Powell: Inflation Heading in the Right Direction

Stocks were mixed last week following better-than-expected corporate reports and increasing optimism over a slowdown in interest rates.

The Dow Jones Industrial Average edged lower, slipping -0.15%. The Standard & Poor’s 500 rose 1.62% while the Nasdaq Composite index led, picking up 3.31%. The MSCI EAFE index, which tracks developed overseas stock markets, increased by 1.16%.^1,2,3

Rally Continues

Strong earnings reports and encouraging inflation data lifted stocks ahead of the Federal Open Market Committee’s (FOMC) decision on Wednesday to hike interest rates by 25 basis points. Markets rallied following the announcement, relieved that the increase was in line with expectations and buoyed by post-meeting comments in which Fed Chair Jerome Powell acknowledged the disinflationary forces in place.

Fresh earnings reports fueled further gains, with positive earnings surprises from several big-name technology companies that benefited the larger universe of Nasdaq-listed high-growth companies. Disappointing earnings from three mega-cap tech companies and a strong employment report triggered a Friday pull-back, paring the week’s gains.

Another Rate Hike

The Federal Reserve raised interest rates by 0.25%, signaling to the financial markets that it would likely hike rates by another 25 basis points at its next meeting in late March. Fed officials said the slowdown in rate hikes might provide time to assess the impact of the accumulated rate hikes. The Fed retained language in its post-meeting statement that future rate hike plans were unchanged to discourage investors’ hopes of an imminent pause in the rate-hike cycle.⁴

In his post-meeting press conference, Fed Chair Powell reiterated the Fed’s commitment not to declare victory on inflation prematurely but acknowledged that a disinflationary trend was underway.⁵

This Week: Key Economic Data

Thursday: Jobless Claims.

Friday: Consumer Sentiment.

_{^{Source: Econoday, February 3, 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: Fortinet, Inc. (FTNT), Chipotle Mexican Grill, Inc. (CMG).

Wednesday: CVS Health Corporation (CVS), Prudential Financial, Inc. (PRU), The Walt Disney Company (DIS).

Thursday: AbbVie, Inc. (ABBV), PayPal Holdings, Inc. (PYPL), PepsiCo, Inc. (PEP), Kellogg Company (K), Expedia Group, Inc. (EXPE), O’Reilly Automotive, Inc. (ORLY).  

_{^{Source: Zacks, February 3, 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.}}

What is Clean Beauty?

What you put on your body is just as important as what you put in your body! This is why more people are choosing clean skincare and beauty products. Clean ingredients are better for the environment and often more gentle on your skin.

Clean beauty products don’t contain synthetic chemicals and ingredients that could harm your body or irritate your skin. Some of these synthetic ingredients include:

• Parabens
  
• Phthalates
  
• Oxybenzone
  
• Synthetic fragrances
  
• And many more

The exact definition is somewhat undefined, but the movement is becoming increasingly popular as people focus on healthy, environmentally-friendly options for their bodies, homes, and family.⁶

Chunky Pea and Leek Soup with Poached Eggs

A lovely spring soup that comes together in less than 30 minutes!

Servings: 4

Time: 35 mins

Ingredients: 

• 2 tablespoons (30 g) unsalted butter
• 2 large leeks, white and light green parts only finely sliced
• 1 medium yellow onion diced
• 15 ounces frozen peas
• 4 cups (1 quart) low-sodium chicken stock
• kosher salt
• freshly ground black pepper
• pinch ground cayenne pepper
• 1 teaspoon fresh lime juice

Soup Toppings:

• 4 large eggs, for poaching see instructions below
• 2 tablespoons (30 mL) heavy cream
• fresh basil, mint, or dill or garnishing
• extra virgin olive oil for drizzling

Directions:

1. Heat the butter in a large soup pot over medium-low heat until it begins to bubble slightly. Add the leeks and onion, a pinch of salt, cover, and saute for 8 to 10 minutes, stirring occasionally, or until very soft and translucent. 
2. Add the frozen peas and chicken stock. Bring the soup to a boil and immediately reduce to a low simmer. Simmer the soup uncovered for 15 to 20 minutes, or until the peas are very tender. Carefully transfer the soup to a high-powered blender, such as a Vitamix, and puree lightly until the soup is mostly uniform in texture, but still slightly chunky. 
3. Return the soup to the pot and simmer for an additional 5 to 10 minutes, or until it has thickened slightly. Season to taste with salt and pepper and add the cayenne pepper and lime juice. Place over low heat while you prepare the poached eggs for topping. 
4. Prepare the Poached Eggs: Fill a large skillet with several inches of water, salt heavily, and bring to a boil. Reduce the heat so that the water is barely simmering. Very small bubbles should be visible on the bottom of the pan. 
5. Crack the eggs, one at a time, into a fine-meshed sieve set over a bowl. Discard any loose egg whites that drain into the bowl and transfer each egg into a small ramekin. Tip the eggs gently into the simmering water. Using a slotted spoon, gently stir to ensure they are not sticking to the bottom of the pan. Cook, turning them once, for 3 to 4 minutes, or until the whites are cooked through and the yolk is soft to touch. Lift with a slotted spoon and transfer to a paper towel-lined plate. 
6. Finish the soup by stirring in the heavy cream. Serve in large bowls, garnish with fresh herbs, a little drizzle of olive oil, and place the poached egg gently in the center of the soup. Serve immediately.

Notes: If you prefer to not serve this with poached eggs (or are serving it as a first course), this soup also tastes fantastic with a dollop of tzatziki yogurt (or you could substitute this with creme fraiche), and finely chopped chives! A drizzle of olive oil adds a beautiful touch as well.