Advisors on This Week’s Show

Bob Landaas

Brian Kilb

Art Rothschild

Week in Review (Jan. 30-Feb. 3, 2012)

Significant economic indicators & reports

Monday

American consumer spending stayed even in December, despite the largest monthly jump in income since last March. The Bureau of Economic Analysis said wages and salaries rose at the end of 2011, but spending – which drives 70% of the nation’s economic activity – remained unchanged following five months of gains. The paradox is that as spending is suspended, savings grows, which could help fuel consumption later on.

Tuesday

U.S. home prices sank deeper in November, the first setback after five months of progressively narrow year-to-year declines, according to the S&P/Case Shiller Home Price Index. Of 20 cities in the composite index, 13 suffered lower 12-month rates than in October. Only Detroit and the District of Columbia posted home price gains since November 2010. With housing indicators seeming to be looking up in recent months, an economist for the index said he saw “few, if any, signs in the numbers that a turning point is close at hand.”

Business activity nationwide continued to expand in January, though at a slower pace, a report from Chicago purchasing managers said. Weakening production and new orders and the mildest growth in employment in five months stirred some concern that a global slowdown is starting to show in the U.S.

A foundation of consumer spending – consumer confidence – took a hit in January as budding optimism for employment didn’t include expectations for higher incomes in the next six months. The Conference Board said consumers’ assessment of current conditions well as their outlook for later this year have declined from rosier dispositions, particularly in the previous two months.

Wednesday

The manufacturing expansion that has pushed the U.S. emergence from recession accelerated a bit in January, the Institute for Supply Management said. New orders advanced at a faster pace, and production and employment indicators grew, although a bit slower than in December. The manufacturing index showed continued moderate growth despite signs of slower economic expansion worldwide.

Construction spending gained more than analysts expected in December, rising to its highest rate in four months. The Commerce Department reported that the annualized rate was 4% ahead of Dec. 2010, indicating a strong year-end finish for a roughed-up sector. Full-year construction spending ended down 2% from 2010 with housing down 1.1% and public construction off 6.5%.

U.S. consumers bought more autos in January, especially domestic cars, boosting the annual sales rate to nearly 14.2 million vehicles. That’s the most since before the 2008 financial crisis, if you don’t count the brief surge from the Cash for Clunkers stimulus in 2009. Trade group Autodata Corp. reported that more cars than trucks had sold for the first time in nine months, perhaps in response to rising gas prices.

Thursday

The moving four-week average for initial unemployment claims fell for the 16^th time in 19 weeks, signaling gradually steadying employment conditions. The Labor Department said the average remained below 400,000 claims for the 12^th consecutive week, the longest it has been so low since mid-2008.

Friday

Employment conditions kept improving in January as private-sector employers added more jobs than analysts expected and the unemployment rate dropped for the fifth month in a row, to 8.3%, the lowest since Feb. 2009. The Bureau of Labor Statistics reported a broad-based 243,000-job addition to payrolls last month, with most measures suggesting greater momentum for employment nationwide. Despite 16 consecutive months of job gains, though, the nation remains nearly 5.6 million jobs shy of the mark at the beginning of the Great Recession.

The Institute for Supply Management’s non-manufacturing index rose in January, beating analyst forecasts and indicating further expansion for the biggest segment of the economy. The index signaled the 25^th month in a row of growth with big gains in new orders and production. The pace of employment picked up again after showing contraction in December.

Another sign of manufacturing momentum came from increased factory orders in December. The Commerce Department said the December gain came on top of an upturn in November orders that was bigger than previously reported. Full-year factory orders rose 12% from 2010, evidence that global growth has helped U.S. economic expansion despite lukewarm consumer spending.

Where the Markets Closed for the Week

• Nasdaq – 2,906, up 90 points or 3.2%
• Standard & Poor’s 500 – 1,345, up 28 points or 2.1%
• 10-year U.S. Treasury Note – 1.95%, up 0.05  point
• Dow Jones Industrial Average – 12,862, up 199 points or 1.5%

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Advisors on This Week’s Show

Brian Kilb

Paul Coldagelli

Steve Giles

Week in Review (Jan. 23-27, 2012)

Significant economic indicators & reports

Monday

No major announcements

Tuesday

No major announcements

Wednesday

Strong activity in pending home sales cooled down in December – and more than analysts had forecast. Still, deals to buy houses were up nearly 6% from December 2010, the National Association of Realtors said. That contributed to a recent sense that the beleaguered housing industry may finally be turning the corner, fueled by low mortgage rates, cheaper prices and renewed confidence in the labor market.

