Weekly economic and investmen update

1. Major League Investments, Inc. Presents:
WEEKLY ECONOMIC UPDATE
September 17, 2012
WEEKLY QUOTE FEDERAL RESERVE OPTS FOR OPEN-ENDED EASING
"Every exit is an entry On September 13, America's central bank announced its third round of quantitative
somewhere else." easing since 2008. QE3 has no set timeframe: the Fed will buy $40 billion of agency
mortgage-backed securities each month until it elects to halt its effort. Pair that
- Tom Stoppard with the ongoing Operation Twist and the Fed will purchase about $85 billion
worth of longer-term securities monthly in the last third of 2012. In addition, the
latest FOMC policy statement reaffirmed the pledge to keep interest rates at
WEEKLY TIP
"exceptionally low levels" through mid-2015. Will the Fed also decide to buy
Think about making a Treasuries? Will mortgage rates drop to new all-time lows? Will this promote more
household budget spending and lending? While the answers to these questions won't be known for a
using an online while, the Dow went +206.51 Thursday in the wake of the news. 1,2
spreadsheet. You can
easily find or create
one on the Web for PPI JUMPS DRAMATICALLY; CPI ALSO RISES
free; some even have The Labor Department said that its Producer Price Index climbed 1.7% in August,
built-in calculators. mostly on soaring energy costs. Wholesale prices hadn't advanced so much in a
month since June 2009. Core PPI rose just 0.2%. August also saw a 0.6% increase
in the Consumer Price Index - the CPI's largest monthly rise since March. Retail gas
WEEKLY RIDDLE prices represented 80% of that gain. Core CPI rose only 0.1%, as in July. 3,4
What lives above a
star but never burns, RETAIL SALES & CONSUMER SENTIMENT IMPROVE
has 11 neighbors, and August turned out to be the best month for retail sales since February. Last month's
can replace the letters 0.9% gain complements the 0.6% advance recorded by the federal government in
P, Q, R or S in some July. The University of Michigan's preliminary September consumer sentiment
cases? survey rose to 79.2, much improved from the final August mark of 74.3. 4,5
BOND BUYING INSPIRES STOCK BUYING
Last week's riddle: The S&P 500 gained 1.94% last week to settle Friday at 1,465.77 - its best close since
What 9-letter word December 31, 2007. The lift from QE3 also took the Dow (+2.15% to 13,593.37) and
remains an English word
each time you remove a
NASDAQ (+1.52% to 3,183.95) higher last week. NYMEX crude settled at $99.00
letter from it, until it per barrel Friday; COMEX gold ended the week at $1,772.70 an ounce. 5,6,7
becomes a 1-letter word?
(Hint: You can remove THIS WEEK: No major U.S. economic releases are slated for Monday. Tuesday,
letters from any part of September's NAHB housing market index comes out plus earnings from FedEx,
the word.) Cracker Barrel and Darden. Wednesday, earnings from Bed Bath & Beyond,
AutoZone, General Mills and Adobe Systems complement reports on August
Last week's answer: existing home sales, building permits and housing starts. The Conference Board's
Startling (Starting, August index of leading indicators appears Thursday, plus weekly jobless claims
Staring, String, Sting,

2. Sing, Sin, In, I). and earnings from CarMax, Rite Aid and Oracle. The iPhone5 ships Friday, which is
also a quadruple witching day.
% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +11.26 +20.87 +0.22 +6.35
NASDAQ +22.22 +23.77 +4.47 +14.66
S&P 500 +16.55 +23.31 -0.25 +6.47
REAL YIELD 9/14 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS -0.76% 0.12% 2.20% 3.10%
Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov - 9/14/126,8,9,10
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Citations.
1 - www.cnbc.com/id/49018964 [9/13/12]
2 - www.cnbc.com/id/15839285 [9/13/12]
3 - www.nasdaq.com/article/us-ppi-jumps-17-jobless-claims-up-20120913-01084 [9/14/12]
4 - www.cnbc.com/id/49032270 [9/14/12]
5 - money.msn.com/market-news/post.aspx?post=f94f59a8-0745-4ac6-b69c-ce8b66e9516f [9/14/12]
6 - www.cnbc.com/id/49032125 [9/14/12]
7 - montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [9/14/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F14%2F11&x=0&y=0 [9/14/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F14%2F11&x=0&y=0 [9/14/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F14%2F11&x=0&y=0 [9/14/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F14%2F07&x=0&y=0 [9/14/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F14%2F07&x=0&y=0 [9/14/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F14%2F07&x=0&y=0 [9/14/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F13%2F02&x=0&y=0 [9/14/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F13%2F02&x=0&y=0 [9/14/12]
8 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F13%2F02&x=0&y=0 [9/14/12]
9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/14/12]

3. 9 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/14/12]
10 - treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm71002.pdf [7/10/02]
Major League Investments, Inc.
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Phone: 978-740-1011
michael.finer@majorleagueinvest.com