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Posted by: thepinetree on 08/27/2010 08:57 AM
Updated by: thepinetree on 08/29/2010 06:36 PM
Expires: 01/01/2015 12:00 AM
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Weekly Market Update Week of August 23, 2010. ~By Donna Stevenson, Pacific West Financial
Copperopolis, CA...THE MARKETS: Stocks faced another choppy week as concerns surrounding employment and slow economic growth combined with low trading volume to send indexes lower. For the week, the Dow shed 0.9% and the S&P 500 slid 0.7%. The Nasdaq managed a scant 0.3% gain. Even as a stellar earnings season draws to a close, strong corporate balance sheets haven’t been enough to bolster the faltering optimism of investors. Of the 484 companies in the S&P 500 that have reported so far, 75% have beat expectations according to Thompson Reuters (compared with a quarterly average of 62%). Despite this silver lining, the S&P 500 has lost about 0.1% since the beginning of earnings season on July 12th....
Visit Pacific West Financial Group in Copperopolis Today
Thursday saw an unexpected jump in the number of first-time filers for unemployment benefits when the Labor Department reported that jobless claims rose to 500,000 in the previous week – the highest level in nine months. When combined with the downward revision to the second-quarter GDP, this spike in unemployment claims was a one-two punch to the gut of investors. Add uncertainty about the future of the Bush tax cuts, the direction of interest rates, and details about how financial regulatory reform will play out, and investors are a bundle of nerves.
So have all the optimists died? No. In fact, a number of industry insiders still have conviction that things are headed in the right direction – albeit slower than expected. Channing Smith, co-manager of the Capital Advisors Growth Fund commented to MarketWatch on Friday that the backdrop for the market is very attractive because of low interest rates, benign inflation and a good earnings season. James O'Sullivan, chief economist at MF Global, believes the recent weak data is a "mini-cycle within the cycle" and not a double-dip recession. And even Treasury Secretary Timothy F. Geithner said on NBC’s “Meet the Press” just a few weeks ago that, “The most likely thing is you see an economy that gradually strengthens over the next year or two.”
Like it or not, equity investors seem stuck with a market that is trading more on headlines than on fundamentals. At times like this, it’s almost always better to tune out the noise and avoid knee-jerk reactions.
Key things to watch this week:
Tuesday – Existing Home Sales
Wednesday – Durable Goods Orders, New Home Sales
Thursday – Jobless Claims
Friday – GDP, Consumer Sentiment
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:
Iranian President Mahmoud Ahmadinejad introduced the country's first domestically built drone bomber on Sunday at a ceremony attended by top military officials. The drone, dubbed the Karrar - or "striker" – is credited by State media as capable of carrying out long-range attacks up to 620 miles, while carrying a 450 pound bomb. President Ahmadinejad called the Karrar a symbol of death to Iran's enemies.
Two Iowa farms that together recalled more than half a billion potentially tainted eggs this month share close ties, including suppliers of chickens and feed. Both farms are linked to businessman Austin "Jack" DeCoster, who has been cited for numerous health, safety and employment violations over the years. DeCoster owns Wright County Egg, the original farm that recalled 380 million eggs Aug. 13 after they were linked to more than 1,000 reported cases of salmonella poisoning.
A major figure in the project to build an Islamic center and mosque near ground zero in New York City said Sunday that moving the project to another site is not under consideration for now. Daisy Khan, who is heading the development of the project with her husband, told ABC's "This Week" that a move could be considered after consultations with "all major stakeholders" take place.
BP said Saturday that it has begun an attempt to remove the drilling pipe from the ruptured well that unleashed the Deepwater Horizon spill. The attempt, which began Saturday morning, follows the successful completion of a 48-hour ambient pressure test, in which the company determined that if the sealing cap and the blowout preventer that sit atop of the well are removed, no oil or gas will come out. BP aims to remove 3,500 feet of drilling pipe before it can proceed to remove the blowout preventer and replace it with a new one.
New rules designed to protect credit card users from "unreasonable late payment and other penalty fees" come into force Sunday as a result of the Wall Street reform bill. The rules block credit card companies from charging more than $25 for late payments except in extreme circumstances, prevent them from charging customers for not using their cards, and requires them to reconsider rate increases imposed since January 1, 2009, according to the Federal Reserve, which approved the regulations.
QUOTE OF THE WEEK:
“Life is like riding a bicycle. To keep your balance you must keep moving”. - Albert Einstein
RECIPE OF THE WEEK:
Healthy Fried Rice
This quick and tasty dish can also be served with chicken, beef, or shrimp.
Ingredients:
1 8.8-oz. package cooked brown rice
1 16-oz. package mixed frozen vegetables
1 cup frozen peppers and onion stir-fry vegetables
4 tsp. canola oil, divided
3 eggs
3 ½ tbsp. stir-fry sauce
Lime wedges
1/2 tsp. crushed red pepper (optional)
Directions:
1. Heat 2 tsp. canola oil in a large nonstick skillet on medium. Whisk eggs and add to the skillet. Cook, stirring occasionally to break up eggs, until set. Remove from pan. Add remaining 2 tsp. oil to the skillet and then increase the heat to medium-high. Stir in the frozen vegetables; cook for 5 minutes or until tender.
2. Add stir-fry sauce and crushed red pepper to the skillet. Stir in rice and heat through, then mix in the cooked eggs. Squeeze on lime juice to give the dish extra flavor.
GOLF TIP OF THE WEEK:
Practice your Putting at Home
Believe it or not, 40% or more of the strokes you make take place on the putting green. And yet, so often, the club responsible for so many strokes receives the least amount of quality practice time.
You can even practice your putting while at home. Here's an old Arnold Palmer tip: On a smooth floor (cement, wood, linoleum, etc.) throw down a nickel and putt it around the room without scuffing the floor or missing the nickel. If you can execute this drill consistently, you will see your putting improve. Plus, it’s fun. One note: Be careful not to scratch your floors.
Share the Wealth of Knowledge!
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Securities offered through Pacific West Securities, Inc. Member FINRA/SIPC.
Sources:
Marketwatch
The Wall Street Journal Online
Barrons
CNN Money
http://www1.voanews.com/english/news/Iran-Shows-Off-Unmanned-Long-Range-Bomber-101251954.html
http://www.google.com/hostednews/ap/article/ALeqM5hOgpXZfEFJ7kkmSW5TIXjlsuUxPQD9HOI6UG0
http://www.cnn.com/2010/US/08/22/islamic.center.khan/
http://online.wsj.com/article/SB10001424052748703461504575443603224778836.html
http://money.cnn.com/2010/08/22/pf/credit_card_rules/index.htm
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.
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.
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