OBAMA PROPOSES NEW TAX CREDITS
Last week, President Obama recommended three new tax measures to Congress and the American people – an extension of the Bush-era tax cuts for all but the wealthiest Americans, an immediate deduction for any capital investment that companies make during 2010 or 2011, and a permanent and expanded R&D credit for businesses. In response, Senate Minority Leader Mitch McConnell (R-KY) called it “a last-minute, cobbled-together stimulus bill” that would not improve a “complete lack of confidence” on Main Streetin Democratic Party economic policy.1,2
Last week, President Obama recommended three new tax measures to Congress and the American people – an extension of the Bush-era tax cuts for all but the wealthiest Americans, an immediate deduction for any capital investment that companies make during 2010 or 2011, and a permanent and expanded R&D credit for businesses. In response, Senate Minority Leader Mitch McConnell (R-KY) called it “a last-minute, cobbled-together stimulus bill” that would not improve a “complete lack of confidence” on Main Streetin Democratic Party economic policy.1,2
TRADE DEFICIT SHRINKS 14%
A report from the Commerce Department says that America’s trade deficit narrowed to $42.8 billion in July, $7 billion less than the June figure. This is a good sign for 3Q growth. It was the biggest month-over-month reduction since February 2009. The report also noted a 1.8% jump in exports, the best monthly gain seen in that category since August 2008.3
A report from the Commerce Department says that America’s trade deficit narrowed to $42.8 billion in July, $7 billion less than the June figure. This is a good sign for 3Q growth. It was the biggest month-over-month reduction since February 2009. The report also noted a 1.8% jump in exports, the best monthly gain seen in that category since August 2008.3
WHOLESALE INVENTORIES GROW
Surpassing forecasts, wholesale stockpiles increased by 1.3% in July. That is the best month in two years for this indicator. Durable goods stockpiles maintained by wholesalers increased by 1.0%, and the inventory-to-sales ratio reached its best level since February 2010.4
Surpassing forecasts, wholesale stockpiles increased by 1.3% in July. That is the best month in two years for this indicator. Durable goods stockpiles maintained by wholesalers increased by 1.0%, and the inventory-to-sales ratio reached its best level since February 2010.4
BEIGE BOOK OFFERS MIXED NEWS
The Federal Reserve’s latest snapshot of economic conditions in its 12 districts found “economic growth at a modest pace” in five of them: Kansas City, Dallas, San Francisco, St. Louisand Minneapolis. “Positive developments or net improvements” were also noted in the Bostonand Clevelanddistricts. No improvement was seen in the New York, Richmond, Atlanta, Philadelphiaor Chicagodistricts.5
The Federal Reserve’s latest snapshot of economic conditions in its 12 districts found “economic growth at a modest pace” in five of them: Kansas City, Dallas, San Francisco, St. Louisand Minneapolis. “Positive developments or net improvements” were also noted in the Bostonand Clevelanddistricts. No improvement was seen in the New York, Richmond, Atlanta, Philadelphiaor Chicagodistricts.5
SHORT WEEK BRINGS ANOTHER ADVANCE
In the four market days following Labor Day, the S&P 500 rose 0.46% to 1,109.56. The Dow stayed positive for 2010, rising another 0.14% resulting in a Friday close of 10,462.77. As for the NASDAQ, it gained 0.39% to pull up to 2,242.48 at the closing bell Friday. It was a week of thin volume and mild economic “weather” with no great impact on Wall Street. As of Friday’s close, the S&P 500 was up about 5.7% for the month; the NASDAQ and DJIA were respectively up about 4.5% and 6.1% for September. Next week, we have the latest retail sales and industrial output reports and new CPI and PPI data.6
In the four market days following Labor Day, the S&P 500 rose 0.46% to 1,109.56. The Dow stayed positive for 2010, rising another 0.14% resulting in a Friday close of 10,462.77. As for the NASDAQ, it gained 0.39% to pull up to 2,242.48 at the closing bell Friday. It was a week of thin volume and mild economic “weather” with no great impact on Wall Street. As of Friday’s close, the S&P 500 was up about 5.7% for the month; the NASDAQ and DJIA were respectively up about 4.5% and 6.1% for September. Next week, we have the latest retail sales and industrial output reports and new CPI and PPI data.6
% CHANGE | Y-T-D | 1-YR CHG | 5-YR AVG | 10-YR AVG |
DJIA | +0.33 | +8.68 | -0.40 | -0.65 |
NASDAQ | -1.18 | +7.60 | +0.62 | -4.24 |
S&P 500 | -0.50 | +6.27 | -2.13 | -2.55 |
REAL YIELD | 9/10 RATE | 1 YR AGO | 5 YRS AGO | 10 YRS AGO |
10 YR TIPS | 1.02% | 1.59% | 1.64% | 4.03% |
Source: cnbc.com, bigcharts.com, ustreas.gov, bls.gov - 9/10/106,7,8,9
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.
