Recession fears grew last week following weak earnings reports from major retailers, sending stocks lower.
The Dow Jones Industrial Average fell 2.90%, while the Standard & Poor’s 500 lost 3.05%. The Nasdaq Composite index dropped 3.82% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, gained 0.84%.1,2,3
Stock prices remained in a downtrend, capped by a sell-off on Wednesday following a succession of disappointing earnings reports from several major retailers. Despite solid April retail sales and industrial production data, weak economic numbers from China and shrinking profit margins at U.S. retailers fanned recession fears throughout the week.
Rising yields, which have been an overhang to the markets in recent weeks, turned lower as investors appeared to move cash to bonds from stocks. But lower yields did not help stock prices, which closed out the week with a volatile trading session.
Cloudy Picture with Retailers
Investors received a mixed message from the retail sector. April’s retail sales increased 0.9% from March, signifying that consumer spending remained strong. But it was difficult to determine from the retail sales report whether the increase was a function of higher retail prices or a resilient consumer.4
It was also a big week for earnings reports from some of the nation’s largest retailers. Results were disappointing as retailers struggled with supply chain issues, higher costs, and misaligned product mix. Some retailers indicated a drop in the number of transactions, suggesting that shoppers reduce purchases due to higher prices on essential items.
This Week: Key Economic Data
Tuesday: Purchasing Managers’ Index (PMI) Composite Flash. New Home Sales.
Wednesday: Federal Open Market Committee (FOMC) Minutes. Durable Goods Orders.
Thursday: Gross Domestic Product (GDP). Jobless Claims.
Friday: Consumer Sentiment.
Source: Econoday, May 20, 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: Zoom Video Communications (ZM).
Tuesday: Best Buy Co., Inc. (BBY), AutoZone, Inc. (AZO), Intuit, Inc. (INTU).
Wednesday: Nvidia Corporation (NVDA), Snowflake, Inc. (SNOW).
Thursday: Costco Wholesale Corporation (COST), Marvell Technology, Inc. (MRVL), Workday, Inc. (WDAY), Dollar General Corporation (DG), Dell Technologies, Inc. (DELL), VMware, Inc. (VMW).
Source: Zacks, May 20, 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: Remaining Calm Amidst Major Selloffs
The HCM-BuyLine® is clearly negative, and we are sitting on a lot of cash. As it stands now, we are approximately 50% in cash and being patient is key. The markets will turn, we just do not know when, but we are in a very unique position with all the cash we have.....[READ MORE]5
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.
Don't Forget to Check Your Withholding
When was the last time you checked your tax withholding? Having the correct amount of tax withheld from your wages is an essential part of properly managing your taxes. The amount you withhold depends on your income, the number of children you claim on your return, and more.
The IRS has a helpful tool on their site called their Tax Withholding Estimator that can help you know if you have too much or too little tax withheld from your wages. Before using the tool, make sure you have all your paperwork handy, including your W2, 1099, 1095-A, and 1099-NEC, and any other forms you need to determine how much of your income is taxable.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.
What is Foam Rolling?
Exercise is super important for our overall health, but so is recovery. Foam rollers are a popular recovery tool because they can help release tension in tight, tired muscles.
Foam rollers are large cylinders made from high-density foam. They come in different sizes and firmness levels and can be used to massage both large and smaller muscle groups. Depending on your needs, you can use the foam roller before or after a workout.
You can do countless foam rolling exercises for sore muscles, including rolling out your hamstrings, quads, upper back, lower back, IT band, triceps, forearm, and more.7
Crustless Broccoli & Chedder Quiche
Total Time: 50 mins
- cooking spray
- 3 cups chopped broccoli florets
- 1 cup grated cheddar cheese
- 2/3 cup 2% milk
- 1/4 cup half & half cream
- 5 large eggs
- 3/4 teaspoon kosher salt
- 1/8 teaspoon ground black pepper
- pinch freshly grated nutmeg
- Preheat your oven to 350 degrees. Spray a pie dish with oil.
- Steam the chopped broccoli florets in the microwave with 1 tablespoon water until tender crisp and green but not mushy, about 2 1/2 to 3 minutes.
- Evenly spread the broccoli in the dish and top it evenly with the grated cheddar cheese.
- Make the custard mixture by whisking together the milk, half and half, eggs, salt, black pepper, and the nutmeg. Pour the custard into the dish and bake 35 to 40 minutes, until the center is set.
- Cut the quiche into 6 pieces and serve.
Footnotes and Sources
1. The Wall Street Journal, May 20, 2022
2. The Wall Street Journal, May 20, 2022
3. The Wall Street Journal, May 20, 2022
4. The Wall Street Journal, May 17, 2022
5. howardcm.com, May 19, 2022
6. IRS.gov, January 20, 2021
7. webmd.com, August 17, 2021
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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