The weekly economic update from Major League Investments provides the following information: - Job growth increased in July with 163,000 new jobs added, though the unemployment rate ticked up to 8.3%. - Personal incomes rose but consumer spending was flat, and the personal savings rate increased. - Home prices rose 2.2% in May according to the S&P/Case-Shiller Home Price Index. - The manufacturing sector contracted again according to the ISM manufacturing index.

1. Major League Investments, Inc. Presents:
WEEKLY ECONOMIC UPDATE
August 6, 2012
WEEKLY QUOTE HIRING INCREASES, AS DOES UNEMPLOYMENT
"A clever man Good news: 163,000 new jobs were added to the economy in July. While the jobless
commits no minor rate did tick up to 8.3% in the Labor Department's latest employment report, the
blunders." positives were significant: 148,000 new positions were filled in the private sector,
and overall job gains were the best in any month since February. Will this
- Johann Wolfgang discourage the Federal Reserve from thoughts of easing? Perhaps not; after all, July
von Goethe marked the 42nd straight month in which unemployment exceeded 8%. 1,2
WEEKLY TIP CONSUMERS SAVE MORE, SPEND LESS
It may be worth it to Personal incomes rose 0.5% in July, yet consumer spending was essentially flat (the
hire an M&A firm Commerce Department said it actually decreased by less than .1%). The personal
when selling an savings rate jumped 0.4% last month to 4.4%. 3
established business.
This could encourage HOME PRICES RISE 2.2% IN MAY
multiple offers and a The S&P/Case-Shiller Home Price Index logged its second straight overall monthly
higher sale price. gain and witnessed its best month in years. The year-over-year decrease in house
prices across 20 cities was trimmed to just 0.7% in the May index.3
WEEKLY RIDDLE MANUFACTURING SECTOR CONTRACTS AGAIN
A friend wants change The Institute for Supply Management's July manufacturing index came in at a
for a dollar. All you have subpar 49.8 after a 49.7 June mark. In better news, ISM's service sector index
in your pocket is change, improved to 52.6 in July from June's reading of 52.1.2,4
and it amounts to over a
dollar, but you still can't
make the change FRIDAY RALLY LEADS TO WEEKLY GAINS
correctly. What is the Last week's policy statements from the Fed and European Central Bank wearied the
largest amount of money markets, but the Dow rose 217 points after Friday's jobs report. The major U.S.
you could possibly have indices all had winning weeks: Dow, +1.69% to 13,096.17; NASDAQ, +2.00% to
in this situation? What 2,967.90; S&P 500, +1.90% to 1,390.99. Gold settled Friday at $1,609.30 an ounce,
coins do you have that oil at $91.40 a barrel.
1,5
prevent you from
making the change
correctly?
THIS WEEK: Earnings reports from Humana and Chesapeake Energy
arrive Monday. Tuesday, earnings roll in from Walt Disney, Molson Coors, Office
Last week's riddle: Depot, Cablevision, CVS, Scripps, Priceline, Sirius XM, Live Nation, Zillow, Fossil
You have been hired by and Charter Communications, and the Fed's Ben Bernanke chats with teachers in a
an eccentric farmer who town hall meeting. On Wednesday, Macy's, Dish Network, Rio Tinto, News Corp.,
requests that you build Dean Foods and Ralph Lauren report Q2 results. Kohl's, Nordstrom, AMC
four pens for his nine Networks, Lenovo and Wendy's issue earnings reports Thursday to go along with

2. sheep, but only allow an data on June wholesale inventories and the latest initial jobless claims figures.
odd number of sheep in Friday, JCPenney reports Q2 earnings.
each pen. How do you
accomplish this?
% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
Last week's answer: DJIA +7.19 +10.08 -0.13 +5.75
Build three pens, each
holding three sheep. NASDAQ +13.92 +10.21 +3.64 +13.78
Build a fourth pen
surrounding the other S&P 500 +10.61 +10.37 -0.59 +6.09
pens, thereby containing REAL YIELD 8/3 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
all nine sheep.
10 YR TIPS -0.66% 0.36% 2.44% 3.10%
Sources: usatoday.com, cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov - 8/3/122,6,7,8,9
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Citations.
1 - money.msn.com/market-news/post.aspx?post=df0f24d5-5a39-4034-84a5-d540c1356894 [8/3/12]
2 - www.cnbc.com/id/48482586 [8/3/12]
3 - www.foxbusiness.com/news/2012/07/31/us-personal-spending-flat-home-prices-rise/ [7/31/12]
4 - www.ism.ws/ISMReport/MfgROB.cfm [8/1/12]
5 - montoyaregistry.com/Financial-Market.aspx?financial-market=common-financial-mistakes-and-how-to-avoid-them&category=29 [8/3/12]
6 - www.usatoday.com/money/index [8/3/12]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F3%2F11&x=0&y=0 [8/3/12]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F3%2F11&x=0&y=0 [8/3/12]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F3%2F11&x=0&y=0 [8/3/12]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F3%2F07&x=0&y=0 [8/3/12]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F3%2F07&x=0&y=0 [8/3/12]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F3%2F07&x=0&y=0 [8/3/12]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=8%2F2%2F02&x=0&y=0 [8/3/12]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=8%2F2%2F02&x=0&y=0 [8/3/12]
7 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=8%2F2%2F02&x=0&y=0 [8/3/12]
8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [8/3/12]
8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [8/3/12]

3. 9 - treasurydirect.gov/instit/annceresult/press/preanre/2002/ofm71002.pdf [7/10/02]
Major League Investments, Inc.
530 Loring Ave Suite 302, Salem, MA 01970
Phone: 978-740-1011
michael.finer@majorleagueinvest.com