Stocks fluctuated last week, jostled by fitful bond yields and headline news, before ending strongly following Fed Chair Powell’s comments on the monetary outlook.
The Dow Jones Industrial Average slipped 0.45%, while the Standard & Poor’s 500 gained 0.82%. The Nasdaq Composite index rose 2.26% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, added 0.78%.1,2,3
Stocks Manage Gains
Stock rallied on Monday on upbeat sentiment over the earnings release from a mega-cap semiconductor company scheduled for mid-week, only to see that momentum fizzle the following day on weak retail earnings and a credit downgrade of a handful of banks.
Stocks resumed their rally on weak economic data, which fueled hopes for future Fed dovishness. They also rose on expectations that earnings from a leading AI chipmaker would validate the AI narrative that propelled markets in the second quarter. Despite a blowout earnings report, stocks turned lower as investor attention quickly switched to Fed Chair Powell’s presentation scheduled for Friday.
After some initial jitteriness, Investors responded well to Powell’s comments, posting gains to close the week.
Powell Stands Firm
Powell spoke on Friday at the Fed’s annual economic symposium in Jackson Hole, asserting that, despite considerable progress, inflation remained too high and additional rate hikes may be in the offing. He acknowledged that previous rate increases had not yet thoroughly worked their way through the system, so caution about further hikes was needed.
Investors reacted to Powell’s comments far better than in August 2022, when a hawkish presentation sent stocks lower. Powell also addressed a growing feeling among investors that the Fed may eventually raise its inflation target to 2.5-3.0%. Powell rejected this idea unambiguously, stating that the two percent target would remain the Fed’s inflation goal.
This Week: Key Economic Data
Tuesday: Consumer Confidence. Job Openings and Turnover Survey (JOLTS).
Wednesday: Automated Data Processing (ADP) Employment Report. Gross Domestic Product (GDP).
Thursday: Personal Income and Outlays. Jobless Claims.
Friday: Employment Situation. Institute for Supply Management (ISM) Manufacturing Index.
Source: Econoday, August 25, 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: Hewlett Packard Enterprise Company (HPE), HP, Inc. (HPQ)
Wednesday: Salesforce, Inc. (CRM), Veeva Systems, Inc. (VEEV), CrowdStrike (CRWD).
Thursday: lululemon athletica, inc. (LULU), Broadcom, Inc. (AVGO), Dollar General Corporation (DG), Dell Technologies, Inc. (DELL), VMware, Inc. (VMW)
Source: Zacks, August 25, 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.
Navigating The Pullback With NVIDIA Earnings On The Horizon
The markets are now oversold with the most recent pullback. As we have said before, all pullbacks should be considered buyable as long as the HCM-BuyLine® is positive, which it is. Semiconductors are looking like they could be a good area to place money; a good ETF is SOXX and of course like...[READ MORE]4
IN CASE YOU MISSED IT...
Vance Howard joins Frank Holland live on CNBC's Worldwide Exchange to discuss how to navigate the dog days of August.[WATCH HERE]
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.
Starting a New Business
Starting a new business? Here’s a tip that the Internal Revenue Service shares for new business owners:
Choose an appropriate business structure: The form of business determines which income tax return a business taxpayer needs to file.
If necessary, apply for an Employer Identification Number (EIN): An EIN is used to identify a business structure outside a personal identification number.5
*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.
Boost Your Productivity With These Tips
Take regular breaks. It seems counterintuitive, but most people are more productive when they take frequent breaks.
Do the complicated tasks first. Mark Twain famously said to "eat the frog first thing in the morning," meaning that you should tackle your most challenging task immediately.
Make two to-do lists, one with your weekly goals and objectives and one with your daily tasks.
Divide large projects into manageable steps. Make the things on your to-do list specific so you can continue to cross things out and make progress.6
Double Berry Mascarpone Cobbler
Servings: 6-8
PREP TIME: 30 mins | COOK TIME: 1 hour | TOTAL TIME: 1 hour 30 mins
This summer berry cobbler is the best summer dessert ever. Is there anything more perfect than warm cobbler + ice cream in the summer?
Filling:
- 4 cups sliced strawberries
- 2 cups blueberries
- 1 ½ cups sugar
- ⅓ cup all-purpose flour
- 2 tablespoons freshly squeezed lemon juice
Cobbler Topping:
- 1 cup all-purpose flour
- ¼ cup sugar
- 2 ½ teaspoons baking powder
- ½ teaspoon salt
- ¼ cup unsalted butter, melted and cooled
- 8 ounces mascarpone cheese, softened (or sour cream)
- ¼ cup heavy cream
- 1 tablespoon vanilla extract
- turbinado sugar for sprinkling
- vanilla ice cream, for serving
Instructions:
- Preheat the oven to 375 degrees F.
- In a 9x13 baking dish, mix together the strawberries and blueberries. Sprinkle with the sugar and flour, then sprinkle on the lemon juice. Toss everything together well until the sugar is moistened and all the berries are covered. Let sit while you make the topping.
- In a small bowl, whisk together the flour, sugar, baking powder and salt.
- Place the melted butter in a large bowl. Mix in the mascarpone cheese - this will take a minute to come together. You can use a whisk, spatula or wooden spoon. Mix in the heavy cream and vanilla extract until combined.
- Mix in the dry ingredients until fully combined. Drop the batter by the spoonful all over the berries. Sprinkle the batter with a little bit of coarse turbinado sugar.
- Bake for 55 to 60 minutes, or until the topping is golden brown and cooked through. Let cool slightly before serving with ice cream.
Footnotes and Sources
1. The Wall Street Journal, August 25, 2023
2. The Wall Street Journal, August 25, 2023
3. The Wall Street Journal, August 25, 2023
4. howardcm.com, August 22, 2023
5. IRS.gov, March 1, 2023
6. Formstack, 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.
Copyright 2023 FMG Suite.