Stocks tumbled last week as investors reconsidered their interest rate expectations after Fed Chair Powell’s Congressional testimony that rates may need to go higher. Stocks also were rattled when a west coast bank was placed into receivership on Friday following a run on deposits.
The Dow Jones Industrial Average dropped 4.44%, while the Standard & Poor’s 500 lost 4.55%. The Nasdaq Composite index fell 4.71% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, slipped 0.37%.1,2,3
Rate Fears, Bank Scare
Congressional testimony on Tuesday by Fed Chair Jerome Powell that interest rates may require a higher increase faster than planned unnerved investors, dimming the hopes of any pause in rate hikes this summer. After stabilizing the following day, stocks trended lower as the financial sector came under pressure. The lower move was triggered by a specialty bank's liquidity issues, though regional and money center banks could not escape the selling.
Labor market strength in a Friday report exacerbated rate-hike anxieties, though cooling wage gains balanced an above-consensus new jobs number. Markets appeared to take the employment report in stride but fell on worries arising from the shutdown of a tech-centric bank.4
Powell’s Congressional Testimony
Fed Chair Powell last week testified on Capitol Hill during which he acknowledged that the economy was running hotter than he had expected. He said that labor market strength and stubbornly elevated inflation may require the Fed to raise rates quicker than anticipated and above levels previously contemplated.
The market did not respond well to Powell’s change of tone. Many now see the potential of a 0.50% rate hike coming out of the Federal Open Market Committee’s (FOMC) March 21-22 meeting instead of the expected increase of 0.25%. Powell did say that the FOMC would consider the monthly employment report released last Friday and upcoming inflation reports before arriving at a decision.
This Week: Key Economic Data
Tuesday: Consumer Price Index (CPI).
Wednesday: Producer Price Index (PPI). Retail Sales.
Thursday: Jobless Claims. Housing Starts.
Friday: Industrial Production. Consumer Sentiment. Index of Leading Economic Indicators.
Source: Econoday, March 10, 2023
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
Wednesday: Adobe, Inc. (ADBE), Lennar Corporation (LEN).
Thursday: FedEx Corporation (FDX), Dollar General Corporation (DG).
Source: Zacks, March 10, 2023
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.
Silicon Valley Bank Goes Under, Where Do We Go From Here?
While I have been writing to expect volatility over and over for weeks, I think it is now clear to see that I was not kidding, was I? The last week has weakened the HCM-BuyLine® and we are watching closely for any break. The markets have been trading just about as we had anticipated, with a nice run-up in...[READ MORE]5
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.
Be Vigilant & Protect Yourself From Texting Scams
Unfortunately, instances of IRS-themed text scams are on the rise, and these scam attempts could put your sensitive tax data at risk. Most of these scam messages look like they’re coming from the IRS and have fake messages to lure you into providing information for things like COVID relief or tax credits. They may also ask for your information to help you set up an IRS account online.
Be aware of these scams to protect yourself and your data. Remember, the IRS does not send emails or texts asking for personal or financial information. If you receive a text like this, report it to the IRS by emailing email@example.com
This Virtual Experience Lets You Take a Vacation Without Leaving Home
You can do many things with Google Arts & Culture, including exploring lands near and far without even leaving your house.
The platform is constantly growing, but some of the most popular things you can do include hiking Machu Picchu, taking a virtual tour of the Louvre, traveling through time, or seeing hundreds of photos from almost any location worldwide. Learn more about famous works of art and experience them with augmented reality. Art Projector even lets you see how artworks look in actual size right before you. See what the Mona Lisa looks like in your living room!
The experience works on your computer, but you can also download the app to experience Google Arts & Culture on the move.7
Cheesy Potato Pancakes
Cheesy potato pancakes are the best way to use up leftover mashed potatoes
Servings: 8 (22 pancakes)
Time: 40 mins
- 4 cups mashed potatoes, *
- 2 cups shredded mozzarella cheese, (8 oz)
- 1 large egg
- 1/4 cup all-purpose flour, or up to 1/2 cup flour for creamier potatoes
- 2 1/2 Tbsp chives, chopped
- 1/2 cup plain bread crumbs
- 2 Tbsp Light Olive oil , or Canola oil to sauté
- Sour cream to serve
- For Mashed Potatoes: Fill a 5 Qt pot with water. Add 1 Tbsp salt and peeled quartered russet potatoes (2 lbs or about 7 medium potatoes, peeled and quartered). Cook until easily pierced with fork. Drain well and mash in 4 Tbsp butter then let cool to room temp. Mashed potatoes can be made 1 - 3 days ahead.
- For Mashed Potato Pancakes: Blend on high until smooth. Option to add more almond milk as needed to thin things out. In a large mixing bowl, combine 4 cups mashed potatoes, 2 cups shredded mozzarella cheese, 1 large egg, 1/4 cup flour and 2 Tbsp chopped chives. Use a potato masher to mash the mixture together until well mixed. If the potatoes are too loose to hold a patty shape, add flour a Tablespoon at a time.
- Place a heaping tablespoonful of potato mixture between your palms and form into a round, 1/3" thick patty. Dredge both sides of the pancake in bread crumbs and set on a cutting board. Repeat with remaining pancakes.
- Heat a large non-stick pan over medium heat with enough oil to lightly cover the bottom of the pan. Once oil is hot, add patties in a single layer and sauté 3-4 minutes per side or until golden brown. Repeat with remaining patties, adding more oil as needed. I usually have 2 skillets going at once to finish sooner.
Notes: *Recipe works best with mashed potatoes that aren't super creamy. If they are very moist, you may need a little more flour for them to hold a patty shape. Do not use instant mashed potatoes.
Footnotes and Sources
1. The Wall Street Journal, March 10, 2023
2. The Wall Street Journal, March 10, 2023
3. The Wall Street Journal, March 10, 2023
4. The Wall Street Journal, March 10, 2023
5. howardcm.com, March 13, 2023
6. IRS.gov, October 11, 2022
7. Google Arts & Culture, November 20, 2022
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 2023 FMG Suite.