Stocks moved to the rhythm of earnings season last week, initially rising on positive earnings surprises and faltering later in the week on key earnings disappointments.
The Dow Jones Industrial Average rose 2.08%, while the Standard & Poor’s 500 added 0.69%. The Nasdaq Composite Index slumped 0.57% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, slipped 0.32%.1,2,3
Earnings in Focus
Entering its first big week of the second quarter earnings season, solid reports from the nation’s big banks rewarded investor optimism, sparking a rally that continued into mid-week. An announcement by a mega-cap tech company of a new AI subscription plan, and stabilizing deposits at several regional banks, further fed investor enthusiasm.
Disappointing earnings from two big-tech names dragged market indices lower on Thursday, with the largest losses in the Nasdaq composite. Despite the reversal, 20 stocks in the S&P 500 touched 52-week highs on Thursday, with 11 reaching all-time highs.4
Stocks closed flat to end an otherwise mixed week.
Housing Hits a Bump
June housing reports reminded investors that any emerging housing recovery remains shaky. After a massive 21.7% jump in housing starts in May, new home construction tumbled 8.0% in June, with building permits (an indicator of future home construction) dropping 3.7%.5
Sales of existing homes were also lower in June, declining by 3.3%, owing to a persistently low inventory level. This was the slowest pace since January. Year-over-year sales were lower by 18.9%. One reason for low inventory is that homeowners have been reluctant to sell homes on which many have a historically low mortgage rate and face buying a new home at elevated prices with a much higher mortgage interest rate.6
This Week: Key Economic Data
Monday: Purchasing Managers’ Index (PMI) Composite Flash.
Tuesday: Consumer Confidence.
Wednesday: FOMC Announcement. New Home Sales.
Thursday: Gross Domestic Product. Durable Goods Orders. Jobless Claims.
Friday: Personal Income and Outlays.
Source: Econoday, July 21, 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: Microsoft Corporation (MSFT), General Electric Company (GE), Verizon Communications, Inc. (VZ), Visa, Inc. (V), Alphabet, Inc. (GOOGL), NXP Semiconductors, N.V. (NXPI), General Motors Company (GM), Archer Daniels Midland Company (ADM), 3M Company (MMM), Texas Instruments, Inc. (TXN), NextEra Energy, Inc. (NEE), Kimberly-Clark Corporation (KMB).
Wednesday: AT&T, Inc. (T), The Boeing Company (BA), The CocaCola Company (KO), Lam Research Corporation (LRCX), Union Pacific Corporation (UNP), ServiceNow, Inc. (NOW), Thermo Fisher Scientific, Inc. (TMO), General Dynamics Corporation (GD), O’Reilly Automotive, Inc. (ORLY), Chipotle Mexican Grill, inc. (CMG).
Thursday: Amazon.com, Inc. (AMZN), Intel Corporation (INTC), Ford Motor Company (F), AbbVie, Inc. (ABBV), Mastercard, Inc. (MA), Bristol Myers Squibb Company (BMY), McDonald’s Corporation (MCD), Northrop Grumman Corporation (NOC), HCA Healthcare, Inc. (HCA), Honeywell International, Inc. (HON), T-Mobile US, Inc. (TMUS), Southwest Airlines Co. (LUV), Boston Scientific Corporation (BSX).
Friday: Exxon Mobil Corporation (XOM), Chevron Corporation (CVX), The Procter & Gamble Company (PG).
Source: Zacks, July 21, 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.
Tax Tips for Side Gigs
There are some important tips to remember if you work a side gig:
- All income from these sources is taxable, including both full-time and part-time work and any cash payment received.
- As a gig worker, correctly classify yourself as an employee or an independent contractor; this can depend on where you live, even for the same services.
- Lastly, it's important to consider paying quarterly taxes during the year to help avoid any federal or state tax penalties for underpayment.
*This information is not intended to substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax professional.
Summer Skincare Tips
The first and most important tip is always to wear sunscreen, even if you spend little time in the sun. Some skincare products, including makeup, have sunscreen built-in, but you should consider using a moisturizer with at least SPF 30 for extra protection.
