Stocks Slide on Recession Concerns

Stocks Slide on Recession Concerns

December 12, 2022
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Recession fears and concerns that the Fed may consider a longer rate-hike cycle sent stocks lower for the week.

The Dow Jones Industrial Average dropped 2.77%, while the Standard & Poor’s 500 fell 3.37%. The Nasdaq Composite index lost 3.99% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, dipped 1.09%.1,2,3



Stocks Slide

Stocks were under pressure much of the week due to resurgent recession fears and concerns that Fed rate hikes may go higher for longer than current expectations. There was some good news last week on the economic front and out of China, which started to loosen COVID restrictions. But it was a week where good news was considered bad news, as any signs of economic resilience stoked worries of a longer rate-hike cycle.

Higher continuing jobless claims signaled economic softness, triggering a Thursday rally. But stock prices were under pressure Friday following a disappointing Producer Price Index (PPI) number.

Producer Inflation Disappoints

The Labor Department reported that the PPI rose 0.3% in November and 7.4% from a year ago. Though wholesale prices inflation rose at the slowest 12-month pace since May 2021, they exceeded market expectations. Price pressures were felt most in the services sector, where costs rose 0.4% after a 0.1% increase the month before. Goods inflation eased to a rise of 0.1%, a sharp drop from its October gain of 0.6%.4

Though the PPI number dented the optimism around cooling inflation, November’s PPI report represented an improvement from its 11.7% peak in March.5  

This Week: Key Economic Data

Tuesday: Consumer Price Index (CPI).

Wednesday: Federal Open Market Committee (FOMC) Meeting Announcement.

Thursday: Jobless Claims. Retail Sales. Industrial Production.

Friday: Purchasing Managers’ Index (PMI) Composite.

Source: Econoday, December 9, 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

Thursday: Adobe, Inc. (ADBE).

Friday: Darden Restaurants, Inc. (DRI).

Source: Zacks, December 9, 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.

Stocks Find Some Footing After 5-Day Losing Streak

The HCM-BuyLine® is still above the short and intermediate-term trend. In other words, some risk should be taken at this time. We have been carefully adding to positions and buying new ones on pullbacks. We are still holding a lot of cash, and the longer-term trend is still negative. The S&P 500 came awfully close to closing...[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. 



Traveling for Work? Here’s What You Need to Know About Business-Related Travel Deductions

Business travel deductions are available when employees travel away from their tax home or principal place of work for business reasons. The travel period must be substantially longer than an ordinary day's work, and a need for sleep or rest to meet the demands of the work while away.7

Some examples of deductible travel expenses include:

  • Airline, bus, or train tickets or mileage rates to drive

  • Fare for taxes or other types of transportation between an airport to a hotel and from a hotel to a work location

  • Baggage fees

  • Lodging

  • Dry cleaning or laundry


If you are self-employed, you can deduct your travel expenses using Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship).

* 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.


Meet The Warrior Poses of Yoga

These warrior poses can help stretch and strengthen your body and are the foundation of most yoga practices. Let’s meet the five warrior poses of yoga!

  • Warrior I - In warrior I, the front knee is bent, and the hips are turned to the front of your mat. Your arms are raised.
  • Warrior II- Warrior II is a lateral pose with your front knee bend, and your hips turned to the side. Your arms are parallel to your hips. 
  • Warrior III - Balancing on one foot, the standing leg is straight, and the opposite leg is lifted behind you when your arms reach forward. 
  • Humble/Peaceful Warrior - Your legs are in the same position as Warrior II, but your chest is bent toward your front leg with your arms clasped behind your back. 
  • Reverse Warrior - Your legs are in the same position as Warrior II, but your arms and torso reach backward, and your chest is facing the sky.8


      BAKED CAULIFLOWER PARMESAN

      Servings: 4

      Time: 50 mins

      Oven Baked Cauliflower Parmesan cauliflower parmesan is a low carb, vegetarian dish with marinara sauce, mozzarella, and parmesan cheese to add a tasty vegetable to your dinner table.

      Ingredients:

      • 1 head cauliflower, trimmed and sliced into 1-inch steaks
      • 2 tablespoons extra-virgin olive oil
      • 1/2 teaspoon kosher salt and freshly ground black pepper
      • 1 teaspoon Italian seasoning
      • 1 cup tomato sauce (we used marinara)
      • 1/4 cup freshly grated Parmesan, divided
      • 1 cup shredded mozzarella cheese
      • 1 tablespoon chopped basil
      • 1/2 teaspoon crushed red pepper flakes

      Directions:

      1. To make the cauliflower parmesan steaks: Preheat your oven to 425°F (225ºC). Arrange cauliflower slices in a single layer on a rimmed baking sheet and brush both sides with olive oil. Season with salt and pepper. 
      2. Roast the cauliflower steaks, flipping once, until cauliflower is tender and golden, about 30-35 minutes. Remove cauliflower from the oven and top each cauliflower steak with marinara sauce. Sprinkle with shredded mozzarella and half of Parmesan.
      3. Switch your oven to broil mode and broil cauliflower steaks until cheese is bubbly and golden for about 3 minutes. Serve the roasted cauliflower parmesan sprinkled with remaining Parmesan, chopped basil leaves, and red pepper flakes. Enjoy! ❤️ 


      Footnotes and Sources


      1. The Wall Street Journal, December 9, 2022

      2. The Wall Street Journal, December 9, 2022

      3. The Wall Street Journal, December 9, 2022

      4. CNBC, December 9, 2022

      5. CNBC, December 9, 2022

      6. howardcm.com, December 8, 2022

      7. IRS.gov, August 8, 2022

      8. Yoga Basics, March 11, 2021


      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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