Policy makers at the Federal Reserve Board called the housing sector “depressed” in an economic statement released after two days of meetings. The Fed committee reported a moderately expanding economy, despite slower global growth, which could eventually pose risks to the U.S. outlook. The central bank leaders said they expect interest rates to remain at historically low levels until late 2014 – about 18 months longer than their previous forecast.

Thursday

Industrial production, the main driver in economic growth since the recession, appeared to pick up steam with higher-than-expected gains in durable goods orders in December. Excluding volatile transportation bids, new orders rose in seven of the last eight months. Certain capital orders considered a proxy for business investments increased for the first time in three months, according to the Commerce Department. Overall orders reached their highest amount since July 2008.

The sales rate of new homes dropped in December, below forecasts and lower than the year before, the Department of Housing and Urban Development said. The number of houses on the market ticked up for the first time in five months, but positive signs include a drop in the median time houses were for sale and a slight increase (though less than inflation) in the median price between 2011 and 2010.

Through slightly recalibrated measurements, the Conference Board’s leading economic indicators suggested “cautious optimism” for the first half of 2012. The business research group echoed concerns from the Fed over slowing global growth but suggested that domestic momentum might influence economic progress abroad.

The morning after the Fed cited improved overall labor market conditions, the Labor Department reported that the moving four-week average for initial unemployment claims stayed below 400,000 for the 11th week in a row, the longest period since before the 2008 financial crisis. The indicator suggests employers aren’t letting as many workers go, giving the long-time unemployed a better chance of finding work again.

Friday

Economic expansion quickened in the last quarter of 2011 but not as fast as analysts forecast. The Bureau of Economic Analysis said Gross Domestic Product grew by 2.8% in the last three months of the year, up from 1.7% in the third quarter. A bigger buildup in inventories and more consumer spending offset GDP setbacks from increased imports and continued declines in government spending. The Fed’s key gauge of inflation showed a 1.1% increase from the fourth quarter of 2010. That’s down from a 2.1% rate in the third quarter and the Fed’s long-term target of 2%.

News of job gains helped boost consumer sentiment in January, pushing it near post-recession highs, according to Thomson Reuters and the University of Michigan. Consumer sentiment, which feeds into consumer spending, has gained each of the last five months. However, consumers still express lack of confidence in their personal finances and near-record skepticism about government policies.

Where the Markets Closed for the Week

Nasdaq – 2,816,  up 31 points or 1.1%

Standard & Poor’s 500 – 1,317, up 3 points or 0.2%

10-year U.S. Treasury Note – 1.90%, down 0.13 point

Dow Jones Industrial Average – 12,663, down 50 points or 0.4%

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As an offshoot of our weekly podcasts – and to encourage your participation – we occasionally feature responses to listeners’ questions.

With low yields on bonds at the outset of 2012 and expectations for gradually rising interest rates in two or three years, some investors are thinking about dividend-paying stocks to generate more income for their retirement, Bob Landaas says.

That’s one of the considerations he suggests to a listener named Bob who requested advice on what to do with a windfall of $75,000 he’s expecting.

The short answer is to determine what you want the money for, the president of Landaas &Company explains. More detailed advice would follow from that. (Please click the audio player above to hear the response from Bob Landaas.)

initially posted Jan. 26, 2012

For What It’s Worth

To learn about the origins of the term “windfall,” please click here.

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Advisors on This Week’s Show

Brian Kilb

Jeff Peterson

Week in Review (Jan. 16-20, 2012)

Significant economic indicators & reports

Monday

No major announcements

Tuesday

No major announcements

Wednesday

Reflecting an easing in global commodity costs as economic growth worldwide has cooled, wholesale inflation fell in December for the second time in three months. The Bureau of Labor Statistics said both food and fuel prices dropped in December. The 12-month increase in the Producer Price Index slowed to its lowest rate since January 2011.

U.S. production capacity was at its highest rate of the recovery in December, according to the Federal Reserve. Industrial production increased led by a continued push in manufacturing and overcoming the fifth month in a row of declines by utilities – a function of warmer-than-usual weather. The capacity utilization rate of 78.1% stayed below the long-term average, suggesting room for further growth without threatening inflation.