Another good summer skincare tip is to lighten up your skincare routine. You'll likely be sweating, swimming, and spending time outside in the summer, so you might not need as much makeup or products as in the winter.
Vietnamese Spring Rolls with Crispy Tofu
Servings: 8 spring rolls
PREP TIME: 15 mins | COOK TIME: 15 mins | TOTAL TIME: 30 mins
Flavorful, crisp, delectable, and so fresh and perfect for spring and summer.
Ingredients:
SPRING ROLLS
- 1 1/2 cups julienned vegetables (such as carrots, red pepper, and cucumber)
- 1 bunch fresh cilantro
- 1 bunch fresh mint
- 4 ounces vermicelli or rice noodles (the thinner the better)
- 8-10 whole spring roll rice papers
ALMOND BUTTER DIPPING SAUCE
- 1/3 cup salted creamy almond butter
- 1 Tbsp reduced sodium soy sauce (tamari if gluten-free)
- 1-2 Tbsp brown sugar, agave, or honey if not vegan (depending on preferred sweetness)
- 1 Tbsp fresh lime juice
- 1/2 tsp chili garlic sauce
- Hot water (to thin)
CRISPY TOFU
- 8 ounces extra-firm tofu (drained and thoroughly dried/pressed)
- 4 Tbsp sesame oil (divided)
- 3 Tbsp cornstarch
- 2 1/2 Tbsp almond butter dipping sauce
- 1 Tbsp reduced sodium soy sauce (tamari if gluten-free)
- 1 Tbsp brown sugar or agave nectar
Instructions:
- Start by preparing rice noodles in boiling hot water for about 10 minutes (read instructions on package), then drain and set aside.
- Meanwhile, heat a large skillet over medium heat and cut pressed tofu into small rectangles. Toss in 3 Tbsp cornstarch and flash fry in ~3 Tbsp sesame oil (amounts as original recipe is written // adjust if altering batch size), flipping on all sides to ensure even browning – about 5 minutes. Remove from skillet and set aside.
- Prep veggies and prepare almond butter sauce by adding all sauce ingredients except water to a small mixing bowl and whisk to combine. Add enough hot water to thin until a pourable sauce is achieved. Adjust flavors as needed.
- To add more flavor to the tofu, transfer ~2.5 Tbsp. of the sauce to a small bowl and add an additional Tablespoon each of soy sauce, sesame oil and brown sugar or agave (amounts as original recipe is written // adjust if altering batch size) and whisk to combine.
- Add tofu back to the skillet over medium heat and add “sauce/glaze,” stirring to coat. Cook for several minutes or until all of the sauce is absorbed and the tofu looks glazed, stirring frequently. Set aside with prepared veggies and vermicelli noodles.
- To assemble spring rolls, pour very hot water into a shallow dish or skillet and immerse rice paper to soften for about 10-15 seconds.
- Transfer to a damp cutting board or damp towel and gently spread out edges into a circle. It may take a little practice, so don’t feel bad if your first few attempts are a fail!
- To the bottom third of the wrapper add a small handful of vermicelli noodles and layer carrots, bell peppers, cucumber, fresh herbs and 2-3 pieces of tofu on top. Gently fold over once, tuck in edges, and continue rolling until seam is sealed.
- Place seam-side down on a serving platter and cover with damp warm towel to keep fresh. Repeat until all fillings are used up – about 8-10 spring rolls total (amount as original recipe is written // adjust if altering batch size).
- Serve with almond butter sauce and sriracha or hot sauce of choice.
- Leftovers store well individually wrapped in plastic wrap, though best when fresh.
Footnotes and Sources
1. The Wall Street Journal, July 21, 2023.
2. The Wall Street Journal, July 21, 2023.
3. The Wall Street Journal, July 21, 2023.
4. CNBC, July 20, 2023.
5. Yahoo!Finance, July 19, 2023.
6. The Wall Street Journal, July 20, 2023.
7. IRS.gov, January 12, 2023.
8. Allure, April 24, 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.
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