Posted by: thepinetree on 07/20/2010 02:27 PM
Updated by: thepinetree on 07/20/2010 04:11 PM
Expires: 01/01/2015 12:00 AM
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Weekly Market Update Week of July 19, 2010 from Pacific West Financial Group
Copperopolis, CA...THE MARKETS: Not everything that starts well ends well. After strong earnings from Alcoa Inc. and Intel Corp. fueled optimism about the earnings season, the Dow’s 7-day winning streak ended on Thursday and reversed sharply on Friday. As weaker-than-expected second-quarter revenue at Citigroup, Bank of America, and General Electric combined with disappointing economic news, both the Dow and the S&P tumbled to end the week lower for the third time in the past four weeks. Amidst growing concerns about how overhaul of the financial regulatory system could hurt bank earnings, the financial sector was the worst performer in the S&P 500, tumbling 4.4% on Friday to end the week down 2.9%...
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July consumer sentiment numbers proved to be a major drag on the markets last week as survey results released by Reuters and the University of Michigan showed the ICS (Index of Consumer Sentiment) falling from 76 to 66.5 – its lowest level since August 2009. Since its inception in 1978, the index has only dropped this much 7 times. Although such moves in sentiment can’t be directly linked to spending habits, readings on consumer expectations and current conditions also took a hit in July. Manufacturing numbers showed signs of moderation as well, with measures of manufacturing activity in the New York and Philadelphia areas coming in below expectations. All in all, the disappointing numbers were enough to undermine the confidence of investors who are particularly sensitive to bad news. Aptly summarizing recent moves in the equities markets, Paul Nolte, managing director at Dearborn Partners was quoted in MarketWatch as saying, "The market is manic depressive, great one day and terrible the next." We second that.
The second-quarter earnings season kicks into high gear this week with 122 of the S&P 500’s largest companies scheduled to report. Investors will be watching closely for cues to how both corporate America and the U.S. consumer are holding up. This week also brings a wave of housing reports and a Senate Banking Committee hearing on monetary policy with Fed Chairman Ben Bernanke set to testify. President Obama is also expected to sign into law the most comprehensive reform of banking regulation since the Great Depression.
Key things to watch this week:
Monday – Housing Market Index
Tuesday – Housing Starts
Thursday – Jobless Claims, Existing Home Sales, Leading Indicators
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized. Sources: Yahoo! Finance, Google Finance, Barron’s, djindexes.com, MSCI Barra. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not available.
HEADLINES:
Six more bank failures brought the total tally for the year to 96, according to an announcement by the Federal Deposit Insurance Corp. on Friday.
A new J.D. Power and Associates survey shows, for the first time in 13 years, Detroit models make owners happier than imports. On average, owners of new American cars like their cars better than owners of Asian and European models according to the survey. The annual APEAL study – Automotive Performance, Execution, And Layout – measures how well new car buyers like their cars after living with them for three months. That's enough time to get over the initial glow of new car love and discover whether it's for real or not.
After factoring in health-care and long-term-care costs, the National Retirement Risk Index, or NRRI, produced by Boston College's Center for Retirement Research, finds that some 65% of American households are at risk of not having enough money to maintain their living standard in retirement.
BP plans to keep a mechanical cap used to seal its blown oil well in the Gulf of Mexico closed indefinitely, the oil company said during a Sunday morning press conference. The containment cap was successfully fitted to the blown well head on Thursday to stop an oil leak that has raged since the April 20 Deepwater Horizon rig explosion.
Boeing Company will receive an order for 30 of its 777 aircraft from Dubai's Emirates airline, The Wall Street Journal reported Sunday in its online edition, citing an unnamed source familiar with the order. Emirates, the world's fastest-growing airline, is expected to announce the order on Monday at the Farnborough Air Show in the United Kingdom, according to the Journal. The order has a catalog value of more than $7 billion.
American International Group said Friday that it agreed to pay $725 million to settle a securities class-action lawsuit. The suit, led by three Ohio public pension funds, stems from late 2004, when AIG was embroiled in an accounting scandal over alleged artificial inflation of claims reserves.
QUOTE OF THE WEEK:
“What lies behind us and what lies before us are tiny matters compared to what lies within us.” – Walt Emerson
RECIPE OF THE WEEK:
Crunchy Cinnamon Snack Mix
A sweet, salty, crunchy and completely addicting snack mix recipe from Betty Crocker.
Servings: 30 servings (1/2 cup each)
Ingredients:
5 cups Cinnamon Toast Crunch® cereal
3 cup Cheerios® cereal
1 bag original-flavored tiny fish-shaped crackers (6.6 ounces)
1 bag pretzel sticks (7 ounces)
1/2 cup butter or margarine, melted
Directions:
1. Heat oven to 300 degrees F. In large bowl, mix all ingredients except butter.
2. Pour melted butter over mixture; toss until evenly coated. Spread onto ungreased 13x9-inch pan.
3. Bake 25 minutes, stirring occasionally.
GOLF TIP OF THE WEEK:
Tough Lie: Hard Pan
When the ball comes to rest on a patch of rock-hard ground with no grass to prop it up, first select a sand or pitching wedge, and then position the ball according to the trajectory you need. Such as:
1.Forward for a high, soft shot.
2.Center for a standard pitch.
3.Back for a low, running pitch.
Next, move close enough to the ball so the club head is standing on its toe with the club shaft as vertical as possible. This helps you eliminate any angle in your wrist so that your club head won't drop lower through impact.
For the swing, use your pitching action.
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Insert your broker/dealer disclosures here. i.e. Securities offered through “Your B/D Name Here,” Member FINRA/SIPC.
Sources:
Marketwatch
The Wall Street Journal Online
Barrons
CNN Money
http://www.marketwatch.com/story/five-more-bank-failures-bring-2010-tally-to-96-2010-07-16-1835260
http://www.marketwatch.com/story/retirement-may-mean-a-lifestyle-downgrade-2010-07-15
http://www.marketwatch.com/story/bp-to-keep-well-cap-closed-indefinitely-2010-07-18
http://money.cnn.com/galleries/2010/autos/1007/gallery.2010_jd_power_apeal/index.html
http://www.marketwatch.com/story/emirates-to-order-30-boeing-777s-report-2010-07-18
http://www.marketwatch.com/story/aig-to-pay-725-mln-in-class-action-settlement-2010-07-16?dist=afterbell
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.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer 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.
Securities offered through Pacific West Securities, Inc., Member FINRA/SIPC
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