A strong Friday rally triggered by fresh signs of moderating inflation pushed stocks into positive territory to begin the new year.
The Dow Jones Industrial Average rose 1.46%, while the Standard & Poor’s 500 advanced 1.45%. The Nasdaq Composite index gained 0.98%. The MSCI EAFE index, which tracks developed overseas stock markets, added 0.90%.1,2,3
A new year did little to change the market’s overall tenor as trading remained choppy. The first two trading sessions of a holiday-shortened week saw major averages swing wildly between gains and losses as investors balanced an improving outlook on inflation against concerns of faltering economic growth. Mega-cap technology and other high-growth names endured the brunt of the selling pressure.
Stocks took a decisive turn lower Thursday on strong private payroll growth and declining jobless claims, which heightened fears that the Fed would need to push interest rates higher for longer. However, stocks staged a powerful rally on Friday despite another strong job number, partly due to a deceleration in wage growth.
The Labor Market Juggernaut
The Fed has communicated that it’s looking for weakening in the labor market before it can feel confident higher rates are working to slow inflation. Employment reports last week indicated that the Fed might need to wait a bit longer for evidence of a fading labor market.
Automated Data Processing’s (ADP) monthly employment report showed the private sector adding more jobs (235,000) than consensus estimates (153,000), with strong wage gains over the last year (+7.3%). Initial and continuing jobless claims fell in the last week of December and remained at pre-pandemic levels. Finally, the government’s monthly employment report showed employers adding a healthy 223,000 jobs in December.4,5,6
This Week: Key Economic Data
Thursday: Consumer Price Index (CPI). Jobless Claims.
Friday: Consumer Sentiment.
Source: Econoday, January 6, 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
Friday: Bank of America Corporation (BAC), JPMorgan Chase & Co. (JPM), Delta Air Lines, Inc. (DAL), UnitedHealth Group Incorporated (UNH), Citigroup, Inc. (C), Wells Fargo & Company (WFC), BlackRock, Inc. (BLK).
Source: Zacks, January 6, 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.
Vance Howard on CNBC:
After what should be a rocky start, 2023 should be a good year for the markets
Vance Howard, CEO & Portfolio Manager at Howard Capital Management, joins Worldwide Exchange to discuss how he’s investing in the markets.
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.
NOTE: Please be sure to purchase or rent the copy with the Exclusive Chapter (picture shown above).
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Is an Offer in Compromise Too Good to be True?
An Offer in Compromise is an agreement between a taxpayer and the IRS that settles a tax debt for less than the total amount owed; this is a genuine service offered by the IRS. The problem arises when "OIC mills" start promising things they can't do.
These OIC mills urge people to hire their company to file an OIC application, even though the taxpayer won't qualify. They often charge significant fees and waste your time and money.
Taxpayers who qualify for an OIC can get the same deal working directly with the IRS without the extra fees. Before hiring a company to file an OIC on your behalf, check the IRS website to see if you pre-qualify for an OIC. There are also resources on the site to help you understand the process.8
* 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.
Create a Morning Routine That You Love
The first hour of your morning can dictate your productivity for the rest of the day, so it's worth investing in a morning routine you love. How do some of the most successful people spend the first few hours of their day? Here are a few tips:
- Don't check your email for the first hour of your workday.
- Spend time thinking about things you're grateful for; this will help set a positive tone for your day.
- Mark Twain famously said that if you eat a live frog first thing in the morning, you've got it behind you for the rest of your day. Consider doing your most challenging work first thing in the morning.
- Do some light movement, such as going for a walk, stretching, or yoga.
What are some of your favorite morning rituals?
Tip adapted from Fast Company9
Skinny Cauliflower Mac and Cheese
Time: 40 mins
Less fat AND less calories. Except taste and flavor is not compromised AT ALL! So cheesy, comforting and irresistible!
- 3 cups cavatappi pasta
- 2 cups cauliflower florets
- 2 tablespoons unsalted butter
- 2 tablespoons all-purpose flour
- 1 cup half and half, or more, as needed
- 2 ounces cream cheese
- 2 teaspoons Dijon mustard
- ½ teaspoon garlic powder
- 1 ½ cups shredded sharp cheddar cheese
- Kosher salt and freshly ground black pepper, to taste
- 2 tablespoons chopped fresh chives
- Preheat oven to 375 degrees F.
- In a large pot of boiling salted water, cook pasta according to package instructions. Within the last 3 minutes of cooking time, add cauliflower; drain well.
- Melt butter in a 9-inch oven-proof skillet over medium high heat. Whisk in flour until lightly browned, about 1 minute. Gradually whisk in half and half, and cook, whisking constantly, until incorporated, about 1-2 minutes. Stir in cream cheese, Dijon and garlic powder until slightly thickened, about 2 minutes.
- Stir in 1 cup cheese until melted, about 1-2 minutes. If the mixture is too thick, add more half and half as needed; season with salt and pepper, to taste.
- Stir in pasta and cauliflower; gently toss to combine. Sprinkle with remaining 1/2 cup cheese.
- Place into oven and bake until bubbly, about 12-15 minutes.
- Serve immediately, garnished with chives, if desired.
Footnotes and Sources
1. The Wall Street Journal, January 6, 2023
2. The Wall Street Journal, January 6, 2023
3. The Wall Street Journal, January 6, 2023
4. CNBC, January 5, 2023
5. The Wall Street Journal, January 5, 2023
6. The Wall Street Journal, January 6, 2023
7. howardcm.com, January 6, 2022
8. IRS.gov, July 7, 2022
9. Fast Company, August 22, 2012
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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