Broker Check
Second Week of Stock Retreat

Second Week of Stock Retreat

March 18, 2024

Stocks fell for the second straight week on inflation concerns despite a report on consumer prices that was initially well received by investors.

Stocks Slide

Tuesday was the only bright spot during the week as stock prices rose after the Labor Department report showed the Consumer Price Index rose 3.2% in February compared with a year earlier. It was a bit warmer than economists expected but cooler than investors feared. The news sparked a day-long rally, with the Standard & Poor’s 500 stock index setting its 17th record high of the year.1,2

Following Tuesday, caution lingered as investors parsed the underlying data behind headline consumer inflation numbers. Thursday's fresh producer price index (PPI) report showed that wholesale prices increased by 0.6% in February, more than the expected 0.3% increase. Additionally, core PPI (excluding food and energy) was hotter than expected. 

Retail sales, also reported on Thursday, were disappointing, rising less than expected and adding to the inflation angst. The news rattled investors and contributed to stocks closing lower for three consecutive days to end the week.3,4

Box upload

Source: YCharts.com, March 16, 2024. Weekly performance is measured from Monday, March 11, to Friday, March 15.
ROC 5 = the rate of change in the index for the previous 5 trading days.
TR = total return for the index, which includes any dividends as well as any other cash distributions during the period.
Treasury note yield is expressed in basis points.

Broadening Leadership

Unlike the prior week when the S&P 500 fell the least, last week it lost slightly more than the Dow but less than the Nasdaq. That performance pattern suggests market leadership may be broadening. Also, the energy, financials, and materials sectors all posted gains last week, showing that other groups may join the tech-led rally.5

This Week: Key Economic Data

Monday: Housing Market Index.

Tuesday: FOMC Meeting Begins. Housing Starts and Permits. 20-Year Treasury Bond Auction.

Wednesday: FOMC Announcement. Fed Chair Press Conference. EIA Petroleum Status Report.

Thursday: Jobless Claims. Existing Home Sales. Fed Balance Sheet.

Source: Investors Business Daily - Econoday economic calendar; March 13, 2024
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: GameStop Corp. (GME)

Wednesday: Micron Technology, Inc. (MU), General Mills, Inc. (GIS), Five Below, Inc. (FIVE), Chewy (CHWY)

Thursday: NIKE, Inc. (NKE), FedEx Corporation (FDX), lululemon athletica inc. (LULU), Darden Restaurants, Inc. (DRI)

Source: Zacks, March 13, 2024
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.







4 Facts About Capital Gains

When you sell a capital asset, such as an investment or a piece of property, the sale can result in a capital gain or loss. The IRS defines a capital asset as “most property you own for personal use or own as an investment.” Here are four facts you should keep in mind:

  1. A capital gain or loss is the difference between what you originally paid for the asset (your basis) and the amount you get when you sell the asset.
  2. You must include all capital gains in your income, and you may be subject to the Net Investment Income Tax if your income is above certain amounts. Consult a qualified tax expert for help.
  3. The IRS allows you to deduct capital losses on the sale of investment property. You cannot deduct losses on the sale of property that you hold for personal use.
  4. If your total net capital loss is more than the limit you can deduct, you can carry it over to next year’s tax return.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.

Finding Inner Peace Inside (and Indoors) 

Yoga has been practiced for thousands of years and has had a revival in the last couple of decades. Yoga can be an optimal exercise choice for many individuals of all ages. But before getting started with any fitness regimen, discuss any medical concerns with your healthcare provider; this information is not a substitute for medical advice.

While there are many different styles of yoga, yoga is generally a low-impact form of exercise. In addition to fitness benefits, it can help you learn relaxation and breathing techniques and how to regulate emotions and quiet your mind. It’s also a great form of indoor exercise, and there are thousands of free classes on YouTube. So, if you’re still enduring the remnants of winter, you can practice quieting your inner monologue by doing yoga from the comfort of your home.7


Air Fryer Pizookie

Servings: 6-8

Prep: 15 mins | Cook: 10 mins | Total time: 25 mins

This Pizookie has a crisp crust with an ultra-gooey interior and pools of melty chocolate. 

Ingredients:

  • 1/2 cup (8 tbsp) unsalted butter, melted and slightly cooled
  • 1/2 cup white granulated sugar
  • 1/2 cup light brown sugar, lightly packed
  • 1/2 tablespoon vanilla extract
  • 1 large egg
  • 1 and 1/2 cups white all-purpose flour 
  • 1/2 teaspoon baking soda
  • 1/2 teaspoon fine sea salt
  • 1 and 1/4 cups milk, dark, or semi-sweet chocolate chips 

Instructions:

  1. PREP: Use 2 sheets of foil to form a pan the size of your air fryer insert. Fold up the edges to be about 2 to 3-inches high. Generously grease this foil "pan" with nonstick cooking spray and set aside. Melt the butter in the microwave and let it cool back down to room temperature-- we don't want hot butter, or it will make the Pizookie greasy!
  2. WET INGREDIENTS: In a medium-sized bowl, whisk the melted and cooled butter, white sugar, and brown sugar until combined. Take your time until the butter and sugar fully integrate together. (It will seem like they won't, but keep whisking! It takes about 1-2 minutes.) Add in the egg and vanilla. Mix until combined. At this point, heat the air fryer (while empty) for 10 minutes at 350 degrees F. We need it very hot before adding in the dough.
  3. DRY INGREDIENTS: Add the flour, baking soda, and salt to the wet ingredients and mix to combine. Add in the chocolate chips and mix to incorporate.
  4. BAKE: Once you've got a smooth dough, add it to the prepared tin foil "pan". Press the dough firmly into one even layer. Remove the hot air fryer insert and carefully press your tin foil Pizookie into one even layer at the bottom of the air fryer insert. Place back in the air fryer and bake at 350 degrees for 8-10 minutes. (We do 10 minutes in my particular air fryer.) (See Note 1.)
  5. ENJOY: Remove and use tongs to pull the foil insert from the air fryer onto a large plate. Top with ice cream in the center, right out of the air fryer. Enjoy immediately -- it is supposed to be pretty gooey and slightly under-baked in the center. Because of this, the Pizookie doesn't store very well so best to be enjoyed as soon as you make it!

Note 1: Air fryers will cook slightly differently from model to model and there will also be variance depending on the size of your particular air fryer insert. Occasionally check to make sure the cookie isn’t burning. Keep in mind air fryers cook a lot faster than an oven, so it can go from perfect to burnt in as little as a minute.

 





Footnotes and Sources

1. The Wall Street Journal, March 15, 2024

2. The Wall Street Journal, March 12, 2024

3. CNBC, March 15, 2024

4. CNBC, March 15, 2024

5. Sector SPDRs, March 15, 2024

6. IRS.gov, October 17, 2023

7. Healthline.com, December 18, 2023


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.

Copyright 2024 FMG Suite.

Quick Call with Kevin