Weekly Newsletter September 23rd - September 29th

Current Events: The controversial decision made by the Federal Open Market Committee on September 13th to begin an open-ended program of monthly purchases of $40 billion in mortgage-backed securities has witnessed its ups and downs since its announcement. While substantial gains were witnessed upon announcement, some question if the recent slide is a sign of what is to come.

What to Look for This Week

A slew of housing data coupled with earnings reports from popular names, such as Nike and Carnival Cruise Lines, will keep traders and investors focused on U.S. matters this week. Key data on the health of the U.S. consumer will also provide insight on the overall economy.

News Affecting the Markets

Not all have received the recent decisions of central banks around the world to pursue quantitative easing favorably. This week UBS chairman, Alex Weber, spoke out negatively on such moves, going as far as to say central bank action to support economies by printing money is distorting market prices and may create asset bubbles. While the U.S. Fed's decision to go ahead with QE3 immediately sparked massive gains across all major indexes, many question if such a drastic move is warranted, authentic, and sustainable.

Smart Investing

Riding the ETF Boom: Advisors and specialized investors are motivating the growth of exchange traded funds (ETFs), one of the newest investment tools. The investment community has described exchange traded funds (EFTs) as the most successful financial product in the past two decades, and the gap between unlisted managed funds and listed ETFs will undoubtedly narrow in coming years. Product innovation, a desire for more transparent, low-cost products, and greater use of ETFs by financial advisers is driving growth. With global ETFs assets topping $1 trillion (US) for the first time, it's clear that investor interest in exchange traded funds is swelling. Global ETF assets have continued to grow despite the financial crisis and subsequent rally. Experts say there are no signs that investor interest in ETFs is fading and that investors are finding ETFs are products that work well in every market environment.

Earnings for the Week

Monday: Lennar Corp (LEN), Red Hat Inc (RHT) {after the close}
Tuesday: Carnival Corp (CCL), Jabil Circuit Inc (JBL) {after the close}
Wednesday: Worthington Industries Inc (WOR) {after the close}
Thursday: Accenture PLC (ACN), Discover Financial Services (DFS), Global Payments Inc (GPN) {after the close}, McCormick & Company Inc (MKC), Micron Technology Inc (MU), Nike Inc (NKE) {after the close},
Friday: No major announcements.
* Earnings dates and times are subject to change

Economic Data this Week

Monday
No scheduled announcements.
Tuesday
Case-Shiller 20-city Index @ 9:00 AM for July (Est. = 0.8% to 1.5%, Actual = 1.2%)
Consumer Confidence @ 10:00 AM for September (Est. = 62.0 to 63.0, Actual = 70.3)
FHFA Housing Price Index @ 10:00 AM for July (Est. = n/a, Actual = 0.2%)
Wednesday
MBA Mortgage Index @ 7:00 AM for 09/22 (Est. = n/a, Prior = -0.2%)
New Home Sales @ 8:30 AM for August (Est. = 380K to 390K, Prior = 372K)
Crude Oil Inventories @ 10:30 AM for 09/22 (Est. = n/a, Prior = 8.534M)
Thursday
Initial Claims @ 8:30 AM for 09/22 (Est. = 379K to 380K, Prior = 382K)
Continuing Claims @ 8:30 AM for 09/15 (Est. = 3270K to 3300K, Prior = 3272K)
Durable Orders @ 8:30 AM for August (Est. = -5.0% to -6.5%, Prior = 4.1%)
Pending Home Sales @ 10:00 AM for August (Est. = 0.5% to 2.05, Prior = 2.4%)
Friday
Personal Income @ 8:30 AM for August (Est. = 0.1% to 0.2%, Prior = 0.3%)
Personal Spending @ 8:30 AM for August (Est. = 0.5% to 0.6%, Prior = 0.4%)
Chicago PMI @ 9:45 AM for September (Est. = 52.0 to 52.9, Prior = 53.0)
Michigan Sentiment @ 9:55 AM for September (Est. = 79.0, Prior = 79.2)

Weekly Newsletter September 16th - September 22nd

Current Events: 52-week highs in both the Dow Jones Industrial and S&P 500 can be credited to the decision made on late Thursday by the Federal Reserve to commence a third round of quantitative easing. The announcement of the Fed's plan to buy $40 billion worth of mortgage-backed securities per month quickly triggered a sharp rally in the U.S. markets.

 

What to Look for This Week

The most important numbers to be released this week for investors will certainly be involving housing data, especially considering the lack of earnings and economic announcements scheduled. Statistics from the NAHB Housing Market Index and Housing Starts reports will help investors evaluate the health status of the slowly rebuilding U.S. housing market.

News Affecting the Markets

Last week, in an effort to provide much needed reassurance and support to onlookers concerning the euro zone debt crisis, the European Central Bank pledged to provide unlimited funds to rein in the debt crisis via its own bond-buying program. However, assistance cannot be extended unless a country asks for help. This is something that Spain has neglected to do till date.

