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Best Streak Since 96' Weekly Update - March 19, 2013 |
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In This Issue
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The Markets:
Markets experienced another hot week as the Dow posted its best winning streak since 1996, with ten days up in a row, while the S&P 500 inched within 10 points of its historical high before closing lower on Friday.[1] For the week, the S&P 500 gained 0.61%, the Dow gained 0.81%, and the Nasdaq gained 0.14%.[2]
We're disappointed to report that lawmakers don't appear to be making any headway on the sequestration front. President Obama met with House Republicans last week but made little progress in convincing them to accept tax increases as part of a deficit reduction plan. With criticism flying from both sides, it seems that they are still too far apart to hope for a deal.[3]
On a more positive note, the number of Americans filing new unemployment claims fell for the third straight week, indicating that the labor market is recovering steadily. Initial claims dropped by 10,000 claims, handily beating expectations of a rise in claims. Even better, the four-week moving average for new claims, widely considered a less volatile measure, fell to a new five-year low, suggesting that underlying labor market trends are improving.[4]
A surge in energy costs led to an increase in the Consumer Price Index, a broadly used measure of inflation. The CPI increased by 0.7% in February after remaining flat in January. However, excluding volatile food and energy prices, the more stable core prices increased just 0.2%, which was in line with expectations.[5]
Historically, markets have often pulled back after reaching historic highs. While we believe that general economic trends are heading in the right direction, in the short term, we won't be surprised by some market consolidation as traders take profits and plan their next moves. We always maintain focus on long-term financial movements and use these short-term dips and rallies to build new positions and find opportunities.
ECONOMIC CALENDAR:
Wednesday: Retail Sales, Import and Export Prices, Business Inventories, EIA Petroleum Status Report, Treasury Budget
Thursday: Jobless Claims, Producer Price Index
Friday: Consumer Price Index, Empire State Mfg. Survey, Treasury International Capital, Industrial Production, Consumer Sentiment
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Performance
 Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized. Sources: Yahoo! Finance and Treasury.gov. International performance is represented by the MSCI EAFE Index. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. |
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Headlines
Consumer sentiment tumbles on sequestration frustration. The Michigan/Reuters Consumer sentiment gauge fell to its lowest level in a year as Americans lost patience with the government and felt less optimistic about economic growth.[6]
U.S. manufacturing output surges in February. After falling in January, factory production grew 0.8% last month. The increase combined with a big rise in utilities' output to lead overall industrial production to increase 0.7%.[7]
Oil prices rise ahead of President's Mid-East trip. Oil prices rose Friday amid concerns about renewed tensions ahead of President Obama's trip to Israel next week. Higher oil prices could affect manufacturing output and other aspects of the economy.[8]
U.S. and E.U. negotiating new trade deal. A new trade deal, hoped to be signed by the end of 2014, will negotiate new trading rules and harmonize regulations in certain key areas. The new rules will increase access for businesses on both sides and is expected to add 0.5% to the E.U. economy and 0.4% to the U.S. economy.[9]
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"Laughter rises out of tragedy, when you need it the most, and rewards you for your courage."
- Erma Bombeck
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Chicken Enchiladas  A quick, delicious recipe from RealSimple.com.
Ingredients:
4 6-ounce boneless, skinless chicken breasts
1 tablespoon olive oil
kosher salt and black pepper
10 ounces sharp Cheddar, grated (1 � cups)
8 6-inch corn tortillas
2 � cups canned enchilada sauce
� cup fresh cilantro leaves
Directions:
1. Heat oven to 400� F. Place the chicken on a rimmed baking sheet. Rub with the oil and season with � teaspoon salt and � teaspoon pepper. Roast, until cooked through, 14 to 16 minutes; let cool, then shred.
2. In a medium bowl, toss the chicken with 1 cup of the Cheddar. Dividing evenly, roll up the chicken mixture in the tortillas and place seam-side down in an 8-inch square baking dish. Top with the enchilada sauce and the remaining � cup of Cheddar. Bake until heated through, 15 to 20 minutes. Sprinkle with the cilantro.
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Can't Cut It?
Having trouble learning to cut the ball? Try opening your stance a bit and weakening your grip. To cut the ball, you need to give the grip - and consequently the clubhead - a slight rotation under the ball at impact. A strong grip impedes wrist motion down and under at impact. A strong grip is, in essence, a pre-rotated grip. You can't very well rotate what's already been rotated.
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Listen to Music
Research shows that music may be good for your heart and offer other benefits, such as bringing on sound sleep, boosting your mood, and reducing anxiety. A study showed that patients feel less pain and need less pain medication after surgery if they listen to music while recuperating.
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Ants Got You Down?
Ants and leaf cutters can wreak havoc on a new garden. Instead of reaching for a chemical spray, try using a DIY green alternative. Combine 1 part of borax, 2 parts of flour, and 1/2 part of icing sugar, then add water and mix them into soft dough. Leave small bits around areas frequented by the interlopers, but keep out of reach of children and pets.
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Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!
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Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
Diversification does not guarantee profit nor is it guaranteed to protect assets.
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative, Broker dealer or Investment Advisor, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer or Investment Advisor gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.
By clicking on these links, you will leave our server, as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.
[1] http://news.yahoo.com/us-stocks-close-lower-ending-dows-10-day-205230408--finance.html
[2] http://briefing.com/investor/markets/weekly-wrap/weekly-wrap-for-march-11-2013.htm
[3] http://www.reuters.com/article/2013/03/14/us-usa-fiscal-idUSBRE92B0ZE20130314
[4] http://www.reuters.com/article/2013/03/14/us-economy-jobless-idUSBRE92D0LI20130314
[5] http://briefing.com/investor/markets/weekly-wrap/weekly-wrap-for-march-11-2013.htm
[6] http://www.reuters.com/article/2013/03/15/us-usa-economy-sentiment-idUSBRE92E0M120130315
[7] http://www.reuters.com/article/2013/03/15/us-usa-economy-prices-idUSBRE92E0HJ20130315
[8] http://english.alarabiya.net/en/business/2013/03/16/Oil-prices-rise-ahead-of-Obama-s-Mideast-trip-.html
[9] http://finance.yahoo.com/news/eu-wants-financial-services-u-213551524.html
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