NO CONSUMER INFLATION INCREASE IN DECEMBER
For the second month in a row, the Labor Department reported no advance in its Consumer Price Index. Core CPI did rise 0.1% last month. Across 2011, consumer prices rose 3.0%; last year was the most inflationary year since 2007. As for wholesale inflation, the Producer Price Index declined 0.1% in December.1

MORE HOMES MOVING ON THE MARKET
The National Association of Realtors announced a 5.0% increase in existing home sales for December, with a 4.6% gain in sales of single-family houses. For all of 2011, existing home sales improved by 1.7% as the median sale price declined 3.9%. One negative real estate signal last week: in December, housing starts fell by 4.1%.1,2,3

FEWEST INITIAL JOBLESS CLAIMS IN FOUR YEARS
The Labor Department said initial applications for jobless benefits dropped by 50,000 to 352,000 in the week ending January 14. That is the lowest number of initial claims taken in any week since April 2008.1

GOLD GAINS 2% IN Five DAYS
Its 2.04% weekly advance on the COMEX led to a closing price of $1,664.00 Friday. Gold’s rise was not matched by oil (-0.37%) or the U.S. Dollar Index (-1.69%) last week. Oil ended the week at $98.33 a barrel on the NYMEX.2

DOW RISES FOR A FOURTH STRAIGHT WEEK
Stocks have surprised many analysts this month, as Wall Street has paid more attention to earnings than to news from Europe. The weekly numbers: S&P 500, +2.04% to 1,315.38; NASDAQ, +2.80% to 2,786.70; DJIA, +2.40% to 12,720.48.2,3

THIS WEEK: EU finance ministers meet on Monday, and Halliburton and Texas Instruments announce Q4 earnings. On Tuesday, Q4 results roll in from Apple, Yahoo!, Johnson & Johnson, Travelers, Verizon, DuPont, and McDonald’s, and President Obama will make a State of the Union address. On Wednesday, Boeing, Netflix, Motorola, Symantec, Amgen, SanDisk, ConocoPhillips and Delta all come out with earnings reports, NAR delivers news about December pending home sales, and the Fed concludes a policy meeting. Thursday brings Q4 earnings from AT&T, Time Warner Cable, Nokia, Starbucks, Caterpillar, 3M, Bristol-Myers and AutoNation, plus reports on December durable goods orders and new home sales and the latest initial claims figures. Friday, we have the government’s first take on Q4 GDP, the final University of Michigan consumer sentiment survey of January and earnings from Chevron, D.R. Horton and Procter & Gamble.

 

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

+4.12

+7.59

+0.25

+3.10

NASDAQ

+6.97

+3.05

+2.74

+4.80

S&P 500

+4.59

+2.74

-1.61

+1.75

REAL YIELD

1/20 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

0.01%

1.22%

2.47%

3.48%

 
Sources: money.msn.com, bigcharts.com, treasury.gov, treasurydirect.gov – 1/20/122,4,5,6
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. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. 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 – www.businessweek.com/news/2012-01-20/consumer-prices-in-u-s-little-changed-as-fuel-costs-fall.html [1/20/12]
2 – money.msn.com/market-news/post.aspx?post=55467ba4-1839-402e-afbf-0d13ed75740f [1/20/12]
3 – montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [1/20/12]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F20%2F11&x=0&y=0 [1/20/12]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F20%2F11&x=0&y=0 [1/20/12]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F20%2F11&x=0&y=0 [1/20/12]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F19%2F07&x=0&y=0 [1/20/12]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F19%2F07&x=0&y=0 [1/20/12]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F19%2F07&x=0&y=0 [1/20/12]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F22%2F02&x=0&y=0 [1/20/12]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F22%2F02&x=0&y=0 [1/20/12]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F22%2F02&x=0&y=0 [1/20/12]
5 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [1/20/12]
5 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [1/20/12]
6 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02]