Thursday

The broadest measure of inflation stayed unchanged for the second straight month in December, the Bureau of Labor Statistics reported. Energy costs fell for the third month in a row while the cost of medical services rose. The year-to-year inflation rate for the Consumer Price Index reached 3%, the lowest since March and below the 63-year average of 3.7%.

The labor market continued to show improvement as the moving four-week average for initial unemployment claims stayed below 400,000 for the 10th week in a row, the longest it has been so low since mid-2008. According to data from the Labor Department, the average dropped every week but three since September, signaling that employers aren’t as apt to get rid of workers.

The Commerce Department had mixed news on housing in December. Activity for both housing starts and building permits was less than analysts had forecast but stayed above recession low points, suggesting the beleaguered sector has seen its worst for now. The annual rate of building permits – a leading indicator – remained about level with November but was up nearly 8% from December 2010.

Friday

Another encouraging sign for the housing industry is that the number of existing homes sold in 2011 rose 1.7% from 2010. The National Association of Realtors said an improving jobs picture and record low mortgage rates are helping. The inventory of unsold homes in December fell to the lowest point since March 2005, which could help stabilize prices. The median price of a home sold in December was $164,000, down 2.5% from the year before.

Where the Markets Closed for the Week

Nasdaq – 2,785, up 74 points or 2.7%

Standard & Poor’s 500 – 1,314, up 25 points or 1.9%

10-year U.S. Treasury Note – 2.03%, up 0.16 point

Dow Jones Industrial Average – 12,713, up 291 points or 2.3%

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Advisors on This Week’s Show

Bob Landaas

Brian Kilb

Art Rothschild

Week in Review (Jan. 9-13, 2012)

Significant economic indicators & reports

Monday

U.S. consumers amassed more credit card debt for the third month in a row in November and the biggest increase in the recovery, the Federal Reserve reported. Analysts said the data suggested that Americans were more confident in their ability to borrow short-term for holiday shopping, although it also indicated that consumer spending was outpacing income.

Tuesday

In a sign that businesses are keeping supplies in line with demand, wholesale inventories rose slightly in November, keeping pace with sales, according to new figures from the Commerce Department. Continued uncertainty in the economy has kept companies from stockpiling too much merchandise ahead of sales orders. A low ratio of inventories to sales has been keeping production fairly steady, which has helped the gradual economic expansion.

Wednesday

No major announcements

Thursday

As with wholesalers, business inventories also ticked up in November at the same pace as sales. The growth was less than analysts had expected. The Commerce Department reported that the rate of business inventories to sales stayed at the same low spot for the fifth month in a row.

American consumers spent less than expected at stores in December, with retail sales rising 0.1% from November. Excluding the volatile automotive category, Commerce said sales actually fell for the first time since May. Part of the story may be that price discounting lowered sales figures during the holiday shopping period. Also, Commerce said shoppers spent more than initially estimated in October and November. Retail sales rose 6.5% from December 2010, which beat the long-term year-to-year average of 4.5%.

Improvements in the labor market looked a little more fragile with a slight gain in the moving four-week average for initial unemployment claims. The Labor Department said the average rose for the first time in six weeks, but it remained below 400,000 claims for the ninth week in a row, the longest it has been so low since mid-2008.

Friday

Increased imports and declining exports sent the U.S. trade deficit higher in November for the first time in five months. Imports rose by 1.3% led by oil and automobiles. Exports fell 0.9%, most notably to Europe, where debt worries are triggering greater austerity. The Bureau of Economic Analysis said the trade deficit rose to nearly $47.8 billion, its highest point since June.

The new year has begun with rosier consumer sentiment, according to the University of Michigan and Thomson Reuters. The first reading from their monthly index showed a fifth monthly increase, making it the the highest optimism since May. Recent results from other consumer confidence measures from the Conference Board and Bloomberg financial news also indicate Americans are starting to feel better about their situations, which could lead to more consumer spending – the biggest driver in economic growth.

Where the Markets Closed for the Week

Nasdaq – 2,711, up 37 points or 1.4%

Standard & Poor’s 500 – 1,289, up 11 points or 0.9%

10-year U.S. Treasury Note – 1.87%, down 0.11 point

Dow Jones Industrial Average – 12,422, up 62 points or 0.5%

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Advisors on This Week’s Show

Bob Landaas

Brian Kilb

Marc Amateis

Week in Review (Jan. 2-6, 2012)

Significant economic indicators & reports

Monday

Markets closed to observe New Year’s Day

Tuesday

In a sign that manufacturing is continuing to drive the economy’s recovery and expansion from the Great Recession, the Institute for Supply Management reported that December marked the 29^th consecutive month of manufacturing growth. The ISM Manufacturing Index showed a quickening pace in new orders, production, employment, inventories and exports – all suggesting rising momentum for the sector.

