Stocks tumbled on Friday, sending stocks to a weekly loss after an otherwise quiet August week of trading.
The Dow Jones Industrial Average slipped -0.16%, while the Standard & Poor’s 500 lost 1.21%. The Nasdaq Composite index declined 2.62% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, fell 0.88%.1,2,3
Summer Rally Hits Pause Button
The market rally that began in mid-June paused last week. Despite the week’s losses, stocks exhibited resiliency in the face of a string of troubling economic news that included flat retail sales, weak housing numbers, an inversion in the yield curve, and tepid economic data out of China.
Nevertheless, stocks tumbled on Friday amid hawkish comments about future rate hikes, rising bond yields, and ahead of the annual meeting of global central bankers in Jackson Hole, Wyoming, in which Fed Chair Jerome Powell is scheduled to speak on August 26th.
Expect More Rate Hikes
Minutes from July's Federal Open Market Committee meeting indicated that additional rate hikes would be needed to help manage inflation. Fed officials did acknowledge that further rate hikes risked unintended economic weakness because of the time it takes for higher rates to work through the economy. The committee indicated that they might slow rate hikes to determine the impact of previous rate increases.4
The minutes also contained the Fed's latest economic forecasts, which projected inflation to decline faster than its June estimate due to a bigger economic slowdown in the year's second half.5
This Week: Key Economic Data
Tuesday: Purchasing Managers’ Index (PMI) Composite Flash. New Home Sales.
Wednesday: Durable Goods Orders.
Thursday: Jobless Claims. Gross Domestic Product (GDP).
Source: Econoday, August 19, 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
Monday: Palo Alto Networks, Inc. (PANW), Zoom Video Communications, Inc. (ZM).
Tuesday: Intuit, Inc. (INTU).
Wednesday: Nvidia Corporation (NVDA), Salesforce, Inc. (CRM), Snowflake, Inc. (SNOW).
Thursday: Marvell Technology, Inc. (MRVL), Dollar General Corporation (DG), Dell Technologies, Inc. (DELL), VMware, Inc. (VMW).
Source: Zacks, August 19, 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.
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Received A Letter From the IRS? Here's What to Do
The IRS mails letters or notices to taxpayers for a variety of reasons, including:
- You have a balance due
- You are due a larger or smaller refund
- The IRS has a question about their tax return
- You must verify your identity
- The IRS requires additional information
- The IRS changed their tax return
If you receive a letter or notice from the IRS, check to see if there are any action items. If something needs attention, the IRS may provide a deadline for a response. You should also keep a copy of the letter for your tax records. Remember, all official IRS correspondence is through the mail, so there is usually no need to call the IRS.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.
Combat "Text Neck" With These Two Stretches
From texting to emailing to browsing the internet and social media, we spend hours and hours every day on our phones, which can cause pain in our back and neck.
Have a tight neck? These two stretches can help!
- The exaggerated nod - This stretch seems simple, but it’s very effective. Sit comfortably and with your teeth touching but not clenched, lean your head back like you are looking up to the ceiling. Then, gently open and close your mouth. You should feel a stretch both in the back of your neck and in the front.
- Touch your toes - This stretch addresses both your hamstrings and your neck. Stand with your feet shoulder-width apart and hinge at your hips while reaching down to touch your toes. Relax your neck. If you can’t touch your toes, that’s ok! Enjoy the stretch along your back.7
Simplest Basil Zucchini Parmesan Pasta
Total time: 25 mins
Yield: serves 8
Ingredients:
- 1 pound pasta, use your favorite cut
- 2 tablespoons extra virgin olive oil
- 3-4 medium zucchini and or yellow summer squash, chopped
- 3 cloves garlic, minced or grated
- 1/2 teaspoon crushed red pepper flakes
- 1 tablespoon chopped fresh thyme
- kosher salt and black pepper
- 2 tablespoons butter
- 1 cup grated parmesan or manchego cheese
- 1 cup fresh basil, roughly chopped
- lemon juice, for serving (optional)
Instructions:
- Bring a large pot of salted water to a boil and cook pasta according to package directions until al dente. Just before draining, reserve 3/4 cup of the pasta cooking water. Drain.
- Meanwhile, heat the olive oil in a large skillet over medium heat. When the oil shimmers, add the zucchini, garlic, red pepper flakes, thyme, and season with salt and pepper. Cook, stirring occasionally until the squash is caramelized and golden brown, 5-8 minutes. Using a potato masher, mash down the zucchini until it becomes a chunky sauce.
- Add 1/3 cup of reserved pasta water and bring to a simmer over medium heat. Add the pasta, butter and manchego, toss until melted. Add more pasta water if need to thin the sauce. Remove from the heat, add the basil. Transfer to a bowl and serve topped with fresh basil and lemon . Enjoy!
Footnotes and Sources
1. The Wall Street Journal, August 19, 2022
2. The Wall Street Journal, August 19, 2022
3. The Wall Street Journal, August 19, 2022
4. The Wall Street Journal, August 17, 2022
5. The Wall Street Journal, August 17, 2022
6. IRS.gov, April 21, 2022
7. Healthline.com, May 26, 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.
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