasterCard, Comcast, Time Warner, UBS, Barrick Gold, CVS, DreamWorks, Green Mountain Coffee, Clorox, Sunoco, Transocean, Visa and Whole Foods. Thursday, we get ISM’s non-manufacturing PMI for April, new initial claims data, and results from General Motors, AIG, Kraft and LinkedIn. Friday, the April unemployment report is released and Berkshire Hathaway announces earnings.

Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov – 4/27/12

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.

These returns do not include dividends.

WEEKLY QUOTE

“The path to success is to take massive, determined action.”
- Tony Robbins

WEEKLY TIP

Take a look at your insurance policy and read the fine print about long-term or progressive illness in case you or a loved one are one day diagnosed with Alzheimer’s Disease, Parkinson’s Disease or other forms of neurological disease.

WEEKLY RIDDLE

They have no bodies, but you could say they have tails and heads. What are they?

Last week’s riddle:

What is the beginning of sorrow and the end of sickness? Something you cannot express happiness without? Something that is always in risk, but never in danger?

Last week’s answer:

The letter S.

WHAT HELD UP HOMEBUYING LAST MONTH?

The National Association of Realtors said existing home sales fell 2.6% for March. A 1.3% drop in inventory for the month might have been a factor, and mild weather in January and February may have helped homes that would have sold in March sell earlier. Warmer January and February temperatures may have also skewed the numbers for housing starts: the Commerce Department said they slipped 5.8% in March. Now for some good news: building permits rose 4.5% last month to the best pace since September 2008, and Freddie Mac had interest rates on 30-year fixed rate home loans averaging just 3.90% last week.

RETAIL SALES UP 0.8% IN MARCH
This follows a 1.0% gain in the category in February. Did gas prices account for much of the increase? No. Minus gas and car sales, the March gain was 0.7%, and core retail sales (minus autos, gas, and home supplies) rose 0.5% last month.

LEADING INDICATORS BACK TO MID-2008 LEVELS

The Conference Board’s index of leading indicators reached 95.7 in March, getting closer to the 100 mark that would imply a healthy economy. The index rose 0.3% for the month with seven of ten indicators positive; interest rate spreads, building permits, stock gains and credit availability were the biggest influences.

THIS WEEK: Monday, ConocoPhillips, Hasbro, Xerox, DR Horton, Netflix and Texas Instruments announce Q1 results. Tuesday, earnings from Apple, Baidu, AT&T, 3M, US Steel, Amgen and Aflac are out plus the latest Case-Shiller home price index and data on March’s new home sales. On Wednesday, earnings reports roll in from Sprint, Boeing, Caterpillar, Eli Lilly, AutoNation, Delta, Credit Suisse, Motorola Solutions, GlaxoSmithKline and Akamai, March durable goods data is out, and the Fed makes a policy statement. Thursday, the NAR gives us its latest pending home sales report, new initial claims figures are in, and results from Barclays, Pulte, Amazon.com, Bristol-Myers Squibb, Chrysler, ExxonMobil, PepsiCo, Royal Dutch Shell, Starbucks and Zynga round out the day. Friday, Chevron, Procter &Gamble and Merck offer Q1 results, and the BEA’s first estimate of Q1 GDP appears plus the final April consumer sentiment survey out of the University of Michigan.

Sources: online.wsj.com, bigcharts.com, treasury.gov, treasurydirect.gov – 4/20/12

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.

These returns do not include dividends.

Last week’s answer:

The letter S.

WEEKLY QUOTE

“Physical fitness is not only one of the most important keys to a healthy body. It is the basis of dynamic and creative intellectual activity.”
- John F. Kennedy

 WEEKLY TIP

Do you feel too financially pinched to contribute to an IRA? You could use your tax refund for that very purpose.

 WEEKLY RIDDLE

What is the beginning of sorrow and the end of sickness? Something you cannot express happiness without? Something that is always in risk, but never in danger? 

Last week’s riddle:

Karen is twice her brother’s age and half her father’s age. In 22 years, her brother will be half the father’s age. How old is Karen now? 

Last week’s answer:

Karen is 22 years old.

CONSUMER PRICES ROSE 0.3% IN MARCH

Last month’s gain in the federal government’s Consumer Price Index matched the consensus forecast of economists polled by Briefing.com and followed gains of 0.4% in February and 0.2% in January. Gasoline prices were up 1.7% last month. Core CPI rose 0.2%, so that put annualized consumer inflation at 2.7%, less than the 2.9% recorded in February. Headline producer prices were flat in March, while the core Producer Price Index rose 0.3% (the fifth straight monthly rise in core PPI). Economists polled by Reuters had expected overall PPI to rise 0.2% last month.