Smart Investing

Fear Can Lead to Poor Retirement Choices: When considering retirement it is important to reflect on what changes need to occur to move from where you are now to where you'd like to be in 10 years. Will keeping your current jobs get you where you want to be? Will starting a business help you succeed? What do you need to do to get to where you want to be and reach all your goals, personally and financially? Many boomers have a lot of fears about retirement. Determine what your fears are. The stock market has played havoc on many boomers' retirement nest eggs. Cutbacks on savings plans at work, as well as having to contribute more to healthcare costs, less pay raises and even pay cuts have created fears about having enough money to retire. Some say we can't even truly rely on social security anymore as national debt concerns rise. Fear of not enough money can cause problems with your life today, as well as create a lot of fear based choices that might not be the best for you or your family. Pay off debt before retirement. Zero debt working on a cash basis should be your goal for retirement days.

Earnings for the Week

Monday: No major announcements.
Tuesday: No major announcements.
Wednesday: No major announcements.
Thursday: No major announcements.
Friday: No major announcements.
* Earnings dates and times are subject to change

Economic Data this Week

Monday
Empire Manufacturing @ 8:30 AM for September (Est. = -3.0, Prior = -5.9)
Tuesday
NAHB Housing Market Index @ 10:00 AM for September (Est. = 38, Actual = 37)
Wednesday
MBA Mortgage Index @ 7:00 AM for 09/15 (Est. = n/a, Prior = 11.1%)
Housing Starts @ 8:30 AM for August (Est. = 0.0% to 0.3%, Prior = -0.2%)
Building Permits @ 8:30 AM for August (Est. = 0.0% to 0.3%, Prior = -0.2%)
Existing Home Sales @ 10:00 AM for August (Est. = 0.0% to 0.3%, Prior = -0.2%)
Crude Oil Inventories @ 10:30 AM for 09/15 (Est. = n/a, Prior = 1.994M)
Thursday
Initial Claims @ 8:30 AM for 09/15 (Est. = 375K, Prior = 382K)
Continuing Claims @ 8:30 AM for 09/08 (Est. = 3292K to 3300K, Prior = 3283K)
Philadelphia Fed @ 10:00 AM for September (Est. = -5.0, Prior = -7.1)
Leading Indicators @ 10:00 AM for August (Est. = 0.0%, Prior = 0.4%)
Friday
No scheduled announcements.

Weekly Newsletter September 9th - September 15th

Current Events: Credit a very strong Thursday for last week's big gains in all major U.S. equity indexes, including the Dow Jones, Nasdaq, and S&P. Gold, which has shown some signs of life over the last two months, also had a very strong week in the markets.

What to Look for This Week

All eyes will be on the Fed this week as the U.S. and the world a wait to see if QE3 will take place. Another round of quantitative easing is being heavily debated as many investors worry such drastic measures may hurt the overall health of the U.S. more than it will benefit from the move. While serious discussions will take place this week on the hot topic, it is unlikely that Federal Reserve Chairman Ben Bernanke will give the go ahead on QE3 this week.

 News Affecting the Markets

 Lackluster August jobs data surprisingly fueled the markets last week as speculation grew that the Federal Reserve may start another round of monetary stimulus. This stir in the markets helped U.S. equities finish modestly higher Friday, following Thursday's massive surge. Such speculation, coupled with relatively favorable progress being made within euro zone, has boosted major indexes to their highest levels in years.

Smart Investing

 Dividend Reinvestment Plans (DRIPS):  Dividend Reinvestment Plans (also known as DRIPS) are investment plans that allow individuals to reinvest dividends and to use dividends to buy more stocks without paying brokerage commissions. Some Dividend Reinvestment Plans allow purchasing additional stocks, also without paying brokerage commissions. Usually Dividend Reinvestment Plans don't charge commissions. On the other hand the company might give you a discount of 2-5%. To sign in to the Dividend Reinvestment Plans you should already have at least one share of the company on your name. Some companies request owning a minimal number of shares in order to sign in to their Dividend Reinvestment Plan. Therefore, you must use a broker to buy the first shares, or buy them directly from the company. Note that not all companies allow direct purchasing. Usually a company that allows direct purchase allows Dividend Reinvestment Plans.

Earnings for the Week

 Monday: No major announcements.

Tuesday: No major announcements.

Wednesday: No major announcements.

 Thursday: No major announcements.

Friday: No major announcements.
* Earnings dates and times are subject to change

Economic Data this Week

Monday

Consumer Credit @ 3:00 PM for July (Est. = $8.0b to $10.0B, Prior = $6.5B)

Tuesday

Trade Balance @ 8:30 AM for July (Est. = -$44.0B to $-46.0B, Actual = -$42.9B)

 Wednesday

MBA Mortgage Index @ 7:00 AM for 09/08 (Est. = n/a, Prior = -2.5%)
Wholesale Inventories @ 10:00 AM for July (Est. = 0.0% to 0.3%, Prior = -0.2%)
Crude Oil Inventories @ 10:30 AM for 09/08 (Est. = n/a, Prior = -7.426M)

 Thursday

Initial Claims @ 8:30 AM for 09/08 (Est. = 369K to 370K, Prior = 365K)

