Fed Talks Turkey on Lower Rates, Boosting Markets

Fed Talks Turkey on Lower Rates, Boosting Markets

November 28, 2022
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Growing optimism that the Fed may be ready to ease future interest rate hikes sent stocks higher in a quiet trading week.

The Dow Jones Industrial Average gained 1.78%, while the Standard & Poor’s 500 added 1.53%. The Nasdaq Composite index improved 0.72% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, advanced 2.33%.1,2,3



Stocks Rally

In light holiday-week trading, stocks rallied as investors grew more hopeful of a slowdown in a future rate hike. The release of the minutes from the early November meeting of the Federal Open Market Committee (FOMC) fed investors' optimism. Fed officials suggested such easing may be coming soon.

Investor sentiment was also lifted by unexpectedly strong retailer earnings, upside surprises in new economic data, and a better-than-expected consumer sentiment reading. Investors looked past the continuing Covid-related challenges that have stymied China's economic recovery and its attendant implications for global growth. 

Easing in the Offing?

The Fed meeting minutes, released before the Thanksgiving holiday, showed that most Fed officials felt a slowing in interest rate increases would be appropriate. The minutes also suggested that such a deceleration in rate hikes may begin with December's meeting with a 50 basis point hike rather than a fifth consecutive boost of 75 basis points.4

The primary reasons for slowing the pace of rate hikes were the growing risk that the Fed may increase rates beyond what was required to reduce inflation to its two percent target and signs that inflation pressures were easing.5

This Week: Key Economic Data

Tuesday: Consumer Confidence.

Wednesday: Gross Domestic Product (GDP). Automated Data Processing (ADP) Employment Report. Jobs Openings And Labor Turnover Survey (JOLTS).

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

Friday: Employment Situation.

Source: Econoday, November 25, 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: Workday, Inc. (WDAY), Intuit, Inc. (INTU), CrowdStrike (CRWD).

Wednesday: Salesforce, Inc. (CRM).

Thursday: Marvell Technology, Inc. (MRVL), Dollar General Corporation (DG), The Kroger Co. (KR).

Source: Zacks, November 25, 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.


Learn About Backup Withholding

Backup withholding is when a taxpayer must withhold at the current rate of 24%, which is taken from any future payments, to ensure that the IRS receives the tax due on this income. This can happen for many reasons, including if you fail to provide a correct taxpayer identification number (TIN) or if you fail to report or underreport interest and dividend income.6

Many types of payments are subject to backup withholding, and you can view the complete list on the IRS’ website, but some include:

  • Interest payments

  • Dividends

  • Rents, profits, or other gains

  • Commissions, fees, or other payments for work you do as an independent contractor

  • Royalty payments

  • Gambling winnings

* 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 Houseplants That Anyone Can Grow

Houseplants can bring a bit of joy and nature to every corner of your home. Even if you don’t consider yourself someone with a green thumb, this list of easy houseplants can help get you started. They are low-maintenance. Perfect for those of us who have killed a few too many plants in the past! Here are some of the easiest houseplants that anyone can grow:

  • Monstera
  • Sansevieria a.k.a. snake plant
  • ZZ plant
  • Spider plant
  • Heart-leafed philodendron
  • Dracaena
  • Ponytail palm
  • Pothos

Most of these plants are easy to take care of because they are tolerant of watering and light conditions. Some are fine in indirect or low-light situations, while some prefer a sunny corner. Research each one to see which ones fit into your home.7


Cranberry & Orange Buttermilk Breakfast Cake

Servings: 8-10

Time: 60 mins


Ingredients:

  • ½ cup unsalted butter, room temperature
  • the zest from 1 orange zest
  • 1 cup + 1 tablespoon sugar
  • 1 egg, room temperature
  • 1 tsp. vanilla
  • 2 cups (256 g) flour
  • 2 tsp. baking powder
  • 1 tsp. kosher salt
  • 2 cups fresh cranberries
  • ½ cup buttermilk

Directions:

  1. Preheat the oven to 350ºF. Cream butter with orange zest and 1 cup of the sugar until light and fluffy.
  2. Add the egg and vanilla and beat until combined. Meanwhile, toss the cranberries with 2 tablespoons of flour, then whisk together the remaining flour, baking powder and salt.
  3. Add the flour mixture to the batter a little at a time, alternating with the buttermilk. Fold in the cranberries.
  4. Grease a 9-inch square baking pan (or something similar) with butter or coat with non-stick spray. Spread batter into pan. Sprinkle batter with remaining tablespoon of sugar. Bake for 35 minutes, then check for doneness by touching the top gently or by inserting a toothpick. If necessary, return pan to oven, check every five minutes or so — it took my cake a little bit over 45 minutes to cook. (Note: Baking for as long as 50 minutes might be necessary, especially if you made the batter in advance.) Let cool at least 15 minutes before serving.


Footnotes and Sources


1. The Wall Street Journal, November 25, 2022

2. The Wall Street Journal, November 25, 2022

3. The Wall Street Journal, November 25, 2022

4. The Wall Street Journal, November 23, 2022

5. The Wall Street Journal, November 23, 2022

6.  IRS.gov, July 14, 2022

7. Bloomscape, 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.

Copyright 2022 FMG Suite.

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