WEEKLY QUOTE
“The secret of being boring is to say everything.”
– Voltaire
– Voltaire
WEEKLY TIP
Exercise is not only wise, it may also prove economical. In the long run, just keeping fit may save you thousands of dollars (or more) in medical bills that an unhealthy person may incur.
WEEKLY RIDDLE
Where does today come before yesterday?
Last week’s riddle:
The name of a particular insect is six letters long. You can lop off the last three letters from its name and end up with the name of another insect. What is this six-letter word?
The name of a particular insect is six letters long. You can lop off the last three letters from its name and end up with the name of another insect. What is this six-letter word?
Last week’s answer:
Beetle.
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Citations.
1 - cnbc.com/id/39096574 [9/10/10]
2 - content.usatoday.com/communities/theoval/post/2010/09/obama-pitches-new-plan-for-roads-runways-and-rail-lines/1 [9/6/10]
4 - bloomberg.com/news/2010-09-10/wholesale-inventories-in-u-s-rise-the-most-in-two-years-on-demand-rebound.html [9/10/10]
5 - npr.org/blogs/thetwo-way/2010/09/08/129728343/economy-had-widespread-summer-slowdown-fed-reserve [9/8/10]
6 - cnbc.com/id/39102559 [9/10/10]
7 - bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=9%2F10%2F09&x=0&y=0 [9/10/10]
7 - bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=9%2F10%2F09&x=0&y=0 [9/10/10]
7 - bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=9%2F10%2F09&x=0&y=0 [9/10/10]
7 - bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=9%2F9%2F05&x=0&y=0 [9/10/10]
7 - bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=9%2F9%2F05&x=0&y=0 [9/10/10]
7 - bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=9%2F9%2F05&x=0&y=0 [9/10/10]
7 - bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=9%2F11%2F00&x=0&y=0 [9/10/10]
7 - bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=9%2F11%2F00&x=0&y=0 [9/10/10]
7 - bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=9%2F11%2F00&x=0&y=0 [9/10/10]
8 - ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [9/10/10]
Regards,
C.W. Copeland
"Your Personal CFO"
C.W. Copeland & Associates
Lifestyle Management Advisors
3401 Norman Berry Drive
Suite 253
East Point, GA 30344
404.567.3275 (direct)
404.601.9534 (fax)
www.PhDinMoney.com
"Your Personal CFO"
C.W. Copeland & Associates
Lifestyle Management Advisors
3401 Norman Berry Drive
Suite 253
East Point, GA 30344
404.567.3275 (direct)
404.601.9534 (fax)
www.PhDinMoney.com
Securities offered through Resource Horizons Group, L.L.C.
Member FINRA, SIPC
Advisory services offered through Resource Horizons Investment Advisory
1350 Church St. Ext. Third Floor
Marietta, GA 30060
Office 770 319-1970
Member FINRA, SIPC
Advisory services offered through Resource Horizons Investment Advisory
1350 Church St. Ext. Third Floor
Marietta, GA 30060
Office 770 319-1970
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