Stocks managed to gain ground last week as investors turned their focus to corporate earnings.
The Dow Jones Industrial Average rose 1.05%, while the Standard & Poor’s 500 gained 1.55%. The Nasdaq Composite index picked up 2.38% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, tacked on 2.73%.1,2,3
Earnings in Focus
At the start of the week, stocks extended the previous week’s rally with some high-growth companies leading the move higher. Strong company profits fueled the market the middle of the week, until an earnings disappointment from a mega-cap company took investors by surprise. The earnings miss deflated sentiment as it heightened worries of what it may portend for other technology companies yet to report. These anxieties led to a sell-off that reverberated across the market.
Subsequent earnings beats from several technology and social media names, and an above-consensus rise in new payrolls on Friday, helped the market close with week with a solid gain.
Omicron and Unemployment
A string of employment reports pointed to a generally healthy labor market, despite the Omicron surge late last year. The Job Openings and Turnover Survey (JOLTS) showed a hiring slowdown, with near-record high job openings and worker resignations. The ADP (Automated Data Processing) employment report saw private payrolls shrink by 301,000. That was the first monthly decline since December 2020.4,5
More encouragingly, initial jobless claims declined, while continuing jobless claims reached their lowest level since 1973. A strong January employment report showed 467,000 jobs added during the month, with upward revisions to previously released November and December.6,7
This Week: Key Economic Data
Thursday: Consumer Price Index (CPI). Jobless Claims.
Friday: Consumer Sentiment.
Source: Econoday, February 4, 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: Amgen, Inc. (AMGN).
Tuesday: Pfizer, Inc.(PFE), Chipotle Mexican Grill, Inc. (CMG), Sysco Corporation (SYY).
Wednesday: CVS Health Corporation (CVS), The Walt Disney Company (DIS), Twilio, Inc. (TWLO), Yum Brands, Inc. (YUM), O’Reilly Automotive, Inc. (ORLY).
Thursday: Twitter, Inc. (TWTR), The CocaCola Company (KO), Illumina, Inc. (ILMN), Duke Energy Corporation (DUK), PepsiCo, Inc. (PEP), Kellogg Company (K), Expedia Group, Inc. (EXPE).
Friday: Dominion Energy, Inc. (D).
Source: Zacks, February 4, 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: A Negative HCM-BuyLine® Means Watch out for Bear Traps!
The HCM-BuyLine® went negative last week for the first time since mid-February 2020, during the beginning of the pandemic. We are about 30-50% in cash and very short-term bonds. We were scaling out last week trying to take advantage of any... [READ MORE] 8
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.
Did You Know That You Have the Right to Challenge the IRS?
As a taxpayer, you have the right to challenge the IRS’ position. This is part of the Taxpayer Bill of Rights, which outlines your fundamental rights when working with the IRS.
With this right, you can:
- Raise objections to an IRS decision
- Provide additional documentation in response to proposed or formal IRS actions
- Expect the IRS to deliver a timely objection
- Have the IRS consider any supporting documentation promptly and fairly
- Receive a response from the IRS if they disagree with your position
In some circumstances, you may have the opportunity to have a hearing before an independent Office of Appeals. 9
* 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.
Zero-Waste Grocery Shopping Tips
There are many ways to have an eco-friendly shopping trip at the grocery store. Here are a few tips to reduce plastic usage and aim for a zero-waste trip to the store:
- When possible, buy your dry goods from the bulk bin. This saves on plastic packaging compared to the ready-made items in the aisles.
- Not only can you bring your bags, but you can also bring your bulk containers, jars, or bulk bags.
- If you can’t shop in bulk bins, look for dry goods or produce in aluminum cans, which are easier to recycle.
- Paper or glass are also better for the environment than plastic. Choose eggs and milk that are in cardboard containers.
- If you have to buy a plastic container of something, buy the biggest size available because it will last longer and will use less packaging.10
Garlic Parmesan Crusted Salmon and Asparagus
Total Time: 30 mins
- 1.5 lb salmon (3-4 salmon fillets)
- 1 lb asparagus ends trimmed
- ¼ teaspoon salt
- ¼ teaspoon pepper
- 3 tablespoons olive oil or more
- 6 garlic cloves minced
- 1 cup Parmesan cheese shredded
- ¼ cup parsley fresh, chopped
- Preheat oven to 400 F. Line baking sheet with parchment paper (make sure the parchment paper packaging says that it's safe to use at 400 F).
- Pat dry salmon. Brush with 2 tablespoons of olive oil from all sides. Season with salt and pepper. Place the salmon, skin side down, on a parchment paper lined baking sheet. Coat asparagus with olive oil, season with salt and pepper, and place around salmon on a baking sheet.
- Spread minced garlic on top of the salmon and the asparagus. Top with grated Parmesan cheese.
- Bake the salmon in the preheated oven at 400 F for 15-20 minutes.
- Remove from the oven, top with chopped fresh parsley before serving.
Footnotes and Sources
1. The Wall Street Journal, February 4, 2022
2. The Wall Street Journal, February 4, 2022
3. The Wall Street Journal, February 4, 2022
4. The Wall Street Journal, February 1, 2022
5. CNBC, February 2, 2022
6. CNBC, February 3, 2022
7. CNBC, February 4, 2022
8. howardcm.com, January 31, 2022
9. IRS.gov, September 1, 2021
10. Greenmatters.com, November 19, 2020
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 2022 FMG Suite.