Strong earnings from several mega-cap technology companies offset renewed regional banking jitters and weak economic data, leaving stocks higher for the week.
The Dow Jones Industrial Average gained 0.86%, while the Standard & Poor’s 500 added 0.87%. The Nasdaq Composite index rose 1.28% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, lost 0.60%.1,2,3
Earnings Drive Rebound
It was a very busy week of earnings reports, but none more important than those from the Big Tech names. After two days of sharp losses on revived regional banking fears and otherwise lackluster earnings results, stocks rallied powerfully on a succession of positive earnings surprises from several mega-cap companies.
Also aiding the sentiment was last week’s first quarter Gross Domestic Product (GDP) report. Though the report showed muted economic growth that fell short of expectations, investors were encouraged by strong consumer spending.
In a sign that higher rates are slowing economic growth, first-quarter GDP slowed to a 1.1% annualized growth rate as healthy consumer spending helped offset a decline in business investment and a slowdown in nonresidential investment.
Economists had expected first-quarter GDP growth to come in at 2%. The business inventory investment slowdown reduced the headline GDP number by 2.26%.4
The initial estimate of GDP also reported some disappointing inflation news as the quarter-over-quarter Personal Consumption Expenditures Price Index, the Fed’s preferred inflation measure, rose 4.2%, which was higher than the 3.7% forecast.5
This Week: Key Economic Data
Monday: Institute for Supply Management (ISM) Manufacturing Index.
Tuesday: Factory Orders. Job Openings and Turnover Survey (JOLTS).
Wednesday: FOMC Announcement. Institute for Supply Management (ISM) Services Index.
Thursday: Jobless Claims.
Friday: Employment Situation.
Source: Econoday, April 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: Stryker Corporation (SYK), ON Semiconductor Corporation (ON).
Tuesday: Advanced Micro Devices, Inc. (AMD), Ford Motor Company (F), Pfizer, Inc. (PFE), Starbucks Corporation (SBUX), Marathon Petroleum (MPC).
Wednesday: CVS Health Corporation (CVS), Qualcomm, Inc. (QCOM), Albemarle Corporation (ALB), Barrick Gold Corporation (GOLD).
Thursday: Apple, Inc. (AAPL), Block, Inc. (SQ), Shopify, Inc. (SHOP), ConocoPhillips (COP), Booking Holdings, Inc. (BKNG), Regeneron Pharmaceuticals, Inc. (REGN),
Friday: Cigna Group (CI), EOG Resources, Inc. (EOG), Dominion Energy, Inc. (D),
Source: Zacks, April 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.
AGG Shows Signs of Life – Time for the Bond Market Boogie?
The market is trading just about as anticipated, with a pullback in the last week or so, and a nice rally pushing us up into the important range of $322 on QQQ. If we can get a powerful breakthrough in this area of resistance, that would be very bullish for the markets going forward. Also, look at AGG, the aggregate...[READ MORE]6
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.
Tax Tips for Those in the Military
The Internal Revenue Service has certain special tax breaks and programs for members of the U.S. Armed Forces. Here are a few.
Earned Income Tax Credit
You may include nontaxable combat pay in your taxable income. Including it may boost your earned income tax credit, resulting in you owing less and potentially a larger refund.
Signing Joint Returns
As a rule, both spouses normally must sign a joint income tax return. If your spouse is absent due to military duty, you may be able to sign for your spouse. However, you may need a power of attorney to file a joint return.
The Tax Cuts and Jobs Act suspended the deduction for moving and job search expenses for most taxpayers through January 1, 2026. This suspension does not apply to members of the Armed Forces on active duty who move under a military order related to a permanent change of station.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.
Stay Healthy During Flu Season
Conventional wisdom is that flu season comes during Fall and Winter, but the truth is that it can vary wildly from year to year and region to region. Fortunately, you may reduce your risk this coming flu season with a few simple steps.
- Get the flu vaccination: The Centers for Disease Control estimates that fewer than half of all Americans got the flu vaccine last year. While getting the vaccine may not prevent you from getting a strain of the flu, it may help you avoid one of the other strains. This is especially important for anyone with a chronic health condition and those 65 and older.
- Wash your hands: Handwashing remains one of the most effective ways to prevent the flu. Wash your hands with soap and water for at least 20 seconds, and wash your hands often.
- Disinfect: Disinfect objects that you touch every day, like doorknobs, your car’s steering wheel, and other household items that you use regularly.
While this information should not substitute for medical advice from your healthcare provider, implementing better habits, like frequent handwashing, wearing a face mask, and avoiding anyone ill, may help you and your loved ones stay healthy this flu season.8
Roasted Broccoli Salad
Time: 30 mins
Easy Roasted Broccoli Salad with toasted almonds, kalamata olives, and lemon zest drizzled with Mustard Seed Maple Dressing.
- 1 large head of roasted broccoli
- 1/4 cup sliced almonds, toasted
- 10 kalamata olives, sliced in half
- 1/4 cup feta or vegan feta (optional)
- lemon zest from one lemon
Maple Mustard Seed Dressing:
- 1 tablespoon whole grain mustard
- 1 tablespoon maple syrup
- 2 tablespoons fresh lemon juice
- 1 tablespoon olive oil
- 1 teaspoon fresh tarragon
- 1/8 teaspoon sea salt
- 1/8 teaspoon black pepper
- 1 teaspoon shallots, minced
- Preheat the oven to 450F. Roast the broccoli. Bake for 15-20 minutes. The broccoli will continue to cook on the sheet pan, when you bring it out of the oven.
- While broccoli is roasting, make the dressing. In a bowl, whisk together whole grain mustard, maple syrup, lemon juice, olive oil, tarragon, shallot, salt and pepper.
- Cut cooled broccoli into bite-sized pieces.
- Toss in a bowl with the Kalamata olives and half of the dressing.
- Transfer to a serving bowl. Top with almonds, lemon zest and feta cheese. Drizzle on more dressing as needed. Serve at room temperature.
Footnotes and Sources
1. The Wall Street Journal, April 28, 2023
2. The Wall Street Journal, April 28, 2023
3. The Wall Street Journal, April 28, 2023
4. CNBC, April 27, 2023
5. CNBC, April 27, 2023
6. howardcm.com, May 1,2023
7. IRS.gov, 2023
8. Centers for Disease Control, February 7, 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.