Mixed Results As Interest Rate Concerns Grow

Growing concerns about further interest rate hikes, prompted by fresh economic data, reversed early-week gains and left stocks mixed for the week.

The Dow Jones Industrial Average slipped 0.13%, while the Standard & Poor’s 500 fell 0.28%. The Nasdaq Composite index advanced 0.59% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, gained 0.52%.^1,2,3

Rate Concerns Weigh on Stocks

Stocks opened last week higher on investor hopes that a continued cooling in inflation might support a more dovish Fed. A higher-than-expected rise in the Consumer Price Index (CPI) and strong retail sales in January initially did little to dent that enthusiasm, as stocks posted solid gains through Wednesday’s close.

But that optimism faded on Thursday as a surprising rise in producer prices and another decline in initial jobless claims triggered worries the Fed would stay the course for longer. Comments from two Fed officials supporting a more aggressive rate hike stance added to the unease, erasing much of the week’s gains. Stocks ended mixed on Friday, capping a choppy week.

Inflation Moderation Pauses

Consumer prices climbed 0.5% in January, fueled by rising shelter costs and energy prices. The increase in the CPI was higher than the 0.1% rise in December and slightly above the consensus estimates of 0.4%. The year-over-year inflation number (6.4%) came in lower than December’s 12-month rise of 6.5%, making it the seventh consecutive month of declining year-over-year inflation.⁴

January’s product price report showed a surprise 0.7% increase, higher than the 0.4% rise expected by economists and the biggest jump since June. Year-over year, producer prices rose 6.0%, a slight improvement from December’s number.⁵

This Week: Key Economic Data

Tuesday: Purchasing Managers’ Index (PMI) Flash. Existing Home Sales. 

Wednesday: FOMC Minutes.

Thursday: Jobless Claims. Gross Domestic Product (GDP). 

Friday: New Home Sales. Consumer Sentiment.  

_{^{Source: Econoday, February 17, 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

Tuesday: Walmart, Inc. (WMT), The Home Depot, Inc. (HD), Palo Alto Networks, Inc. (PANW).

Wednesday: eBay, Inc. (EBAY), The TJX Companies, Inc. (TJX), Nvidia Corporation (NVDA), Diamondback Energy, Inc. (FANG).

Thursday: Block, Inc. (SQ), Pioneer Natural Resources Company (PXD).

Friday: EOG Resources, Inc. (EOG).

_{^{Source: Zacks, February 17, 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.}}

Risk-On! – The HCM-BuyLine® Flashes Buy

The HCM-BuyLine® is positive, and risk should be taken. Pullbacks should be considered buyable. We have been adding exposure to equities and are near 100% back in the market. What can investors expect? Volatility, and I highlight that word for emphasis because there is a lot of... [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.} 

How Qualified Charitable Distributions Can Help Reduce Your Tax Burden

Generally, distributions from a traditional Individual Retirement Account are taxable in the year the account owner receives them. But, a qualified charitable distribution (QCD) is one exception to this rule. 

A QCD is a nontaxable distribution made directly by the trustee of an IRA to organizations that are eligible to receive tax-deductible contributions. Of course, the main benefit of giving to a charitable organization is making a difference. Yet some tax benefits reward the philanthropic. Making a QCD can help you reduce your taxable income while supporting qualifying charitable organizations.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.}

What are Polyphenols?

If you’ve researched whole foods much, you’ve likely come across the term “polyphenols.” But what are polyphenols, and why are they important?  

Polyphenols are a category of plant compounds that act as antioxidants, which can neutralize harmful free radicals. Because of this, polyphenols may offer various health benefits, from boosting brain health and digestion to protecting against heart disease, type 2 diabetes, and even some cancers.

There are many sources of polyphenols, such as:

• Dark chocolate
  
• Tea
  
• Dark berries
  
• Apples
  
• Onions
  
• Red cabbage
  
• Whole grains
  
• Chili peppers
  
• Oats
  
• Turmeric
  
• Flax seeds
  
• Sesame seeds

There are several categories of polyphenols, including flavonoids, phenolic acids, and polyphenolic amides.⁸

Bacon, Cheddar and Pear Panino

Spice up lunchtime with this sandwich melt that is sweet, salty, crispy, creamy, and sweet in every single bite.

Servings: 1

Time: 10 mins

Ingredients:  

• 1 tablespoon jam, such as currant or fig or Ikea’s lingonberry 
• 2 slices of nice, bakery-style bread, from a multigrain or Italian boule for example
• 2 slices Cheddar
• 2 slices cooked bacon 
• 1/4 small pear, thinly sliced

Directions:

1. Heat a panini machine.
2. Spread the jam on 1 slice of the bread. Layer the pear, bacon and cheddar on top.
3. Press the sandwich in the panini machine until the bread is toasted and the cheese is melted, 3 to 5 minutes total depending on your machine.