Easing on Rate Hikes and Job Numbers Cheer Markets

Easing on Rate Hikes and Job Numbers Cheer Markets

December 05, 2022
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Stocks ended higher last week as investors navigated the crosscurrents of a potential easing in future rate hikes and continued strength in the labor market.

The Dow Jones Industrial Average edged 0.24% higher, while the Standard & Poor’s 500 gained 1.13%. The Nasdaq Composite index improved by 2.09% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, rose 1.68%.1,2,3



A Choppy Week

The week started lower on concerns about protests in China over its zero-Covid policy and comments by two Fed presidents that the Fed may continue its aggressive rate hike policy. Stocks then surged on Wednesday following remarks by Fed Chair Powell, confirming the central bank’s intention to slow the pace of interest rate increases, which may begin as early as this month. 

Stocks buckled in early trading on Friday’s monthly employment report, which showed a higher-than-expected increase in new job growth and an above-expectations jump in wage growth. But stocks cut their losses by the end of the session to lock in a positive week.

Labor May Be Key

In a presentation to the Brookings Institution, Powell said that it might be time to begin moderating the pace of rate hikes. He cited several areas of progress in the inflation fight, including a deceleration in interest rate sensitive parts of the economy, such as housing and supply chain improvement. He also noted the price declines seen in goods and rents.4

But Powell suggested the labor market would need to cool down before the Fed could feel confident about making sustainable progress toward its two percent inflation target. November’s employment report showed robust job and wage growth, which indicated any cooling remained in the future.5

This Week: Key Economic Data

Monday: Purchasing Managers’ Index (PMI) Composite. Factory Orders. Institute for Supply Management (ISM) Services Index.

Thursday: Jobless Claims. Purchasing Managers’ Index (PMI) Manufacturing.

Friday: Producer Price Index (PPI). Consumer Sentiment.

Source: Econoday, December 2, 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: AutoZone, Inc. (AZO), MongoDB, Inc. (MDB).

Wednesday: Campbell Soup Company (CPB).

Thursday: Broadcom, Inc. (AVGO), Costco Wholesale Corporation (COST), Chewy (CHWY).

Source: Zacks, December 2, 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.



Inflation Cooling, But Is The Fed’s Work Done?

On a short and intermediate-term basis, the HCM-BuyLine® has turned positive and investors should start to look for opportunities. The longer-term trend is still negative, so caution and prudence are still advised. Biotech, technology, basic materials, and transportation all look to be gaining...[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. 



IRAs Are One Tool in the Retirement Planning Toolbox

There are many tools to use to plan for retirement and an Individual Retirement Account is one of them. There are two kinds of IRAs, traditional IRAs and Roth IRAs. Here are some quick facts about both of them:

  • A traditional IRA is a tax-advantaged personal savings plan where contributions may be tax deductible.

  • Generally, the money in a traditional IRA isn't taxed until it's withdrawn.

  • There are annual limits to contributions depending on the person's age and the type of IRA.

  • With a traditional IRA, taxpayers must start taking withdrawals from their IRA when they reach age 72

  • A taxpayer can't deduct contributions to a Roth IRA.

  • Qualified distributions to a Roth IRA are tax-free.

  • Roth IRAs don't require withdrawals until after the death of the owner.


* 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.7


Tips for Checking Your Blood Pressure at Home

Checking your blood pressure regularly is a great step to take to monitor your health, especially if you or someone in your family is prone to high blood pressure and hypertension.8

In order to check your blood pressure at home, you will need a blood pressure monitor. Most at-home blood pressure monitors today have a digital screen, but some have a manual screen. No matter which one you have, here are some tips to keep in mind:

  • Position the cuff about 1 inch above the bend of your elbow. Your monitor might have an arrow of which way it should point, but generally the stethoscope head/inflator should be over the artery on the inside of your arm.
  • Allow the cuff to completely deflate before reading the results.
  • Keep your arm straight.
  • If the results aren’t accurate the first time, wait at least a minute before applying the cuff again. 


Crustless Broccoli & Cheddar Quiche

Servings: 6

Time: 50 mins

This low-carb Crustless Broccoli Cheddar Quiche is light and delicious, perfect for breakfast or brunch (or even a light dinner)!


Ingredients:

  • Cooking spray
  • 3 cups chopped broccoli florets
  • 1 cup grated cheddar cheese
  • 2/3 cup 2% milk
  • 1/4 cup half & half cream
  • 5 large eggs
  • 3/4 teaspoon kosher salt
  • 1/8 teaspoon ground black pepper
  • pinch freshly grated nutmeg

Directions:

  1. Preheat your oven to 350 degrees. Spray a pie dish with oil. 
  2. Steam the chopped broccoli florets in the microwave with 1 tablespoon water until tender crisp and green but not mushy, about 2 1/2 to 3 minutes. 
  3. Evenly spread the broccoli in the dish and top it evenly with the grated cheddar cheese. 
  4. Make the custard mixture by whisking together the milk, half and half, eggs, salt, black pepper, and the nutmeg. Pour the custard into the dish and bake 35 to 40 minutes, until the center is set.
  5. Cut the quiche into 6 pieces and serve.


Footnotes and Sources


1. The Wall Street Journal, December 2, 2022

2. The Wall Street Journal, December 2, 2022

3. The Wall Street Journal, December 2, 2022

4. The Wall Street Journal, November 30, 2022

5. The Wall Street Journal, November 30, 2022

6. howardcm.com, November 28, 2022

7. IRS.gov, July 11, 2022

8. WebMD, May 6, 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.

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