A late-week surge, triggered by reassuring Fed-speak, propelled stocks higher last week.
The Dow Jones Industrial Average gained 1.75%, while the Standard & Poor’s 500 advanced 1.90%. The Nasdaq Composite index picked up 2.58% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, added 0.81%.1,2,3
Stocks Resume Climb
After rebounding to start the week, stocks weakened following higher inflation numbers out of Europe and higher-than-expected manufacturing activity.
Stocks continued their decline into early Thursday following a report of higher labor costs and low initial jobless claims. But stocks staged an afternoon relief rally on Thursday following comments by Atlanta Fed President Raphael Bostic that he was “still very firmly” supportive of increasing rates in quarter-point increments. The climb in stocks was remarkable, given that yields on 10-year Treasuries reached their highest level since November. Undeterred by a strong services data report, the upside momentum continued into the final trading day and added to the week’s gains.4
Disconcerting Economic Data
It was a relatively quiet week for economic news, but several new economic data reports gave insights into overall activity. U.S. manufacturing activity contracted in February–the fourth consecutive month it has done so. While this may eventually justify a reason for moderating future rate hikes, the activity exceeded analysts’ expectations. An accompanying survey of manufacturers pointed to improving demand and potentially accelerating price pressures.
Meanwhile, China reported an outsized jump in manufacturing activity, which may help relieve remaining supply chain kinks. But the report may also fuel commodity price increases and influence global inflation. Inflation remained a persistent issue in Europe, as February’s Eurozone inflation read was hotter than anticipated.
This Week: Key Economic Data
Monday: Factory Orders.
Wednesday: Automated Data Processing (ADP) Employment Report. Job Openings and Labor Turnover Survey (JOLTS).
Thursday: Jobless Claims.
Friday: Employment Situation.
Source: Econoday, March 3, 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
Tuesday: Dick’s Sporting Goods, Inc. (DKS), CrowdStrike (CRWD).
Wednesday: MongoDB, Inc. (MDB).
Thursday: Ulta Beauty, Inc. (ULTA), DocuSign (DOCU).
Source: Zacks, March 3, 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.
Volatility Can Be Scary, But The HCM-BuyLine® Remains Positive
The markets are trading about as we would expect. With the strong run-up in January, a pullback and period of consolidation was warranted. There is room for the market to move either up or down, with the trend still... [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.
Outstanding Tax Bill? Consider an Offer in Compromise
An Offer in Compromise is a federal tax program allowing taxpayers to enter into an agreement with the IRS to settle their tax debt for less than they owe. This agreement is an option when taxpayers can't pay their full tax liabilities or when paying the entire balance owed would cause financial hardship. The goal is a compromise that suits the best interests of both parties.
The IRS considers various circumstances when reviewing OIC applications, including the applicant’s:
- Asset equity
There is also an application to apply for an OIC. Taxpayers who meet the definition of a low-income taxpayer don't have to pay this fee.6
*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.
It's All in a Walk: 3 Tips for Integrating Walking Into Your Day
Getting more movement is always a good idea, but finding the time to fit a walk into your day can be hard. These tips will make it easier to get up and get moving:
- Keep a pair of sneakers in your car to walk whenever you have a few extra minutes! This could be during your lunch break at work, if you’re early for a doctor’s appointment, or while you’re waiting to pick up the kids from school.
- Walk when you might otherwise sit. We’re always waiting for something, so walk around instead of sitting while you wait! It’s okay if you can’t go far; at least you’re getting your steps in.
- Have multiple routes, so you don’t get bored walking the same route every day.
- Invite friends for a walk instead of getting coffee or lunch.
Tip adapted from Help Guide7
Delicious Avocado Smoothie
Eat your greens with this delicious 4-Ingredient Avocado Smoothie!
Time: 5 mins
- 1 medium frozen avocado sliced (~1 cup sliced)
- ½ cup spinach packed
- ½ frozen large banana
- 1 cup unsweetened almond milk
- Place all ingredients into a high-speed blender.
- Blend on high until smooth. Option to add more almond milk as needed to thin things out.
- Serve smoothie immediately and top with your favorite toppings.
Footnotes and Sources
1. The Wall Street Journal, March 3, 2023
2. The Wall Street Journal, March 3, 2023
3. The Wall Street Journal, March 3, 2023
4. The Wall Street Journal, March 2, 2023
5. howardcm.com, March 2, 2023
6. IRS.gov, October 18, 2022
7. HelpGuide.org, November 1, 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 2023 FMG Suite.