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    Markets "In a Nutshell" for July 10, 2018

    Jul 10, 2018

    Investment Week at a Glance

    Stocks were up last week. The Dow Jones Industrial average rose 0.8%. The S&P 500 was up 1.5% while the New York Stock Exchange Composite (2,000 stocks) was up 1.3%. The “average investor’s index” (Value Line index) increased 2.0% and foreign stocks (DJ Global ex U.S.) were unchanged. Bond yields were down as the 10 year Treasury ended 2.83%. (Data sources: Barron’s Financial, Wall Street Journal)

     

    Unemployment rate up, that’s good!

    The Labor Dept reported a tick up in the unemployment rate from 3.8% to 4%. Normally we would look at this as bad news for the economy. However this time the rate went up primarily due to an increase of over 600,000 people looking for jobs. The great recession of 2007-09 pushed many workers out of the work force and many have stayed out until recently. 213,000 new jobs were made in June keeping the U.S. jobs machine cranking.

     

    The longest bull market ever still marches on

    According to the Leuthold Group the current bull market is in its 111th month, making it the longest on record (since 1900). This bull surpasses the 1921-29 bull (at 96 months) and the 1990-98 bull (at 93 months). This bull also exceeds by a wide margin the average bull market since 1900 which has lasted 43 months.

     

    5 stocks that could survive a debt crunch

    Are you concerned about the $14 trillion of debt America’s corporations have loaded onto their balance sheets the past ten years? If so, Barron’s has 5 stocks who have avoided the debt binge and could thrive during a debt crisis. Videogame company Electronic Arts, REIT Equity Commonwealth, MasterCard, Industrial equipment maker Graco, and Verizon Communications are the 5 companies named with all sporting low debt ratios and large free cash flow.

     

    Quiz:

    The U.S. unemployment rate has hit near record lows of under 4% this year. Which state has the lowest unemployment rate? a. Hawaii b. Ohio c. Montana d. Kansas...Answer is below…

     

    Have a good week!

     

     

     

     

     

    Answer to quiz:

    a. Hawaii at a 2% unemployment rate.