Stocks Tap the Brakes

November 15, 2021

Stocks posted small declines last week as investors digested recent stock market gains and an unexpectedly high inflation read.

The Dow Jones Industrial Average slid 0.63%, while the Standard & Poor’s 500 retreated 0.31%. The Nasdaq Composite index slipped 0.69% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, dropped 0.78%.^1,2,3

Market Takes a Pause

After moving higher on Congressional approval of a $1 trillion-plus infrastructure spending bill, stocks drifted lower as investors took a breather after a weeks-long run-up in prices. A high October inflation report on Wednesday sent bond yields higher and stock prices lower, especially technology and other high growth companies. Energy also fell.^4,5

Higher-than-expected inflation elevated investor worries that the Fed may be forced to accelerate its bond tapering schedule and hike interest rates sooner than planned. Stocks found firmer footing following the inflation-related sell-off, closing the week on a strong note, though it wasn’t sufficient to keep stocks from ending the week in the red.

Hot! Hot! Hot!

Rising prices appear to be showing no signs of moderating. The first reading on inflation was Tuesday’s release of the Producer Price Index, which saw wholesale prices rise 0.6% in October and register an 8.6% increase from 12-months ago.⁴

A day later the Consumer Price Index came in above consensus estimates, with prices climbing 0.9% from September 2021 and increasing 6.2% year-over-year. The 12-month increase was the sharpest such rise since 1990. The 12-month core inflation rate (excludes the more volatile food and energy sectors) was 4.6%, the fastest pace since 1991.⁵

This Week: Key Economic Data

Tuesday: Retail Sales. Industrial Production.

Wednesday: Housing Starts.

Thursday: Jobless Claims. Index of Leading Economic Indicators.

^{Source: Econoday, November 12, 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: Lucid Group (LCID).

Tuesday: Walmart, Inc. (WMT), The Home Depot, Inc. (HD), NetEase, Inc. (NTES).

Wednesday: Nvidia Corporation (NVDA), Cisco Systems, Inc. (CSCO), Target Corporation (TGT), Lowe’s Companies, Inc. (LOW), The TJX Companies, Inc. (TJX).

Thursday: Palo Alto Networks, Inc. (PANW), Ross Stores, Inc. (ROST), JD.com (JD).

^{Source: Zacks, November 12, 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.}

WEALTH WATCH: HCM-BUYLINE® REGAINS STRENGTH AFTER A VOLATILE AUTUMN

The markets are melting up as they say. They are overbought at this point, but again, any pullback should be bought. The HCM-BuyLine® has moved back into a very strong position. Like I have been saying for two months, September and October are... [READ MORE]⁸

Watch Vance Ring the NYSE Closing Bell

Register for Investing in a Volatile Market Webinar

^{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.} 

Tax Treatment of Hobbies

Taxpayers who earn money from their hobbies might have to report the income to the IRS. Here are some tips to help:

1. The IRS taxes income differently, depending on whether the income stems from a true hobby or a for-profit business.
   
   
2. Your hobby may entail expenses required to do it well. For example, you may need to buy yarn to knit scarves. You might be able to deduct expenses associated with hobby/business.
   
   
3. In some instances, you can deduct approvable expenses only up to the amount you brought in for income.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.}

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

By swapping out unhealthy food options for healthier ones, you can cut out the bad stuff 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)

There are lots of healthy swaps like these that can help you reduce your caloric intake, consume less sugar, and make it easy to create a more-balanced meal. ⁷

Maple Salmon Sheet Pan Dinner

Servings: 2 

Time: 40 minutes

Ingredients 

• 1 large sweet potato sliced thin
• 1 bunch asparagus
• 2 pieces fresh salmon
• Garlic powder to taste
• Salt & pepper to taste
• 2 tablespoons olive oil
• 1-2 tablespoons maple syrup
• Lemon wedges for serving (optional)

Directions

1. Preheat oven to 425°F, and move the rack to the top third of the oven. Line a baking sheet with foil for easy clean-up.
2. Using a mandoline, slice the sweet potato into even slices. Snap or cut the ends off the asparagus.
3. Place the sweet potato slices, asparagus, and salmon on the baking sheet. Coat everything with the garlic powder, salt & pepper, and olive oil. Add the salmon and asparagus to a plate and set aside. Spread the sweet potato slices as evenly as possible (some overlap is ok) on the baking sheet. Bake for 15 minutes.
4. Add the salmon and the asparagus to the baking sheet (I added the asparagus on top of the sweet potato slices and cleared some space for the salmon). Coat the salmon with a tablespoon of maple syrup. If desired, drizzle a second tablespoon of maple syrup across the sweet potatoes and/or asparagus as well. Bake for an additional 15 minutes, or until salmon is cooked. Serve immediately with some lemon juice squeezed over the fish if desired. ⁹

Stay safe!

Footnotes and Sources

^{1. The Wall Street Journal, November 12, 2021}

^{2. The Wall Street Journal, November 12, 2021}

^{3. The Wall Street Journal, November 12, 2021}

^{4. CNBC, November 9, 2021}

^{5. The Wall Street Journal, November 10, 2021}

^{6. IRS.gov, May 25, 2021}

^{7. eatthis.com, June 24, 2021}

^{8. howardcm.com, November 4, 2021}

^{9. saltandlavender.com , October 12, 2016}

^{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.}

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