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Floyd E. Miller Presents: Weekly Economic Update for December 24, 2012

Floyd E. Miller Presents: Weekly Economic Update for December 24, 2012

HOW LONG WILL THE FISCAL CLIFF IMPASSELAST? Hopesfor a fiscal cliff deal dwindled last week as the “Plan B” proposalbacked by House Speaker John Boehner failed to attract enough support. Friday,President Obama urged lawmakers to craft a smaller-scale bill that could atleast protect long-term jobless benefits and sustain the Bush-era tax cuts forAmericans making $250,000 or less. The “Plan B” bill proposed a tax hike for thosemaking more than $1 million; the President has proposed raising taxes on thosewith incomes of $400,000 or greater. Negotiations resume this week; HouseMinority Leader Nancy Pelosi believes that “there’s still a chance” of a dealhappening before 2013.1,2    BIG ANNUAL GAINS IN HOME SALES, HOUSINGSTARTS Existinghome sales rose 5.9% in November, according to the National Association ofRealtors; they were up 14.5% from a year before. While housing starts fell 3.0%last month, the Census Bureau noted a 21.6% yearly gain in the indicator.November also saw a 3.6% rise in building permits, with the annual gain at 26.8%.3 {{more}} MORE SPENDING,LESS OPTIMISM Consumerspending advanced 0.4% in November, rebounding after a 0.1% retreat in October.The Bureau of Economic Analysis also cited a 0.6% gain in personal incomes lastmonth. However, December’s final consumer sentiment survey from the Universityof Michigan hit a five-month low of 72.9, down 1.6% from November.4      HARD GOODSORDERS TOP EXPECTATIONS Durablegoods orders rose 0.7% in November, the Census Bureau noted. Economists polledby MarketWatch had expected only a 0.1% overall gain.5    AS CLIFF TALKS STALL, STOCKS MANAGE TORISE TheS&P 500 rose 1.17% last week even with uncertainty lingering on WallStreet. It settled Friday at 1,430.15. The NASDAQ and Dow also advanced across the last full trading week of 2012.Gold ended the week at just $1,660.10 an ounce on the COMEX after a $14.20Friday gain. NYMEX crude settled at $88.66 per barrel Friday.4,6,7    THIS WEEK: Monday isChristmas Eve; the NYSE will close at 1:00pm EST and take Christmas Day off.October’s S&P/Case-Shiller Home Price Index arrives Wednesday. Thursday, the Conference Board’s latest consumerconfidence index appears along with Census Bureau data on November new homesales. The National Association of Realtors releases its November pending homesales report on Friday.   % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +7.97 +8.95 -0.39 +5.50 NASDAQ +15.96 +17.19 +2.45 +12.17 S&P 500 +13.72 +14.99 -0.73 +5.97 REAL YIELD 12/21 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.71% -0.07% 1.84% 3.10%   Sources: thestreet.com, usatoday.com, bigcharts.com, treasury.gov -12/21/124,6,8,9,10 Indices are unmanaged, do notincur fees or expenses, and cannot be invested into directly. These returns do not includedividends.   «RepresentativeDisclosure» This material was prepared by MarketingLibrary.NetInc., and does not necessarily represent the views of the presenting party, northeir affiliates. Marketing Library.Net Inc. is not affiliated with any brokeror brokerage firm that may be providing this information to you. This informationshould not be construed as investment, tax or legal advice and may not berelied on for the purpose of avoiding any Federal tax penalty. The Dow JonesIndustrial Average is a price-weighted index of 30 actively traded blue-chipstocks. The NASDAQ Composite Index is an unmanaged, market-weighted index ofall over-the-counter common stocks traded on the National Association ofSecurities Dealers Automated Quotation System. The Standard & Poor’s 500 is an unmanaged group of securities considered to berepresentative of the stock market in general. It is not possible to investdirectly in an index. NYSE Group, Inc. operates two securitiesexchanges: the New York Stock Exchange and NYSE Arca . NYSEGroup is a leading provider of securities listing, trading and market dataproducts and services. The New York Mercantile Exchange, Inc. is theworld’s largest physical commodity futures exchange and the preeminent tradingforum for energy and precious metals, with trading conducted through twodivisions – the NYMEX Division, home to the energy, platinum, and palladiummarkets, and the COMEX Division, on which all other metals trade. Additionalrisks are associated with international investing, such as currencyfluctuations, political and economic instability and differences in accountingstandards. All information is believed to be from reliable sources; however wemake no representation as to its completeness or accuracy. All economic andperformance data is historical and not indicative of future results. Marketindices discussed are unmanaged. Investors cannot invest in unmanaged indices.The publisher is not engaged in rendering legal, accounting or otherprofessional services. If assistance is needed, the reader is advised to engagethe services of a competent professional. Citations. 1 – money.cnn.com/2012/12/21/investing/stocks-markets/index.html[12/21/12] 2 – www.marketwatch.com/story/boehner-not-walking-away-from-cliff-talks-2012-12-21[12/21/12] 3 – money.msn.com/now/post.aspx?post=804aa73d-050d-4fe5-8985-28861e824d7d [12/21/12]   4 – www.thestreet.com/story/11799242/1/stock-market-story-dec-21.html [12/21/12]   5 – www.marketwatch.com/story/november-durable-goods-orders-jump-07-2012-12-21 [12/21/12]   6 – www.usatoday.com/money/markets/overview/ [12/21/12]   7 – montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [12/21/12]   8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F21%2F11&x=0&y=0 [12/21/12]   8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F21%2F11&x=0&y=0 [12/21/12]   8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F21%2F11&x=0&y=0 [12/21/12]   8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F21%2F07&x=0&y=0 [12/21/12]   8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F21%2F07&x=0&y=0 [12/21/12]   8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F21%2F07&x=0&y=0 [12/21/12]   8 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F20%2F02&x=0&y=0 [12/21/12]   8 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F20%2F02&x=0&y=0 [12/21/12]   8 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F20%2F02&x=0&y=0 [12/21/12]   9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [12/21/12]   9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [12/21/12]   10 – treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm71002.pdf [7/10/02]

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