The Week on Wall Street
A jump in COVID-19 cases dampened investor enthusiasm last week, sending stock prices lower on worries that rising infections could derail the economic recovery.
The Dow Jones Industrial Average slumped 3.31%, while the Standard & Poor’s 500 retreated 2.86%. The Nasdaq Composite Index lost 1.90% for the week. The MSCI EAFE Index, which tracks developed stock markets overseas, declined 1.28%.
A Rocky Week for Stocks
Investors began the week overlooking a jump in COVID-19 cases in some early reopening states, sending stocks higher and powering the Nasdaq Composite to close above 10,000 and establish a new record high on successive days. But the market quickly reversed course as investors reacted to data showing a troubling spike in nationwide COVID-19 cases.
In Thursday’s trading, stocks opened lower but then rallied late in the day on no apparent news. Stocks resumed their decline on Friday, falling on news that Texas and Florida were rolling back some reopening plans amid rising COVID-19 infections.
Investor expectations for an economic rebound took a hit last week, following reports of an increase in nationwide COVID-19 cases. The pace of infections had picked up in 33 states, with the seven-day average of new cases higher than the average over the last two weeks.
While traders understood that reopening and increased testing would lead to an uptick in reported cases, the numbers were a bit unsettling. The week’s action reminded investors that the market remains tightly tethered to COVID-19 developments.
THIS WEEK: KEY ECONOMIC DATA
Wednesday: ADP (Automatic Data Processing) Employment Report. Purchasing Managers Index (PMI) Manufacturing Index. Institute for Supply Management (ISM) Manufacturing Index. Federal Open Market Committee (FOMC) Minutes.
Thursday: Employment Situation Report. Jobless Claims. Factory Orders.
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: Micron Technologies (MU).
Tuesday: FedEx Corp. (FDX), Conagra Brands (CAG).
Wednesday: Constellation Brands (STZ), General Mills (GIS).
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.
Quote Of The Week
Those who dream by day are cognizant of many things which escape those who dream only by night.”~ Edgar Allen Poe
Recipe Of The Week
Sesame Soba Salad
2 to 4 servings
For the dressing:
- ¼ cup rice vinegar
- ½ tsp. toasted sesame oil (more for drizzling)
- 2 tsp. freshly grated ginger
- 1 garlic clove, freshly grated
- 1 tsp. pure maple syrup, honey, or agave
For the soba noodles
- 6 oz. of soba noodles
- 1 sliced avocado
- A squeeze of lemon
- 2 cups of sugar snap peas
- ½ cup edamame (without the shell)
- Thinly sliced radishes
- Fresh mint
- Sesame seeds for garnish
To make the dressing, combine all the dressing ingredients together in a small bowl and set aside.
Cook the soba noodles, according to package directions. Drain, then rinse in cold water.
Divide the soba noodles into individual servings and top with lemon juice, avocado, snap peas, edamame, radish, mint, and sesame seeds. Drizzle with more sesame oil if preferred.
Recipe adapted from LoveAndLemons.com
Working from Home and Expecting Some Tax Deductions? Not so Fast
With the COVID-19 pandemic changing the way nearly everyone works in 2020, many people have found themselves working from home. While it is true that some home office expenses can be tax deductible, there’s a specific distinction that taxpayers should be aware of.
As a result of the Tax Cuts and Jobs Act of 2017, for the tax years 2018-2025, you may not be able to deduct home office expenses if you are an employee. This is different than working from home and being self-employed or an independent contractor. These types of workers may still be able to write off some of their home office expenses.
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.
Tip adapted from Forbes.com
Practice for Feel First
Every golfer knows that Jack Nicklaus is happy to share his golfing tips (he even published a whole book of them in the early 70s!). One of his many shared is “practice for feel first.”
Many golfers get ready for their game by heading straight to the driving range to hit as many hard drives as possible. Practicing with your smaller clubs will help you establish a proper feel before moving on to the longer ones.
Tip adapted from Practical-Golf.com
Vitamin C is a ubiquitous nutrient, and many of us believe we know pretty much everything about it. We get it from citrus fruits. Some of us reach for some over-the-counter supplements if we think we’re getting sick. All this is fairly universal. So, how much more is there?
Vitamin C, also known as ascorbic acid, ascorbic is a water-soluble vitamin, and excessive quantities are not stored in the body. Adequate daily intake of vitamin C, preferably through food over supplements, helps maintain our immune health, prevent cellular damage, create collagen, and absorb dietary iron. Some individuals, like smokers, have greater needs for higher daily vitamin C intakes, but for others, this may not be advised. It’s always wise to talk to your doctor before adding supplements or changing your dietary regimen.
Tip adapted from MyFoodDiary.com
Mind Your Own Beeswax
Bees are the superheroes of the insect world. They are responsible for pollinating 85% of all human crops and many crops fed to cattle. They also produce superfoods, like honey and pollen, and are single-handedly preventing an environmental collapse.
In addition to all that, bees also produce beeswax, which can be made into products that help decrease single-use plastic. You can buy beeswax food wraps and beeswax bags that reduce the need for cling wrap and plastic bags, respectively. Combine those with glass meal prep containers, and you might never need to use single-use plastic in the kitchen again!
Tip adapted from BeesWrap.com
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Disclosures<small>Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Diversification does not guarantee profit nor is it guaranteed to protect assets. International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896. The Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of stocks of technology companies and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indices from Europe, Australia, and Southeast Asia. The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. You cannot invest directly in an index. Consult your financial professional before making any investment decision. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors. These are the views of Platinum Advisor Strategies, LLC, and not necessarily those of the named representative, Broker dealer or Investment Advisor and should not be construed as investment advice. Neither the named representative nor the named Broker dealer or Investment Advisor gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial professional for further information.
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