A late-week rally sent stocks into positive territory, with the S&P 500 index closing just shy of the 4,300 mark.
The Dow Jones Industrial Average gained 0.34%, while the Standard & Poor’s 500 added 0.39%. The Nasdaq Composite index improved 0.14% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, rose 0.44%.1,2,3
Stocks Edge Higher
Stocks bumped along the flatline for much of the week ahead of this week’s two inflation reports and the June meeting of the Federal Open Market Committee.
Amid little news, stocks drifted lower to start the week until Wednesday, when a solid early-day rally evaporated on news of the Bank of Canada's surprise interest rate hike. Stocks rose again the following day, holding onto their gains, with the S&P 500 hitting a new closing high for 2023.4
Stocks added small gains on Friday after weathering some midday weakness, leaving major indices marginally higher for the week.
One investor concern has been that a handful of mega-cap stocks have driven recent market returns. Last week’s market bucked that trend, with outperformance in small-cap stocks and equally-weighted stock market indices.
For instance, the Russell 2000 index (which measures the performance of 2,000 smaller-cap companies) rose 1.90% this week, outpacing the S&P 500 and the technology-heavy Nasdaq.5
Another example of broadening performance was the outperformance of the equally-weighted S&P 500 index, where each stock has equal weighting regardless of size, versus the market-cap S&P 500 index, where mega-cap companies disproportionately impact index performance. Last week's return of the equally-weighted S&P 500 index exceeded the cap-weighted S&P 500’s return by 0.65%.6
This Week: Key Economic Data
Tuesday: Consumer Price Index (CPI).
Wednesday: Producer Price Index (PPI). FOMC Announcement.
Thursday: Retail Sales. Industrial Production. Jobless Claims.
Friday: Consumer Sentiment.
Source: Econoday, June 9, 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: Oracle Corporation (ORCL).
Thursday: Adobe, Inc. (ADBE).
Source: Zacks, June 9, 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.
Market Heats Up As Hiring Cools – Is A Broadening Market Signaling New Opportunity?
The market is in a clear uptrend, and any pullback is buyable now. Yesterday’s pullback was technical and warranted, as the market is a bit overbought. Today’s jobs report was telling, as hiring is slowing down. As we have been saying, it is our opinion that the Fed has pushed rates as high as they need to...[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.
Do You Know the Difference Between Taxable and Nontaxable Income?
All income you receive is taxable unless the rules explicitly state it isn’t. According to the Internal Revenue Service (IRS), taxable income includes earned income like wages and any income earned by providing a service or the exchange of property or services. Rental income, interest, dividends, and social security benefits are all examples of taxable unearned income.
Some income is only taxable if certain conditions are met. For example, life insurance proceeds are usually not taxable to the beneficiary unless you redeem a life insurance policy for cash. Any amount you receive above the cost of the policy is taxable. State and local income tax refunds may be taxable and should be reported on your federal taxes.
Some forms of income are usually not taxable, like:
- Gifts and inheritances. (State taxes may apply to inheritances.)
- Welfare benefits.
- Damage awards for physical injury or sickness.
- Cash rebates from a dealer or manufacturer for an item you buy.
- Reimbursements for qualified adoption expenses.
Several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder also may pay surrender charges and have income tax implications. You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.8
*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.
Choose to Make Your Plate “MyPlate”
The so-called Food Pyramid had many flaws. Its significant weaknesses were that it generalized recommended daily servings and poorly defined portion sizes. So, in 2008, the U.S. Department of Agriculture implemented a user-friendly redesign: the pyramid was transformed into a plate.
The concept behind the MyPlate design was both revolutionary and seemingly obvious. After all, we eat off a plate, not a pyramid. Portions are easier to see. Make half the plate fruits and vegetables; the other half, grains and protein—a serving of dairy (or non-dairy alternative) on the side.
Take advantage of this method the next time you sit down for a meal and see what adjustments you can make to make your plate even healthier.9
Time: 5 mins
These Watermelon Palomas are an awesome way to kick-start summer!
- 5 oz fresh watermelon juice (see NOTE)
- 3 oz fresh grapefruit juice
- Juice of 1 lime (roughly 1 oz)
- 4 oz silver tequila
- 1 oz agave nectar (or more, to taste)
- Seltzer, for topping off the glasses
- Salt, for rimming glasses
- Watermelon wedges, for garnish
- Grapefruit or lime slices, for garnish
Buttery Panko Topping (optional)
- 1 tablespoon unsalted butter
- 1/3 cup panko breadcrumbs
- To a large cocktail shaker filled with ice, add the watermelon, grapefruit, and lime juices, along with the tequila and agave nectar.
- Shake vigorously for 30 seconds or so to thoroughly mix and chill all the ingredients.
- Taste and add more agave nectar or lime juice, as needed, to meet your tastes (I like a tangier cocktail and my husband likes it a touch sweeter).
- Rim two tall (highball style) glasses with salt and fill them with ice (the salt is optional – but I love it with anything containing tequila).
- Pour the mixture over the ice in the two glasses and add a little seltzer to each. Garnish with watermelon wedges and citrus slices, as desired. Enjoy!Notes: You can make your own watermelon juice by placing fresh watermelon cubes or chunks into a blender and pureeing on high until completely smooth. You can strain out any pulp, but I find that most watermelon doesn’t yield a lot of pulp and I usually skip this step.
Footnotes and Sources
1. The Wall Street Journal, June 9, 2023.
2. The Wall Street Journal, June 9, 2023.
3. The Wall Street Journal, June 9, 2023.
4. CNBC, June 8, 2023.
5. The Wall Street Journal, June 8, 2023.
6. Google Finance, June 9, 2023.
7. howardcm.com, June 1, 2023
8. IRS.gov, November 10, 2022.
9. MyPlate.gov, February 15, 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.