Markets Close Mixed
Weekly Update – June 30, 2014
"I Know Not What Course
Others May Take..."
By Chip Hutchison
Each July 4th, I think about how our Founding Fathers stuck their necks out for
us. These men are worthy of our honor as we recognize this date as the official
birthday of our nation.
One of my favorite examples is Patrick Henry. He is famous for his 1775 "liberty or
death" speech he made to rally others to join the cause. He said:
Read More
MARKET REVIEW:
Markets lost some momentum on slow trading and ended the week mixed. Despite the
sluggish behavior, equities are up strongly for the quarter and the S&P 500 is poised for
its longest rally since 1998.1 While the S&P lost 0.10% and the Dow fell 0.56%, the
Nasdaq managed a gain of 0.68%.2
Economic data was largely unsurprising last week. A dismal first quarter GDP update
didn’t faze investors who regarded it as old news. While Q1 GDP growth fell to -2.9%,
investors blamed the contraction on the unusually cold weather and cuts to healthcare
spending.3 On the other hand, lukewarm consumer spending in May caused economists
to trim economic growth expectations for the second quarter. Despite the poor showing,
analysts admitted that challenges in calculating healthcare spending might have
artificially lowered spending numbers.4
On the geopolitical front, the Ukrainian government in Kiev signed historic free trade
agreements with the EU, Georgia, and Moldova, integrating the economies of the three
former Soviet-Bloc countries more closely with Europe, and potentially paving the way
1
for future entry into the EU. The move immediately drew threats from Russian leaders,
who are worried about losing control over their neighbors. 5 Although the situation is far
from resolved, we can hope that the threat of further economic sanctions will cause
Russia to back down.
As the clock ticks down on the second quarter, investors are looking ahead for
economic data to support hopes that economic activity picked up in the last three
months. The short trading week is packed with economic releases, including the June
Employment Situation report and a speech by Fed chair Janet Yellen.
ECONOMIC CALENDAR:
Monday: Chicago PMI, Pending Home Sales Index, Dallas Fed Mfg. Survey
Tuesday: Motor Vehicle Sales, PMI Manufacturing Index, ISM Mfg. Index, Construction
Spending
Wednesday: ADP Employment Report, Factory Orders, EIA Petroleum Status Report,
Janet Yellen Speaks 11:00 AM ET
Thursday: Employment Situation, International Trade, Jobless Claims, ISM Non-Mfg.
Index
Friday: U.S. Markets Closed for Independence Day Holiday
Data as of 6/27/2014
1-Week
Since 1/1/14
1-Year
5-Year
10-Year
Standard & Poor's 500
-0.10%
6.09%
21.56%
22.68%
7.29%
DOW
-0.56%
1.66%
12.16%
19.94%
6.25%
NASDAQ
0.68%
5.30%
29.28%
27.85%
11.71%
U.S. Corporate Bond Index
0.57%
3.55%
4.28%
3.42%
1.33%
International
-3.18%
1.80%
18.99%
12.94%
7.98%
Data as 6/27/2014
1 mo.
6 mo.
1 yr.
5 yr.
10 yr.
Treasury Yields (CMT)
0.02%
0.06%
0.10%
1.64%
2.54%
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized. Sources:
Yahoo! Finance and Treasury.gov. International performance is represented by the MSCI EAFE Index. Corporate bond
performance is represented by the DJCBP. Past performance is no guarantee of future results. Indices are unmanaged
and cannot be invested into directly.
HEADLINES:
Federal student loan rates rise on July 1. Legislation that ties student loan rates to
prevailing market rates means that federal loan rates will reset on July 1. Visit
studentaid.ed.gov for more information on loan rates.6
Consumer sentiment rises in June. A final reading of June sentiment shows that
consumers felt more optimistic about the economy in June and are upbeat about their
2
future prospects. Hopefully, these positive feelings will be seen in higher Q2 consumer
spending.7
Rising food and fuel prices drag on consumers. Rising demand, drought, and global
oil uncertainties are causing prices on gasoline and food to rise around the country.
Prices on meat, dairy, and even coffee are up, and producers are passing those costs
on to consumers. If Americans continue to take a hit at the pump or grocery store, it
could cause consumer spending to fall later this year.8
Sales of new and existing homes rise in May. Home resale’s rose more than
expected in May and the inventory of properties was the highest it’s been in 1-1/2 years.
New home sales skyrocketed to a six-year high, though the smaller sample size makes
this measure more volatile. While it’s too soon to know for certain, these numbers
suggest that the housing market may be recovering from its slump.910
“The best time to plant a tree was 20 years ago. The second best time is now.”
–Chinese Proverb
Berry Yogurt Paletas
3
These healthful frozen treats are perfect for a summer gathering. Use blueberries,
blackberries, or any other seasonal fruit.
Ingredients:
Makes 8 paletas
1 3/4 cups plain full-fat Greek yogurt
4 tablespoons sugar syrup or agave nectar
3/4 pound blackberries or other seasonal fruit (about 3 cups)
8 4-ounce ice pop molds or paper cups and wooden sticks
Directions:
1. Mix together yogurt and 2 tablespoons of the sugar or agave syrup.
2. Combine the berries and remaining sugar in a different bowl and use a spoon or
potato masher to crush coarsely and release the juices.
3. Set up 8 paper cups (or small yogurt containers) or ice pop molds. Starting with
the yogurt mixture, alternate layers of yogurt and fruit, dividing evenly among the
molds. Drag a toothpick or bamboo skewer through the mixtures to create a
pleasing swirl.
4. Insert sticks and freeze at least 3 hours or up to several days. Remove them
from the freezer a few minutes before serving.
