Stocks closed lower for the week as escalating tensions on the Russian-Ukrainian border added to existing jitters over higher inflation and a pending tightening of monetary policy.
The Dow Jones Industrial Average slid 1.90%, while the Standard & Poor’s 500 declined 1.58%. The Nasdaq Composite index lost 1.76% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, fell 1.00%.1,2,3
Geopolitical Tensions
Markets have been skittish in recent weeks due to persistent, elevated inflation and the uncertainty over how aggressive the Federal Reserve may be with its monetary tightening. As tensions escalated between Russia and the West over a possible Russian invasion of Ukraine, investors moved away from risk assets, such as stocks, and sought the safety of U.S. Treasury bonds.
Stocks were hard hit on Thursday as reports surfaced that both sides were exchanging artillery fire. The slide continued on Friday as prospects of a diplomatic offramp appeared to dim. While geopolitical news dominated trading last week, investors were relieved by the Federal Open Market Committee meeting minutes (released on Wednesday) that suggested the Fed may not act any more aggressively than current market expectations.4
An Early Economic Snapshot
Last week three economic reports provided an update on the state of the economy. The first was the Producer Price Index, which suggested that inflationary pressures remain acute. Wholesale prices rose 1.0% last month and posted a 12-month rise of 9.7%, the latter of which was near a record high.4
The consumer showed continued strength as retail sales rose a better-than-expected 3.8%, though some of that gain may be due to higher costs. Meanwhile, industrial production gained 1.4%, nearly triple the consensus expectation. Capacity utilization increased 1.0 percent, reaching its highest level since March 2019.5
This Week: Key Economic Data
Tuesday: Purchasing Managers’ Index (PMI) Flash. Consumer Confidence.
Thursday: Gross Domestic Product (GDP). Jobless Claims. New Home Sales.
Friday: Consumer Sentiment. Durable Goods Orders.
Source: Econoday, February 18, 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: The Home Depot, Inc. (HD), Palo Alto Networks, Inc. (PANW), Agilent Technologies, Inc. (A).
Wednesday: Lowe’s Companies, Inc. (LOW), The TJX Companies, Inc. (TJX), eBay, Inc. (EBAY), Booking Holdings, Inc. (BKNG).
Thursday: Block, Inc. (SQ), Dell Technologies, Inc. (DELL), VMware, Inc. (VMW), Ingersoll Rand, Inc. (IR), AnheuserBusch InBev (BUD).
Friday: Berkshire Hathaway, Inc. (BRK.B), EOG Resources, Inc. (EOG).
Source: Zacks, February 18, 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.
WEALTH WATCH: INFLATION AND INTEREST RATES AND SUPPLY CHAIN ISSUES, OH MY!
The HCM-BuyLine® is still negative, and the intermediate-term trend is still down. We are sitting on a reasonable amount of cash and 1–3-month T-Bills. The market appears to be stabilizing after a very nasty selloff with the news of Russia pulling back troops from Ukraine. There are still a lot of negatives facing the market this year, with inflation...[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.
Beware of the Fake Charity Scam
There are so many scams out there and one of the most heartless is taking advantage of people who want to give money to a legitimate charity, especially after a tragedy or disaster. Scammers can set up fake organizations to take advantage of people’s generosity.
These scams are usually over the phone and while the organization may sound legitimate, the person on the other line might be demanding a donation right away. Remember, a charity will be happy to receive a donation at any time so you shouldn’t feel pressured.
You can research charity organizations using the IRS Tax Exempt Organization Search tool. This will help you narrow down a list of legitimate charities. You may even be able to claim a deduction on your tax return. 7
* 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.
How to Understand Your Blood Pressure Readings
It’s important to understand what your blood pressure readings mean, especially if you are at a greater risk for high blood pressure. Here are the ranges you should know, according to the American Heart Association:
- Normal ranges are less than 120 for systolic mmHg (the top number in the reading) and less than 80 for diastolic mmHg (the lower number)
- Elevated ranges are 120-129 systolic and less than 80 diastolic
- High blood pressure (hypertension) stage 1 ranges are 130-139 systolic or 80-89 diastolic
- High blood pressure (hypertension) stage 2 ranges are 140 or higher systolic or 90 or higher diastolic
- Hypertensive crisis (a medical emergency) ranges are higher than 180 for systolic and/or higher than 120 diastolic8
CATALAN CHICKPEAS AND SPINACH
Servings: 4
Total Time: 30 mins
Ingredients:
- 1 (5-ounce) bag fresh baby spinach
- 1 tablespoon olive oil, plus extra for drizzling
- 1 small white onion, peeled and thinly sliced
- 6 cloves garlic, peeled and minced
- 1 teaspoon smoked paprika, plus extra for serving
- 1/2 teaspoon ground cumin
- 2 (15-ounce) cans chickpeas, rinsed and drained*
- 1/2 cup raisins
- 1/3 cup toasted pine nuts
- sea salt and freshly-cracked black pepper, to taste
Instructions:
- Place the spinach in a colander and rinse with water. Set aside.
- Heat oil in a large sauté pan over medium-high heat. Add onion and sauté for 5 minutes, stirring occasionally, until softened. Add in the garlic, paprika, cumin and stir to combine. Cook for 1 more minute, stirring occasionally.
- Reduce heat to medium. Add the still-wet spinach to the pan, cover with a lid, and wait for 1-2 minutes until the spinach has wilted. Stir in the chickpeas and raisins until combined. Then continue to cook for 1-2 minutes, until the chickpeas are heated through.
- Taste and season generously with salt (I used about 1 teaspoon) and black pepper, to taste.
- Serve warm, garnished with toasted pine nuts, an extra drizzle of olive oil, and a pinch of paprika. Or transfer to a sealed container and refrigerate for up to 3 days.
Stay safe!
Footnotes and Sources
1. The Wall Street Journal, February 18, 2022
2. The Wall Street Journal, February 18, 2022
3. The Wall Street Journal, February 18, 2022
4. CNBC, February 15, 2022
5. CNBC, February 16, 2022
6. howardcm.com, February 15, 2022
7. IRS.gov, July 28, 2021
8. Heart.org, September 30, 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.
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