Upbeat Feelings Boost Market
June 1, 2021
Optimism over the economic reopening and renewed enthusiasm for technology and other high-growth companies powered the stock market higher last week.
The Dow Jones Industrial Average rose 0.94%, while the Standard & Poor’s 500 climbed 1.16%. The Nasdaq Composite index led, picking up 2.06%. The MSCI EAFE index, which tracks developed overseas stock markets, added 0.46%.1
Stocks rallied on renewed confidence in the economic recovery, lower inflation worries, and rising comfort with Fed officials talking about the potential for easing of its monthly bond purchases. Technology, communication services, and reopening stocks were among the market leaders.
Investor sentiment was buoyed late in the week by an encouraging jobless claims number and the unveiling of a Republican infrastructure proposal. A somewhat hotter-than-expected inflation indicator on Friday did nothing to dampen optimism as stocks added to their gains ahead of the three-day Memorial Day weekend. 2,3
Jobless Claims Reach Pandemic Lows
In a sign of further recovery in the labor market, the number of initial jobless claims fell to a pandemic low, continuing the downward trend in worker layoffs. New jobless claims totaled 406,000 for the week, well below the pandemic high of nearly 1.5 million, though still above the 2019 weekly average of 218,000. 3
The history of Memorial Day extends back to the Civil War when it was referred to as Decoration Day. We join all Americans in honoring those who died in the performance of their military service to protect the freedoms we enjoy today. These were remarkably brave men and women whose sacrifice will never be forgotten.
This Week: Key Economic Data
Tuesday: Institute for Supply Management (ISM) Manufacturing Index.
Wednesday: Automated Data Processing (ADP) Employment Report.
Thursday: Jobless Claims. Institute for Supply Management (ISM) Services Index.
Friday: Employment Situation. Factory Orders.
Source: Econoday, May 28, 2021
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
This Week: Companies Reporting Earnings
Tuesday: Zoom Video Communications, Inc. (ZM).
Wednesday: Splunk (SPLK).
Thursday: Lululemon Athletica (LULU), Broadcom (AVGO), Docusign, Inc. (DOCU), CrowdStrike Holdings (CRWD).
Source: Zacks, May 28, 2021
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
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"The HCM-BuyLine® remains strong, and any pullback should be seen as a buying opportunity. We feel the S&P could move up to the 4400-4450 area before the end of summer. A good rotation is taking place as more sectors are participating in the bull market." 6
-Vance Howard (May 26, 2021)
This communication is issued by Howard Capital Management, Inc. It is for informational purposes and is not an official confirmation of terms. It is not guaranteed as to accuracy, nor is it a complete statement of the financial products or markets referred to. Opinions expressed are subject to change without notice.
Plan Ahead for Vacation Home Rentals
With summer just around the corner, many homeowners who own vacation rentals are preparing for the busy season. There's a lot to consider when looking at the tax situation of vacation home rentals.
If you receive money for the use of your primary residence, you may have to report this rental income on your tax return. This means that the "vacation home rental" classification can apply to you, even if you don't own multiple short-term rental properties. If the property is used as a home, the rental expense deduction is limited. In the case of a property used as a home, the rental expenses can't be more than the rent received on the property itself. If the home is rented out for less than 15 days during the year, the rental income may not need to be reported.
A vacation home is a house, apartment, condominium or other dwelling that you use to generate income, but you can also use as a residence during the year. For tax purposes, it's critical to divide the expenses of a property into personal and business purposes.
To report rental income and rental expenses, use Schedule E. In addition, rental income may also be subject to Net Investment Income Tax. 4
* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Taking Care of Your Mental Health
Taking care of your mental health is just as, if not more, important than taking care of your physical health. Your mental health influences how you communicate with others, perform at work, and feel about yourself.
Here are some tips to help you focus on your mental health and understand what you need to be the best version of yourself:
- Start your day with a cup of coffee or tea and just enjoy the warm drink without thinking of what's ahead.
- Set up a getaway, even if you don't go anywhere. It could even just be camping in your backyard.
- Think of something in your life you want to improve and figure out what you can do to take a step in the right direction.
- Learn something new, whether that's a recipe, a song, a poem, or a new skill.
- Show some love to someone in your life. Write a letter, send a text, give a loved one a phone call.
- Go off the grid and leave your smartphone home for a day (or a few hours). 5
Glazed Doughnut Holes
24 doughnut holes
For the glaze:
- 1 1/2 cups confectioners' sugar
- 3 1/2 tablespoons whole milk
- 2 teaspoons vanilla extract
For the doughnut holes:
- 5 cups vegetable oil, for frying
- 1 cup milk
- 1 large egg
- 2 cups all-purpose flour
- 2 Tablespoons sugar
- 4 1/2 teaspoons baking powder
- 1/2 teaspoon salt
- 1/4 cup (½ stick) unsalted butter, melted
- Sift the confectioners' sugar into a medium bowl. Slowly stir in 3 tablespoons of milk and the vanilla extract until the mixture is smooth. If the glaze isn't thin enough, stir in 1 additional tablespoon of milk. Cover the glaze with plastic wrap and set it aside while you make the doughnut holes.
- Add the vegetable oil to a large, heavy-bottomed pot. (There should be at least 2 inches of oil in the pot and at least 2 inches between the top of the oil and the top of the pot.) Line a baking sheet with paper towels.
- In a small bowl, whisk together the milk and the egg.
- In a separate medium bowl, whisk together the flour, sugar, baking powder and salt. Stir the milk-egg mixture into the dry ingredients, then stir in the melted butter, mixing until a soft dough forms.
- Once the oil has reached 350ºF, use a small ice cream scoop to drop about 1 tablespoon scoops of dough into the oil, careful not to overcrowd the pan. Fry the doughnut holes, flipping them in the oil, for about 2 minutes or until they're golden brown. Using a slotted spoon, transfer the doughnut holes to the paper towel-lined baking sheet.
- Allow the doughnut holes to cool slightly. Place a cooling rack atop a baking sheet, then one by one, dip the doughnut holes into the glaze and transfer them to the rack to allow the excess glaze to drip off. Serve immediately. 7
Footnotes and Sources
1. The Wall Street Journal, May 28, 2021
2. CNBC.com, May 28, 2021
3. The Wall Street Journal, May 27, 2021
4. IRS.gov, September 25, 2020
5. Mhanational.org, 2021
6. Howardcm.com, May 27,2021
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.
Copyright 2021 FMG Suite.