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
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
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
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
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
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.
“The secret of being boring is to say everything.” – Voltaire
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.
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?
Last week’s answer:
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A degreed engineer (in a past life) business owner, business development coach, project manger, and organizational strategist with a strong background in surveillance, ES&H redesign, project management, process engineering, organizational operations, management, business law, and ISO internal auditing. Am an organzing member of NSBE-AE, Organizing Board member Greenwood Festival Chorale, former Omega Psi Phi Graduate Chapter President (Baselius) a former Shelter BOD Chair, a former Regional Chair, former Lander Board of Visitors Member, former Chamber BOD member, as well as many other organizational leadership positions. Owner Spearman Enterprises and Managing Partner Top Flight LLC.