“Laughter is the closest distance between two people.” –Victor Borge
Some people moonlight for extra income, but getting that second job may just be a response to uncontrolled spending. Added income will not correct that problem; it may even encourage it.
Switch one letter each from the words “plus” and “minus” to the other word, and you have two entirely new words. What are they?
Last week’s riddle
When you lack me, you feel a sort of gloom. When you use me, it is time you consume. What am I?
Last week’s answer
Oil Jumps 12%, But Stocks Retreat For The Week
On Friday, WTI crude closed at a NYMEX price of $29.44 after a 12.32% surge. However, it fell 4.69% on the week, and major U.S. stock benchmarks fell as well. Across five days, the Dow Jones Industrial Average declined 1.43% to 15,973.84; the Nasdaq Composite, 0.58% to 4,337.51; and the S&P 500, 1.95% to 1,864.78. Gold closed Friday at $1,239.00 on the COMEX, capping its best week since 2008 and its first four-week win streak since last April.1,2
Better News About Retail Sales
Personal incomes rose 0.3% in the final month of 2015, but the Commerce Department recorded no corresponding personal spending advance. The good news? The personal savings rate reached 5.5%, a 3-year high.3
A Hint of Consumer Pessimism
The University of Michigan’s initial February consumer sentiment index displayed a 90.7 reading compared to 92.0 at the end of January. Its future expectations component fell 1.7 points to a 6-month low, a major reason for the decline.3
Mortgage Rates Reach 10-Month Low
On February 11, Freddie Mac’s Primary Mortgage Market Survey showed the average interest rate on a 30-year home loan at 3.65%, moving lower for the sixth straight week. The recent rush to Treasuries by investors has helped keep rates low. Last week, the average interest for the 15-year fixed rate home loan was 2.95%.4
- Monday: Presidents Day, U.S. financial markets closed.
- Tuesday: Cheesecake Factory, Dean Foods, Express Scripts, Fossil Group, Hormel, Kaiser Aluminum, and Public Storage announce earnings.
- Wednesday: Minutes from the January Federal Reserve policy meeting arrive, along with the January PPI, reports on January housing starts, building permits and industrial output, and earnings from Denny’s, Domino’s, Dr. Pepper Snapple, Gannett, Jack in the Box, Garmin, La-Z-Boy, Marathon Oil, Marriott, Newmont Mining, Noble Energy, Nvidia, NetApp, Priceline, Progressive, and T-Mobile.
- Thursday: New initial claims figures arrive along with earnings from America’s Car-Mart, Applied Materials, Cabela’s, BJ’s Restaurants, Boise-Cascade, Choice Hotels, DISH Network, Duke Energy, Fluor, Hyatt Hotels, MGM Resorts, Six Flags Entertainment, Novatel Wireless, Nordstrom, Starwood Hotels & Resorts, Virgin America, and Wal-Mart
- Friday: The January CPI, along with quarterly results from Deere & Co.
|% CHANGE||Y-T-D||1-YR CHG||5-YR AVG||10-YR AVG|
|REAL YIELD||2/12 RATE||1 YR AGO||5 YRS AGO||10 YRS AGO|
|10 YR TIPS||0.49%||0.33%||1.36%||2.08%|
forexlive.com, bigcharts.com, treasury.gov – 01/29/162,5,6,7 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.
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