Stocks turned in a mixed performance last week as investors struggled with headlines suggesting that the Fed was unlikely to soon ease up on its current monetary tightening policy.
The Dow Jones Industrial Average slipped 0.13%, while the Standard & Poor’s 500 rose 0.36%. The Nasdaq Composite index picked up 2.15% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, gained 0.23%.1,2,3
Ahead of Friday’s employment report, stocks were generally higher, highlighted by a Wednesday rally triggered by fresh earnings surprises and a better-than-expected economic report. The rally was especially notable because it occurred when multiple Fed officials said that the fight against inflation hadn’t ended, perhaps throwing cold water on the idea that the Fed might pivot due to weakening economic activity and the prospect of cooling inflation.
Aside from this single day of enthusiasm, markets were a bit jittery, especially as investors monitored Speaker of the House Pelosi’s visit to Taiwan. A robust employment report on Friday reinforced the idea that the Fed would likely stay the course on monetary tightening, resulting in a mixed market for the week.
The U.S economy added 528,000 jobs in July, doubling the consensus expectation of 258,000. The unemployment rate ticked lower, falling from 3.6% to 3.5%. Coincident with this job creation was strong wage growth, as average hourly earnings rose 0.5% in July and 5.2% from a year ago.4
Leisure and hospitality, professional and business services, and healthcare lead the way in reported job gains, as seen in most sectors of the economy. Even sectors such as construction, particularly vulnerable to rising interest rates, saw job gains. The labor force participation rate moved slightly lower, slipping to 62.1%--its lowest level this year.5
This Week: Key Economic Data
Wednesday: Consumer Price Index (CPI). Institute for Supply Management (ISM) Services Index. Factory Orders.
Thursday: Jobless Claims. Producer Price Index (PPI).
Friday: Consumer Sentiment.
Source: Econoday, August 5, 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: Dominion Energy, Inc. (D), Tyson Foods, Inc. (TSN).
Tuesday: Emerson Electric Co. (EMR).
Wednesday: The Walt Disney Company (DIS).
Thursday: Illumina, Inc. (ILMN).
Source: Zacks, August 5, 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: Patience and Agility Can Be The Difference Makers In a Market Like This
The HCM-BuyLine® turned back up on a short-term and intermediate-term basis last week, but NOT the long-term trend, which is still negative. We started adding to existing positions as well as adding new ones, but at a very tepid pace. Optimism is at hand but being...[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.
The IRS May Send You One of Two Notices If Your Filed Returns Don’t Match Their Records
Have you wondered what happens if the information on your tax return doesn’t match the IRS records? The IRS mails out two notices, CP2100 and CP2100A, to banks, credit unions, businesses, and payers that may have made a mistake on their return.
The IRS mails these notices out twice a year, in September/October and April of the following year. Payers may receive a notice if their return is missing a Taxpayer Identification number, has an incorrect name, or both. The notices also tell payers that they are responsible for backup withholding.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.
This Cognitive Behavioral Exercise Can Help Quiet Your Negative Self-Talk
We all have that little negative voice in our head, and one of the ways to combat it is to change the way you think about situations. Stressful things will always happen, but the goal is to change your feelings about those stressful situations.
To practice this exercise, separate a piece of paper into three columns. One is for your negative thought, one is for the cognitive distortion at play, and one is for your rational response (thinking logically about how you’re feeling). Here’s an example:
Negative thought: I did horrible on my presentation today and am getting fired.
Cognitive distortion: All or nothing thinking, jumping to conclusions
Rational response: Maybe it wasn’t my best presentation, but overall the quality of my work is good
These cognitive exercises take a lot of practice but can help silence your inner critic.8
Grilled Corn Summer Breakfast Hash
Cook Time: 13 mins
- 4 slices of bacon, chopped
- 4 medium Yukon gold potatoes, cubed
- 1/2 red onion, chopped
- 1 medium zucchini squash, chopped
- 2 garlic cloves, minced
- 1 red pepper, chopped
- 2-3 ears grilled corn on the cob, remove cob
- 1 teaspoon olive oil, you may not need this
- 2 green onions, chopped
- 3-4 large eggs
- smoked sea salt + pepper
- Heat a large skillet over medium heat. Once hot, add chopped bacon and cook until crispy and fat is rendered – about 4-5 minutes. Remove bacon with a slotted spoon and drain on a paper towel. Add potatoes with a sprinkle of salt and pepper to the bacon fat and cook for 8-10 minutes, stirring and tossing every few minutes. While potatoes are cooking, heat another skillet on medium high and cook your eggs as desired, then set aside over low heat.
- Add peppers and onions (and another little sprinkle of salt and pepper) to potatoes and cook for another 5 minutes, stirring. At this time you may need to add the additional teaspoon of olive oil depending on how much bacon fat is left. After 5 minutes, add in the zucchini and garlic and cook for 5 minutes more, stirring. Turn off heat, then stir in grilled corn and bacon. Top with sliced green onions. Serve with an egg on top.
Footnotes and Sources
1. The Wall Street Journal, August 5, 2022
2. The Wall Street Journal, August 5, 2022
3. The Wall Street Journal, August 5, 2022
4. CNBC, August 5, 2022
5. CNBC, August 5, 2022
6. howardcm.com, August 2, 2022
7. IRS.gov, May 2, 2022
8. 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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