CONSUMER SENTIMENT HITS A 4-YEAR PEAK
May’s initial Thomson Reuters/University of Michigan consumer sentiment survey came in with an index reading of 77.8, the highest mark since January 2008. The current economic conditions sub-index rose to 87.3 from last month’s final 82.9 reading. Descending oil and gas prices may have been factors promoting some optimism.¹

BIGGEST DROP IN PPI In 6 MONTHS
Falling energy prices influenced this development as well. Producer prices retreated 0.2% in April according to the Labor Department. Economists surveyed by Reuters had forecast no change. The bulk of the retreat was attributed to the 1.4% April drop in energy costs. The PPI has only risen 1.9% in the last 12 months, the smallest annualized wholesale price inflation recorded since October 2009.^2,3

GOLD & OIL PRICES RETREAT
After anxieties emerged last week about a China slowdown, the broad commodities market took a hit. So at Friday’s close, gold had fallen 3.72% across five trading days to $1,584.00 per ounce while crude futures had slipped 2.40% to $96.13 a barrel. As of Friday evening, gold was +1.10% YTD and oil was -2.73% YTD.²

NEW DOUBTS IN THE EU AFFECT STOCKS
Eurozone elections brought new worries about whether Greece would abide by austerity cuts and stick with the euro. Efforts to form a coalition government in Greece stalled last week, and French president Nicolas Sarkozy was defeated in his reelection bid by socialist candidate Francois Hollande. Factor in the usual spring thoughts about whether stocks are ready to pull back, and the weekly losses were as follows: S&P 500, -1.15% to 1,353.39; DJIA, -1.67% to 12,820.60; NASDAQ, -0.76% to 2,933.82.^2,4,8

THIS WEEK: Facebook’s IPO is scheduled for Friday, and there are plenty of other news items on tap. On Monday, Groupon comes out with Q1 results. Tuesday, the April CPI appears plus data on April retail sales and earnings from JCPenney, TJX, Dick’s Sporting Goods, Saks and Home Depot. Wednesday brings data on April housing starts and industrial output, the April 25 FOMC minutes, and Q1 results from Deere, Abercrombie & Fitch, Target, Staples and Limited Brands. The Conference Board’s April consumer confidence index and new initial claims figures are out Thursday, joined by Q1 earnings from Wal-Mart, Dollar Tree, Ross Stores, Gap, Aeropostale and Sears. As Facebook starts trading on Friday, a G8 summit also starts at Camp David; Q1 results also arrive from Ann, Inc. (formerly Ann Taylor).

WEEKLY RIDDLE:   We know that a seahorse isn’t a horse, and we know that a silverfish isn’t a fish. For that matter, a snakehead isn’t a snake – but what is it? 
             Contact our office or see next week’s update for the answer!
 
Last week’s riddle:   About 90% of this country’s land area is made up of arid tan desert, yet its flag is solid green – in fact, at present it is the only nation in the world with a flag containing just one color. What nation is this?

Last week’s riddle answer:  Libya.
 
Please feel free to forward this article to your family, friends or colleagues. If you would like us to add them to our distribution list, please reply with their address. We will contact them first and request their permission to add them to our list.  
 
 

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.marketwatch.com/story/consumer-sentiment-in-may-at-post-recession-high-2012-05-11 [5/11/12]
2 – money.msn.com/market-news/post.aspx?post=eb995dbd-6940-465b-8bcb-3488ef1c2b7e [5/11/12]
3 – www.nytimes.com/2012/05/12/business/economy/us-wholesale-inflation-falls.html [5/12/12]
4 – montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [5/11/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F11%2F11&x=0&y=0 [5/11/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F11%2F11&x=0&y=0 [5/11/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F11%2F11&x=0&y=0 [5/11/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F11%2F07&x=0&y=0 [5/11/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F11%2F07&x=0&y=0 [5/11/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F11%2F07&x=0&y=0 [5/11/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F10%2F02&x=0&y=0 [5/11/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F10%2F02&x=0&y=0 [5/11/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F10%2F02&x=0&y=0 [5/11/12]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [5/11/12]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [5/11/12]
7 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02]
8 – www.sacbee.com/2012/05/10/4483985/as-europes-economic-outlook-darkens.html [5/11/12]