The U.S. spent more on construction in November than it had at any point since June 2010, the Commerce Department said. The annual rate of construction spending rose 1.8% from October and 0.5% from November 2010, with the residential market growing at even wider margins. The figures were higher than analysts had forecast, suggesting a hopeful turn for the building sector. Still, the spending rate remains about 50% below its 2006 peak.

Wednesday

Aside from the volatile transportation category, including an increase for commercial aircraft, factory orders were little changed in November, Commerce reported. The monthly gain overall was less than analysts had anticipated, and orders for non-military capital goods excluding aircraft – a proxy for business investments – declined for the second month in a row. A brighter sign is that year-to-year business investments stayed way above the 20-year average.

December sales of motor vehicles offered mixed news on a high-profile component of consumer spending. Reports compiled by Autodata Corp. showed the annualized rate of total vehicles sold down a little from October but up 8.4% from December 2010 – near the level during the “cash-for-clunkers” surge in mid-2009.   

Thursday

The labor market continued looking better with another dip in the moving four-week average for initial unemployment claims. The Labor Department said the average fell for the 13^th time in 15 weeks, keeping it at levels last seen in mid-2008. For the eighth week in a row, claims stayed below 400,000, a good sign that job losses aren’t outpacing new hires.

Lagging its more prominent manufacturing gauge, the ISM Nonmanufacturing Index rose less than analysts expected in December but still indicated expansion for the 25^th month in a row. The index, representing about 90% of the U.S. economy, was at about the average pace of growth since the recession ended, but that’s down from a brisker rate last February.

Friday

U.S. employers added 200,000 jobs in December, the most in three months and more than expected, as the latest Labor Department data suggest employment conditions are gradually improving. Government employment declined again, but private-sector payrolls rose for the 22^nd month in a row, including three consecutive months for manufacturing. The unemployment rate dipped to 8.5% as fewer household survey respondents said they couldn’t find work. Fewer also said they had settled for part-time jobs or dropped out of the job market for lack of opportunities. While the U.S. added 1.6 million jobs in 2011, the total remains 6.1 million behind where it was four years earlier.

Where the Markets Closed for the Week

• Nasdaq – 2,674, up 69 points or 2.6%
• Standard & Poor’s 500 – 1,278, up 21 points or 1.7%
• 10-year U.S. Treasury Note – 1.97%, up 0.09 point
• Dow Jones Industrial Average – 12,360, up 142 points or 1.2%

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Advisors on This Week’s Show

Brian Kilb

Paul Coldagelli

Jeff Peterson

Week in Review (Dec. 26-30, 2011)

Significant economic indicators & reports

Monday

Markets and government offices closed

Tuesday

In a sign of an apparent gradual recovery in home prices, the S&P/Case-Shiller index improved again in October, for the fifth month in a row. The 20-city index showed year-to-year home prices down 3.4% from October 2010, but the index has been working its way back from a 4.5% deficit in May. This double-dip in home prices had begun in October 2010 after having shown gains for eight months earlier that year.

The year 2011 ended with consumer confidence on the upswing, according to the Conference Board. Based on greater faith in the jobs market, optimists outnumbered pessimists for the first time since April in the business research group’s surveys. Respondents expressed confidence that their own financial situations will keep getting better in coming months. Economists look for confidence to fuel consumer spending, which drives 70% of U.S. economic growth.

Wednesday

No significant announcements

Thursday

The number of sales contracts for existing houses reached its highest level in 19 months, the National Association of Realtors reported. Pending home sales rose 7.3% in November, following a 10.4% jump in October and three straight months of decreases. The trade group repeated warnings that a higher rate of pending sales has not been closing lately – in part because of tougher lending rules. Still, a rise in contracts suggests the number of closed deals should keep growing.

The labor market continued to show signs of improvement with another drop in the moving four-week average of initial claims for unemployment insurance. The measure from the Labor Department fell for the 12^th time in 14 weeks, declining to its lowest point in more than three and a half years. For the seventh week in a row, claims stayed below the level necessary for new jobs to make an impact on the unemployment rate.

