DEBT CEILING RAISED

October 12, 2021

The overhang of bumping against the federal debt ceiling was lifted last week with an agreement to extend the debt ceiling through early December, helping propel stocks to a weekly gain.

The Dow Jones Industrial Average increased by 1.22%, while the Standard & Poor’s 500 added 0.79%. The Nasdaq Composite index gained 0.09%. The MSCI EAFE index, which tracks developed overseas stock markets, was flat (+0.11%). ¹

Debt Ceiling Concerns Evaporate, for Now

After suffering losses on concerns over delays with raising the federal debt ceiling, stocks rebounded as the Senate moved toward finalizing a debt ceiling agreement. While the agreement is only a short-term solution, it was enough to embolden investors to buy stocks.

The week’s rally ran out of gas on Friday, however, on a surprisingly weak employment report. Though the debt ceiling was the dominant concern in the markets last week, the market grappled all week with the headwinds of higher energy prices, rising bond yields, inflation, and less robust economic growth.

Fuzzy Employment Picture

Employment remains a confusing and unpredictable element of this post-pandemic economic recovery. Automated Data Processing’s employment report showed private sector jobs rose by a robust 568,000. This hiring surge may have been aided by the end of extended unemployment benefits and the return of children to school. ⁴

This improving labor outlook was reinforced the following day as weekly initial jobless claims fell below their four-week moving average, while continuing claims fell by nearly 100,000. The employment report on Friday was a different story. The economy added a disappointing 194,000 jobs, making September the slowest month for job growth this year. The unemployment rate declined to 4.8%, while an increase in wages generated inflation worries. ^3,4 

This Week: Key Economic Data

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

Wednesday: Consumer Price Index. FOMC (Federal Open Market Committee) Minutes.

Thursday: Jobless Claims.

Friday: Retail Sales. Consumer Sentiment.

^{Source: Econoday, October 8, 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

Wednesday: JPMorgan Chase (JPM), Goldman Sachs (GS), Delta Airlines (DAL), BlackRock, Inc. (BLK).

Thursday: Wells Fargo & Company (WFC), UnitedHealth Group (UNH), Citigroup, Inc. (C), Walgreens Boots Alliance, Inc. (WBA), Morgan Stanley (MS).

Friday: J.B. Hunt Transportation, Inc. (JBHY), The PNC Financial Services Group, Inc. (PNC).

^{Source: Zacks, October 8, 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.}

Same Old Stories Hurting The Markets, HCM-BUYLINE® Remains Positive

The HCM-BuyLine® is still positive, but it has weakened, and we are monitoring it closely. The markets have sold off to the point that they are now oversold, and we expect them to be sloppy and volatile for a few more weeks. ⁵

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.} 

Reporting Cash Payments

Individuals, companies, corporations, partnerships, associations, trusts, and estates all are required to report cash transactions of more than $10,000. These cash payments can include jewelry sales, a gift from a family member, an overseas purchase, or any other cash transaction. You also need to report cash payments that were received in one lump sum, in two or more related payments within 24 hours, or as part of a single transaction or two or more transactions in the previous year.

Luckily, reporting cash payments is simple. All you need to do is file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. The form requires information about both the giver and receiver of the cash, a description of the transaction, and information about any other parties involved. ⁶

^{* 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.}

October Is Breast Cancer Awareness Month

Even though there are many uncontrollable circumstances associated with an increased risk of breast cancer – including age, gender, family history, and genetic predisposition, among others – certain lifestyle-related factors are within your control, and they could decrease your risk, including:

• Limiting alcohol consumption to fewer than one drink daily
  
  
• Abstaining from smoking cigarettes and using other tobacco products
  
  
• Eating a well-balanced diet with a variety of nutritious foods
  
  
• Achieving and maintaining a healthy weight
  
  
• Engaging in frequent aerobic and weight-bearing physical activity
  
  
• Limiting dose and duration of hormone-replacement therapy
  
  
• Avoiding exposure to excessive radiation and environmental contamination
  
  
• Breastfeeding, if possible and desired

Above all else, regular screenings and exams, upon your medical provider’s recommendations, may help detect, diagnose, and treat breast cancer in its early stages, as research indicates that taking proactive and preventive measures is associated with better outcomes. ⁷

Honey and Fig Cheesecake Bars

Ingredients

For the crust

• ½ cup walnuts
• 1 cup graham cracker crumbs
• ¼ cup sugar
• 6 tablespoons butter, melted

For the honey cheesecake

• 10 oz cream cheese, room temperature
• 2 eggs, room temperature
• ⅓ cup honey
• 2 teaspoons vanilla
• ½ teaspoon salt
• 6 fresh figs, sliced thin lengthwise (wait to slice until the very end)

Directions

1. Preheat oven to 325°F. Line a 9x9 pan with parchment paper.
2. In a food processor, combine the walnuts, graham cracker crumbs, and sugar. Pulse until the mixture resembles a fine sand and the walnuts are completely pulverized. Pour in butter and pulse until it comes together. Press the crust firmly and evenly into the pan.
3. In a large mixing bowl, whip cream cheese and eggs until light and fluffy. Add in honey, vanilla, and salt, mixing until combined. Pour over prepared crust.
4. Place the 9x9 pan in a water bath (you will need a larger pan filled with 1 inch of water) and place everything into the oven. Bake for 1 hour, then allow the cheesecake to cool completely (about 4 hours).
5. Once cooled, arrange the fresh fig slices over the cheesecake. Use a sharp knife or scissors to cut the figs to fit around the perimeter. ⁸

^{Stay Safe!}

Footnotes and Sources

^{1. The Wall Street Journal, October 8, 2021}

^{2. CNBC, October 6, 2021}

^{3. CNBC, October 7, 2021}

^{4. The Wall Street Journal, October 8, 2021}

^{5. Howardcm.com, October 6, 2021}

^{6.  IRS.gov, April 15, 2021}

^{7. breastcancer.org, June 24, 2021}

^{8. Honestcooking.com, July 15, 2015}

^{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.}

McCarthy Financial Group's Blog: Market Insights & Wealth Watch