Posted by: thepinetree on 07/27/2010 06:20 PM
Updated by: thepinetree on 07/28/2010 11:35 AM
Expires: 01/01/2015 12:00 AM
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Weekly Market Update Week of July 26, 2010~by Donna M. Stevenson of Pacific West Financial Group
THE MARKETS: About one-third of the S&P 500 companies have reported second-quarter results, and the numbers have been good for stocks so far. By and large, companies are beating estimates and showing growth over last year. Earnings are currently on track to have risen almost 34% from a year ago, and revenues have jumped 9.5% according to Thomson Reuters. Stocks also got a boost from the fact that European banks largely passed a round of government stress tests aimed at clearing up market fears about how the debt crisis is affecting the region’s banking system. Only 7 out of 91 banks failed the tests. Although some analysts are scoffing at the tests and questioning their credibility, most investors viewed this as another milestone passed and shifted their focus back onto fundamentals. ....
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All three major indexes logged strong gains for the week. The S&P 500 rose past the psychologically significant number of 1,100 for the first time this month, and eventually ended at 1,102.66, up 3.6%. The Nasdaq climbed 4.2%, bringing it into positive territory for the year (albeit barely). The Dow ended up 3.2%, and with only one week remaining, is on track for its best month since July 2009 and is trending toward erasing its losses for the year.
It’s still early in the earnings season, and with 157 of the biggest companies in the country set to report next week, the tug-of-war between stronger earnings and lukewarm economic indicators will likely continue. Highlighting this, Treasury Secretary Timothy Geithner who appeared on NBC’s “Meet the Press” on Sunday morning, and said, “You're seeing private investment expand again, job growth starting to come back. And that's very encouraging." Interestingly, Geithner’s comments came only days after stocks slumped in reaction to Federal Reserve Board Chairman Ben Bernanke's statement that the outlook for the U.S. economy is "unusually uncertain". In light of so much mixed sentiment, it’s not surprising that most investors are taking a wait-and-see attitude.
Key things to watch this week:
Monday – New Home Sales
Tuesday – Consumer Confidence
Wednesday – Durable Goods Orders
Thursday – Jobless Claims
Friday – GDP, Employment Cost Index, Chicago PMI, Consumer Sentiment
Data as of 07/23/2010
1-Week
Y-T-D
1-Year
5-Year
10-Year
Standard & Poor's 500
3.55
-1.12
12.9
-2.12
-2.55
Dow
3.24
-0.03
14.9
-0.43
-0.29
NASDAQ
4.15
0.01
14.9
0.82
-4.46
MSCI EAFE
4.05
-8.06
4.88
-0.65
-1.25
10-year Treasury Note (Yield Only)
2.94
N/A
3.71
4.22
6.00
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:
Even during the darkest days of the financial crisis, nearly twenty financial firms managed to shell out an estimated $1.6 billion in "ill-advised" payments to their executives, according to a federal report issued Friday. In his latest review of compensation practices at companies that were bailed out by American taxpayers, White House pay czar Kenneth Feinberg condemned those companies for how they rewarded employees between late 2008 and early 2009.
In the latest sign of renewed turbulence in the housing market, an industry group said Thursday that sales of existing homes fell 5.1% in June. The National Association of Realtors reported that existing home sales fell last month to a seasonally adjusted annual rate of 5.37 million units, down from 5.66 million in May. Sales year-over-year were up 9.8%.
Ships were getting back in place Sunday at the Gulf of Mexico site of BP's leaky oil well as crews raced to resume work on plugging the gusher before another big storm stops work again. Now that Tropical Storm Bonnie has fizzled on Louisiana's coast, engineers are hoping clear weather lasts long enough for them to finish their work on relief wells. But as peak hurricane season approaches, the potential for another storm-related delay is high.
President Barack Obama signed into law Wednesday an overhaul of banking and Wall Street regulations that he says will end many of the practices that sent the U.S. economy into the worst recession since the 1930s. The law, pushed through mainly by Democrats in Washington's deeply partisan environment, comes almost two years after the near financial meltdown in 2008 in the United States that was felt around the globe. The legislation gives the government new powers to break up companies that threaten the economy, puts more light on the financial markets that escaped the oversight of regulators and creates a new agency to guard consumers in their financial transactions.
QUOTE OF THE WEEK:
"It's not whether you get knocked down; it’s whether you get up." - Vince Lombardi
RECIPE OF THE WEEK:
Layered Tex-Mex Salad
This southwestern medley offers a light and healthy flavor explosion.
Servings: 6
Ingredients:
2 6-inch corn tortillas
Nonstick cooking spray
1/2 cup light dairy sour cream
1/4 cup snipped fresh cilantro
2 tablespoons fat-free milk
1 teaspoon olive oil
1 large clove garlic, minced
1/2 teaspoon chili powder
1/2 teaspoon finely shredded lime peel
1/4 teaspoon salt
1/4 teaspoon ground black pepper
6 cups torn romaine lettuce
4 plum tomatoes, chopped (2 cups)
1 15-ounce can black beans, rinsed and drained
1 cup fresh corn kernels*
1/2 cup shredded reduced-fat cheddar cheese (2 ounces)
1 avocado, halved, pitted, peeled, and chopped
Snipped fresh cilantro (optional)
Directions:
1) Preheat oven to 350 degrees F. Cut tortillas into 1/2-inch-wide strips; place in a 15x10x1-inch baking pan. Coat tortillas lightly with cooking spray. Bake for 15 to 18 minutes or just until crisp, stirring once. Cool on wire rack.
2) For dressing: In a small bowl, stir together sour cream, the 1/4 cup cilantro, the milk, oil, garlic, chili powder, lime peel, salt, and pepper.
3) Place lettuce in a large glass serving bowl. Top with tomatoes, beans, corn, cheese, and avocado. Add dressing and sprinkle with tortilla strips. If desired, garnish with additional cilantro.
Optional: It isn't necessary to cook the corn. However, for a roasted flavor and softer texture, try baking it with the tortilla strips. Place the strips at one end of the baking pan and the corn at the other end.
GOLF TIP OF THE WEEK:
Better Chipping
In order to be consistent while chipping, it is important to use the proper body motion. There should be a feeling of connection between the arms and the body. The arms and shoulders should form a triangle in front of the center of the body, and this “triangle” must stay intact throughout the swing. Without the triangle thought, it is easy to overuse the arms and hands.
To create a better chipping stroke, try the following drill:
Towel Under The Arms – Place a small, rolled towel under each arm and practice chipping. This will help you connect your upper arms to your chest. When doing this drill, be sure to keep your head still and to rotate your entire upper body while swinging.
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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://money.cnn.com/2010/07/23/news/companies/compensation_report/index.htm
http://www.msnbc.msn.com/id/38340258/ns/business-consumer_news/
http://money.cnn.com/2010/07/22/real_estate/existing_home_sales/index.htm
http://www.usatoday.com/money/topstories/2010-07-25-463110359_x.htm
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.
Pacific West Financial Group
Donna M. Stevenson
T: 209-785-4660 F: 209-729-4913
100 Town Square Road 2nd Floor
PO Box 518
Copperopolis, CA 95228
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