Continuing Claims @ 8:30 AM for 09/01 (Est. = 3315K to 3300K, Prior = 3322K)

PPI @ 8:30 AM for August (Est. = 1.2%, Prior = 0.3%)

FOMC Rate Decision @ 12:30 PM for September (Est. = 0.25%, Prior = 0.25%)

 Friday

Retail Sales @ 8:30 AM for August (Est. = 0.7% to 1.0%, Prior = 0.8%)
CPI @ 8:30 AM for August (Est. = 0.6%, Prior = 0.0%)
Industrial Production @ 9:15 AM for August (Est. = 0.2% to 0.3%, Prior = 0.6%)
Capacity Utilization @ 9:15 AM for August (Est. = 78.9% to 79.2.%, Prior = 79.3%)
Michigan Sentiment @ 9:55 AM for September (Est. = 73.0 to 73.3, Prior = 74.3)
Business Inventories @ 10:00 AM for July (Est. = 0.2% to 0.4%, Prior = 0.1%)

Weekly Newsletter September 2nd - September 8th

Current Events: A choppy and somewhat stagnant market attempts to hold on to gains experienced earlier in the year, even following a poor August showing in both performance and volume. With U.S. elections just around the corner, decisive help may not come soon enough as uncertainty appears to reign supreme, at least for the time being.

What to Look for This Week

Key data on the health of the U.S. job market set to be released early Friday morning will greatly impact U.S. markets, with for investors undoubtedly focusing in on the unemployment rate. While the unemployment rate has be stuck at 8.3% for some time now, some analysts are forecasting a slight improvement in this week's report.

News Affecting the Markets

A two-week high for the NYSE composite in terms of volume is a glimmer of hope for eager investors looking to jump back into the relatively lackluster U.S. markets. Tuesday, September 4th marked the largest volume trading day for the exchange since August 21st with 3.06 billion shares traded on the day. While the average daily volume for the year has been roughly 3.63 billion shares a day, the up-tick in volume is certainly hungry investors can hang their hats on as a sign of progress. The Nasdaq also experienced its largest volume day on Tuesday since August 21st, as well, reaching 1.49 billion shares on the day.

Smart Investing

The World of Investing: Governments do it. Companies do it. Fund managers do it. Millions of ordinary working people, from business owners to factory workers, do it. Housewives do it. Even farmers and children do it. 'It' here is investing: the science and art of creating, protecting and enhancing your wealth in the financial markets. Getting involved with investing can seem challenging, confusing, and very risky to someone looking from the outside in. In fact, to some actually involved with investing it too seems that way. However, the process and methodology of investing can be quite manageable and practical if taken step by step. Two key things that must be considered prior to beginning the process of investing are goals and resources. First it is important to determine what is the ultimate goal; is to gain security, income, wealth, or a combination of the before-mentioned. The second is to determine what amount is truly disposable income, what amount is desired, and what amount is needed to survive. Often individuals fail to decide on these and unclear, unrealistic expectations lead them into avoidable mistakes. Thus, map out what your goals are for investing and how much financial backing you have to accomplish these goals prior to jumping into the world of investing.

Earnings for the Week

Monday: No major announcements.

Tuesday: Campbell Soup Co (CPB), Pep Boys-Manny Moe and Jack (PBY) {After the Close}, Smithfield Foods Inc (SFD)

Wednesday: Dollar General Corp (DG), H & R Block Inc (HRB) {After the Close}, Men's Wearhouse Inc (MW) {After the Close}, VeriFone Systems Inc (PAY) {After the Close}

Thursday: Hovnanian Enterprises Inc (HOV), Navistar International Corp (NAV), Quiksilver Inc (ZQK) {After the Close}, Smith & Wesson Holding Corp (SWHC) {After the Close}, Ulta Salon Cosmetics and Fragrance Inc (ULTA) {After the Close}

Friday: Kroger Co (KR)
* Earnings dates and times are subject to change

Economic Data this Week

Monday
No announcements scheduled.

Tuesday
ISM Index @ 10:00 AM for August (Est. = 49.0 to 50.0, Actual = 49.6)
Construction Spending @ 10:00 AM for July (Est. = 0.5%, Actual = -0.9%)
Auto Sales @ 2:00 PM for August (Est. = n/a, Prior = 5.0M)
Truck Sales @ 2:00 PM for August (Est. = n/a, Prior = 6.0M)

Wednesday
MBA Mortgage Index @ 7:00 AM for 09/01 (Est. = n/a, Prior = -4.3%)

Thursday
Initial Claims @ 8:30 AM for 09/01 (Est. = 373K to 375K, Prior = 374K)
Continuing Claims @ 8:30 AM for 08/25 (Est. = 3300K, Prior = 3316K)
ISM Services @ 10:00 AM for August (Est. = 51.0 to 52.4 Prior = 52.6)
Crude Oil Inventories @ 11:00 AM for 09/01 (Est. = n/a, Prior = 3.778M)

Friday
Unemployment Rate @ 8:30 AM for August (Est. = 8.2% to 8.3%, Prior = 8.3%)