UNEMPLOYMENT DOWN TO 8.1%
The jobless rate dipped 0.1% in April, but Wall Street didn’t exactly cheer about it as just 115,000 non-farm jobs were added to the economy. Economists polled by Briefing.com thought payrolls would expand by 162,000. The Dow fell 168 points Friday on the news. On the bright side, job gains across February and March were revised upward by 53,000. Payrolls grew by a cumulative total of 635,000 positions in Q1 2012, making it the best quarter for hiring since Q1 2006.^1,2,3      
 
CONSUMER SPENDING UP 0.3%
Analysts termed March’s gain disappointing after the (upwardly revised) 0.9% advance in February. Economists surveyed by Bloomberg News anticipated a 0.4% improvement. Consumer incomes rose 0.4% in March, the best month in that category since December; consumer wages were up 0.3%.³

U.S. MANUFACTURING INDEX LEAPS NORTH
The Institute for Supply Management’s April manufacturing PMI rose 1.4% in April to 54.8, representing the best monthly gain since June. Now for the bad news: the ISM non-manufacturing index showed a 2.5% drop in the same month to 53.5.^2,4

AVERAGE RATE ON 30-YEAR FRM: 3.84%
That is a new all-time low recorded by Freddie Mac in its May 3 Primary Mortgage Market Survey. A year prior, interest rates on 30-year conventional home loans averaged 4.71%. Rates on the refinancer’s favorite tool – the 15-year FRM – have dropped from 3.89% to just 3.07% in the same time frame.⁵

  STOCKS DECLINE
The job report drained enthusiasm from the market Friday, and stocks retreated for the week. The five-day performances: S&P 500, -2.44% to 1,369.10; DJIA, -1.44% to 13,028.27; NASDAQ, -3.68% to 2,956.34. Also notable: oil’s dive back under $100. At Friday’s NYMEX close, crude futures settled at $98.49, down 6.14% in a week.^1,6
 
THIS WEEK: Monday offers Q1 results from Electronic Arts and Tyson Foods. Tuesday, DirecTV, Wendy’s, Disney and HSBC issue earnings reports. Wednesday brings earnings announcements from Priceline.com, NewsCorp, Toyota, AOL, Dean Foods, Macy’s, Activision Blizzard and Cisco. Thursday, new initial claims figures appear along with Q1 results from Kohl’s, Nordstrom and Sony; Fed chairman Ben Bernanke speaks at the annual Conference on Bank Structure and Competition in Chicago. Friday brings the April PPI and May’s initial University of Michigan consumer sentiment survey, and earnings arrive from Nissan and Nvidia.
 

Sources: money.msn.com, bigcharts.com, treasury.gov, treasurydirect.gov – 5/4/12^1,7,8,9
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends
     
 WEEKLY RIDDLE:   About 90% of this country’s land area is made up of arid tan desert, yet its flag is solid green – in fact, at present it is the only nation in the world with a flag containing just one color. What nation is this?
 
             Contact our office or see next week’s update for the answer!
 
Last week’s 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 in unison. They even went home a bit richer. What were these men doing?    

Last week’s riddle answer:  They were street musicians performing for passerby.
 
Please feel free to forward this article to your family, friends or colleagues. If you would like us to add them to our distribution list, please reply with their address. We will contact them first and request their permission to add them to our list.  
 
 

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 – money.msn.com/market-news/post.aspx?post=06187871-41ac-4526-a225-e3067cf18d18 [5/4/12]
2 – briefing.com/investor/calendars/economic/2012/04/30-04 [5/4/12]
3 – www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/04/30/bloomberg_articlesM3ALE03T6SRQ01-M3ALE.DTL [4/30/12]
4 – www.ism.ws/ISMReport/MfgROB.cfm [5/1/12]
5 – www.cbsnews.com/8301-500395_162-57427288/record-low-mortgage-rates-what-to-do-now/ [5/4/12]
6 – montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [5/4/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F4%2F11&x=0&y=0 [5/4/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F4%2F11&x=0&y=0 [5/4/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F4%2F11&x=0&y=0 [5/4/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F4%2F07&x=0&y=0 [5/4/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F4%2F07&x=0&y=0 [5/4/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F4%2F07&x=0&y=0 [5/4/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F3%2F02&x=0&y=0 [5/4/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F3%2F02&x=0&y=0 [5/4/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F3%2F02&x=0&y=0 [5/4/12]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [5/4/12]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [5/4/12]
9 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02

