Stocks climbed last week as reassuring inflation data boosted investor hopes that the rate-hike cycle was nearing an end amid fresh economic data pointing to continued economic resilience.
The Dow Jones Industrial Average rose 1.25%, while the Standard & Poor’s 500 picked up 2.58%. The Nasdaq Composite index gained 3.25% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, advanced 2.42%.1,2,3
Stocks Rally
Stock market momentum gathered steam last week, blowing past the 4,300 and 4,400 thresholds in the S&P 500–a remarkable feat considering the time it took to break the 4,200 resistance level.
Optimism was high to begin the week, with expectations that fresh evidence of cooling inflation would provide the Fed room to pause on further rate hikes. The data cooperated as consumer prices rose 4.0% year-over-year (the lowest 12-month number in two years), and producer prices increased 1.1% from a year ago.4
The Fed’s “hawkish pause” briefly unsettled investors, but after some reassessment and aided by healthy economic data, stocks rallied before slipping on Friday as the market digested the week’s gains.
More Rate Hikes to Come?
Federal Reserve officials kept rates steady at last week’s Federal Open Market Committee (FOMC) meeting. However, a majority of committee members indicated at least two more quarter-point rate hikes were likely before year-end.4
Fed Chair Jerome Powell commented that he saw progress in fighting inflation and that no decision was made regarding any future rate increase, saying that members will assess the economic impact of the cumulative rate hikes before the July 25-26 FOMC meeting.5
The Fed raised its 2023 economic growth forecast to 1%, up from its March forecast of 0.4%. The Fed also lowered its unemployment projection to 4.1% from its earlier estimate of 4.5%.6
This Week: Key Economic Data
Tuesday: Housing Starts.
Thursday: Existing Home Sales. Index of Leading Economic Indicators. Jobless Claims.
Friday: Purchasing Managers’ Index (PMI) Composite.
Source: Econoday, June 16, 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: FedEx Corporation (FDX).
Thursday: Darden Restaurants, Inc. (DRI).
Source: Zacks, June 16, 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.
3 Facts About Capital Gains
When you sell a capital asset, like an investment or a piece of property, the sale can result in a capital gain or loss. The Internal Revenue Service (IRS) defines a capital asset as “almost anything you own for personal use or own as an investment.” Here are three facts you should keep in mind:
- 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 an asset.
- The IRS may allow you to deduct capital losses on the sale of an investment or piece of property.
- If your total net capital loss is more than the limit you can deduct, you may be able to carry it over to next year’s tax return.7
*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.
Finding Inner Peace Inside (and Indoors)
Practiced for thousands of years, yoga 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, it is generally a low-impact form of exercise. But in addition to the 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 looking for a way to promote both physical and mental health, you can practice quieting your inner monologue and start doing yoga from the comfort of your home.8
Mango Oatmeal Crumble Bars
Time: 2 hours
Mango Oatmeal Crumble Bars – These buttery bars are loaded with sweet fresh mango!!
Ingredients:
Crust and Crumble Topping
- 1/2 cup unsalted butter, melted
- 1 cup all-purpose flour
- 3/4 cup old-fashioned whole-rolled oats (don’t use quick cook or instant, they’re finer and behave like flour and will make the mixture too dry)
- 1/2 cup granulated sugar
- 1/4 cup light brown sugar, packed
- 1/2 teaspoon salt, or to taste
Mango Layer
- 2 cups coarsely chopped fresh ripe mango
- 1/3 cup granulated sugar
- 2 tablespoons lemon juice
- 2 teaspoons corn starc
Instructions:
- Preheat oven to 350F. Line an 8-inch square pan with aluminum foil and spray with cooking spray; set aside. Lining the pan helps with cleanup and is recommended.
- Crust and Crumble Topping - In a large, microwave-safe bowl melt the butter, about 1 minute on high power.
- Add the flour, oats, sugars, optional salt, and stir to combine. Mixture will be dry and sandy with some larger, well-formed crumble pieces.
- Set 1 heaping cup mixture aside to be sprinkled on later as crumble topping.
- Transfer remaining mixture to prepared pan, and using a spatula or your fingers, hard-pack the mixture to create an even, smooth, flat crust; set aside.
- Mango Layer - In a large mixing bowl (same one used for crust and crumble is okay), add all ingredients and toss to combine. If sugar hasn’t dissolved fully that’s okay because it liquifies while baking.
- Evenly distribute mango mixture over the crust.
- Evenly sprinkle with the reserved heaping 1 cup crumble topping mixture. Before sprinkling, I squeeze the mixture in my palm to encourage bigger crumble pieces to form.
- Bake for about 50 minutes, or until edges are set and center has just set. Crumble topping should appear set and very pale golden and the mango filling mixture may be bubbling along the edges. Bars may take longer than 50 to 55 minutes if the mangos are very juicy. Watch your bars, not the clock, when evaluating doneness.
- Place pan on a wire rack and allow bars to cool for at least 1 hour before slicing and serving. If you try to slice bars before they’ve cooled completely, they’ll be extremely messy and could fall apart. Bars will keep airtight at room temperature for up to 1 week, in the fridge for up to 10 days, or in the freezer for up to 6 months.
Footnotes and Sources
1. The Wall Street Journal, June 16, 2023.
2. The Wall Street Journal, June 16, 2023.
3. The Wall Street Journal, June 16, 2023.
4. AP News, June 14, 2023.
5. CNBC, June 14, 2023.
6. CNBC, June 14, 2023.
7. IRS.gov, January 26, 2023
8. Yogabasics.com, February 15, 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 2023 FMG Suite.