Stocks posted losses in a holiday-shortened trading week as the first-quarter earnings season kicked off and investors digested new inflation data.
The Dow Jones Industrial Average declined 0.78%, while the Standard & Poor’s 500 fell 2.13%. The Nasdaq Composite index dropped 2.63% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, lost 1.20%.1,2,3
Watching Bonds
Stocks began the week moving lower as bond yields climbed higher, with growth stocks suffering some of the steepest declines. Investors considered China’s ongoing lockdown warily, worried it might worsen supply-chain issues.
Historically high consumer and producer price inflation reports were shrugged off by the stock and bond markets in the main, with bond yields slipping despite the hot inflation numbers. Despite an encouraging start to the first-quarter earnings season, stocks pulled back on Friday as bond yields resumed their move higher ahead of a three-day holiday weekend.
An Eye on Inflation
On Tuesday, March’s Consumer Price Index (CPI) report offered little indication that inflation may be moderating, as prices increased 8.5% year-over-year, the fastest pace in 40 years. Core inflation, excluding food and energy prices, recorded a 6.5% jump, the steepest rise since August 1982. One encouraging note was that core inflation showed potential signs of ebbing, posting a monthly increase of 0.3% versus expectations of a 0.5% increase.4
The following day, March’s Producer Price Index, a potential insight into future inflation, rose 11.2% year-over-year. A March survey by the National Federation of Independent Business released earlier in the week, indicated that half of the respondents were likely to raise prices in the next three months.5
This Week: Key Economic Data
Tuesday: Housing Starts.
Wednesday: Existing Home Sales.
Thursday: Jobless Claims. Index of Leading Economic Indicators.
Friday: Purchasing Managers’ Index (PMI) Composite Flash.
Source: Econoday, April 14, 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: Bank of America Corporation (BAC), J.B. Hunt Transport Services, Inc. (JBHT).
Tuesday: Netflix, Inc. (NFLX), Johnson & Johnson (JNJ), International Business Machines Corporation (IBM), Lockheed Martin Corporation (LMT), Prologis, Inc. (PLD).
Wednesday: Tesla, Inc. (TSLA), The Procter & Gamble Company (PG), Lam Research Corporation (LRCX), CSX Corporation (CSX).
Thursday: AT&T, Inc. (T), United Airlines Holdings, Inc. (UAL), Snap, Inc. (SNAP), Blackstone, Inc. (BX), Union Pacific Corporation (UNP), Dow, Inc. (DOW).
Friday: Verizon Communications, Inc. (VZ), American Express Company (AXP), KimberlyClark Corporation (KMB).
Source: Zacks, April 14, 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: BONDS IN A ROUGH SPOT, LOOK TO GROWTH TO BEAT INFLATION
The HCM-BuyLine® is positive, and we are buying on pullbacks. As you can see from the chart below, the market is in a trading range, and the pullback we are seeing now is a normal reset after the move higher last week. We feel the odds are...[READ MORE] 6
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.
Electronic Filing Options for Military Families
The Internal Revenue Service (IRS) offers a number of online resources for military members and their families. Some of these resources include:
- IRS Free File. This program offers online tax preparation, electronic filing and direct deposit of refunds, at no cost.
- Members of military and their families who have income below $72,000 can choose from any of the Free File tax software companies that the IRS has compiled.
- Free File Fillable Forms is available for those who have income above $72,000.
- Using Free File can help taxpayers figuring things like their earned income tax credit, child and dependent care credit and Recovery Rebate Credit.
- Miltax is another free tax resource available for the military community, offered through the Department of Defense.7
* 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.
Easy Herbs to Grow Inside
Spring is in the air! Even if you don’t have a green thumb, these herbs are super easy to grow inside. Herbs add a little greenery to your home and are healthy and delicious. A win-win!
Here are some of the easiest herbs to grow inside:
- Basil
- Bay leaves
- Chives
- Mint
- Oregano
- Parsley
- Rosemary
- Thyme
When planning out your indoor herb garden, you may need to separate the herbs into their own containers because they each have different watering schedules and sunlight requirements. Thyme, rosemary, and oregano enjoy much less water than basil, for example. Once you know a little bit about the care of each herb, your garden will thank you.8
Orange Ricotta Chocolate Chip Pancakes
Total Time: 25 mins
Ingredients
- 1 1/4 cups all-purpose flour
- 2 teaspoons baking powder
- 1/2 teaspoon baking soda
- 1/4 teaspoon salt
- 3 tablespoons granulated sugar
- Zest of 1 orange
- 1 cup ricotta cheese
- 1 large egg
- 2 large egg whites
- 1/2 cup fresh orange juice
- 1 tablespoon canola oil
- 1 teaspoon vanilla extract
- 1/2 cup mini chocolate chips
- Butter and maple syrup for serving, if desired
Instructions:
- In a large bowl, whisk together flour, baking powder, baking soda and salt.
- In a small bowl, combine sugar and orange zest. Rub together your fingers until fragrant. Add the mixture to the flour mixture and whisk until combined. Set aside.
- In a medium bowl, whisk together ricotta cheese, egg, egg whites, orange juice, canola oil and vanilla extract. Gently fold this mixture into the dry ingredients until flour disappears. Stir in the mini chocolate chips. Don't over mix. The batter will be thick.
- Heat a griddle or a nonstick skillet over medium heat. Spray with cooking spray. Drop about ⅓ cup of batter onto the hot griddle or skillet. Cook the pancakes until browned on the underside and beginning to set, about 2 minutes. Flip and cook the pancakes on the other side, about two minutes longer. Continue making pancakes until batter is gone. Serve with butter and maple syrup, if desired.
Stay safe!
Footnotes and Sources
1. The Wall Street Journal, April 14, 2022
2. The Wall Street Journal, April 14, 2022
3. The Wall Street Journal, April 8, 2022
4. CNBC, April 12, 2022
5. The Wall Street Journal, April 13, 2022
6. howardcm.com, April 7, 2022
7. IRS.gov, February 25, 2021
8. Gardeners.com, April 9, 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 2022 FMG Suite.