The U.S. economy expanded for its 27^th consecutive month in December, according to the Chicago Purchasing Managers Index. More backlogged orders and brisker hiring helped keep the index hovering near a seven-month high.

Friday

No significant announcements

Where the Markets Closed for the Week

Nasdaq – 2,605, down 14 points or 0.5%

Standard & Poor’s 500 – 1,258, down 7 points or 0.6%

10-year U.S. Treasury Note – 1.88%, down 0.15 point

Dow Jones Industrial Average – 12,218, down 76 points or 0.6%

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Advisors on This Week’s Show

Brian Kilb

Paul Coldagelli

Jeff Peterson

Week in Review (Dec. 19-23, 2011)

Significant economic indicators & reports

Monday

No major indicators

Tuesday

Home building looked more positive in November than analysts had expected, according to Commerce Department figures on housing starts and building permits. Led by a growth in apartment buildings, new construction rose to its highest annual rate since April 2010. Permits, which indicate plans for future building, also grew to a pace not seen since the spring of 2010, when a federal tax credit incentive for home buying expired. An emphasis lately on multi-family residences suggests the industry is still digesting a glut of single-family properties remaining from the housing bust.

Wednesday

Sales of existing houses also showed progress in November, up for the third month in a row and reaching the highest annual rate since January. With more than 4.4 million houses sold last month, the market had recovered more than 34% from its recessionary low point, the National Association of Realtors said. But the rate still lags the 12- year average by about 1 million. Realtors continued complaints that “overly restrictive” mortgage lending is crimping sales at a time when falling home prices and low interest rates improve the affordability of home-buying.

Thursday

The U.S. economy grew faster in the third quarter but not as much as initially thought. The Bureau of Economic Analysis said its third estimate of third-quarter Gross Domestic Product showed a growth rate of 1.8%, down from its previous report of 2%. The pace picked up from a second-quarter rate of 1.3%. Consumers spending – which accounts for 70% of the nation’s economic activity – grew by 1.7% in the third quarter, lower than preliminary reports.

The Conference Board said economic growth should continue into 2012 and maybe even gain momentum, according to its November index of leading economic indicators. Seven of the 10 indicators improved from October, led by the spread on interest rates and housing permits. The overall index increased for the third month in a row.

Signs of improving labor conditions showed again in the moving four-week average of initial claims for unemployment insurance. The measure from the Labor Department fell for the 11^th time in 13 weeks, dropping to its lowest level since June 2008. For the sixth week in a row, claims stayed below the 400,000 mark, suggesting job losses aren’t outpacing new hires.

Consumer sentiment rose to its highest level since May, the University of Michigan and Thomson Reuters reported. Consumers expressed more optimism for the outlook six months from now as well as increased enthusiasm for current conditions, which could lead to more confident spending.

Friday

Lower gasoline prices led to less spending on non-durable goods in November, but personal spending overall rose 0.1%, a little less than analysts had expected. The Bureau of Economic Analysis showed personal income also gaining 0.1%, following a 0.4% rise in October. The Federal Reserve’s preferred measure of inflation increased 1.7% in the last 12 months.

Mixed news from the housing market continued as the Commerce Department reported a 1.6% rise in the annual rate of new homes sold in November. Part of the good news was that the supply of houses on the market dipped to a low point in the economic recovery. But the median price also declined, sinking 2.5% since November 2010.

Where the Markets Closed for the Week

Nasdaq – 2,619, up 63 points or 2.5%

Standard & Poor’s 500 – 1,265, up 45 points or 3.7%

10-year U.S. Treasury Note – 2.03%, up 0.18 point

Dow Jones Industrial Average – 12,294, up 433 points or 3.7%

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Advisors on This Week’s Show

Bob Landaas

Brian Kilb

Steve Giles

Week in Review (Dec. 12-16, 2011)

Significant economic indicators & reports

Monday

No major indicators

Tuesday

Preliminary November retail sales figures suggest continued moderate consumer spending, which accounts for 70% of the U.S. gross domestic product. Sales rose less than analysts had forecast, but Department of Commerce revisions showed spending gained more than initially estimated in September and October. Year-to-year, sales increased 6.7% last month, brisker than the average 12-month pace of 4.5% since 1993.