Recipe adapted from Dawn Perry | RealSimple.com
Tax Tips for Farmers
4
Farmers are eligible for a number of tax benefits and deductions. Under IRS rules,
farms can be plantations, ranches, ranges, and orchards and farmers can raise
livestock, poultry, fish, or grow fruits and vegetables. Here are a few things you should
know:





Crop insurance proceeds count as income and must be reported on your tax
return.
Farmers can deduct “ordinary and necessary” expenses, defined as costs that
are appropriate for your business.
Wages for full- and part-time employees can be deducted as long as you
withhold Social Security, Medicare, and income taxes.
Farmers may be able to delay reporting a gain from the weather-related sale of
livestock.
You may be able to carry over or request a refund of income taxes if you report a
net operating loss one year.
For more information about filing taxes as a farmer or farm owner, speak with a local tax
advisor or see IRS Publication 225, Farmer’s Tax Guide.
Tip courtesy of IRS.gov11
Start Chipping More Consistently
Many golfers make the mistake of thinking a chip should be more like a putt than a halfswing. Consequently, they may “drag” the club on the backswing to try and keep the
club head close to the ground. On the swing, they end up collapsing their arms and
“tugging” them upward in an attempt to give the ball some altitude. The result?
Inconsistent chipping.
If you’re having trouble with your chips, focus on relaxing your wrists and rotating your
body naturally through the swing. Remember – a chip is much more like a small swing
than a big putt.
Tip courtesy of Jeff Yurkiewicz, PGA | Golf Tips Mag12
Kick Your Brain into High Gear
5
Boost brainpower by adding these ordinary ingredients to healthful recipes:




Asparagus is rich in vitamin A, which can help your brain retain plasticity – the
ability to keep learning new things and forming new neural pathways – as you
age.
Oats are rich in selenium, an anti-oxidant shown to reduce the effects of some
age-related cognitive issues.
Almonds are a great source of Vitamin E, which can delay the progress of
Alzheimer’s in concentrated doses.
Legumes have a lot of folic acid, which has been demonstrated to improve verbal
and memory performance.
Tip courtesy of AARP13
Don’t Use Harsh Cleaners for Clogged Pipes
Have a slow-draining sink or tub? Don’t reach for harsh chemical cleaners that can
damage pipes and leach into the water supply. Instead, call your local hardware or
home improvement store to see if they stock a bacteria-based cleaning product. These
drain cleaners use friendly bacterial colonies to eat hair and other common cloggers
and keep your pipes clear.
Tip courtesy of Seattle PI14
Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us
to add them to our list, simply click on the "Forward email" link below. We love being
introduced!
If you would like to opt-out of future emails, please reply to this email with UNSUBSCRIBE in the subject line.
Insert your broker/dealer disclosures here. i.e. Securities offered through “Your B/D Name Here,” Member FINRA/SIPC.
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect
against loss in periods of declining values.
Diversification does not guarantee profit nor is it guaranteed to protect assets
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock
market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock
Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.
6
The Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is
considered a broad indicator of the performance of stocks of technology companies and growth companies.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the
performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia
and Southeast Asia.
The Dow Jones Corporate Bond Index is a 96-bond index designed to represent the market performance, on a total-return
basis, of investment-grade bonds issued by leading U.S. companies. Bonds are equally weighted by maturity cell, industry
sector, and the overall index.
The S&P/Case-Shiller Home Price Indices are the leading measures of U.S. residential real estate prices, tracking changes
in the value of residential real estate. The index is made up of measures of real estate prices in 20 cities and weighted to
produce the index.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is
seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future
performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market
valuations, prepayments, corporate events, tax ramifications and other factors.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative,
Broker dealer or Investment Advisor, and should not be construed as investment advice. Neither the named representative
nor the named Broker dealer or Investment Advisor gives tax or legal advice. All information is believed to be from reliable
sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for
further information.
By clicking on these links, you will leave our server, as they are located on another server. We have not independently
verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links
below to leave and proceed to the selected site.
1
http://www.bloomberg.com/news/2014-06-27/s-p-500-heads-for-longest-rally-since-1998-on-economy.html
2
https://www.google.com/finance?chdnp=0&chdd=0&chds=0&chdv=1&chvs=Linear&chdeh=0&chfdeh=0&chdet=1403997441
292&chddm=1955&chls=IntervalBasedLine&cmpto=INDEXDJX:.DJI;INDEXNASDAQ:.IXIC&cmptdms=0;0&q=INDEXSP:.IN
X&ntsp=1&ei=7UyvU7CrFtHrrAH8iYCgDQ
3
http://www.nasdaq.com/article/closing-update-stocks-higher-after-weak-gdp-blamed-on-weather-cm365276
4
http://www.reuters.com/article/2014/06/26/us-usa-economy-idUSKBN0F11BJ20140626
5
http://www.reuters.com/article/2014/06/27/us-ukraine-crisis-eu-idUSKBN0F20N420140627
6
http://www.cnbc.com/id/101790001
7
http://www.cnbc.com/id/101795458
8
http://www.cnbc.com/id/101795570
7
9
http://www.cnbc.com/id/101781323, http://www.cnbc.com/id/101784418
10
http://www.irs.gov/uac/Newsroom/Ten-Helpful-Tips-for-Farm-Tax-Returns
11
http://www.golftipsmag.com/instruction/short-game/quick-tips/drag-and-tug.html#.U67t_Y1dVsI
12
http://www.aarp.org/health/healthy-living/info-06-2013/food-that-could-boost-brain-power-photos.html?intcmp=AEENDSLD-HEA-ART3#slide7
13
http://www.seattlepi.com/news/article/52-tips-for-living-green-1269861.php
8