Cooling Inflation Brings Market Gains

Cooling Inflation Brings Market Gains

November 14, 2022

A cooling inflation number ignited a powerful rally on Thursday, sending stocks to strong gains for the week.

The Dow Jones Industrial Average gained 4.15%, while the Standard & Poor’s 500 added 5.90%. The Nasdaq Composite index rose 8.10% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, picked up 5.72%.1,2,3

Stocks Surge

A lower-than-expected inflation report triggered the biggest one-day stock market gain in more than two years as the news raised investors’ hopes that the Fed might consider easing the pace of future rate hikes. The day’s gains were pronounced in the hard-hit technology sector, as the tech-heavy Nasdaq added 7.35%.4 

Stocks initially rallied to start the week, but gave up some of the gains on Wednesday following a muddy and indecisive outcome to the midterms. Friday saw stocks build on their gains to close out an exceptional week.

Inflation Moderates

Consumer prices rose slower in October, increasing 0.4% for the month and 7.7% from 12 months ago. Both numbers were below market expectations of 0.6% and 7.9%. The core CPI (excludes energy and food sectors) rose a more modest 0.3% on a monthly basis and 6.3% from a year ago.5

The deceleration in prices was mainly attributable to price declines in used cars (-2.4%), apparel (-0.7%), and medical care services (-0.6%). Despite the progress, inflation remains well above the Fed’s 2% target rate. A look behind the numbers shows that October’s 7.7% CPI was fueled by the largest monthly jump in shelter costs since 1990 (+0.8%). Shelter costs account for one-third of the CPI. Energy was up 1.8%, while food costs rose 0.6% for the month.6

This Week: Key Economic Data

Tuesday: Producer Price Index (PPI).

Wednesday: Retail Sales. Industrial Production.

Thursday: Housing Starts. Jobless Claims.

Friday: Existing Home Sales. Index of Leading Economic Indicators.

Source: Econoday, November 11, 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

Monday: Tyson Foods, Inc. (TSN).

Tuesday: Walmart, Inc. (WMT), The Home Depot, Inc. (HD).

Wednesday: Nvidia Corporation (NVDA), Cisco Systems, Inc. (CSCO), Target Corporation (TGT), Lowe’s Companies, Inc. (LOW), The TJX Companies, Inc. (TJX).

Thursday: Applied Materials, Inc.(AMAT), Palo Alto Networks, Inc. (PANW), Ross Stores, Inc. (ROST).

Source: Zacks, November 11, 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.

Overreaction To A Good CPI Print? Why You Should Let The Trend Sort Itself Out

The market’s reaction this morning is very positive to the news that core inflation looks to be slowing down. Remember, one data point does not make a trend, and the Fed has been very clear that they will not let up until inflation is under control. The trend is still decisively down, and we...[READ MORE]

In case you missed it- Watch Vance Howard on CNBC to discuss his expectations for the markets. [Watch Full Interview]

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. 

Meet the Taxpayer Advocate Service

Did you know that an independent organization within the IRS is fighting for your rights as a taxpayer? The Taxpayer Advocate Service (TAS) protects taxpayers' rights by ensuring that all taxpayers are treated fairly and know and understand their rights under the Taxpayer Bill of Rights. Here are some things to know about TAS:

  • TAS can help taxpayers resolve problems they haven't been able to settle with the IRS on their own.

  • The service is free.

  • TAS helps all taxpayers and their representatives, including individuals, businesses, and exempt organizations.

  • If taxpayers qualify for TAS help, an advocate will be with them at every turn and do everything possible to assist throughout the process.

  • TAS also handles large-scale problems that affect many taxpayers.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.

What is Compostable?

Composting is a great way to go green and keep more waste out of landfills that don’t need to be there. Composting has many benefits, including waste management and reduction, soil enhancement, reduction of greenhouse gasses, and many more.

Plus, composting doesn’t have to be hard! Let’s break down what is compostable to help you understand where to start. There are two types of compostable waste, green and brown:

  • Green materials are nitrogen-rich materials like live plant material (ex: grass clippings) and fruit/veggie waste.

  • Brown materials are carbon-rich materials like dead plant matter, bread, cardboard, or wood.

As you can see, it’s easy to get started with composting. You don’t need a complicated setup or special process to get started. These two compost categories provide the foundation of everything you need to know.9

Bacon & Leek Pasta

Servings: 4

Time: 30 minutes


  • 2 small-to-medium leeks chopped
  • 8 ounces uncooked spaghetti
  • 6 strips bacon cut into small pieces
  • 1 clove garlic minced
  • 1/2 cup chicken broth
  • 1/2 cup freshly grated parmesan cheese
  • Pepper to taste


  1. To prep the leeks: discard the top dark green portion of the leeks, keeping the bulbs. Slice the bulbs into rings. Add leeks to a colander and rinse them thoroughly (use your hands to dislodge any stubborn dirt - it may be hidden).
  2. Boil a salted pot of water for the pasta and cook it al dente according to package directions.
  3. Meanwhile, cut the bacon into small pieces (I find this easiest using kitchen shears) and cook in a skillet over medium-high heat until crispy, then transfer the bacon to a paper towel lined plate. Leave the bacon fat in the skillet.
  4. Turn the heat down to medium and cook the leeks for about 3-4 minutes, or until softened (a bit of light browning is ok too - adds more flavor).
  5. Add in the garlic and cook for 30 seconds.
  6. Add in the broth and cook for a few minutes until the liquid is reduced by half (and scrape up any browned bits from the bottom of the pan).
  7. Prior to draining the pasta, reserve 1/4 cup of the hot pasta water and add it to the skillet, along with the parmesan cheese and the bacon. Turn the heat off and add the drained pasta to the skillet and keep tossing it all together until the cheese melts and the sauce thickens up a bit and coats the pasta. I like to add some freshly cracked pepper (add salt if needed, but I found it plenty salty). Serve immediately.

Footnotes and Sources

1. The Wall Street Journal, November 11, 2022

2. The Wall Street Journal, November 11, 2022

3. The Wall Street Journal, November 11, 2022

4. CNBC, November 10, 2022

5. CNBC, November 10, 2022

6. CNBC, November 10, 2022

7., November 10, 2022

8., July 19, 2022

9. Sustainable Jungle, August 8, 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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