Business inventories grew in October at their fastest rate in five months, according to a separate report from Commerce. Sales rose at nearly the same rate as inventories, maintaining a relatively low ratio of inventories to sales, which suggests that businesses are staying cautious about letting supplies get too far ahead of demand.

Wednesday

No major indicators

Thursday

Inflation on the wholesale level ticked up in November with higher food costs, according to the Bureau of Labor Statistics. Aside from volatile food and energy prices, the Producer Price Index advanced 2.9% from the year before – matching the average 12-month rate since 1920.

The labor market keeps improving, as shown in the moving four-week average of initial claims for unemployment insurance. The Labor Department measure fell for the 10^th time in 12 weeks, dropping to its lowest level in more than three years. For the fifth week in a row, claims stayed below the 400,000 level, a good sign that job losses aren’t outpacing new hires.

Manufacturing – the driving force of the recovery and expansion from the Great Recession – appeared to catch its breath in November as industrial production and capacity utilization both dipped. The Federal Reserve said a slight decline in auto manufacturing contributed to a slim setback in production data. But it also revised upward the usage rate of manufacturing capacity for the previous five months.

Friday

The broadest measure of inflation, the Consumer Price Index, continued to settle down in November, recovering from higher energy prices earlier in the year. The Bureau of Labor Statistics reported the index was unchanged from October, after a slight decline the month before. Factoring out volatile energy and food prices, the core inflation rate rose 2.2% from November 2010. That’s the biggest gain in more than three years. But it’s still below the 53-year average rate of 3.9%, which should dampen any worries of inflation flaring up anytime soon.

Where the Markets Closed for the Week

• Nasdaq – 2,556, down 91 points or 3.4%
• Standard & Poor’s 500 – 1,220, down 35 points or 2.8%
• 10-year U.S. Treasury Note – 1.85%, down 0.2 point
• Dow Jones Industrial Average – 11,861, down 323 points or 2.7%

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Advisors on This Week’s Show

Bob Landaas

Art Rothschild

Jeff Peterson

(with Joel Dresang)

Week in Review (Dec. 5-9, 2011)

Significant economic indicators & reports

Monday

Industries representing 90% of U.S. business activity grew for the 24^th consecutive month in November, but expansion slowed a bit, according to the ISM non-manufacturing index. A contraction in hiring led the slowdown, but some other components signaled progress, such as faster growth in new orders and in export orders.

Manufacturing, which has been leading the comeback from the recession, hit a bump in October as factory orders declined for the second month in a row. A report from the Commerce Department showed a drop in transportation orders led the overall factory dip. Other indicators, including the previously released ISM manufacturing index, suggest a brighter picture for November.

Tuesday

No major indicators

Wednesday

Americans borrowed more for spending in October as consumer credit grew by $7.65 billion or 0.3% to reach $2.46 trillion outstanding, the Federal Reserve said. That was the highest level in two years. And though non-revolving debt such as student loans and vehicle financing continued to lead the rebound in consumer borrowing, credit card debt also rose – for the second month in a row.

Thursday

Wholesale inventories rose much higher than analysts had expected in October, led by farm and energy products, metals and electrical goods. The Commerce Department said the inventory-to-sales ratio for wholesalers remained relatively low, suggesting continued reluctance by businesses to stock shelves much ahead of uncertain demand.

The moving four-week average of initial unemployment insurance claims fell for the ninth time in 11 weeks and stayed below the critical 400,000 level for the fourth week in a row. That’s the best showing for the indicator since March, according to Labor Department data. Applications are still high by historical standards but appear to be gradually sinking after being relatively stagnant all year.

Friday

Exports declined at a slower rate than imports in October, which helped narrow the U.S. trade deficit to the slimmest margin so far this year, the Bureau of Economic Analysis said. A drop in petroleum imports led the way as the trade gap dipped for the fourth month in a row.

A preliminary peek shows consumer sentiment continuing to build on four consecutive months of greater confidence, according to the latest survey by Thomson Reuters/University of Michigan. The new index reading of 67.7 was the highest since June. But it’s still down from the five-year average of 89 leading up to the recession that began four years ago.

Where the Markets Closed for the Week

Nasdaq – 2,647, up 20 points or 0.8%

Standard & Poor’s 500 – 1,255, up 11 points or 0.9%

10-year U.S. Treasury Note – 2.06%, up 0.03 point

Dow Jones Industrial Average – 12,184, up 165 points or 1.4%

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