Route 66 and Your Weekly Update

This week’s Update takes a brief departure to share a note about iconic Route 66, which the author had a short encounter with over the weekend. Of course, news of the markets and several important economic data points are included as well.

We hope you enjoy reading it!

All the best,
Lee and Jeremy

PS: We’ll shortly be updating our calendar of events at www.jldavis.org. If you haven’t been there recently, a host of new articles are there as well.


This Week’s Quote:

“Even if you’re on the right track, you’ll get run over if you just sit there.”
~Will Rogers

JL Davis Thoughts This Week:

Route 66 is perhaps the most iconic of America’s great highways, and was the scene of a wonderful family gathering this past weekend. Long before President Eisenhower’s signature achievement, the Interstate Highway System was completed; the 2500 miles of what also became known as the Will Rogers Highway connected the east and west coasts of these United States.

As for the gathering, Kathy and I hopped on a plane and traveled to Oklahoma City, almost dead center of Route 66, for our niece Jacqueline Porter’s wedding to Mr. Jeffrey Myers. “Jackie” is named for her grandmother (and my wife Kathy’s mom) Jacqueline Porter who passed away in March, one month past her own 60th wedding anniversary. Porter family events are well attended; most of Kathy’s six siblings and their families made the trip. The Porter extended family now numbers somewhere north of 50 and such gatherings always make for a good party.

The festivities took place at the Old Round Barn just outside town on; you guessed it, Route 66. The barn was originally built nine years after the 1889 Oklahoma Land Run by William Odor, who needed his own sawmill to do so. It’s the only round barn I’ve ever seen, and legend has it the builders envisioned that unlike others, a round barn would not fall to tornadoes. So far it hasn’t, probably due to not having ever been directly hit. However, the DJ at Jackie’s wedding reception may have stressed the curved beams with at least a hundred decibel rendition of epic tunes from Florence and the Machine, among others (am I showing my age?).

Just across the road from the barn is a place called “Pops”, where one can find over 600 different brands of, you guessed it again, soda pop. The 40 foot tall elegantly lit sculpture of a Coke bottle out front gives the place away. Oh, and they sell gas too. As far as I know you can only find places like the Old Round Barn and Pops along Route 66.

I’ve had the pleasure of taking Route 66 in many states by car and by Harley. It’s truly a trip back in time where you’re as likely to see a 50’s diner or a vintage 1930’s vehicle along the road as you are to see anything new. But the folks you meet along the Route, like the ones in attendance at Jackie’s wedding, might be its most special attraction. Fine, decent, hard-working Americans who for the most part are incredibly friendly and happy to help you along your journey. I highly recommend getting off the Interstate and slipping over to Route 66 whenever you can.

So as Jackie begins the journey of her new family, we hope that her marriage will be as venerable as Route 66 and as strong as that of her namesake Grandmother, whom we are all learning to live without.

Godspeed Jackie and Jeff!**
http://en.wikipedia.org/wiki/U.S._Route_66
http://www.arcadiaroundbarn.com/Round_Barn_Website/HISTORY.html


Market Week: April 29, 2013

The Markets

Despite major technological snafus and mixed economic data, stocks ended the week higher. Tuesday afternoon, domestic equities tumbled briefly, but dramatically, when hackers infiltrated the Associated Press's Twitter account and sent out a false report of explosions at the White House that injured the president. Although markets recovered within minutes following clear evidence that the tweet was false, the incident prompted many to ponder social media's power in influencing market movements. Two days later, Chicago Board Options Exchange traders were frustrated by computer glitches that shut down trading for several hours. Releases announcing gross domestic product (GDP), existing home sales, and durable goods orders all proved disappointing, while an increase in new home sales indicated continuing strength. On a percentage basis, technology, small caps, and global stocks led the week's gains.

Last Week's Headlines

•In Friday's initial estimate, the Bureau of Economic Analysis reported that GDP posted a weaker-than-expected 2.5% uptick in the first quarter. Personal consumption expenditures, private inventory investment, exports, residential investment, and nonresidential fixed investment all contributed positively. These gains were partially offset by dips in government spending at federal, state, and local levels. Imports increased during the quarter as well. The finalized GDP figure for Q4 2012 was a paltry 0.4%.

•The National Association of Realtors® released existing home sales data that showed a slight slip from February's figures, which the organization attributed to tight inventory that is also helping to increase prices. Sales declined 0.6% to a seasonally adjusted 4.92 million in March, down from 4.95 million in February. However, March sales figures were up 10.3% year over year, marking the 21st consecutive month of sales increases. Prices have been rising for 13 consecutive months.

•New home sales rose 1.5% in March to a seasonally adjusted rate of 417,000, according to the Census Bureau and the Department of Housing and Urban Development. This rate is 18.5% higher than the March 2012 figures.

•The Census Bureau also reported that durable goods orders dropped 5.7% in March, following a rise of 4.3% in February. The March decline was the second monthly dip in three months. Transportation equipment, specifically nondefense aircraft and parts, led the decline.

•Weary air travelers grew even wearier last week as sequester cuts forced the Federal Aviation Administration to begin implementing furloughs among air traffic controllers. By week's end, the public outcry over the ever-increasing travel delays reached Capitol Hill, and both the Senate and House passed legislation providing budgeting flexibility to the FAA. President Obama signed the bill into law on Friday, and by Sunday work schedules were expected to be back to normal.

•European Commission President Jose Manuel Barroso indicated he believed the continent's austerity measures may have reached their limit, as Spain joined the list of countries needing more time to meet their targets. Indicating that it needed an additional two years to meet its deficit numbers, the Spanish government unveiled a series of reform measures designed to stimulate the country's economy.


Eye on the Week Ahead

Next week's home prices data may provide further indication of the impact tight inventories are having on price levels. We'll also hear from the Fed and get fresh unemployment data.

Key dates and data releases: personal income/spending (4/29); home prices (4/30); FOMC announcement, U.S. manufacturing, construction spending, auto sales (5/1); balance of trade, business productivity/labor costs (5/2); unemployment/payrolls, U.S. services sector, factory orders (5/3).

Data sources: Includes data provided by Brounes & Associates. All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Past performance is no guarantee of future results.
The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. Market indexes listed are unmanaged and are not available for direct investment.

Prepared by Lee Davis** and Broadridge Investor Communication Solutions, Inc. Copyright 2013