The combination of an improving inflation outlook resulted in a week of uneven, albeit positive, performance, in which cyclical and financial stocks rallied while technology, real estate, and utilities lagged.
The Dow Jones Industrial Average gained 1.20%, while the Standard & Poor’s 500 rose 0.79%. The Nasdaq Composite index increased 0.29% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, added 2.08%.1,2,3
Inflation Retreat
Stocks treaded water ahead of last week’s inflation data and the start of a new earnings season. Stocks rallied on a favorable March consumer inflation report, only to falter after the release of last month’s Federal Open Market Committee (FOMC) meeting minutes, which hinted at a potential recession later this year.
After reports of a more pronounced slowdown in producer prices on Thursday, stocks surged higher, with technology and communication services companies leading the charge. A weak retail sales number on Friday shaved the gains to close out the week.
Trending Lower
Last week provided fresh insight into inflation, and the news was encouraging.
The Consumer Price Index (CPI) rose a very modest 0.1% in March, while the year-over-year increase in consumer prices was 5.0%, down from February’s 12-month rise of 6.0%. Declines aided the March report in groceries, gasoline, medical care, and utilities.4
The read on supplier prices was even more positive. The Producer Price Index (PPI), which many economists see as a signal of future consumer prices, declined 0.5%–the most significant monthly decline since 2020. The 12-month increase as of March was 2.7%, an easing from February’s year-over-year climb of 4.9%.5
This Week: Key Economic Data
Tuesday: Housing Starts.
Thursday: Jobless Claims. Existing Home Sales. Index of Leading Economic Indicators.
Friday: Purchasing Managers’ Index (PMI) Composite Flash.
Source: Econoday, April 14, 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: The Charles Schwab Corporation (SCHW), M&T Bank Corporation (MTB).
Tuesday: Netflix, Inc. (NFLX), Bank of America Corporation (BAC), Johnson & Johnson (JNJ), Lockheed Martin Corporation (LMT), The Goldman Sachs Group, Inc. (GS) .
Wednesday: Tesla, Inc. (TSLA), IBM Corporation (IBM), Lam Research Corporation (LRCX), Abbott Laboratories (ABT), Morgan Stanley (MS), U.S. Bancorp (USB), United Airlines Holdings, Inc. (UAL).
Thursday: AT&T, Inc. (T), Blackstone, Inc. (BX), American Express Company (AXP), CSX Corporation (CSX), Union Pacific Corporation (UNP), D.R. Horton (DHI), Truist Financial Corporation (TFC).
Friday: The Procter & Gamble Company (PG), HCA Healthcare, Inc. (HCA), Freeport-McMoRan, Inc. (FCX), Regions FInancial Corporation (RF).
Source: Zacks, April 14, 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.
From Bank Scare to Market Repair – Is Now the Time to Buy?
The markets are trading just about as anticipated after the banking scare and a fast and large sell-off, but they are recovering nicely. If we had not had the three banks fall into deep trouble, I believe we would be much further along in this uptrend. Pullbacks are buyable as the trend is up. Inflation is starting to roll over, which equals lower...[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.
Recordkeeping Tips for Small Business Owners
As a small business owner, your recordkeeping is of utmost importance. These records show your income, expenses, business transactions, and much more. You can choose whatever recordkeeping system you want if you and the IRS have the necessary information.
As a business owner, you will need to keep track of supporting documents such as:
- Purchases
- Sales
- Payroll
- Sales slips
- Paid bills
- Invoices
- Receipts
- Deposit slips
- Canceled checks
- Travel, transportation, entertainment, and gift expenses
- Assets
Keeping your records well-organized will save you time, effort, and money.7
*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.
Take Time for Tea
Are you looking for a warm, cozy escape? Look no further than a cup of tea! A cup of chamomile tea even has some potential health benefits!
Here are just a few:
- May lower blood sugar in people with diabetes and may prevent blood sugar from spiking.
- May reduce inflammation
- May help with sleep and relaxation
- May help treat cold symptoms
Make time for tea!8
Mini Crescent Roll Chicken Pot Pie
Servings: 8
Time: 25 mins
These almost-homemade Mini Chicken Pot Pies are the perfect finger-food for a party!
Ingredients:
- 3 tbsp butter
- 1 tbsp dried minced onion
- 3 tbsp flour
- 1 cup chicken broth, + 1 tbsp
- 1/3 cup milk
- 1/4 tsp salt, more to taste
- 1/4 tsp pepper
- 1/8 tsp celery seed
- 1/2 cup frozen peas and carrots
- 1 cup chicken, cooked and chopped (rotisserie for the win!)
- 1 (8 ounce) can crecent rolls
- butter, melted, for brushing
Directions:
- Preheat your oven to 375 degrees F. Grease 8 spots of a muffin tin very well.
- Melt butter in a medium skillet. When it is hot, add the dried onions and let them cook for a minute or so. Add the flour and whisk together for 1 minute.
- Slowly (not all at once) whisk in the chicken broth and milk. Whisk out all the lumps.
- Add salt, pepper, and celery seed.
- Stir in the peas, carrots, and chicken. Turn off the heat.
- Unroll the crescent dough. Use your fingers to quickly seal together the triangular cuts. Then cut the dough into 16 rectangles. A pizza cutter works well.
- Place one rectangle into a muffin tin. Top with 1/8 of the chicken mixture. Top with another rectangle, using your fingers to seal it together if you can, but don’t stress about it too much. Repeat with the remaining dough.
- Poke a knife in the top to vent the pies.
- Bake 15 minutes. You want the tops to be good and brown, so that you know the bottom is cooked.
- Brush with melted butter if you want. Serve immediately!
Footnotes and Sources
1. The Wall Street Journal, April 14, 2023
2. The Wall Street Journal, April 14, 2023
3. The Wall Street Journal, April 14, 2023
4. The Wall Street Journal, April 12, 2023
5. The Wall Street Journal, April 13, 2023
6. howardcm.com, March 23, 2023
7. IRS.gov, August 8, 2022
8. Medical News Today, March 21, 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.