Jobs Strong, Earnings Strong

August 9, 2021

Overcoming jitters about the Delta variant and the reintroduction of mask requirements, stocks climbed higher on strong employment data and a fresh batch of strong corporate earnings.

The Dow Jones Industrial Average rose 0.78% while the Standard & Poor’s 500 advanced 0.94%. The Nasdaq Composite index gained 1.11% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, picked up 1.61%. ¹

Push and Pull

The crosscurrents of strong corporate profits and the rise in Delta variant infections led to a roller coaster week of price action, as markets alternated between daily gains and losses. By Thursday, however, investors appeared to grow more optimistic that the economic reopening was not under serious threat when back-to-back employment reports suggested that the economic recovery remained on track.

A favorable initial jobless claims report was enough to send the S&P 500 and Nasdaq to new all-time highs. Thanks to Friday’s stronger-than-expected employment report, the S&P 500 managed to add to its previous record close, while the Dow Jones Industrial Average set its own record high. The more tech-centric Nasdaq, however, slipped off its highs. ²

Employment Brightens

Last week reinforced the idea of an improving labor market. After a disappointing ADP (Automated Data Processing) National Employment Report that showed a slowdown in private-sector hiring, with just 330,000 new jobs added, subsequent employment data were much more encouraging. ³

Thursday’s report of a modest drop in initial jobless claims to 385,000 and a more substantial drop of 366,000 in continuing claims was followed by a solid employment report on Friday, which showed employers had added 943,000 new jobs in July—the biggest jump since August 2020. This hiring increase shaved the unemployment rate to 5.4%, down from June’s 5.9% rate. ^1,4

This Week: Key Economic Data

Monday: JOLTS (Job Openings and Labor Turnover Survey).

Wednesday: Consumer Price Index.

Thursday: Jobless Claims.

Friday: Consumer Sentiment.

^{Source: Econoday, August 6, 2021
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: Air Products and Chemicals, Inc. (APD), Tyson Foods, Inc. (TSN).

Tuesday: Sysco Corporation (SYY), Coinbase Global, Inc. (COIN).

Wednesday: Nio, Inc. (NIO), eBay, Inc. (EBAY).

Thursday: The Walt Disney Company (DIS), Baidu, Inc. (BIDU), Doordash, Inc. (DASH), Airbnb, Inc. (ABNB).

^{Source: Zacks, August 6, 2021
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.}

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^{DOWNLOAD FULL CALENDAR HERE}

“The Semiconductor sector is doing about what we predicted and has now had a solid breakout. The last 2 quarters for the year should be good for this sector as chip manufacturers work hard to catch up with demand.” ⁵

-Vance Howard

READ MORE HERE

^{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.} 

^\

Give Back to Your Community By Working as a Tax Volunteer

If you're looking for a way to give back to your community and want to help people with low-to-moderate incomes, consider applying to volunteer with the Volunteer Income Tax Assistance or Tax Counseling for the Elderly programs. These programs offer free tax help to senior citizens, persons with disabilities, and those who speak limited English to understand their tax situations. ⁶

Here are some of the perks of being a VITA or TCE volunteer:

• Flexible hours: Generally, volunteers contribute between 3-5 hours per week. Some sites are open all year, but most programs open from January–April.
  
  
• Convenience: There are thousands of VITA and TCE sites set up in neighborhoods across the country, so it's convenient to volunteer at a location that's close to you. Usually, these locations are in community centers, libraries, schools, and malls.
  
  
• No experience needed: You don't have to be a tax pro to volunteer because all volunteers receive special training and can serve in a variety of roles.

^{* 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 to Look for on a Nutrition Label

Nutrition labels contain a lot of helpful information that can guide you in the right direction as you eat healthier. But do you know how to read one correctly? The first thing you will see on a nutrition label is the serving size. This is a guide to show you how many calories a single serving of food contains.

The next section is the nutrients. This section helps you determine the nutritional value of a food. Pay close attention to the saturated fat and added sugar. Lastly, you have the % Daily Value (DV). This is the percentage of each nutrient in a single serving in terms of the recommended amount. ⁷

Chicken Cordon Bleu II

6 servings

Time: 60 mins

INGREDIENTS

• 6 skinless, boneless chicken breast halves 
• 6 slices Swiss cheese
• 6 slices ham
• 3 tablespoons all-purpose flour 
• 1 teaspoon paprika
• 6 tablespoons butter
• ½ cup dry white wine
• 1 teaspoon chicken bouillon granules
• 1 tablespoon cornstarch
• 1 cup heavy whipping cream

DIRECTIONS

1. Pound chicken breasts if they are too thick. Place a cheese and ham slice on each breast within 1/2 inch of the edges. Fold the edges of the chicken over the filling, and secure with toothpicks. Mix the flour and paprika in a small bowl, and coat the chicken pieces.
2. Heat the butter in a large skillet over medium-high heat, and cook the chicken until browned on all sides. Add the wine and bouillon. Reduce heat to low, cover, and simmer for 30 minutes, until chicken is no longer pink and juices run clear.
3. Remove the toothpicks, and transfer the breasts to a warm platter. Blend the cornstarch with the cream in a small bowl, and whisk slowly into the skillet. Cook, stirring until thickened, and pour over the chicken. Serve warm. ⁸

Footnotes and Sources

^{1. The Wall Street Journal, August 6, 2021}

^{2. CNBC, August 6, 2021}

^{3. CNBC, August 4, 2021}

^{4. The Wall Street Journal, August 5, 2021}

^{5.  Howardcm.com, July 29, 2021}

^{6.  IRS.gov, September 19, 2020}

^{7.  Heart.org, 2021}

^{8. Allrecipes.com}

^{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 2021 FMG Suite.}