Rising concerns about further rate hikes sent stocks lower to kick off the second half of trading.
The Dow Jones Industrial Average lost 1.96%, while the Standard & Poor’s 500 retreated 1.16%. The Nasdaq Composite index surrendered 0.92% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, tumbled 2.57%.1,2,3
Stocks Slide
Stocks were dragged lower last week by news reigniting fears of additional rate interest rate increases. It started with the minutes from June’s Federal Open Market Committee meeting, which revealed a majority of voting members supported at least two more rate hikes. But a strong employment report from Automated Data Processing (ADP), a payroll processor, unnerved investors, sending stocks lower and bond yields higher.
Markets stabilized after Friday morning’s federal government’s monthly employment release showed a less-than-expected increase in nonfarm payrolls. But stock prices turned down in the afternoon, adding to the week’s losses.
Mixed Labor Market Signals
Wall Street was rattled by an unexpected surge in new private-sector jobs last Thursday. ADP reported private sector employers had added 497,000 jobs in June, blowing away the consensus estimate of 220,000. Leisure and hospitality led the gains with 232,000 new hires, followed by construction (97,000).4
Friday’s release of monthly employment data painted a more moderate picture, with 209,000 new jobs added in June, well below the estimate of 240,000 and May’s downwardly revised total of 306,000. Friday’s report added to data released earlier in the week (a decline in job openings and a rise in jobless claims) that suggested that the labor market may be cooling.5
This Week: Key Economic Data
Wednesday: Consumer Price Index (CPI).
Thursday: Producer Price Index (PPI). Jobless Claims.
Friday: Consumer Sentiment.
Source: Econoday, July 7, 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
Thursday: Delta Air Lines, Inc. (DAL), Pepsico, Inc. (PEP), Cintas Corporation (CTAS).
Friday: JPMorgan Chase & Co. (JPM), UnitedHealth Group Incorporated (UNH), Citigroup, Inc. (C), Wells Fargo & Company (WFC), BlackRock, Inc. (BLK).
Source: Zacks, July 7, 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.
Vance Howard on CNBC Worldwide Exchange
Vance Howard, CEO and portfolio manager at Howard Capital Management, discusses whether the markets will be able to extend their first-half gains, and whether mega-cap tech and AI will continue to drive the way forward. Watch the full interview here.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.
IRS Program Helps Seniors Prepare Taxes
The Internal Revenue Service (IRS) has a tool called Free File, which offers online tax preparation, direct deposit of refunds, and electronic filing choices. This tool can be helpful for taxpayers on a fixed budget, including seniors and retirees. Here are some things to know about the tool:
- IRS Free File can be found at IRS.gov and features some big names in the tax software provider world.
- To use the tool, taxpayers can browse multiple offers.
- The eligibility standards for using Free File depend on the tax partner, but they are usually based on income, age, and state residency.
- Free File has a majority of the most common forms needed when filing your taxes. Even if you have a unique tax situation, you may still be able to use Free File.
- Some Free File products are available in Spanish.
- You can also search for credits and deductions in Free File.
- Some providers in Free File also offer state return preparation. You can use the lookup tool in Free File to find the tax partner that might be appropriate for your state requirements.
- Taxpayers can access Free File through their computers, smartphones, or tablets. The site is designed for mobile usage.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.
Aloe Vera: One Powerful Plant
Aloe vera is one of those medicinal plants that can be used for almost everything. It is a cactus-type plant that grows well in many climates and has thick, juicy leaves that store water. Because of this, aloe vera is loved for its hydrating properties. Let's look at some of the many benefits of aloe and how you can include it in your daily routine.
The thick, sticky gel that is in aloe leaves has some powerful bioactive compounds, including vitamins, minerals, amino acids, and antioxidants.
Aloe vera is also known for its healing properties. It may help heal wounds and treat skin problems with its antibacterial, antiviral, and antiseptic properties. Also, it can be used as a topical treatment for first and second-degree burns.
Lastly, aloe vera might also help lower blood sugar levels by enhancing insulin sensitivity and improving blood sugar management. There has been some preliminary evidence that aloe vera may have benefits for people with prediabetes or type 2 diabetes.8
Stone Fruit Tart
Servings: 9
prep time: 20 mins | cook time: 25 mins | cool time 20 mins
This makes an awesome summer dessert, especially paired with a scoop of vanilla ice cream, but it is also really nice in the morning with a cup of coffee or tea!
Ingredients:
- ⅔ cup ricotta cheese
- 2 tablespoons honey
- zest of 1 lemon
- 1 (8 ½”x 8 ½”) sheet puff pastry, thawed
- 3 large stone fruit, halved seeded and thinly sliced (if using apricots, pluots, plums, etc) or 2 (if using peaches, nectarines, etc)
- powdered sugar
Instructions:
- Preheat oven to 400˚F.
- Place ricotta, honey and lemon zest into a mixing bowl and beat together until light and fluffy.
- Place puff pastry onto a baking sheet and spread honey whipped ricotta over the top in an even layer.
- Fold all the edges inward, about ½ an inch, pressing the edges down with the back of a fork.
- Top ricotta with rows of thinly sliced stone fruit pieces, until the surface is covered.
- Bake for 18 to 22 minutes or until puff pastry turns golden brown and puffs around the folded edges.
- Allow tart to cool, 15 to 20 minutes before dusting with powdered sugar, slicing and serving.
Footnotes and Sources
1. The Wall Street Journal, July 7, 2023.
2. The Wall Street Journal, July 7, 2023.
3. The Wall Street Journal, July 7, 2023.
4. CNBC, July 6, 2023.
5. CNBC, July 7, 2023.
6. howardcm.com, July 7, 2023.
7. IRS.gov, January 23, 2023
8. Medical News Today, February 15, 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.