Gary Hokin of Hokin Investment Advisors/Nikoh
Securities Corporation Presents:
Weekly Economic Update for the Week of July 28, 2008
Quote
of the week. “Those who dream by day are
cognizant of many things which escape those who dream only by night.” – Edgar
Allen Poe
Friday’s
good news. Durable
goods orders rose by 0.8% in June, noted the Commerce Department; economists
had forecast a 0.4% decline.1 The Reuters/University of Michigan
final July index of consumer sentiment rose to 61.2; economists thought it
would stay flat at 56.4. New home sales fell 0.6% in June, better than the 1.8%
drop foreseen by analysts.2
Thursday’s
not-so-good news. The June existing home sales data was weak. The Commerce
Department reported a 2.6% drop for the month and a 15.5% year-over-year decline,
resulting in the slowest sales pace since the first quarter of 1998.3
Oil
futures keep falling. For the second week in a row, crude oil
prices descended – futures closed at $123.26 a barrel in on the New York
Mercantile Exchange Friday afternoon. According to AAA/Oil Price Information
Service data, the price of a gallon of regular unleaded is now averaging just
over $4.4
Mortgage
rates, foreclosures up. Last week, average rates on 30-year FRMs
were 6.63%.5 RealtyTrac reported Friday that 2Q 2008 foreclosure
filings were up 121% from 2Q 2007.6
NASDAQ
gains, S&P & Dow slip. The NASDAQ rose 1.2% last week,
while the DJIA fell 1.1% and the S&P 500 0.2%.7
|
% Change |
Y-T-D |
1-Year |
5-Yr Avg |
|
DJIA |
-14.28 |
-21.23 |
+4.49 |
|
NASDAQ |
-12.89 |
-14.61 |
+6.70 |
|
S&P 500 |
-14.34 |
-20.70 |
+5.19 |
(Source: USAToday.com, CNNMoney.com,
7/25/08) 8, 9
Indices are unmanaged, do not incur fees or expenses, and cannot
be invested into directly. These returns do not include dividends.
Riddle
of the week. A doctor in Paris has a
brother in Toronto who is a lawyer. The lawyer does not have a brother who is a
doctor in Paris. How is this possible?
Contact my office or see next week’s
Update for the answer.
Last week’s riddle: A father tells his young
son, “I will pay you $6.00 per hour for the 6 seconds you took to wash your
hands before dinner.” So how much does the boy earn for these 6 seconds of
effort?
Answer:
One
cent. At a rate of $6 paid per 60 minutes, $6 divided by 60 works out to 10
cents a minute. Six seconds is one-tenth of a minute, so the boy earns 1 cent.
These views are those of Peter Montoya
Inc., and not of Gary Hokin and/or Nikoh Securities Corporation, and should not
be construed as investment advice.
The
Dow Jones Industrial Average is a price-weighted index of 30 actively traded
blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted
index of all over-the-counter common stocks traded on the National Association
of Securities Dealers Automated Quotation System. The Standard & Poor's 500
(S&P 500) is an unmanaged group of securities considered to be
representative of the stock market in general. It is not possible to invest directly
in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the
New York Stock Exchange (the "NYSE") and NYSE Arca (formerly known as
the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange).
NYSE Group is a leading provider of securities listing, trading and market data
products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the
world's largest physical commodity futures exchange and the preeminent trading
forum for energy and precious metals, with trading conducted through two
divisions – the NYMEX Division, home to the energy, platinum, and palladium
markets, and the COMEX Division, on which all other metals trade. All
information is believed to be from reliable sources; however we make no
representation as to its completeness or accuracy. All economic and performance
data is historical and not indicative of future results. The market indices
discussed are unmanaged. Investors cannot invest in unmanaged indices. The
publisher is not engaged in rendering legal, accounting or other professional
services. If other expert assistance is needed, the reader is advised to engage
the services of a competent professional. Please consult Gary Hokin at (847)
559-1002 for further information. Additional risks are associated with
international investing, such as currency fluctuations, political and economic
instability and differences in accounting standards.
Citations. 1 forbes.com/afxnewslimited/feeds/afx/2008/07/25/afx5254239.html [7/25/08]
2 bloomberg.com/apps/news?pid=20601103&sid=aw71HIbvU6YY&refer=news [7/25/08]
3 ap.google.com/article/ALeqM5i2lHvXyLhWJXE-sq0W-UffZUSwQgD924EHE00 [7/24/08]
4 chicagotribune.com/business/sns-ap-oil-prices,0,6226038.story [7/25/08]
5 money.cnn.com/2008/07/24/real_estate/mortgage_rates/index.htm?postversion=2008072412&eref=yahoo [7/24/08]
6
news.yahoo.com/s/ap/foreclosure_rates;_ylt=AoNxVPjVDMmypDwxEYYJRX.z1g4B [7/25/08]
7 bloomberg.com/apps/news?pid=20601103&sid=aw71HIbvU6YY&refer=news [7/25/08]
8 usatoday.com/money/default.htm [7/25/08]
9
money.cnn.com/quote/historical/historical.html?pg=hi&close_date=7%2F25%2F07&mode=add&symb=DJIA
9
money.cnn.com/quote/historical/historical.html?pg=hi&close_date=7%2F25%2F03&mode=add&symb=DJIA [7/25/08]
9 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=7%2F25%9F07&mode=add&symb=COMP [7/25/08]
9
money.cnn.com/quote/historical/historical.html?pg=hi&close_date=7%2F25%2F03&mode=add&symb=COMP [7/25/08]
9
money.cnn.com/quote/historical/historical.html?pg=hi&close_date=7%2F25%2F07&mode=add&symb=SPX [7/25/08]
9 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=7%2F25%2F03&mode=add&symb=SPX [7/25/08]