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| Economic Events | |
New orders for manufactured durable goods in July, up following two consecutive monthly decreases, increased $9.6 billion or 4.4% to $228.6 billion, virtually unchanged from the previously published increase, the Census Bureau reported. This followed a 4.3% June decrease. Transportation equipment, also up following two consecutive monthly decreases, led the increase, $7.6 billion or 10.6% to $78.9 billion. New orders for manufactured nondurable goods decreased $1.1 billion or 0.5% to $226.1 billion. Total nonfarm payroll employment increased by 151,000 in August, and the unemployment rate remained at 4.9%, according to the Bureau of Labor Statistics. Employment continued to trend up in several service-providing industries. THE ECONOMIC WEEK AHEAD: Thursday, the Labor Department will issue its initial claims report. Friday, the Census Bureau will report about wholesale orders for July. | |
| Market Mirror | |
Friday, the Dow gained 72.66 points (0.39%) to finish at 18,491.96, the NASDAQ closed 22.69 points (0.43%) higher at 5,249.90, and the S&P 500 was up 9.10 points (0.42%) at 2,179.96. The Russell 2000 increased 11.66 points (094%) to 1,251.82, and the Wilshire 5000 climbed 123.22 points (0.55%) to 22,686.70. On the NYSE, 3.1 billion shares traded, with advancing issues outnumbering declining issues nearly 4 to 1. On the NASDAQ, 2.9 billion shares changed hands, with a more than 2 to 1 lead for advancers. The price of the 10-year Treasury note decreased 11/32, bringing its yield up to 1.605%. The price of the 30-year Treasury bond fell 31/32, increasing its yield to 2.275%. WEEK’S WORTH: For the week ending September 2, the Dow increased 0.52%, the NASDAQ finished 0.59% higher, and the S&P 500 was up 0.50%. The Russell 2000 climbed 1.11%, and the Wilshire 5000 gained 0.66%. | |
| Sponsored message from SEI | |
| A Changing Landscape Requires a New Approach: DC Discretion A changing DC landscape: Sponsors consider discretionary investment management. Why the shift?Read more > | |
| From the Magazine | |
| No Worker Left Behind | |
| Many lower-income American workers face a bleak future in retirement. Very small or nonexistent savings in defined contribution (DC) plans, declining Social Security benefits due to the increase in the normal retirement age, higher health-care expenses and longer life expectancies combine for a difficult outlook. Only 25% of working, low-income U.S. households have any savings in a defined contribution plan, compared with 81% of high-income households, according to a recent report from the U.S. Government Accountability Office (GAO). Those low-income workers who have defined contribution plan balances have saved a median of only $10,400, the GAO says. “You could argue that the 401(k) system works for many people,” says Karen Friedman, executive vice president and policy director at the Pension Rights Center in Washington, D.C. “But you also could argue that it has failed many people.”Read more > | |
| Small Talk | |
| ON THIS DATE: In 1620, the Pilgrims left on the Mayflower from Plymouth, England, to settle in the New World. In 1876, the Southern Pacific rail line from Los Angeles to San Francisco was completed. In 1899, Carnation processed its first can of evaporated milk. In 1901, U.S. President William McKinley was shot and mortally wounded by Leon Czolgosz. In 1943, the youngest player to appear in an American League baseball game was pitcher Carl Scheib of the Philadelphia Athletics. Scheib was 16 years, eight months and five days old. In 1995, Cal Ripken played his 2,131st consecutive game setting a new record. Lou Gehrig previously held the record. In 2001, the U.S. Justice Department announced that it was seeking a lesser antitrust penalty and would not attempt to break up Microsoft. In 2002, in New York, the U.S. Congress convened at Federal Hall for a rare special session. The session was held in New York to express the nation’s mourning for the loss on September 11, 2001, and unity in the war against terrorism. | |
| SURVEY SAYS: Employees Delaying Retirement | |
| Last week, I asked NewsDash readers, “Do you plan to delay your retirement? Are employees in your company delaying retirement, and what effect is this having on your company?” Of responding readers, 46.5% said they plan to delay their own retirement, and 44.2% said they do not plan to delay retirement. Asked whether employees in their company are delaying retirement, 61.9% said ‘yes,’ and 21.4% said ‘no.’ The effect of employees delaying retirement is not all bad for companies, as 65.6% of respondents said they are retaining important knowledge and skill sets, and 43.7% indicated they are retaining engaged and productive workers. However, a significant number of responding readers did say they are unable to hire fresh new talent, their company’s health benefit costs are increasing due to an aging workforce, overall productivity is declining and they are unable to reduce compensation costs, pension and 401(k) or 403(b) plan contributions. Among the comments left by some readers, a few have the benefit of a defined benefit plan and don’t plan to delay retirement: “DB, baby! No stoppin’ me…bring it on!” Others pointed out that the notion of delaying retirement can mean different things. One reader is participating in a phased retirement and another says his/her company needs to facilitate phased retirement. Some indicated their retirement will be associated with when they can receive their maximum Social Security benefit, and others say they’ll continue working because they love it. Editor’s Choice goes to the reader who said: “I’d like to work as long as I feel I am able to be an asset to the company. I really do love my job and my work, except of course, when I hate it.” A big thank you to all who participated in the survey!Read more > | |
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Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com
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