The Week on Wall Street
Stocks moved higher last week on news of more Federal Reserve market support and diminished concerns that new COVID-19 cases might lead to another economic shutdown.
The Dow Jones Industrial Average rose 1.04%, while the Standard & Poor’s 500 gained 1.86%. The Nasdaq Composite Index jumped 3.73% for the week. The MSCI EAFE Index, which tracks developed overseas stock markets, increased 1.88%.
News on Monday that the Fed would be expanding its bond-buying program to include the debt of individual companies sparked a sharp jump in stocks. The momentum gained through the week as investors focused on positive economic signals, especially with retail sales. A midweek report of an effective COVID-19 treatment for critically ill patients boosted investor optimism.
Market sentiment also was helped by talk of more fiscal stimulus and a report that China would be moving ahead with agricultural purchases to comply with phase one of the trade deal, easing concerns over growing friction in the U.S.-China relationship.
Mixed Economic Data
Last week’s economic data illustrated the uneven nature of the nation’s nascent economic recovery.
Retail sales, which were up by 17.7% in May, reflected a strong, encouraging rebound in the U.S. consumer. Consumer spending was particularly strong in clothing, furniture, sporting goods, and autos.
But industrial production (up by only 1.4%) and new housing starts (ahead by just 4.3%) showed tepid rebounds, indicating that recovery has yet to reach all corners of the American economy.Jobless claims posted their best number since mid-March (1.5 million), but remained high by historical standards.
Last week saw the flare-up of border tensions in two geopolitical hotspots: North Korea and the disputed border region between China and India. The hope, of course, is that escalation can be avoided through diplomacy, but any heightening in tensions may become a concern for global markets.
THIS WEEK: KEY ECONOMIC DATA
Monday: Existing Home Sales.
Tuesday: New Home Sales.
Thursday: Durable Goods Orders. Gross Domestic Product (GDP). Jobless Claims.
Friday: Consumer Sentiment.
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: KB Home (KBH).
Thursday: Accenture Plc (ACN), Darden Restaurants (DRI).
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
Without libraries what have we? We have no past and no future.”~ Ray Bradbury
Recipe Of The Week
- ¼ cup unsalted butter
- ¼ cup all-purpose flour
- 1 small yellow onion
- 1 medium green bell pepper, chopped
- 2 long celery sticks, chopped
- 2 cloves garlic, minced
- 12 oz. andouille sausage, sliced into half-inch segments
- 1 Tbsp. Cajun seasoning
- Kosher salt
- Freshly ground black pepper
- 1 bay leaf
- 1 15-oz. can fire-roasted diced tomatoes
- 4 cup chicken broth
- 1 lb. shrimp, peeled and deveined
- 3 green onions, sliced
- Cooked rice, for serving
- Melt butter over medium-low heat in a deep skillet.
- Add flour and cook, stirring until caramel in color, roughly ten minutes.
- Add onions, peppers, and celery, and stir until softened, roughly 5 minutes.
- Add garlic, sausage, Cajun seasoning, salt, and pepper.
- Add bay leaf, diced tomatoes, and chicken broth.
- Bring to a boil.
- Reduce heat to low, simmer until thickened, stirring occasionally, roughly 1 hour.
- Add shrimp in the last ten minutes of cooking.
- Once shrimp is cooked, adjust seasoning to taste.
- Add green onions, saving some for garnish.
- Serve over white rice.
Recipe adapted from Delish.com
Do You Know About “Practice” Rights?
The tax preparer you choose to help you file taxes can have different representation or “practice” rights. These rights may affect how they can represent you before the IRS. As you manage your tax details within your financial life, remember these tips.
How Will You Be Represented?
Unlimited: This category enables your tax preparer to represent you before the IRS on any tax item. The credentialed tax professional can be an Enrolled Agent, Certified Public Account (CPA), or attorney.
Limited: This category means that only the person who prepared and signed your tax return can represent you before the IRS. However, they cannot represent you on appeals or collection matters. Your tax preparer can represent you in front of revenue agents, customer service representatives, and similar IRS employees.
As you manage your taxes each year, be sure to familiarize yourself with the tax preparer’s representation rights.
- 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 IRS.gov
Take the Club Back, Don’t Lift It
Often, a high handicapper will have a downswing that looks more like a chop or a pounce. The common result? A slice, also known as a shot that doesn’t travel very far. The problem here isn’t actually in the arms, but the knees.
A good stance means flexing the knees a little. When you don’t flex your knees, you become rigid, and you can’t turn as you take the club back. Since you can’t turn, you just end up lifting your arms. That causes the clubface to realign at the top of your swing, which promotes an open clubface on the downswing. If you can flex your knees even a little, you gain the ability to turn as you take the club back, which encourages a good takeaway rather than a lift leading to a chop or a pounce.
Tip adapted from BC Golf News
Summer Swimming Safety for Your Kids (or Grandkids)
One of the summer’s favorite pastimes: swimming. Whether a pool, lake, or ocean, it’s something many people enjoy when temperatures begin to rise. Unfortunately, water-related injuries run high during the summer. Drowning is the leading cause of death for children ages 1 through 4. So, how can you safely enjoy a cool dip with your children (or grandchildren) on a hot day? Read on for the following tips from the American Red Cross.
- Don’t let them swim alone. Make sure you children are supervised at all times.
- Avoid distractions when you’re the supervisor. Focusing on our phones or other favorite distracting activities might result in you missing a warning sign that a child is in danger.
- Wear life vests. If the child isn’t a strong swimmer, this can help them stay afloat, but they still need to be monitored.
- Always check the water. When a child goes missing, each second counts toward their survival.
Keep swimming fun by staying safe. And always consult your doctor for more information about water safety for children.
Tip adapted from Everyday Health
Green Cleaning Alternatives
There are quite a few green options to many of the over-the-counter chemicals you typically use to clean your home. You probably even have these items in your pantry right now.
The two best green alternatives are white vinegar and baking soda. White vinegar acts as an antimicrobial, and baking soda acts as a scouring agent. These ingredients can be used on most everything from old, greasy metal pans in the kitchen to all the dirty spots in your bathroom.
The other benefit of switching out your household cleaners? Gentler cleaning products means that you’re not killing many of the good, necessary microorganisms that are an integral part of our environment. Many of the harsher chemical cleaners have been attributed to creating new strains of antibiotic-resistant bacteria.
Tip adapted from Green America
Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply use one of the sharing buttons below. We love being introduced!
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.
ResourcesBy clicking on these links, you will leave our server, as the links are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site. The market indexes discussed are unmanaged and generally considered representative of their respective markets. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results. 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 Wall Street Journal, January 8, 2021 <br />  The Wall Street Journal, January 8, 2021 <br />  The Wall Street Journal, January 8, 2021 <br />  The Wall Street Journal, January 6, 2021 <br />  CNBC, January 8, 2021 <br />  The Wall Street Journal, January 8, 2021 <br />  The Wall Street Journal, January 8, 2021 <br />  KitchenConfidante.com, January 8, 2021 <br />  IRS.gov, January 8, 2021 <br />  YourTahoePlace.com, January 8, 2021 <br />  CDC.gov, September 25, 2020 <br />  TheSpruce.com, October 12, 2019</small>