Presented by Terrill Jannsen  

An old stock market dictum says that spring is for profit-taking, or at least a time to reduce your exposure to equities.

In the classic market psychology, you “sell in May and go away” with the belief that stock prices will plateau or retreat in spring and summer, and then you return to stocks in the fall, taking advantage of bargains and factors that will encourage a hot fourth quarter.

In the last several years, we have seen all kinds of stock market behavior, some of it extraordinary. So is there any credence to this approach now?

The argument for “going away”. Over the last 12 months, investors who held to this belief made out pretty well. From May 1-November 1, 2011, the Dow lost 6.7%. From November 2011 through April 27, 2012, it gained 10.7%.^1,2

If we open a historical window – specifically, The Stock Trader’s Almanac – back to 1926, we see the S&P 500 rising 4.3% on average during May-October and gaining an average of 7.1% from November-April.³

Unsurprisingly, STA editor-in-chief Jeff Hirsch is an advocate of the “sell in May” approach. So is Sam Stovall, who is of course the chief equity strategist at S&P Capital IQ. As Stovall just noted to Forbes, since 1945 the S&P 500 has gained just 1.2% during the average May-October run yet advanced 6.9% during the average November-April period.^1,3

While these numbers are pretty compelling, you know what they say about statistics.

Is the argument principally flawed? If you do sell in May, where do you put your money after dumping those stocks? The strategy assumes you know of a better place – an alternative to equities offering greater yield and less risk.

Larry Swedroe, director of research for Buckingham Asset Management, recently told CBS MoneyWatch that the “sell in May” approach amounted to “pure randomness”. He made his claim by running numbers in calendar years from 1950-2007 with the hypothesis of reinvesting money pulled out of equities into 30-year Treasuries during the assumed 6-month market lull. According to his research, the “buy and hold” crowd would have outperformed the “sell in May” crowd in the time frames 1950-2007, 1980-2007 and 1990-2007, with the “sell in May” adherents triumphing in the time frames of 1960-2007, 1970-2007 and 2000-2007.^3,4   

The case for staying in the market. Even if the performance numbers mentioned in the fourth, fifth and sixth paragraphs of this article were absolutely predictable annually, what would the compelling argument be for ditching stocks? Gains would still occur in spring and summer; they would just be lesser gains.

Let’s go from hypothesis to reality, specifically what is occurring right now. An investor wanting a divorce from risk for the next six months could decide to bail from stocks and put the assets into short-term Treasuries and money market accounts. Would it be worth it? Maybe not. According to Bankrate.com, 6-month Treasuries were yielding 0.14% as of April 27 and money market accounts were yielding 0.46%. Throw in brokerage charges and taxes you might incur from selling, and getting in and out of equities may look less attractive.¹

Once you’re out, when do you get back in? What if mid-October brings a rally? Do you jump in and buy? What if the bears show up at the start of November? How long do you wait for what might be the market low?

Moreover … who’s to say that U.S. economic indicators (or even global ones) might be better than expected this summer? What if the EU arranges a manageable fix for Spain’s debt dilemma? What if the real estate market shows signs of heating up in the coming quarters? What if the Fed opts for more easing?

If the “sell in May” strategy sounds more like market timing to you than anything else, it does have some history supporting it – history worth considering. The fact remains, however, that history is no barometer of future stock market performance.

Terry Jannen may be reached at 262-513-9292 or Terrill.Jannsen@Jannsen.com.

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. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Please note – investing involves risk, and past performance is no guarantee of future results. 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. 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. This is not a solicitation or a recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations.

