“What we anticipate seldom occurs; what we least expected generally happens.” –Benjamin Disraeli
When you own a small business, paying estimated taxes is a given. If you are a new business owner, think about creating a dedicated bank account to which you can direct a monthly amount for that purpose.
What goes with you wherever you go, often demands an answer, and never asks you a question?
Last week’s riddle
At the sound of it, you may dream, dance, laugh, weep or even stamp your feet. What is it?
Last week’s answer
Retail Sales Rise Another Half-Percent
This healthy May increase follows the 1.3% gain recorded by the Department of Commerce for April, and offers more evidence that the economy has rebounded from a sluggish first quarter. Core retail sales (minus auto and gasoline purchases) were up 0.4% last month.1
Inflation Continues To Firm
According to the Bureau of Labor Statistics, consumer prices rose 0.2% in May while producer prices advanced 0.4%. While a drop in food prices tempered the gain in the Consumer Price Index, the core CPI (which strips out energy and food costs) was up 2.2% in a year, exceeding the Federal Reserve’s annualized inflation target. The May wholesale inflation jump still left the Producer Price Index up just 0.8% year-over-year; plunging energy costs have held the PPI in check.1,2
Construction Activity Moderates in May
Building permits and housing starts both increased 4.9% in April, but Census Bureau data reveals no such leaps last month. Groundbreaking declined 0.3% in May, while the issuance of permits increased by 0.7%.1
Investors Anxiously Await U.K. Vote
As expected, the Federal Reserve refrained from an interest rate move last week; Wall Street was more concerned about the potential of a Brexit. The S&P 500 fell 1.19% in five days to 2,071.22, and the other major indices fell with it. The Nasdaq gave back 1.92% on its way to a Friday close of 4,800.34, while the Dow slipped 1.07% on the week to 17,675.16. Gold is on a 3-week winning streak: it settled at $1,294.80 on the COMEX Friday, rising 1.5% in five days. WTI crude fell 2.2% for the week, closing Friday at $47.98 on the NYMEX.3
- Monday: Nothing major is scheduled for Monday.
- Tuesday: Federal Reserve chair Janet Yellen begins two days of testimony in the Senate on monetary policy; earnings news emerges from Adobe Systems, CarMax, Carnival, FedEx, KB Home, La-Z-Boy, and Lennar.
- Wednesday: Wall Street looks at May existing home sales numbers and earnings from Barnes & Noble, Bed Bath & Beyond, Red Hat, and Winnebago.
- Thursday: The United Kingdom holds its referendum on whether or not to stay in the European Union; investors will also consider May new home sales figures, the federal government’s latest initial jobless claims report, and quarterly results from Sonic.
- Friday: The final June University of Michigan consumer sentiment index, a Census Bureau report on May hard goods orders and earnings from Finish Line.
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forexlive.com, bigcharts.com, treasury.gov – 06/17/164,5,6,7 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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