Stocks Take Summer Break, Month Remains Strong

June 26, 2023

Stocks took a breather last week as investors digested the previous week’s surge and the month-to-date solid gains.

The Dow Jones Industrial Average lost 1.67%, while the Standard & Poor’s 500 fell 1.39%. The Nasdaq Composite index dropped 1.44% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, tumbled 2.00%.^1,2,3

display image

Rally Stalls

The stock market drifted lower last week as the tug-of-war between bulls and bears played out in a week that was light on market-moving news.

After falling in the first days of a holiday-shortened trading week, stocks rebounded on Thursday to recover some of the week’s losses. Stocks looked past Congressional testimony by Fed Chair Powell, who said two more rate hikes are likely in the wake of interest rate hikes by central bankers in the U.K., Switzerland, Norway, and Turkey.

The retreat continued into Friday, fueled by global growth fears from new economic data indicating more robust economic slowdowns in the eurozone, Japan, and Australia.

Housing Sentiment Improves

Home builders' confidence edged into positive territory for the first time in 11 months, aided by strong demand, low inventory, and a recovering supply chain. May’s new home sales, which rose 21.7%–the most significant percentage gain since October 2016, validated this confidence. The number of new home starts in May (1.63 million) hit a 13-month high, with both single- and multi-family homes up substantially.^4,5

Sales of existing homes in May rose 0.2% month-over-month while declining 20.4% from a year ago. The existing home market continues to suffer from low inventory and still-high prices. The median price of a home sold in May declined 3.1% year-over-year to $396,100.⁶

This Week: Key Economic Data

Tuesday: Durable Goods Orders. New Home Sales.

Thursday: Gross Domestic Product (GDP). Jobless Claims.

Friday: Personal Income and Outlays. Consumer Sentiment.

^{_{Source: Econoday, June 23, 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 revis}ion.}

This Week: Companies Reporting Earnings

Tuesday: Walgreens Boots Alliance, Inc. (WBA).

Wednesday: Micron Technology, Inc. (MU), General Mills, Inc. (GIS).

Thursday: Nike, Inc. (NKE), McCormick & Company, Inc. (MKC)

_{^{Source: Zacks, June 23, 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.}}

Couples Who Work Together, Tax Together

When a household starts a business, couples find themselves learning about the tax responsibilities related to that business. There are some things to consider when working together.

Here are a few items to consider:

You should first establish if you have a partnership business (where both spouses have an equal say in the affairs, services, and capital of the business) or an employee/employer relationship (one spouse substantially controls management decisions). These relationships face different tax situations.
If there is an employee/employer relationship, the second spouse (employee) may be subject to income, Social Security, and Medicare
You may need to file the U.S. Return of Partnership Income form if there is a partnership relationship.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.}

Eat This, Not That: Easy Food Swaps Anyone Can Do

Eating healthier doesn’t have to be hard! You might not have to make any significant changes to your current diet! You can cut the bad stuff by swapping out unhealthy options for healthier picks and still enjoy your meal. Here are some of our favorite food swaps:

Mustard instead of mayonnaise (0 calories vs. 90 calories)
Scrambled eggs with green onions instead of cheese (170 calories vs. 275 calories)
Sparkling water instead of soda (0 calories vs. 140 calories)
Fresh fruit instead of dried fruit (69 calories vs. 325 calories)
Greek yogurt instead of sour cream (28 calories vs. 60 calories)
Olive oil spray instead of a tablespoon of olive oil (5 calories vs. 120 calories)
Corn tortillas instead of flour tortillas (100 calories vs. 280 calories)
All-bran cereal instead of granola (80 calories vs. 200 calories)
Goat cheese instead of Brie cheese (70 calories vs. 100 calories)

Many healthy swaps like these can help you reduce your caloric intake, consume less sugar, and make it easy to create a more balanced meal.⁸

No Bake Raspberry Cheesecake Bars

Servings: 9 bars

Time: 1 hr. 30 mins hours

No Bake Raspberry Cheesecake Bars are just delightful --- with a graham cracker crust, fresh berries, a fluffy cheesecake filling, and dark chocolate on top.

Ingredients:

Crust

9 sheets graham crackers, (one sleeve)
5 Tbsp unsalted butter, melted
2 Tbsp brown sugar, packed

Raspberry Layer

2 cups fresh raspberries
2 Tbsp sugar
1 Tbsp cornstarch

Cheesecake Filling

8 ounces cream cheese, at room temperature
1/3 cup sugar
1 Tbsp vanilla extract
1/2 cup heavy cream

Chocolate Topping

3 ounces dark chocolate, chopped (or use dark chocolate chips)
3 Tbsp unsalted butter, melted

Instructions:

Lightly spray and line a 9x9 square baking pan with 2 criss-crossed sheets of parchment paper, with long ends hanging over the sides. This is totally optional, but makes removing and cutting the chilled bars much easier.
Crush the graham crackers into a fine crumb. I do this in my food processor. I find that it helps to break up the crackers a bit first before adding to the machine. Pulse in the sugar, and then drizzle in the butter and process or mix until all the crumbs are moist.
Pat the crust evenly into prepared pan. Pop this in the refrigerator while you make the fillings.
Put the raspberries, sugar, and cornstarch in a small saucepan and bring to a boil. Lower the heat to medium and cook this mixture for about 2 minutes, or just until thickened, stirring often. Add a touch of water if it seems very dry, and mash the raspberries a bit as you stir. Remove from heat and let cool for 15 minutes. Spread the cooled raspberries over the crust and put back in the refrigerator.
Whip the cream to firm peaks in a small bowl. In another bowl, beat the softened cream cheese with the sugar and vanilla until smooth. Fold in the whipped cream gently. Spread over the top of the raspberries. Chill for an hour.
Melt the chocolate with the butter and stir until smooth and silky. You can do this over the stove or in the microwave. Set aside and let cool for 10 minute. Drizzle cooled chocolate over the top of the cream cheese, using an offset spatula to gently spread it over the top. Refrigerate for at least 2 hours before serving.
Serve chilled.

Footnotes and Sources

^{1. The Wall Street Journal, June 23, 2023.}

^{2. The Wall Street Journal, June 23, 2023.}

^{3. The Wall Street Journal, June 23, 2023.}

^{4. National Association of Home Builders, June 19, 2023}

^{5. Reuters, June 20, 2023.}

^{6. CNBC, June 22, 2023.}

^{7. IRS.gov, February 22, 2023}

^{8. EatThis.com, 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.}