1 – www.forbes.com/sites/investor/2012/04/27/stay-in-stocks-or-sell-in-may/ [4/27/12]

2 – money.cnn.com/data/markets/dow/ [4/27/12]

3 – www.cbsnews.com/8301-32778_162-57423130/why-sell-in-may-doesnt-work-for-investors/ [4/27/12]

4 – montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [4/27/12]

PC’s have a finite useful life span which can range from 3 years and older. A general rule to follow is that a majority of workstations and laptops can have a serviceable life span of 3 to 5 years and servers up to 5 years. Many factors can impact the rate at which machines are replaced, but one constant is the organization and end user’s requirements and needs. Effective lifecycle planning takes a pro-active approach to replacing equipment and considers the end user requirements along with changes in technology, software requirements and cost.

Planning Phase:

The yearly planning phase assesses the current and future needs of an organization and is an opportunity to review and set overall replacement schedules and standards. Workstation replacement schedules may differ from laptops. Server replacement schedules are typically influenced by software requirements and increases in file storage requirements. The planning phase can help limit the number of machines (and reduce the cost) required for purchasing in any given year. For example: The ABC company has 12 laptops and has determined that on average, they last four years. ABC could replace 12 laptops every 4 years or under a PC lifecycle strategy, could stagger the same 12 laptop purchases and associated costs over a 3 year period.

Procurement Phase:

The procurement phase is the purchasing outcome from the planning phase. Purchasing details such as warranty coverage, operating system, memory requirements, and software inclusions are a few examples of standards which can be set in the planning phase and utilized when purchasing equipment.

Deployment and Patch Management:

Deployment can occur with either internal or external resources. Both options have associated costs which impact the total cost of ownership (TCO). Patch management is a critical component in the overall health of a network and there are several effective centralized solutions available to ensure compliance and reduce potential operating issues.

Support:

An effective lifecycle strategy includes support and warranty coverage reviews to ensure continuous operational performance.

Disposal:

Disposal or retirement options may include recycling the equipment or allocating the machine for other non-essential functions. In either case, machines should be reviewed for possible software and data removal.

Effective PC lifecycle management is a continuous process which can streamline the PC replacement change process when aligned with an organization’s pre-determined standards and planning. Lifecycle adherence can provide lower overall costs, increased equipment uptimes and increased efficiency for an organization.

If you have any questions, please contact us at 262-513-9292.

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.^1,2
   
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.^2,3
  
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.^4,5
 
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.^3,6
  
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 – 4/27/12^3,7,8,9
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.
     
 WEEKLY RIDDLE:   Four grown men decided to play on the sidewalk for three hours.  No one chided them for childish behavior; many appreicated the noise they made.  They went home a bit richer.  What were they doing?
 
             Contact our office or see next week’s update for the answer!
 
Last week’s riddle:   They have no bodies, but you could say they have tails and heads.  What are they?     

Last week’s riddle answer:  Coins.
 
Please feel free to forward this article to your family, friends or colleagues. If you would like us to add them to our distribution list, please reply with their address. We will contact them first and request their permission to add them to our list.  
 

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 – money.msn.com/market-news/post.aspx?post=4ffe3e5e-7c95-4a95-8b82-e0848c9771de [4/27/12]
2 – briefing.com/investor/calendars/economic/2012/04/23-27 [4/27/12]
3 – www.cnbc.com/id/47204037 [4/27/12]
4 – www.nydailynews.com/life-style/real-estate/rebuilding-home-resales-highest-2010-article-1.1068578 [4/27/12]
5 – briefing.com/Investor/Calendars/Economic/Releases/newhom.htm [4/27/12]
6 – montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [4/27/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F27%2F11&x=0&y=0 [4/27/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F27%2F11&x=0&y=0 [4/27/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F27%2F11&x=0&y=0 [4/27/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F27%2F07&x=0&y=0 [4/27/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F27%2F07&x=0&y=0 [4/27/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F27%2F07&x=0&y=0 [4/27/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F26%2F02&x=0&y=0 [4/27/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F26%2F02&x=0&y=0 [4/27/12]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F26%2F02&x=0&y=0 [4/27/12]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/27/12]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/27/12]
9 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02]

