Stocks posted gains for the week to close out a stellar month, aided by positive economic data and reports that all major banks had passed the Federal Reserve’s annual stress test.
The Dow Jones Industrial Average gained 2.02%, while the Standard & Poor’s 500 rose 2.35%. The Nasdaq Composite index added 2.19%. The MSCI EAFE index, which tracks developed overseas stock markets, increased by 0.76%.1,2,3
Stocks Climb as Recession Fears Ease
Investors shrugged off weekend news of a short-lived insurrection in Russia and calls later in the week for more restrictive monetary policies from global central bankers.
What powered early-week gains? New home sales, durable goods orders, and a rise in consumer confidence proved influential. More so were Thursday’s reports of a drop in initial jobless claims and an upward revision in first quarter Gross Domestic Product growth, which helped allay recession fears. The results of the Fed’s annual bank stress tests, which all major banks passed–further emboldened investors.
Stock prices rallied Friday following an encouraging inflation report, capping the end to a solid week, month, and first half.
Global Central Bankers Meet
At last week’s European Central Bank Forum, central-bank governors from around the world gathered to discuss their monetary outlook and the policies needed to manage inflation amid unexpected economic strength.
Fed Chair Powell reiterated that more rate hikes were coming owing to a robust labor market. He added that he wouldn’t dismiss the idea of hiking rates at consecutive Federal Open Market Committee (FOMC) meetings. While saying there is a possibility of an economic downturn, Powell didn’t believe it was the most likely case.
Meanwhile, bankers from the European Central Bank and the U.K. echoed Powell’s comments, declaring that further rate hikes are needed to tame their still-elevated inflation rates.4
This Week: Key Economic Data
Monday: Purchasing Managers’ Index (PMI) Manufacturing. Institute for Supply Management (ISM) Manufacturing Index.
Wednesday: Factory Orders. FOMC Minutes.
Thursday: Automated Data Processing (ADP) Employment Report. Jobless Claims. Institute for Supply Management (ISM) Services Index. Purchasing Managers’ Index (PMI) Composite. Job Openings and Turnover Survey (JOLTS).
Friday: Employment Situation.
Source: Econoday, June 30, 2023
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
Thursday: Seven and I Holdings Co., Inc. (SVNDY), Levi Strauss & Co. (LEVI)
Source: Zacks, June 30, 2023
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.
Russian Unrest Has Little Effect – S&P 500 Set For Takeoff?
The markets pulled back last week, which was not unexpected because a period of consolidation was needed for the market to work its way higher. Again, as long as the HCM-BuyLine® is positive, all pullbacks should be considered buyable. The unrest in Russia has had very little impact on the markets, which is interesting, and we see no reason for the market to get...[READ MORE]5
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.
Can You Claim the Child Tax Credit for Other Dependents?
Even though you may not be able to claim the child tax credit, you may be able to claim the credit for other dependents under your care. The Internal Revenue Service issues a max of $500 for each dependent who meets specific conditions.
These conditions include:
- Dependents who are age 17 or older on December 31 of the tax year.
- Dependents who have individual taxpayer identification numbers.
- Dependents living with the taxpayer for more than six months of the year (remember the special rules for divorced or separated parents or parents who live apart).
The credit begins to phase out when the taxpayer's income exceeds $200,000. This phaseout begins for married couples filing a joint tax return at $400,000.6
*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.
Yoga for Stability
You don’t have to pull out the yoga mat and get your designer leggings on to enjoy this relaxing practice's many benefits. Even if you’ve never done yoga before, these poses may help you improve your balance and stability:
- Knee to Chest - Start by standing with your feet hip-width apart with your hands on your hips; this is called mountain pose. Now, lift your left knee to hip height so your upper leg (thigh) is parallel with the floor. Flex your left foot and hold this pose for three deep breaths. Repeat on the other side.
- Tree Pose - Start with the same mountain pose as the first movement. Now, shift your weight into your left foot, and allow your right knee to turn out to the side as you bring your right foot in to rest at your left ankle, shin, or thigh, depending on what’s comfortable. Make sure you’re not putting your foot on the joint itself.
- Dancer Pose - Start in mountain pose. Bend your right knee and slowly lift your right foot off the ground. As you do that, lift your left arm to balance yourself. Hold for three breaths and repeat on the other side.7
Spicy Baked Fish Tacos
Servings: 10 tacos
Time: 30 mins hours
The easiest (most delicious!) way to make fish tacos: tossed in smoky spices and baked to perfection.
- 1 lb wild-caught white fish, skin removed (such as cod, mahi-mahi, or halibut)
- 1 Tbsp oil (we prefer avocado)
- 1/2 – 3/4 tsp sea salt
- 1/4 tsp black pepper
- 1 ½ tsp cumin , plus more to coat
- 1 ½ tsp chili powder , plus more to coat
- 1 ¼ tsp smoked paprika , plus more to coat
- 1/4 tsp cayenne pepper (optional // omit for less heat)
- 3-4 Tbsp cornmeal (optional // for crispier texture)
- 10 corn tortillas (homemade or store-bought)
- Rosemary Guacamole (or Garlicky Guacamole)
- Lime wedges
- Quick Pickled Veggies (optional // red onion or radish pair especially well)
- Spicy Chipotle Aioli (optional)
- Fresh cilantro (optional)
- Preheat oven to 400 degrees F (204 C), and line a large baking sheet with parchment paper.
- Cut the fish into large cubes (or strips if you prefer) and add to a medium mixing bowl. Top with oil, salt, pepper, cumin, chili powder, smoked paprika, cayenne pepper (optional), and cornmeal (optional). Toss to coat. The fish should be so well coated that you almost can’t see it anymore. Don’t be shy with the spices!
- Transfer to parchment-lined baking sheet, arrange in a single layer, and bake for 10-12 minutes or until fish is cooked through.
- In the meantime, prepare any sides, such as guacamole, fresh herbs, and lime wedges.
- To serve, warm tortillas and top each with 1 Tbsp guacamole and 2 pieces of fish, and serve with lime wedges. Serve with quick pickled veggies, chipotle aioli, and/or fresh cilantro for more flavor and texture (all optional).
- Store leftover cooked fish separately up to 2-3 days. Cooked recipe is not freezer friendly.
Footnotes and Sources
1. The Wall Street Journal, June 30, 2023.
2. The Wall Street Journal, June 30, 2023.
3. The Wall Street Journal, June 30, 2023.
4. CNBC, June 28, 2023.
5. howardcm.com, June 26, 2023.
6. IRS.gov, October 18, 2022.
7. SilverSneakers.com, February 15, 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 2023 FMG Suite.