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Floyd E Miller Presents: Weekly Economic Update for January 21, 2013

Floyd E Miller Presents: Weekly Economic Update for January 21, 2013

By Floyd Miller

 

 

 

WILL THE DEBT LIMIT BE LIFTED SHORTLY? Friday,House GOP leaders announced a new proposal to authorize a three-month extensionof federal government borrowing authority. House Majority Leader Eric Cantor summed up the plan in four words: “No budget, no pay.” Under the termsof the proposed legislation, members of Congress would end up working for freeif they failed to approve a federal budget by April 15. The GOP still wantsmajor spending cuts as a condition of any long-term debt limit increase.1   NO MONTHLY CHANGE IN CONSUMER PRICE INDEX December’sCPI was flat, with core CPI rising only 0.1%. A 2.3% dip in gas prices helped,even as food prices rose 0.2%. The overall Producer Price Index posted a 0.2%decline for a third straight month. Inflation was tame in 2012: the CPIadvanced only 1.7% last year compared to 3.0% for 2011, while the PPI rose just1.3% for its smallest annual increase since 2008.2,3 {{more}} RETAIL SALES STRONG IN DECEMBER TheCensus Bureau notes that they increased 0.5% last month, bringing the yearlyadvance to 4.7%. Purchases made through non-store retailers rose 12.6% in 2012.3,4 CONSUMER SENTIMENT DECLINES TheUniversity of Michigan’s preliminary January consumer sentiment index came inat 71.3 Friday, well under the 75.0 consensus forecast of economists surveyedby Reuters. This represents a 13-month low.5 STOCKS REACH A 5-YEAR PEAK Aftera 0.95% weekly advance, the S&P 500 settled at 1,485.98 Friday. The DJIA and NASDAQ also extended their win streaks. On the COMEX Friday, goldsettled at $1,687.00, oil at $95.56.5,6 THIS WEEK: All U.S.markets will be closed Monday as the nation observes Martin Luther King Jr. Day;the Presidential Inauguration will also be held in Washington, D.C. Tuesday,data on December’s existing home sales arrives plus earnings from Verizon,DuPont, Texas Instruments, Johnson & Johnson, Travelers, Google, IBM andAMD. Wednesday is another big earnings day, with Apple, McDonald’s, UnitedTech, Abbott Labs, Coach, WellPoint, Amgen, Netflix, SanDisk, Symantec andWestern Digital all reporting results. On Thursday, Microsoft, 3M,Bristol-Myers, Nokia, Xerox, AT&T, E-Trade and Starbucks offer earningsreports. The Census Bureau releases December new home sales figures Friday, andearnings will be announced at Kimberly-Clark, P&G, Halliburton andHoneywell. «RepresentativeDisclosure» This material was prepared byMarketingLibrary.Net Inc., and does not necessarily represent the views of thepresenting party, nor their affiliates. Marketing Library.Net Inc. is notaffiliated with any broker or brokerage firm that may be providing thisinformation to you. This information should not be construed as investment, taxor legal advice and may not be relied on for the purpose of avoiding anyFederal tax penalty. The Dow Jones Industrial Average is a price-weighted indexof 30 actively traded blue-chip stocks. The NASDAQ Composite Index is anunmanaged, market-weighted index of all over-the-counter common stocks tradedon the National Association of Securities Dealers Automated Quotation System.The Standard & Poor’s 500 is an unmanaged group of securitiesconsidered to be representative of the stock market in general. It is notpossible to invest directly in an index. NYSE Group, Inc. operatestwo securities exchanges: the New York Stock Exchange and NYSEArca . NYSE Group is a leading provider of securities listing, trading andmarket data products and services. The New York Mercantile Exchange, Inc. is the world’s largest physical commodity futures exchange and the preeminenttrading forum for energy and precious metals, with trading conducted throughtwo divisions – 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 – www.reuters.com/article/2013/01/18/us-usa-fiscal-budget-idUSBRE90H11H20130118[1/18/13] 2 – www.usatoday.com/story/money/business/2013/01/16/consumer-price-index-december/1838907/[1/16/13] 3 – news.morningstar.com/articlenet/article.aspx?id=581091[1/15/13] 4 – www.census.gov/retail/marts/www/marts_current.pdf[1/15/13] 5 – www.cnbc.com/id/100390628 [1/18/13] 6 – www.bloomberg.com/news/2013-01-18/natural-gas-rises-on-cold-weather-forecast-commodities-at-close.html[1/18/13] 7 – montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3[1/18/13] 8 -bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F18%2F12&x=0&y=0[1/18/13] 8 -bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F18%2F12&x=0&y=0[1/18/13] 8 -bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F18%2F12&x=0&y=0[1/18/13] 8 -bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F18%2F08&x=0&y=0[1/18/13 ]8 -bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F18%2F08&x=0&y=0[1/18/13] 8 -bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F18%2F08&x=0&y=0[1/18/13] 8 -bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=1%2F17%2F03&x=0&y=0[1/18/13] 8 -bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=1%2F17%2F03&x=0&y=0[1/18/13] 8 -bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=1%2F17%2F03&x=0&y=0[1/18/13] 9 -treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield[1/18/13] 9 -treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll[1/18/13] 10 – treasurydirect.gov/instit/annceresult/press/preanre/2003/ofm010803.pdf[1/8/03]    

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