 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.^1,2
    
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.³
   
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.⁴
  
DOW BREAKS LOSING STREAK, GOLD PULLS BACK
Across April 16-20, the Dow gained 1.40% to 13,029.26 (its first weekly advance in three weeks), the NASDAQ lost 0.36% to 3,000.45 and the S&P 500 gained 0.60% to 1,378.53. Gold futures fell $17.00 (1.02%) on the week, settling Friday at $1,642.10; oil ended the week at $103.05 after a 0.21% gain across five trading days.^5,6,7

 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 – 4/20/12^5,8,9,10
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.

 WEEKLY RIDDLE:   They have no bodies, but you could say they have tails and heads. What are they?
 
             Contact our office or see next week’s update for the answer!
 
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 riddle answer:  The letter S.
 
Please feel free to forward this article to your family, friends or colleagues. If you would like us to add them to our distribution list, please reply with their address. We will contact them first and request their permission to add them to our list.  
 

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.omaha.com/article/20120419/AP/120419584 [4/19/12]
2 – www.cnbc.com/id/47072035 [4/17/12]
3 – www.businessweek.com/ap/2012-04/D9U6251O0.htm [4/20/12]
4 – www.foxnews.com/us/2012/04/19/gauge-us-economy-rose-03-percent-in-march/ [4/19/12]
5 – blogs.wsj.com/marketbeat/2012/04/20/data-points-u-s-markets-93/ [4/20/12]
6 – montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [4/20/12]
7 – blogs.wsj.com/marketbeat/2012/04/20/data-points-energy-metals-555/ [4/20/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F20%2F11&x=0&y=0 [4/20/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F20%2F11&x=0&y=0 [4/20/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F20%2F11&x=0&y=0 [4/20/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F20%2F07&x=0&y=0 [4/20/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F20%2F07&x=0&y=0 [4/20/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F20%2F07&x=0&y=0 [4/20/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F19%2F02&x=0&y=0 [4/20/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F19%2F02&x=0&y=0 [4/20/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F19%2F02&x=0&y=0 [4/20/12]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/20/12]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/20/12]
10 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02]

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.^1,2,3
 
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.²
  
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.⁴
  
OIL & GAS PRICES FALL; Gold RISES
Friday, AAA’s Daily Fuel Gauge Report had regular unleaded averaging $3.90 a gallon, down $0.035 from last week. On the NYMEX, oil lost 0.46% on the week to settle at $102.83 Friday; gold settled at $1,660.20 after a 1.85% weekly gain.⁵
  
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.^6,7

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 – 4/13/12^7,8,9,10
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.

 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?
 
             Contact our office or see next week’s update for the answer!
 
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 riddle answer:  Karen is 22 years old.
 
Please feel free to forward this article to your family, friends or colleagues. If you would like us to add them to our distribution list, please reply with their address. We will contact them first and request their permission to add them to our list.  
 

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.nytimes.com/2012/04/14/business/economy/consumer-inflation-up-modestly.html [4/13/12]
2 – briefing.com/investor/calendars/economic/2012/04/09-13 [4/13/12]
3 – www.cnbc.com/id/47027476 [4/12/12]
4 – www.marketwatch.com/story/modest-to-moderate-economic-growth-beige-book-2012-04-11-148140 [4/11/12]
5 – money.msn.com/market-news/post.aspx?post=fadc5c34-4c33-4af9-90e2-9c80bb50cbcb [4/13/12]
6 – montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [4/13/12]
7 – www.cnbc.com/id/47040305 [4/13/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F13%2F11&x=0&y=0 [4/13/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F13%2F11&x=0&y=0 [4/13/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F13%2F11&x=0&y=0 [4/13/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F12%2F07&x=0&y=0 [4/13/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F12%2F07&x=0&y=0 [4/13/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F12%2F07&x=0&y=0 [4/13/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F12%2F02&x=0&y=0 [4/13/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F12%2F02&x=0&y=0 [4/13/12]
8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F12%2F02&x=0&y=0 [4/13/12]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/13/12]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/13/12]
10 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02]

