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RBC: Market Week: August 20, 2012 The Markets Equities had a sixth consecutive week of gains, with the small caps of the Russell 2000 leading the way for a change. The S&P 500 ended the week only a single point away from its year-to-date closing high, and the Nasdaq continued to be the best performer of 2012. Meanwhile, renewed appetite for risk left the 10-year Treasury yield only 8 points from where it began the year. RBC WEEKLY COMMENTARY
Equities data reflect price changes, not total return.
Last Week's Headlines The Bureau of Labor Statistics said consumer prices saw no change in July, leaving the annual inflation rate at 1.4%. Energy costs, primarily for electricity, natural gas, and fuel oil, fell 0.3%, offsetting a 0.1% increase in food prices. Not including food and energy, core consumer inflation rose only 0.1% for the month. U.S. industrial production was up 0.6% in July, according to the Federal Reserve. That was substantially higher than the 0.1% increases seen in May and June, and 4.4% higher than last July. Also, usage of the nation's manufacturing capacity rose to 79.3%; that's the highest level since April 2008. However, manufacturing activity in the Fed's Philadelphia and New York regions contracted by 7.1% and 5.9% respectively. U.S. retail sales were up 0.8% in July. According to the Commerce Department, that was the first increase in four months and put sales 4.1% ahead of last July. Nonstore retailers were up almost 12% from a year ago, and sales of sporting goods, hobbies, books, and music rose almost 11% in the same time; both categories also saw the strongest monthly gains. After a 6.8% increase in June, housing starts fell 1.1% in July, though the Commerce Department said they were still 21.5% higher than the previous July. Prospects for future construction improved as the number of new building permits increased 6.8% to hit a level that was almost 30% higher than July 2011. The Conference Board's index of leading economic indicators continued to seesaw, rising 0.4% in July after June's decline and an increase in May. The biggest contributors were growth in housing permits and lower first-time unemployment claims.
Eye on the Week Ahead With continued low trading volumes expected, economic reports from Europe could have as much impact as domestic data, while minutes of the Fed's internal debates about further economic stimulus also will receive attention.
Key dates and data releases: Federal Open Market Committee minutes, home resales (8/22); new home sales (8/23); durable goods orders (8/24).
Comments
http://www.pionline.com/gallery/20120819/SLIDESHOW2/819009999?utm_source=issue_alert&utm_medium=email&utm_campaign=alert_insider
muni defaults?
http://www.google.com/url?sa=X&q=http://www.sfgate.com/business/bloomberg/article/Muni-Bond-Defaults-Said-to-Be-36-Times-More-Than-3790288.php&ct=ga&cad=CAcQAhgAIAAoATAAOABAtOnEgQVIAVAAWABiBWVuLVVT&cd=JCc9fpWVi-I&usg=AFQjCNEpnRSCb6knOS9D-Zr9PPmSp0Psuw
http://community.nasdaq.com/News/2012-08/profit-from-global-growth-with-
mobile-telesystems-and-yanzhou-coal.aspx?storyid=165144
thirst for yields drive munis
http://online.wsj.com/article/SB10000872396390444375104577595443845513100.html
a fund any other name is not so sweet
http://www.marketwatch.com/story/a-fund-by-any-other-name-is-not-so-sweet-2012-08-19
http://www.usfunds.com/media/files/pdfs/investor-alert/-2012-ia/2012-08-17/investor_alert-08-17-2012.pdf?utm_source=SubscriberMail&utm_medium=email&utm_campaign=IA-08-17-2012&utm_term=Download PDF Version&utm_content=c35a4e567cd7466eaaf4f1a8d1df0917
RBC: Market Week: August 20, 2012
The Markets
Equities had a sixth consecutive week of gains, with the small caps of the Russell 2000 leading the way for a change. The S&P 500 ended the week only a single point away from its year-to-date closing high, and the Nasdaq continued to be the best performer of 2012. Meanwhile, renewed appetite for risk left the 10-year Treasury yield only 8 points from where it began the year.
RBC WEEKLY COMMENTARY
Market/Index 2011 Close Prior Week As of 8/17 Week Change YTD Change
DJIA 12217.56 13207.95 13275.20 .51% 8.66%
Nasdaq 2605.15 3020.86 3076.59 1.84% 18.10%
S&P 500 1257.60 1405.87 1418.16 .87% 12.77%
Russell 2000 740.92 801.55 819.89 2.29% 10.66%
Global Dow 1801.60 1880.18 1893.85 .73% 5.12%
Fed. Funds .25% .25% .25% 0 bps 0 bps
10-year Treasuries 1.89% 1.65% 1.81% 16 bps -8 bps
Equities data reflect price changes, not total return.
Last Week's Headlines
The Bureau of Labor Statistics said consumer prices saw no change in July, leaving the annual inflation rate at 1.4%. Energy costs, primarily for electricity, natural gas, and fuel oil, fell 0.3%, offsetting a 0.1% increase in food prices. Not including food and energy, core consumer inflation rose only 0.1% for the month.
U.S. industrial production was up 0.6% in July, according to the Federal Reserve. That was substantially higher than the 0.1% increases seen in May and June, and 4.4% higher than last July. Also, usage of the nation's manufacturing capacity rose to 79.3%; that's the highest level since April 2008. However, manufacturing activity in the Fed's Philadelphia and New York regions contracted by 7.1% and 5.9% respectively.
U.S. retail sales were up 0.8% in July. According to the Commerce Department, that was the first increase in four months and put sales 4.1% ahead of last July. Nonstore retailers were up almost 12% from a year ago, and sales of sporting goods, hobbies, books, and music rose almost 11% in the same time; both categories also saw the strongest monthly gains.
After a 6.8% increase in June, housing starts fell 1.1% in July, though the Commerce Department said they were still 21.5% higher than the previous July. Prospects for future construction improved as the number of new building permits increased 6.8% to hit a level that was almost 30% higher than July 2011.
The Conference Board's index of leading economic indicators continued to seesaw, rising 0.4% in July after June's decline and an increase in May. The biggest contributors were growth in housing permits and lower first-time unemployment claims.
Eye on the Week Ahead
With continued low trading volumes expected, economic reports from Europe could have as much impact as domestic data, while minutes of the Fed's internal debates about further economic stimulus also will receive attention.
Key dates and data releases: Federal Open Market Committee minutes, home resales (8/22); new home sales (8/23); durable goods orders (8/24).
http://www.pionline.com/gallery/20120819/SLIDESHOW2/819009999?utm_source=issue_alert&utm_medium=email&utm_campaign=alert_insider