Stocks posted solid gains for the week, buoyed by the release of Fed meeting minutes and upbeat earnings from mid-size and discount retailers.
The Dow Jones Industrial Average jumped 6.24%, while the Standard & Poor’s 500 advanced 6.58%. The Nasdaq Composite index gained 6.84% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, rose 2.09%.1,2,3
A Good Week
The stock market staged a broad rally last week, ignited by the release of minutes from the May’s Federal Open Market Committee (FOMC) meeting. The meeting notes eased concerns that the Fed might pursue a more aggressive monetary tightening stance than the Street had anticipated.
Investor sentiment rose owing to solid earnings and encouraging guidance from several mid-size and discount retailers, which eased concerns about the health of the American consumer. A smaller rise in the personal consumption expenditures price index, the Fed’s preferred measure of inflation, triggered a strong rally on Friday. The powerful move ended seven straight weeks of stock losses.4
Fed Minutes
The minutes from May’s FOMC meeting were released last week. They confirmed the likelihood of at least two successive 50 basis point interest rate hikes. The minutes also indicated they might need to raise rates to a level that acts to restrict economic growth, something that Fed Chair Jerome Powell acknowledged might be a painful process.5
Not all Fed members are fully committed to the more aggressive rate hikes. Last week, Atlanta Fed president Raphael Bostic wrote that a pause in rate increases in September might be appropriate. He joined other members in suggesting that economic conditions may warrant reconsideration of additional rate hikes beyond those already signaled by Powell.6
This Week: Key Economic Data
Tuesday: Consumer Confidence.
Wednesday: Institute for Supply Management (ISM) Manufacturing Index. Jobs Openings and Labor Turnover Survey (JOLTS).
Thursday: Automated Data Processing (ADP) Employment Report. Jobless Claims. Factory Orders.
Friday: Employment Situation. Institute for Supply Management (ISM) Services Index.
Source: Econoday, May 27, 2022
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: Salesforce, Inc. (CRM), HP, Inc. (HPQ).
Wednesday: MongoDB, Inc. (MDB).
Thursday: Broadcom, Inc. (AVGO), Hormel Foods Corporation (HRL), DocuSign (DOCU), CrowdStrike (CRWD).
Source: Zacks, May 27, 2022
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.
Wealth Watch: Caution Advised! Trader’s Rally Might be Temporary
The markets are deeply oversold and due for a nice trader’s rally. I would suspect a solid 10% move up, possibly up to around 4500 on the S&P 500 over the near-term. Be very careful because this could just be a.....[READ MORE]7
Vance Howard on CNBC: Investors should be patient, and not buying right now- Watch here
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.
Are Medical and Dental Expenses Tax-Deductible?
If you file your taxes using itemized deductions, you may be able to deduct medical and dental expenses for yourself, your spouse, and your dependents. According to the IRS, you may deduct only the amount of your total medical expenses that exceed 7.5% of your adjusted gross income.
Some types of medical care expenses that may be deductible include:
- Payments for the diagnosis, cure, treatment, and prevention of a disease.
- Payments to doctors, dentists, surgeons, chiropractors, psychiatrists, psychologists, and nontraditional medical practitioners.
- Paying for inpatient hospital care or nursing home care.
- Fees associated with inpatient treatment for alcohol or drug addiction.
- Payments to participate in a weight-loss program for a specific disease diagnosed by a doctor (such as obesity).8
* 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.
Perfect Your Pigeon Pose
If you sit a lot at work or have tight hips, the pigeon pose (a popular pose in yoga) might help. It’s a simple pose that anyone can do, even if you don’t have experience practicing yoga. Here’s how to do it:
- First, start on all fours with your hands shoulder-width apart and your knees hip-width apart.
- Next, try to bring your right knee as close to your right wrist and try to get your shin parallel to the top of the mat.
- Then, bring your left leg straight back behind you and rest on the mat with your thigh, knee, and shin touching it.
For some, just sitting in this pose with your chest upright is enough. If you want to increase the intensity of the post, lean forward and rest your forearms on the mat and rest your head on your hands.9
Vegan Mango Ice Cream
Total Time: 1 hr 15 mins
Ingredients
- 1 14 oz. can coconut milk, you only need the ¾ cup coconut cream – see instructions below
- 4 cups frozen mango chunks
- 1 tablespoon vanilla extract
Instructions:
- In a food processor, add the frozen mango and blend until in frozen smaller chunks, about 1 minute.
- Add in the coconut cream and the vanilla extract. Blend until completely smooth and incorporated, scraping down sides as necessary, for about 3 minutes.
- Pour/spoon the ice cream base into a freezer-safe container and place in the freezer and allow to freeze for 1 hour.
- While not necessarily, I love to go in, whisk the entire thing for about 10-20 minutes, then place back in the freezer, to prevent ice crystals forming. Freeze until frozen.
- To eat: serve immediately or when you are ready for it (after it’s been in the freezer), thaw for 5-10 minutes and scoop with an ice cream scoop. Enjoy!
Stay safe!
Footnotes and Sources
1. The Wall Street Journal, May 27, 2022
2. The Wall Street Journal, May 27, 2022
3. The Wall Street Journal, May 27, 2022
4. CNBC, May 27, 2022
5. The Wall Street Journal, May 25, 2022
6. The Wall Street Journal, May 25, 2022
7. howardcm.com, May 23, 2022
8. IRS.gov, February 17, 2021 5. howardcm.com, May 19, 2022
9. Healthline.com, February 22, 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.
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