We recommend that any checks that have been outstanding for more than six months be adjusted off or voided. The year end is also a good time to review your old accounts receivables and accounts payables. In regards to the accounts receivables, you will want to run your accounts receivable aging report in summary. If you see a customer with a zero balance on the report, this would indicate that you have an open invoice and a payment on the customer’s account.  However, these items have not been cleared or “netted” with each other. A potential problem with this is that if you are processing finance charges within QuickBooks, the software will continue to calculate finance charges on the invoice even though it appears that no balance exists. You will need to go under the Receive Payments window and apply the credit/discount against the outstanding invoice. Once this is done, the finance charges will no longer be assessed.

On the accounts payable side of things, we recommend printing the accounts payable aging report. If you have any vendors with a zero balance this would indicate that you have payments and credits available to offset an unpaid bill. In order to clear this issue, you will need to go to the Pay Bills window, select the unpaid bill to be cleared and then select the “Set Credits” or “Set Discount” button. After applying the credit you will need to select the “Pay Selected Bills” button. This will effectively “net” the two clearing the transaction.

After your 2011 income tax return has been completed and all the year-end adjustments have been recorded into the QuickBooks file, we suggest that you utilize QuickBooks’ “Closing Date” feature. This feature sets the system to warn you if you try to make an adjustment into the prior year. Making an adjustment in a prior year after the income tax returns have been filed is not recommended. You want your QuickBooks file to match with your income tax return. So we feel strongly that as soon as the income tax returns are completed, you should set the closing date to your year-end date (e.g. 12/31/11 if your fiscal year ends with the calendar year). In order to set the closing date, you can choose Company from the top menu bar and select “Set Closing Date”. This will bring up the preferences window. On the Company Preferences tab is a button labeled “Set Date/Password”.  Select this button and you will now be able to enter the desired closing date. You can also password protect the ability to post a transaction prior to the closing date. In other words, no transaction will be allowed to be posted without knowing this password. This is suggested if more than one person accesses the QuickBooks file. It puts in a level of control to protect the integrity of the history of your information.

Jannsen & Company, S.C. has several QuickBooks ProAdvisors on staff.  Please call 262-513-9292 to speak with one of them.

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.¹
   
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 56.7.²
  
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%.³
   
OIL ADVANCES, GOLD SLIPS
Oil prices rose 0.28% last week to settle at $103.31 a barrel on the NYMEX, while retail unleaded gas prices averaged $3.94 a gallon nationally on Friday. Gold futures fell 2.50% on the COMEX to wrap up last week at $1,630.10 an ounce.¹
   
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.¹
 
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 – 4/6/12^1,5,6,7
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.

 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?

 
             Contact our office or see next week’s update for the answer!
 
Last week’s riddle:  Take one letter out of a 7-letter word and it becomes longer. What is this word?
   

Last week’s riddle answer:  Lounger.

 
Please feel free to forward this article to your family, friends or colleagues. If you would like us to add them to our distribution list, please reply with their address. We will contact them first and request their permission to add them to our list.  
 

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 – money.msn.com/market-news/post.aspx?post=98ca0651-75b8-4c7e-afb9-3e390da03ecf/ [4/6/12]
2 – briefing.com/investor/calendars/economic/2012/04/02-06 [4/6/12]
3 – www.businessweek.com/ap/2012-04/D9TTICGO2.htm [4/3/12]
4 – montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [4/6/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F6%2F11&x=0&y=0 [4/6/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F6%2F11&x=0&y=0 [4/6/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F6%2F11&x=0&y=0 [4/6/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F5%2F07&x=0&y=0 [4/6/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F5%2F07&x=0&y=0 [4/6/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F5%2F07&x=0&y=0 [4/6/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F5%2F02&x=0&y=0 [4/6/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F5%2F02&x=0&y=0 [4/6/12]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F5%2F02&x=0&y=0 [4/6/12]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/6/12]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/6/12]
7 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02]

