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Big Win For Big Tech

Big Win For Big Tech

January 22, 2024

Stocks finished higher last week, with big tech again leading amid lingering uncertainty over how continued economic strength would influence the Fed’s rate decision.

Stocks Dip, Then Rally 

Stock prices dropped early in the week before rising to new highs as the week ended. The four-day trading week began with more Q4 bank earnings, which disappointed. The news pushed the financial sector and the broader S&P 500 Index lower on Tuesday. The yield on the 10-year Treasury climbed after a Fed Governor said the central bank may not adjust rates as much as markets expect. That and a stronger-than-expected holiday retail sales report put pressure on stock prices.1,2,3

Tech stocks drove the Thursday rally, with the S&P and Nasdaq recouping their 2024 losses. Stocks continued their tech-led climb on Friday, with the S&P 500 rising to an all-time high—its first record close in over two years. The Nasdaq gained 1.70% on Friday, capping a solid week for the tech-heavy index.

Box upload

Source: YCharts.com, January 20, 2024. Weekly performance is measured from Monday, January 15, to Friday, January 19.
ROC 5 = the rate of change in the index for the previous 5 trading days.
TR = total return for the index, which includes any dividends as well as any other cash distributions during the period.
Treasury note yield is expressed in basis points.

Navigating the Middle

Sentiment see-sawed last week as investors tried to anticipate the Fed’s next move. The week was full of economic news that suggested continued resilience in the economy, which may add complexity to the Fed’s next decision.

December retail sales came in strong, +0.6% for the month, besting economists' expectations of +0.4%. November and December combined to depict a robust holiday shopping season. Unemployment dipped unexpectedly for the second week of January–a sign of a resilient U.S. labor market. That labor news and hotter-than-expected housing starts pushed the yield on the 10-year Treasury to 4.14%, its highest level in more than a month.4,5,6,7

This Week: Key Economic Data

Tuesday: US Two-Year Note Auction.

Wednesday: PMI Composite. Petroleum Status Report. 

Thursday: Gross Domestic Product, Advance estimate of Q4 and Year 2023. Durable Goods Orders. Jobless Claims. Housing Starts.

Friday: Personal Income and Outlays.

Source: Investor’s Business Daily, Econoday economic calendar; January 19, 2024
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

Monday: United Airlines Holdings Inc. (UAL)

Tuesday: Microsoft Corporation (MSFT), Johnson & Johnson (JNJ), The Procter & Gamble Company (PG), Netflix, Inc. (NFLX), Verizon Communications Inc. (VZ)

Wednesday: Tesla, Inc. (TSLA), Abbott Laboratories (ABT), International Business Machines Corporation (IBM), AT&T Inc. (T)

Thursday: Visa Inc. (V), Intel Corporation (INTC), T-Mobile US, Inc. (TMUS), Marsh & McLennan Companies, Inc. (MMC), Northrop Grumman Corporation (NOC)

Friday: American Express Company (AXP), Colgate-Palmolive Company (CL)

Source: Zacks, January 19, 2024
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.

Bumpy Runway – How to Navigate Market Turbulence

The market is trading in an erratic mode, trying to find its footing after 2023. No real surprise, a period of consolidation is warranted and needed for the market to move higher. The markets are overbought, and until the trough is worked off, we expect.... [READ MORE] 8

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. 

 


Keep These Tips in Mind When Selling a Home 

If you are selling your home, you may be able to exclude the sale’s capital gain from your tax return. The first thing to consider is the home’s ownership and use. To claim the exclusion, you must have owned the home and used it as your primary residence for at least two years.

If you are selling your main home, you may be able to exclude from your return the sale’s capital gain of up to $250,000 for single filers and up to $500,000 on joint returns. If you own more than one home, you can exclude only the gains on selling your main home. However, the loss may not be deductible if you experience a loss in selling your home. You can also choose not to claim exclusion, in which case you must report the gain on your tax return.

Some taxpayers must also report forgiven or canceled debt as income on their tax return, including foreclosure or other processes in which a lender forgives or cancels mortgage debt on the home.9

*This information is not intended to substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax professional.

Tips for Keeping a Gratitude Journal  

A gratitude journal is a great way to practice giving thanks for even the small things in life. We all have things we’re thankful for, and regularly acknowledging them helps us stay present and gracious. 

 Are you looking to start a gratitude journal? These tips will help you get started and love the practice. 

  • The first thing to do is to get some beautiful stationery and pens that make you happy every time you look at them.

  • Once you have suitable materials, start with a prompt. Most people initially writing a gratitude journal don’t know where to start. Using a simple prompt will get your gratitude juices flowing.

  • When thinking about things you’re grateful for, focus on depth over breadth. Rather than listing several small items, detail the things you’re more grateful for.

  • Try subtraction, not just addition, when considering things you’re grateful for. Reflect on what your life would be like without them.

  • Don’t overdo it and burn yourself out. Journaling once or twice a week rather than every day may be more effective, especially as you build the habit. 


Keeping a gratitude journal encourages us to pay attention to the good things we’d otherwise take for granted.10


Immune Boosting Winter Citrus Smoothie

Serves: 2 

PREP TIME: 15 mins | TOTAL TIME: 15 mins

Crushing the winter colds with this Immune Boosting Winter Citrus Smoothie.

Ingredients:

    • 1 cup frozen mango chunks
    • juice of 1 lemon
    • 1/2 teaspoon ground turmeric
    • 1/4 teaspoon ground cayenne pepper
    • 3/4 cup fresh squeezed orange juice
    • 2 teaspoons fresh grated ginger
    • 1 small raw red beet, chopped
    • 1 cup frozen raspberries
    • 1 cara cara orange, blood orange, or grapefruit, peeled and segmented
    • 1/2 cup pomegranate juice
    • honey to taste (optional)

    Instructions:

    1. In a blender, combine the mango, lemon juice, turmeric, cayenne, ginger, and orange juice. Blend until completely smooth, adding more honey if needed to sweeten. Pour into a tall glass
    2. Rinse the blender out. Combine the beets, raspberries, orange, and pomegranate juice. Blend until smooth and creamy, adding more pomegranate juice if needed to reach your desired consistency. Pour over the mango mixture and stir gently to swirl. Top with seeds, if desired. Enjoy!

     



    Footnotes and Sources


    1. CNBC.com, January  16, 2024.

    2. CNBC.com, January 17, 2024.

    3. CNBC.com, January 17, 2024.

    4. CNBC.com, January 16, 2024.

    5. MarketWatch.com, January 17, 2024

    6. CNBC.com, January 18, 2024. 

    7. The Wall Street Journal, January 19, 2024.

    8. howardcm.com, January 17, 2024

    9. IRS.gov, March 8, 2023

    10. Greatergood.berkeley.edu, October 9, 2023

     

     



    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 2024 FMG Suite.

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