Tighter Money Policy; Market Drops

Tighter Money Policy; Market Drops

May 10, 2022
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With the Fed in focus, the markets experienced wide price swings over the course of last week, as technology companies led the market lower.

The Dow Jones Industrial Average slipped 0.24%, while the Standard & Poor’s 500 declined 0.21%. The Nasdaq Composite index dropped 1.54% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, fell 1.99%.1,2,3

A Wild Week

After successive daily gains to begin the week, stocks staged a powerful relief rally in response to Wednesday’s Federal Open Market Committee (FOMC) announcement, aided by Fed Chair Powell’s comment that a 75-basis point hike was not under active consideration.

Stocks, however, dropped the following day as investors reassessed the implications of a tighter monetary policy. Also on Thursday, the yield on the 10-year Treasury Note closed above three percent. News that worker productivity fell 7.5% and labor costs rose 11.6% in the first quarter fanned inflation fears and added to investor unease. Despite a better-than-expected employment report, stocks closed out the week with another day of losses amid volatile trading.4

Fed Raises Rates

The May 2022 FOMC meeting resulted in an increase of 50 basis points in the federal funds rate, the largest rate increase since 2000. In a post-meeting press conference, Fed Chair Powell said additional 50 basis point hikes are likely, acknowledging that inflation was much too high and sending assurances that he was committed to price stability.

The Fed also announced that it would begin reducing its $9 trillion balance sheet by $95 billion a month, a step the markets had been anticipating.5

This Week: Key Economic Data

Wednesday: Consumer Price Index (CPI).

Thursday: Producer Price Index (PPI). Jobless Claims.

Friday: Consumer Sentiment.

Source: Econoday, May 6, 2022
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: Tyson Foods, Inc. (TSN).

Tuesday: Occidental Corporation (OXY), Sysco Corporation (SYY).

Wednesday: The Walt Disney Company (DIS), Rivian Automotive, Inc. (RIVN).

Thursday: Affirm Holdings, Inc. (AFRM).

Source: Zacks, May 6, 2022
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.

Wealth Watch: Markets Struggle to Find Footing but Hope Remains for the 2nd Half of 2022

After what was a strong run-up, the HCM-BuyLine® has turned back to negative, and we have been reducing exposure to equites into any rally we have had. We are approximately at maximum cash, which is.....[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. 

You May Be Able to File Your State and Federal Tax Returns for Free

Taxpayers whose adjusted gross income was $72,000 or less may be able to file their federal taxes for free using IRS Free File and may also be able to do their state taxes at no charge through the same service. More than 20 states have their own state Free File program that is similar to the federal service.

IRS Free File partners also feature a number of helpful online products and through Free File, taxpayers can choose the Free File option, guided tax preparation, or Free File Fillable Forms. Make sure to filter for the free options because some additional services may have a charge.7

* This information is not intended to be a substitute for specific, individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.

What Is Meatless Monday?

Thanks to new (and much more delicious) meat substitutes, more people are swapping at least one meal a week for a vegetarian dish. One of the most popular ways to do this is starting Meatless Monday in your household!

There are many potential health and environmental benefits of eating less meat and more plant-based choices. While you might not be ready or interested in giving up meat entirely, subbing in meatless meals on Monday is a great change of pace and might open your eyes to more delicious plant-based meals like:

  • Veggie lasagna

  • Vegetarian pizza

  • Pasta with lentils

  • Homemade falafel and hummus

  • Protein-packed salads

The possibilities for Meatless Monday are endless! Your body and the environment will thank you for eating more plants.8

ARTICHOKE TOMATO AND SPINACH FLATBREAD

Total Time: 22 mins

Ingredients

  • 6 Tbsp. olive oil, divided
  • 2 garlic cloves, minced
  • 2 Tbsp. fresh minced parsley
  • 2 (8-inch) round flatbreads, such as naan
  • 1/2 cup shredded mozzarella cheese
  • 4 Tbsp. shredded Parmesan cheese, divided
  • 1 (14 oz.) can quartered artichokes in water, drained
  • 1/2 cup cherry or grape tomatoes, halved
  • 1 cup fresh baby spinach, roughly chopped
  • 1/2 tsp. dried basil or 1 1/2 tsp. fresh basil
  • Kosher salt and black pepper

Instructions:

  1. Preheat the oven to 425 degrees F. Line a baking sheet with parchment paper and set aside.
  2. Combine 4 tablespoons of olive oil, garlic, and parsley. Spread the mixture over each flatbread. Sprinkle with mozzarella cheese and 2 tablespoons of Parmesan cheese.
  3. Toss artichokes, tomatoes, spinach and basil with 2 tablespoons of olive oil. Season with salt and pepper to taste. Spoon the mixture over each flatbread and sprinkle the top with remaining 2 tablespoons of Parmesan cheese.
  4. Bake for 10-12 minutes, or until the bottom and edges are golden crisp. Slice and serve warm.

Stay safe!

Footnotes and Sources


1. The Wall Street Journal, May 6, 2022

2. The Wall Street Journal, May 6, 2022

3. The Wall Street Journal, May 6, 2022

4. CNBC, May 5, 2022

5. CNBC, May 4, 2022

6. howardcm.com, May 4, 2022

7. IRS.gov, February 16, 2021

8. mondaycampaigns.org, February 22, 2022

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 2022 FMG Suite.

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