HIGH GAS PRICES DON’T DENT PERSONAL SPENDING
Consumer spending increased by 0.8% in February, even with fuel prices soaring. That topped the 0.6% gain projected by economists polled by Reuters. February’s inflation-adjusted gain was 0.5%, the largest in six months. January’s headline personal spending gain was doubled to 0.4% in a Commerce Department revision.¹
   
HOW IS THE CONSUMER FEELING?
The final March University of Michigan consumer sentiment survey hints that morale may be rising on Main Street. It came in at 76.2, well above the 74.3 consensus of economists polled by Briefing.com. On the other hand, the March consumer confidence poll from the Conference Board fell to 70.2 from February’s 71.6 mark, which was in line with the expectations of those economists.²
   
MORTGAGE RATES DIP BACK UNDER 4%
Freddie Mac’s March 29 survey found the average interest rate for a 30-year fixed-rate home loan at 3.99% with an average 0.7 point. Rates on 15-year FRMs averaged 3.23% with an average 0.8 point last week. A sour note: the S&P/Case-Shiller Home Price Index fell 3.8% in January to a low unseen since the end of 2002.^2,3
  
DURABLE GOODS ORDERS UP 2.2% FOR FEBRUARY
This reverses some of the 3.6% retreat from January. However, economists polled by Briefing.com had expected a 2.8% gain for the month.²
   
A TREMENDOUS QUARTER WRAPS UP
The best first quarter for stocks in 14 years ended with another solid week: DJIA, +1.00% to 13,212.04; S&P 500, +0.81% to 1,408.47; NASDAQ, +0.77% to 3,091.57. Look at these Q1 performances: NASDAQ, +18.67% (its best quarter in 21 years); Dow, +8.14%; S&P 500, +12.00%. Gold futures climbed $9.50 for the week, settling Friday at $1,671.90 an ounce. Gold gained 6.71% for the quarter. NYMEX crude fell $3.85 last week, but still ended March at $103.02 with a 4.24% quarterly gain.^4,5
  
THIS WEEK:  The March ISM manufacturing index and February construction spending data arrive Monday. Tuesday presents Commerce Department reports on February factory orders and March vehicle sales along with the March 13 FOMC minutes. On Wednesday, the March edition of ISM’s service sector index is out, plus Q1 earnings from Monsanto and Bed Bath & Beyond. Thursday brings earnings from CarMax and the latest initial claims numbers. On Good Friday, U.S. financial markets will be closed and banks will be open; the March unemployment figures will also be released.
 

Sources: msn.money.com, bigcharts.com, treasury.gov, treasurydirect.gov – 3/30/12^4,6,7,8
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.

 WEEKLY RIDDLE:   Take one letter out of a 7-letter word and it becomes longer. What is this word?

 
             Contact our office or see next week’s update for the answer!
 
Last week’s riddle:  You need to take a gallon of oil out of a barrel of oil. How can you do it using only a 3-gallon container and a 5-gallon container?
   

Last week’s riddle answer:  Fill the 3-gallon container with oil and pour it into the 5-gallon container. Then fill the 3-gallon container again and use it to fill the 5-gallon container the rest of the way. One gallon will be left in the 3-gallon container.
  
 
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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.cnbc.com/id/46902933/ [3/30/12]
2 – briefing.com/investor/calendars/economic/2012/03/26-30 [3/30/12]
3 – freddiemac.mediaroom.com/index.php?s=12329&item=126095 [3/30/12]
4 – money.msn.com/market-news/post.aspx?post=087cac64-3d67-4737-b94a-31c3ff49ba16 [3/30/12]
5 – montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [3/30/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F30%2F11&x=0&y=0 [3/30/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F30%2F11&x=0&y=0 [3/30/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F30%2F11&x=0&y=0 [3/30/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F30%2F07&x=0&y=0 [3/30/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F30%2F07&x=0&y=0 [3/30/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F30%2F07&x=0&y=0 [3/30/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F28%2F02&x=0&y=0 [3/30/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F28%2F02&x=0&y=0 [3/30/12]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F28%2F02&x=0&y=0 [3/30/12]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [3/30/12]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [3/30/12]
8 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm10902.pdf [1/9/02]