CONSUMER SENTIMENT WAVERS
April’s initial Reuters/University of Michigan consumer sentiment survey came in at 75.7, slightly below the Briefing.com consensus projection of 76.1 and down from the final March number of 76.2. Frustration over gas prices may have had an effect.

BEIGE BOOK: RECOVERY PROCEEDING NICELY
The Federal Reserve’s latest snapshot of a dozen U.S. economic regions reported “modest to moderate” economic growth overall, with all 12 Fed districts anecdotally noting expansion. For the record, the Fed has described the recovery using the “modest to moderate” phrase in three consecutive Beige Books.

BULLS BATTLE BEARS

April 9-13 was a volatile stretch for the market. For the week, the DJIA went -1.61% to 12,849.59, the S&P 500 -1.99% to 1,370.26 and the NASDAQ -2.25% to 3,011.33. All S&P 500 sectors lost ground on the week as concerns about Spain’s debt and U.S. corporate earnings affected investor outlooks.

THIS WEEK: Monday, Census Bureau data on March retail sales complements earnings from Mattel, Charles Schwab, Gannett and Citigroup. Tuesday, reports on March housing starts and factory output come in along with Q1 results from Yahoo!, Coca-Cola, IBM, Goldman Sachs, Johnson & Johnson and Intel. Wednesday offers earnings from Yum Brands, Bank of NY Mellon, eBay and Qualcomm. Thursday, Q1 results from Bank of America, DuPont, Morgan Stanley, Travelers, Verizon, Microsoft, Capital One and SanDisk come in plus March existing home sales data. Friday brings earnings from General Electric and McDonalds.

Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov – 4/13/12

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.

These returns do not include dividends.

WEEKLY QUOTE
“The more that you find out about the world, the more opportunities there are to laugh at it.”
- Bill Nye

WEEKLY TIP
A Roth IRA can be used to save for your future and your children’s future. The money can help fund your retirement and it can optionally help to fund a child’s college education.

WEEKLY RIDDLE
Karen is twice her brother’s age and half her father’s age. In 22 years, her brother will be half the father’s age. How old is Karen now?
Last week’s riddle:
Take one letter out of a 7-letter word and it becomes longer. What is this word?
Last week’s answer:
Lounger

UNEMPLOYMENT FALLS TO 8.2%

That good news was tempered by some disappointments. The U.S. economy only managed a net gain of 120,000 non-farm jobs in March; analysts were hoping for a gain of at least 200,000. The private sector added 121,000 positions in March; ADP had projected an increase of 209,000. However, the underemployment rate declined again last month (to 14.5%) and the manufacturing sector grew by 37,000 jobs.

ONE PMI TOPS EXPECTATIONS; ANOTHER DOESN’T
The start of each month brings the latest surveys of purchasing managers from the Institute for Supply Management. ISM’s March service sector PMI came in at 56.0 and its March manufacturing PMI came in at 53.4. Economists polled by Briefing.com thought the manufacturing PMI would reach 53.0 and the service sector PMI would reach 56.7.

A GREAT MARCH FOR AUTOMAKERS
Warm weather fostered greater car and truck buying. The following firms reported the following monthly sales increases last week: General Motors, 12%; Chrysler Group, 34%, Toyota, 15%; Ford, 5%; Volkswagen, 35%; Nissan, 12.5%.

STOCKS RETREAT IN SHORT TRADING WEEK

Across four market days, the Dow lost 1.15% to 13,060.14, the S&P 500 fell 0.74% to 1,398.08 and the NASDAQ dipped 0.36% to 3,080.50. So the worst week for stocks so far in 2012 wasn’t that bad. A contributing factor: the minutes from the March 13 FOMC meeting signaled that the Federal Reserve might not attempt further stimulus efforts. However, the March jobs report could help to alter the Fed’s outlook.

THIS WEEK: Monday evening, Fed chairman Ben Bernanke speaks at the Atlanta Fed’s Financial Markets Conference. Tuesday, Alcoa offers Q1 results. Wednesday, the Fed puts out a new Beige Book and earnings arrive from Progressive. Thursday, the March PPI is out to complement weekly initial claims numbers and earnings from Google and Rite Aid. Friday brings the March CPI, the initial April consumer sentiment survey from the University of Michigan, and earnings reports from Wells Fargo and J.P. Morgan; also, Ben Bernanke speaks in New York about the federal policy response to the Great Recession.

Sources: msn.money.com, bigcharts.com, treasury.gov, treasurydirect.gov – 4/6/12

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.

These returns do not include dividends.