In this week’s recap: swift service sector expansion, sustained consumer optimism, a surge in wholesale inflation, and gains for equities.

Weekly Economic Update | Presented by Tim Flick | November 12, 2018


At a lofty October mark of 60.3, the Institute for Supply Management’s non-manufacturing purchasing manager index was a bit lower than the record 61.6 reading seen in September, but it also beat the 59.3 consensus forecast from Refinitiv. Across the 12 months ending in October, the mean reading for the index was a strong 58.5. 1,2



It could turn out that way, if the University of Michigan’s influential index maintains its current level. Its preliminary November edition came in at 98.3, slightly below the final October mark of 98.6 and slightly above the 98.0 reading projected in a Bloomberg analyst poll. The gauge has averaged a reading of 98.4 in 2018, a level unseen in the past 18 years. 3



Higher costs for fuel and industrial supplies were significant factors, according to the Bureau of Labor Statistics. The PPI rose 2.9% across the 12 months ending in October. 4



In November, the market is doing its best to erase the memory of October. All three major indices advanced again last week, with the Dow Industrials adding 2.84%; the S&P 500, 2.13%; the Nasdaq Composite, 0.68%. At Friday’s close, their settlements were: Dow, 25,989.30; S&P, 2,781.01; Nasdaq, 7,406.90. 5


T I P   O F   T H E   W E E K

If the terms on one of your credit cards change unfavorably , you may consider dropping the card. Think twice about doing so. If you have had the account for years and the payment history is good, closing it out could possibly hurt your FICO score. Instead,  use that card for minor purchases only .


Monday marks the observance of Veterans Day; the bond market will be closed, but stocks, currencies, and commodities will be actively traded, with no major earnings news scheduled. | Tuesday, earnings roll in from Advance Auto Parts, Aramark Holdings, Bayer, Beazer Homes, Cumulus Media, Home Depot, and Tyson Foods. | On Wednesday, the latest Consumer Price Index surfaces, and investors also consider earnings news from Cisco, Griffon, Macy’s, NetApp, NetEase, and Smart & Final. | October retail sales figures appear Thursday, along with a new initial jobless claims report and earnings from America’s Car-Mart, Applied Materials, Energizer Holdings, JCPenney, Nordstrom, Nvidia, Shoe Carnival, Sonos, and Walmart. | Friday, Viacom announces Q4 results.

Q U O T E  O F  T H E  W E E K

“The best and most beautiful things in the world cannot be seen or even touched – they must be felt with the heart .”

Helen Keller

DJIA 5.14 10.77 12.98 19.30
NASDAQ 7.29 9.73 17.80 35.81
S&P 500 4.02 7.60 11.41 20.25
10 YR TIPS 1.15 0.46 0.59 2.84


Sources:,, tre – 11/9/18 5,6,7,8

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

T H E   W E E K L Y   R I D D L E

A young man runs away from home . Cheered on by onlookers, he makes three lefts , then finds two masked men ahead of him, but he runs toward them . Can you explain why?

LAST WEEK’S RIDDLE: It floats when born, lies down when alive, and runs as it dies. What is it?


Tim Flick may be reached at 317-947-7047 or

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