“Little by little, one travels far.” –J.R.R. Tolkien
Remember that you can gift up to $14,000 to as many people as you wish in 2016. This year, gift tax only applies after lifetime gifts exceed $5.45 million.
Take three letters. Arrange them one way, and you have a noun signifying weight. Arrange them another way, and you have an adverb signifying a negative. What are these three letters?
Last week’s riddle
There is one question that nobody can possibly answer “yes” to with 100% honesty. What is that question?
Last week’s answer
Are you dead? [/column]
New Data Shows Brighter Jobs Picture
Unemployment fell to 4.9% in October as firms added 161,000 net new workers, but that was just one positive from the Department of Labor’s latest summary of the U.S. employment situation. Year-over-year wage growth reached 2.8%, the best number seen since June 2009, as average hourly pay rose ten cents last month. The U-6 rate (underemployment + unemployment) fell 0.2% to 9.5%. In addition, hiring totals across August and September were revised higher by 44,000.1
Consumer Spending Rose in September
The ninth month of 2016 saw gains of 0.5% in personal spending and 0.3% in personal incomes, the Commerce Department reported last week. Adjusted for inflation, consumer spending advanced 0.3% for September, as opposed to retreating 0.2% in August.2
More Expansion Among Service & Factory Firms
The Institute for Supply Management’s twin barometers of the U.S. manufacturing and non-manufacturing sectors were both comfortably above the 50-mark showing growth in October. ISM’s factory purchasing managers index came in at 51.9, up 0.4 points; its service sector PMI declined 2.3 points to 54.8.3
Stocks Pull Back
The Federal Reserve left interest rates alone last week, just as many analysts predicted – but investors were more concerned with the upcoming presidential election and earnings, and those anxieties certainly impeded the bulls. Across five days, the Dow Jones Industrial Average fell 1.50% to 17,888.28; the S&P 500, 1.94% to 2,085.18; and the Nasdaq Composite, 2.77% to 5,046.37.1,4
- Monday: Earnings from AMC Entertainment, Dean Foods, Hertz Global, Marriott International, MGM Resorts, Priceline, Rosetta Stone, and Scripps Networks.
- Tuesday: Election Day, with CVS Health, D.R. Horton, and TripAdvisor joining the fall earnings parade.
- Wednesday: Wall Street looks at earnings from AmeriGas, Clear Channel Outdoor, Coty, Energizer, Green Dot, Magellan Health, NetEase, Norwegian Cruise Line, Popeye’s, Viacom, and Wendy’s.
- Thursday: A new initial claims report comes out Thursday, plus earnings from Kohl’s, Macy’s, Michael Kors, Nordstrom, Nvidia, Ralph Lauren, Sigma Labs, and Walt Disney Co.
- Friday: This Friday is Veterans Day: the stock market is open, the bond market is closed, November’s initial University of Michigan consumer sentiment index appears, and J.C. Penney and Weibo release Q3 results.
|% CHANGE||Y-T-D||1-YR CHG||5-YR AVG||10-YR AVG|
|REAL YIELD||11/4 RATE||1 YR AGO||5 YRS AGO||10 YRS AGO|
|10 YR TIPS||0.11%||0.68%||-0.06%||2.40%|
wsj.com, bigcharts.com, treasury.gov – 11/4/164,5,6,7 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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