Stocks Rise, Jobs Cool

Stocks ripped higher last week on a dramatic retreat in bond yields triggered by easing inflation and a slowing labor market.

The Dow Jones Industrial Average jumped 5.07%, while the Standard & Poor’s 500 surged 5.85%. The Nasdaq Composite index rocketed 6.61% higher for the week. The MSCI EAFE index, which tracks developed overseas stock markets, gained 3.12%.^1,2,3

Stocks Rise

Stocks jumped higher right from the start of the week, shaking off the prior week’s sell-off. The combination on Wednesday of the Fed’s decision to keep rates unchanged, which accompanied dovish comments from Fed Chair Powell, and a reassuring Treasury announcement on future bond sales, sparked a third straight day of gains. Slight employment gains and weak manufacturing data provided an additional impetus.

The rally continued on Thursday following a sharp drop in bond yields that was driven, in part, by substantial productivity gains and decelerating wage growth. When Friday’s monthly employment report was lighter than forecast, yields pulled back further, and stocks added to their week’s gains.

Signs of Labor Cooling

Last week’s employment data showed potential for a cooling labor market after many months of confounding economists’ expectations. The first sign was a lower-than-expected growth in new private sector jobs in October, as reported by Automated Data Processing (ADP), which showed a gain of 113,000 new jobs versus a forecast of 130,000, while job openings were little changed.⁴

Initial and continuing jobless claims also rose, exceeding consensus estimates. On Friday, the government’s monthly employment report further confirmed a potentially cooling employment picture, showing an October slowdown in hiring (150,000 new jobs versus September’s revised gain of 297,000) and an uptick in the unemployment rate to 3.9%.⁵

This Week: Key Economic Data

Thursday: Jobless Claims.

Friday: Consumer Sentiment.

_{^{Source: Econoday, November 3, 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: D.R. Horton, Inc. (DHI), Gilead Sciences, Inc. (GILD), Air Products and Chemicals, Inc. (APD)

Wednesday: Occidental Petroleum Corporation (OXY), The Walt Disney Company (DIS)

Thursday: Becton, Dickinson and Company, Inc. (BDX).

_{^{Source: Zacks, November 3, 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.}}

Volatile Market as The Government Continues to Stand in its Own Way

The HCM-BuyLine^® is negative, and we have reduced exposure to equities by a substantial amount. The equities markets are oversold, so look for a bounce up, which will probably not hold but could be an area to sell into. Early in the year, the market looked to have worked its way out of last year’s bear market, but the Fed raising rates 11 times and...[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.} 

Is it Time for a Paycheck Checkup?

There's no better time to check your withholding status and make sure your paycheck accurately reflects the taxes you should be paying. These paycheck checkups are a great practice when something happens in your life that may change your tax status, such as getting married or getting divorced, having a baby, getting a new job, or getting a raise or promotion at work. You can also adjust your withholding status if you want to change your withholding due to other circumstances.

During your paycheck checkup, you can also check other factors, such as how much you contribute to your health insurance or 401(k). These expenses can also impact your tax liability.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.}

5-Minute Core-Strengthening Workout

Even if you only have a little time to dedicate to a core workout, this circuit will get you going and only takes 5 minutes. Here are the moves:

1-minute high plank: Your hands are on the ground, your arms are straight, and you are holding your body up with your arms and a tight core.

30-second side plank on each side: One hand is on the ground, your arm is straight, and the other is in the air. You can do a side plank with your feet stacked on each other (most challenging), your feet staggered (a little easier), or your bottom knee on the ground.

1-minute boat pose: Your feet are in the air, and your arms are by your side, reaching to your feet. You can pose with your legs bent (easier) or straight out (harder).

1-minute crunches: Lift your shoulders and upper back off the ground without pulling your neck.

1-minute dead bug: Lay on your back and alternate, extending out the opposite arm and the opposite leg simultaneously.⁸

Curried Cauliflower Soup

Servings: 4 bowls

PREP TIME: 15 mins | COOK TIME: 45 mins | TOTAL TIME: 60 mins

Ingredients:

• 1 large head of cauliflower, broken into small florets, stems chopped
• Up to 4 tablespoons melted coconut oil or olive oil, divided
• 1 medium yellow onion, diced
• 2 to 3 tablespoons Thai red curry paste* (depending on preferred spice level)
• Preheat oven to 400 degrees Fahrenheit. Toss the cauliflower with enough coconut oil to lightly coat it (up to 3 tablespoons). Spread the cauliflower in a single layer on a large baking sheet and roast until the tips of the cauliflower are golden brown, about 25 to 30 minutes.
• ½ teaspoon lemon zest
• ½ cup unoaked white wine (like Sauvignon Blanc or Pinot Grigio)**
• 1 ½ cups vegetable broth or stock
• 1 can (14 ounces) light coconut milk
• ½ teaspoon sugar
• 1 to 3 teaspoons rice vinegar
• Salt and freshly ground black pepper
• ¼ cup chopped green onions or chives
• 1 tablespoon chopped fresh basil
• Thinly sliced jalapeño, Serrano or birds-eye peppers (optional, not shown)

Instructions:

1. Preheat oven to 400 degrees Fahrenheit. Toss the cauliflower with enough coconut oil to lightly coat it (up to 3 tablespoons). Spread the cauliflower in a single layer on a large baking sheet and roast until the tips of the cauliflower are golden brown, about 25 to 30 minutes.
2. In a Dutch oven or large, heavy-bottomed pot over medium heat, warm 1 tablespoon of the coconut oil until shimmering. Add the onion and a dash of salt and cook, stirring occasionally, until the onion is turning translucent, about 3 minutes. Add the curry paste and lemon zest and stir to incorporate. Raise the heat to medium-high, add the wine, and cook, stirring frequently, until most of the wine has evaporated.
3. Add all of the roasted cauliflower stems and half of the florets to the pot. Add the vegetable broth, coconut milk and sugar. Bring the mixture to a gentle simmer, stirring occasionally. Continue simmering for 5 to 10 more minutes to meld the flavors, reducing heat as necessary to maintain a gentle simmer. Remove the pot from the heat.
4. Let the soup cool for a few minutes, then carefully use an immersion blender to blend until smooth. (Or transfer the soup in small batches to a blender, blending until each batch is smooth. Don’t ever fill your blender past the maximum fill line, and beware of the steam escaping from the lid.)
5. Stir in 1 teaspoon vinegar and salt and pepper, to taste. If the soup needs more acidity, stir in 1 to 2 additional teaspoons of vinegar, to taste. Ladle the soup into 4 bowls. Top each with ¼ of the cauliflower florets, a sprinkle of basil and chives and hot peppers (if using).

NOTES: 

*THAI RED CURRY PASTE: Thai Kitchen’s red curry paste is vegetarian (some other Thai curry pastes contain shrimp). 

**WINE IS OPTIONAL: If you want to skip the wine, just proceed to the next step (add the cauliflower and so forth).

_{Footnotes and Sources}

^{_{1. The Wall Street Journal, November 3, 2023.}}

_{^{2. The Wall Street Journal, November 3, 2023.}}

_{^{3. The Wall Street Journal, November 3, 2023.}}

_{^{4. CNBC, November 2, 2023.}}

^{_{5. The Wall Street Journal, November 3, 2023}.}

^{6. _{howardcm.com, October 24, 2023}.}

_{^{7. IRS.gov, May 30, 2023.}}

_{^{8. Mindbodygreen.com, July 19, 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.}