Concerns over a firmer monetary policy were heightened by fresh economic data, touching off a climb in bond yields and a slide in stock prices last week.
The Dow Jones Industrial Average skidded 2.99%, while the Standard & Poor’s 500 dipped 2.67%. The Nasdaq Composite index sagged 3.33% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, retreated 1.23%.1,2,3
Stocks struggled last week, buffeted by growing fears of further Fed tightening and disappointing forecasts from two major retailers that called into question the consumer's health. The release of the minutes from the Federal Open Market Committee’s (FOMC) last meeting did little to assuage investor worries. Reflecting these concerns of a more aggressive Fed was that by Thursday, traders were pricing in a 27% chance that the Fed might lift rates by a half-percentage point at its next meeting, far above the 1.3% chance just one month ago.4
Stocks took another leg lower on Friday following the release of January’s Personal Consumption Expenditures (PCE) price index, which showed hotter-than-expected price increases and more robust consumer spending.
Minutes from the last FOMC meeting indicated that nearly all members agreed with February’s quarter-point rate increase, though some would have supported a 50 basis point rate hike to move quicker towards the Fed’s target range. While the minutes suggested another 25 basis point hike is likely at their next meeting, investors remain anxious that more recent economic data may prompt a 0.50% hike instead.5
The minutes stressed that inflation was still too high. However, members diverged on the economy, with some members finding the risk of recession elevated. In contrast, others feel the Fed may engineer a soft landing or avoid a recession altogether.6
This Week: Key Economic Data
Monday: Durable Goods Orders.
Tuesday: Consumer Confidence.
Wednesday: Institute for Supply Management (ISM) Manufacturing Index.
Thursday: Jobless Claims.
Friday: Institute for Supply Management (ISM) Services Index.
Source: Econoday, February 24, 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
Monday: Workday, Inc. (WDAY).
Tuesday: Occidental Petroleum Corporation (OXY), Target Corporation (TGT), AutoZone, Inc. (AZO), Ross Stores, Inc. (ROST), Agilent Technologies, Inc. (A).
Wednesday: Salesforce, Inc. (CRM), Lowe’s Companies, Inc. (LOW), Dollar Tree, Inc. (DLTR).
Thursday: Broadcom, Inc. (AVGO), Costco Wholesale Corporation (COST), Best Buy Co., Inc. (BBY), Marvell Technology, Inc. (MRVL), Dell Technologies, Inc. (DELL).
Source: Zacks, February 24, 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.
Don’t Blink – Bullish Signals Abound
The market has pulled back to the point of being oversold. After a nice rally a period of consolidation can often be expected. This has little effect on the HCM-BuyLine®, and it remains positive. The S&P has set into what is called a golden cross, where the 50-day moving average crosses above the... [READ MORE]7
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.
You Have the Right to Retain Representation When Working with the IRS
As part of the Taxpayer Bill of Rights, you have the right to retain an authorized representative to represent you when dealing with the IRS. If you can’t afford representation, seek help from a Low Income Taxpayer Clinic (LITC).
An authorized representative can represent you in interviews, audits, appeals, and tax collection disputes with the IRS and in court. Authorized representatives include attorneys, CPAs, enrolled agents, enrolled actuaries, or any other person who has submitted a written power of attorney to represent you.8
*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.
Strength Training for Any Age
Strength training benefits people of all ages, from children to older adults. According to the CDC, strength training at least twice per week can help you with the following:
- Build strength
- Maintain bone density
- Improve your balance, coordination, and mobility
- Reduce your risk of falling
- Maintain independence in performing daily activities
The best part is that starting is easy, and you don’t need a complex routine to enjoy these benefits. Some people begin with bodyweight exercises, such as pushups, sit-ups, and squats, to get a feel for these movements.
Once you feel comfortable with bodyweight exercises, you can incorporate weights into your routine. Focus on functional movements, which are the movements you do every day. Practical strength training will make things like taking the stairs, carrying groceries, or doing chores easier.
Always talk to your doctor before starting a new strength training routine.9
Carrot Cake Muffins
Carrot Cake Muffins have all the flavors of carrot cake that you love, but in muffin size. Great for breakfast, snack time, or grab-and-go meals on the fly!
Time: 35 mins
- 1 ½ cups flour
- 1 cup sugar
- ½ teaspoon cinnamon
- ½ teaspoon baking soda
- ½ teaspoon baking powder
- ½ teaspoon salt
- ½ cup vegetable oil
- ⅓ cup brown sugar
- 2 large eggs - at room temperature
- 2 teaspoons vanilla extract
- 2 cups finely grated carrots - not pre-shredded carrots, they should be freshly grated
- Preheat oven to 350 degrees and life a muffin tin with paper or silicone cupcake liners (or grease well with cooking spray).
- In a medium bowl whisk together flour, sugar, cinnamon, baking soda, baking powder, and salt.
- In a large bowl combine oil, brown sugar, eggs, and vanilla and mix well. Stir in grated carrots.
- Stir dry ingredients into wet ingredients until completely incorporated.
- Fill muffin liners 2/3 full.
- Bake in preheated oven for 20-22 minutes until a toothpick inserted in the center of the muffins comes out clean. Cool for 5 minutes before transferring to a cooling rack to continue cooling.
- Serve fresh or store in airtight container at room temperature up to 3 days, or in the fridge up to 2 weeks. Optional: reheat them in the microwave for about 15 seconds and spread a little butter on top for the ultimate breakfast treat.
Footnotes and Sources
1. The Wall Street Journal, February 24, 2023
2. The Wall Street Journal, February 24, 2023
3. The Wall Street Journal, February 24, 2023
4. The Wall Street Journal, February 22, 2023
5. The Wall Street Journal, February 23, 2023
6. CNBC, February 22, 2023
7. howardcm.com, February 22, 2023
8. IRS.gov, September 19, 2022
9. Center for Disease Control, November 20, 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.