A Friday surge pushed stocks solidly into positive territory last week, ignited by cooling in an inflation gauge closely tracked by the Federal Reserve.
The Dow Jones Industrial Average advanced 0.66%, while the Standard & Poor’s 500 climbed 1.01%. The Nasdaq Composite index rose 2.02% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, gained 0.74%.1,2,3
Stocks Pop
Stocks were flat for much of last week amid a batch of new earnings, a 0.25% interest rate hike, and strong economic data. After beginning with gains, stocks lost momentum following the Fed’s expected rate-hike announcement on Wednesday. A bounce on Thursday sparked by a positive mega-cap tech company earnings reversed after bond yields increased.
Stocks recovered strongly Friday on the release of the personal consumption expenditures price index, which fell to its lowest level in two years.4
Much of the market action was related to earnings results. With 44% of S&P 500 companies reporting, 78% have exceeded Wall Street forecasts.5
Recession Deferred
Expectations of a recession were high coming into 2023. Last week may have erased this recession narrative overhang.
Second-quarter gross domestic product (GDP) data released last week was one big reason why. Economic activity expanded by 2.4%, which was above the forecast of two percent and represented an acceleration from its first quarter GDP of 2.0%. Consumer spending was a major driver of that expansion, rising 1.6%.6
Joining the recession-deferred camp this week was Fed Chair Powell, who stated that the Fed was no longer forecasting a recession.
This Week: Key Economic Data
Tuesday: Institute for Supply Management (ISM) Manufacturing Index. Job Openings and Labor Turnover Survey (JOLTS).
Wednesday: Automated Data Processing (ADP) Employment Report.
Thursday: Jobless Claims. Institute for Supply Management (ISM) Services Index.
Friday: Employment Situation.
Source: Econoday, July 28, 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
Monday: Arista Networks, Inc. (ANET), ON Semiconductor Corporation (ON)
Tuesday: Advanced Micro Devices, Inc. (AMD), Pfizer, Inc. (PFE), Caterpillar, Inc. (CAT), Starbucks Corporation (SBUX), Merck & Co., Inc. (MRK), Prudential Financial, Inc. (PRU), Rockwell Automation, Inc. (ROK)
Wednesday: CVS Health Corporation (CVS), Qualcomm, Inc. (QCOM), PayPal Holdings, Inc. (PYPL), Shopify, Inc. (SHOP), Albemarle Corporation (ALB), Emerson Electric Co. (EMR), Humana, Inc. (HUM)
Thursday: Apple, Inc. (AAPL), Block, Inc. (SQ), Gilead Sciences, Inc. (GILD), Amgen, Inc. (AMGN), Cigna Group (CI), Occidental Petroleum Corporation (OXY), Fortinet, Inc. (FTNT), ConocoPhillips (COP), Booking Holdings, Inc. (BKNG), Regeneron Pharmaceuticals, Inc. (REGN)
Friday: EOG Resources, Inc. (EOG)
Source: Zacks, July 28, 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.
Who Qualifies for the Child and Dependent Care Tax Credit?
Let's outline who the Internal Revenue Service (IRS) defines as a qualifying person under this care credit:
- A taxpayer’s dependent who is under the age of 13 when the care is provided.
- A taxpayer’s spouse who cannot care for themselves has lived with the taxpayer for more than half the year.
In addition to spouses and dependents, the credit may also cover someone who is mentally or physically unable to care for themselves and lives with the taxpayer for six months. This is the case if that person was the taxpayer's dependent or if they would have been the taxpayer's dependent except for one of the following:
- The qualifying person received a gross income of $4,400 or more.
- The qualifying person filed a joint return.
- If filing jointly, the taxpayer or spouse could be claimed as dependent on someone else’s 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.
Healthy Summer Tips
Staying healthy this summer will help you enjoy the season even more. Here are some of our favorite healthy summer tips:
- Stay safe in the sun, and always wear sunscreen. Use an SPF 30 or above with both UVA and UVB protection. If possible, hang out in shaded areas.
- Challenge your family and friends to some healthy competition, like a game of capture the flag, a scavenger hunt, volleyball, flag football, or dodgeball.
- Eat smart by indulging in a few of your favorite foods but still making healthy choices. Swap red meat out for chicken, choose fruits and veggies instead of chips, and eat sweets sparingly. Countless healthy barbecue and cookout recipes are delicious and will still satisfy that summer picnic spirit.
So what are you waiting for? Get out there and enjoy some summer swimming, games, or your favorite healthy snacks.8
Mango Royale (Filipino Icebox Cake)
Servings: 9
PREP TIME: 15 mins | CHILL TIME: 4 hours | TOTAL TIME: 4 hours 15 mins
Mango Royale Icebox Cake is variation on a popular Filipino dessert called Crema de Fruta.This quick and easy dessert is simply made with graham crackers, whipped cream, and fresh mangoes.
Ingredients:
- 15 full-sheet graham crackers
- 3 cups super ripe champagne mangos, peeled and diced*
- 1 ¾ cup heavy cream, chilled
- ¾ cup sweetened condensed milk
Instructions:
- Line a 9-inch square baking pan (with a removable bottom is best) with parchment paper along the bottom and sides to allow for easy cake removal. Line the baking pan with a layer of graham crackers. Cut crackers as necessary to fit pan.
- In chilled bowl, use a handheld mixer to whip heavy cream to soft peaks. Continue to whip while slowing adding sweetened condensed milk. Whip to firm peaks.
- Add about 1 cup of sweetened whipped cream over graham crackers. Distribute about 1 cup of diced mango over whipped cream. Place a layer of graham crackers over mangoes. Repeat twice by adding another layer of whipped cream followed by mangos.
- Cover pan with plastic wrap and let chill in the fridge for at least 4 hours, overnight is best. Alternatively, you can freeze the dessert for more of an ice cream cake kind of texture. Once chilled, lift mango royale out of the pan using the parchment paper overhang. Slice and serve.
Footnotes and Sources
1. The Wall Street Journal, July 28, 2023.
2. The Wall Street Journal, July 28, 2023.
3. The Wall Street Journal, July 28, 2023.
4. CNBC, July 28, 2023.
5. CNBC, July 27, 2023.
6. CNBC, July 27, 2023.
7. IRS.gov, May 1, 2023
8. Prevent Cancer Foundation, 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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