www.youtube.com/watch?v=k2aFW4yQ8Ac

Quote of the week. “Live out of your imagination, not your history.”– Dr. Stephen Covey

Retail sales increase. Friday, the Census Bureau estimated retail sales up 0.5% for January, with a 4.7% year-over-year gain from January 2009. Of course it really wasn’t that hard to beat 2009’s numbers. Do you remember 2 Christmas’s ago? We were all pretty sure the world was coming to an end? Anyway, the half-percent gain topped the +0.3% forecast of economists polled by Briefing.com.^1,2

How are things off the sales floor? According to the Commerce Department, wholesale inventories shrank by 0.8% in December. Factory inventories were reduced by 0.1%, and retail stockpiles stayed flat (so to speak). U.S. companies had 1.26 months supply of goods on hand, the lowest figure since June 2008. You can hear factories humming.³

Consumer sentiment declines a bit. February’s preliminary Reuters/University of Michigan index of sentiment came in at 73.7. Late last month, the index was at 74.4. On the other hand, it was down at 56.3 one year ago. The gauge of current economic conditions hit 84.1, the highest mark in 23 months.⁴

A quick check on gold, copper & oil. They all advanced last week. Gold gained $37.30 over five days to close Friday at $1,089.50 an ounce (a 3.54% weekly gain). Copper rose 7.88% across its best week since July. Crude oil futures finished at $74.13 per barrel on the NYMEX Friday after a 4.13% weekly gain.⁵

NASDAQ gains 2%. That index outperformed the DJIA and S&P 500, rising 1.98% across a choppy yet winning week for all three major U.S. indices. The NASDAQ closed Friday at 2,183.53. The S&P 500 and DJIA both ascended 0.87% last week to finish respectively at 1,075.51 and 10,099.14 Friday. The U.S. stock markets will be closed February 15 for the Presidents’ Day holiday.⁶

(Source: CNBC.com, CNNMoney.com, ustreas.gov, bls.gov, 2/12/10)^6,7,8,9

Indices are unmanaged, do not incur fees or expenses, and cannot be

invested into directly. These returns do not include dividends.

Now the part everyone has been waiting for, the riddle of the week.

Last week’s riddle: A family has a mother, father and four daughters. Each daughter has one brother. How many people are in the family?

Answer: Seven people. Each of the daughters have one brother, there is not one brother for each daughter.

Congratulation to Stephen Shepard who was not the first to get the answer correct, but was the first to get the answer correct and follow directions. You’ll be getting that Starbucks gift card in the mail shortly.

Now for this week’s riddle of the week. I am used to bat with, yet I never get a hit. I am near a ball, yet it is never thrown. What am I?

If you know the answer, post it below on this blog and I’ll let you know if you have won this week’s prize.

Citations.

1 census.gov/retail/marts/www/marts_current.html [2/12/10]

2 blogs.barrons.com/stockstowatchtoday/2010/02/12/january-retail-sales-beat-sp-futures-down/ [2/12/10]

3 businessweek.com/news/2010-02-12/inventories-at-u-s-companies-unexpectedly-fall-as-sales-rise.html [2/12/10]

4 reuters.com/article/idUSTRE61B2XI20100212 [2/12/10]

5 blogs.wsj.com/marketbeat/2010/02/12/data-points-energy-metals-222/? [2/12/10]

6 cnbc.com/id/35371644 [2/12/10]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F12%2F09&mode=add&symb=DJIA [2/12/10]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F11%2F05&mode=add&symb=DJIA [2/12/10]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F11%2F00&mode=add&symb=DJIA [2/12/10]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F12%2F09&mode=add&symb=COMP [2/12/10]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F11%2F05&mode=add&symb=COMP [2/12/10]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F11%2F00&mode=add&symb=COMP [2/12/10]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F12%2F09&mode=add&symb=SPX [2/12/10]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F11%2F05&mode=add&symb=SPX [2/12/10]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F11%2F00&mode=add&symb=SPX [2/12/10]

8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [2/12/10]

8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [2/12/10]

9 treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [1/12/00]