INVESTORS SEEK CASH, WATCH POLICY MOVES
Stocks tumbled last week as Wall Street shrugged off news of the Federal Reserve’s move to direct $400 billion into longer-term Treasuries and wondered if Europe’s debt troubles might trigger a recession. At mid-week, the Federal Reserve and International Monetary Fund managing director Christine LaGarde both noted “downside risks” to the U.S. and world economies. Thursday night, finance ministers and central bank governors from the Group of 20 pledged they would make a “strong and coordinated international response to address the renewed challenges facing the global economy” – a welcome declaration, yet the S&P 500 still slipped more than 6% on the week.1,2,3

EXISTING HOME SALES UP 7.7% IN AUGUST
This was a pleasant surprise. The National Association of Realtors also noted an 18.6% year-over-year improvement in residential resales. Housing starts were also up 3.2% last month, according to a Census Bureau report.4,5

CONFRENCE BOARD LEADING INDICATORS RISE
The global research group said its index rose 0.3% last month. However, a sizable part of that gain was due to a rise in M2 money supply – Americans boosting their bank accounts and cash positions.6

BLEAK WEEK FOR GOLD & CRUDE
Commodities took a beating last week as the dollar strengthened. Gold lost 9.64% last week (and $101.70 on Friday) to end the trading week at $1,637.50 an ounce. Oil fell 9.45% last week, with futures settling at $79.85 per barrel Friday.7

CONFIDENCE TAKES A HOLIDAY
Buyers were scarce last week on Wall Street, as these weekly performances point out: S&P 500, -6.54% to 1,136.43; NASDAQ, -5.30% to 2,483.23; DJIA, -6.41% to 10,771.48.3

THIS WEEK: Monday, the Census Bureau releases new home sales figures for August. Tuesday, the July S&P/Case-Shiller home price index comes out, plus the Conference Board’s September consumer confidence index; Walgreens issues an earnings report. Wednesday brings a look at August durable goods orders. On Thursday, we have a new report on pending home sales and new initial claims figures; Germany’s parliament also votes on expanding the Eurozone bailout fund. On Friday, we get the Commerce Department’s report on August consumer spending and the University of Michigan’s final September consumer sentiment survey.

 

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

-6.96

+1.02

-1.28

+2.52

NASDAQ

-6.39

+6.71

+2.38

+6.56

S&P 500

-9.64

+1.03

-2.71

+1.33

REAL YIELD

9/23 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

0.10%

0.77%

2.27%

3.50%

 

Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov – 9/23/113,8,9,10
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.

Jeffrey Foster is a Registered Representative with, and securities are offered through LPL Financial, Member FINRA/SIPC.

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. 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. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. 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 – sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/09/22/bloomberg_articlesLRXZ2L0D9L35.DTL [9/22/11]
2 – online.wsj.com/article/BT-CO-20110923-710372.html [9/23/11]
3 – cnbc.com/id/44638902 [9/23/11]
4 – realtor.org/press_room/news_releases/2011/09/ehs_aug [9/21/11]
5 – census.gov/const/newresconst.pdf/ [9/20/11]
6 – thestreet.com/story/11256620/1/leading-indicators-show-no-signs-of-recession.html [9/22/11]
7 – blogs.wsj.com/marketbeat/2011/09/23/data-points-energy-metals-522/ [9/23/11]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F23%2F10&x=0&y=0 [9/23/11]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F23F2%2F10&x=10&y=18 [9/23/11]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F23%2F10&x=0&y=0 [9/23/11]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F22%2F06&x=0&y=0 [9/23/11]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F22%2F06&x=0&y=0 [9/23/11]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F22%2F06&x=0&y=0 [9/23/11]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F24%2F01&x=0&y=0 [9/23/11]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F24%2F01&x=0&y=0 [9/23/11]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F24%2F01&x=0&y=0 [9/23/11]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/23/11]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/23/11]
10 – treasurydirect.gov/instit/annceresult/press/preanre/2001/ofm71101.pdf [7/11/01]11 – montoyaregistry.com/Financial-Market.aspx?financial-market=an-introduction-to-the-stock-market&category=29 [9/23/11]