In the last full trading week of 2016, domestic markets were relatively quiet, with many people out of the office for the holidays. Nonetheless, all three major domestic indexes ended the week in positive territory. The S&P 500 was up 0.25%, the Dow gained 0.46%, and the NASDAQ added 0.47%.1 International equities in the MSCI EAFE were also up, increasing by 0.36%.2 The Dow continued to flirt with surpassing the 20,000 mark for the first time—reaching within fewer than 13 points at its highest trading point on Wednesday, December 20th—before closing at 19,933.81 for the week.3
Outside of the markets, we received a number of reports that painted a mostly positive view of the U.S. economy.
GDP revised up again:
For its final report on economic growth in the third quarter, the Commerce Department adjusted the GDP up for the second time—to a 3.5% annual rate. This analysis shows the fastest economic growth in two years.4
Consumer sentiment hits nearly 13-year high:
The monthly index measuring consumers’ views on the current and future state of the economy increased by 4.7 points to reach 98.2 for December. This reading is the highest since January 2004.5
New home sales beat expectations:
Economists predicted that new home sales for November would increase by 2.1%, but last week’s data showed the increase was in fact 5.2%. Consumers anticipating higher interest rates in the future could be contributing to the expectation—beating results.6
Personal incomes stayed flat:
Despite economists’ predictions that personal incomes would increase by 0.3% in November, the Bureau of Economic Analysis’ data showed them flatten.7 Even with last month’s stagnation, personal incomes are up 3.5% for the year.8
Durable goods orders declined:
After increasing by 4.8% in October, durable goods orders dropped by 4.6% in November—due largely to a 73.5% decrease in civilian aircraft orders.9 While no one likes to see a decrease, the report had several positive highlights, including an unexpectedly high increase in orders for U.S.—made capital goods.
Overall, even though last week was fairly slow for trading, we continue to see signs that the economy is improving—even if it is still far from perfect. We look forward to discovering what 2017 holds for investors and hope for more record highs and an economy that picks up speed as time goes on.
Sources
INVESTING RISK DISCLOSURE
Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money. Before investing, consider the funds’ investment objectives, risks, charges, and expenses. Contact Mahoney Asset Management for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
IMPORTANT CONSUMER INFORMATION
This web site has been prepared solely for informational purposes. It is not an offer to buy or sell any security; nor is it a solicitation of an offer to buy or sell any security.This site and the opinions and information therein are based on sources which we believe to be dependable, but we can not guarantee the accuracy of such information.
Representatives of a broker-dealer or investment adviser may only conduct business in a state if the representatives and the broker-dealer or investment adviser they represent: (a) satisfy the qualification requirements of, and are approved to do business by, the state; or (b) are excluded or exempted from the state’s licenser requirements.
An investor may obtain information concerning a broker-dealer, an investment advisor, or a representative of a broker-dealer or an investment advisor, including their licenser status and disciplinary history, by contacting the investor’s state securities law administrator.
The financial calculator results shown represent analysis and estimates based on the assumptions you have provided, but they do not reflect all relevant elements of your personal situation. The actual effects of your financial decisions may vary significantly from these estimates–so these estimates should not be regarded as predictions, advice, or recommendations. Mahoney Asset Managment does not provide legal or tax advice. Be sure to consult with your own tax and legal advisors before taking any action that would have tax consequences.
SECURITIES: ARE NOT FDIC-INSURED/ARE NOT BANK-GUARANTEED/MAY LOSE VALUE
This information is intended for use only by residents of CA, CT, DC, FL,, MA, MD, MN, NC, NJ, NY, OH, PA, and VA. Ken Mahoney may only conduct securities business with residents of the states and/or jurisdiction for which they are properly registered.
Securities offered through Newbridge Securities Corporation, member FINRA, SIPC.
Investment Advisory services through NFSG Corporation an SEC Registered Investment Advisor.
Office of Supervisory Jurisdiction: 1200 N. Federal Hwy., Ste. 400, Boca Raton, FL 33432. Phone 954.334.3450 Fax 954.489.2390
Specific recommendations can only be based on review of a number of suitability factors including but not limited to the investors financial profile, investment objectives, risk tolerance and the investors review of appropriate offering documents. Past performance is no guarantee of future results. To help you make informed decisions, we provide you with essential disclosures, such as Regulation Best Interest (Reg BI), the Client Relationship Summary (CRS), and Form ADV. Linked sites are strictly provided as a courtesy. Newbridge Securities, Inc. does not guarantee, approve nor endorse the information or products available at the sites, nor do links indicate any association with or endorsement of the linked sites by Newbridge Securities.
