Happy Thanksgiving

Happy Thanksgiving

Thanksgiving is a time to appreciate what we value most, a time to cherish the many gifts we have, and the people that make life special. We can also be thankful that we live in a great country known for its prosperity and abundance.
As you gather to enjoy some good food and good company this holiday, I will be thinking of you. I’m thankful that you have selected us as the financial professional to help you plan your future. We wish you the very best this holiday.

Weekly Market Insights: Markets Down Ahead of Thanksgiving Holiday

Weekly Market Insights: Markets Down Ahead of Thanksgiving Holiday

The stock market edged lower last week as it digested a crosscurrent of conflicting economic data and contrasting comments from Fed officials.
The Dow Jones Industrial Average was flat (-0.01%), while the Standard & Poor’s 500 declined by 0.69%. The Nasdaq Composite index lost 1.57% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, fell 0.88%.1,2,3

Stocks Slip

Stocks took a spill after Fed officials’ comments cast uncertainty about future rate hikes. The more hawkish comments soured investor hopes of an imminent easing in Fed rate hikes, a prospect that had helped fuel the market rally the previous week.

Concerns over the hawkish comments raised investor worries over recession risks, anxiety exacerbated by weak housing data and layoff announcements from major technology companies. The economic picture, however, included some encouraging news as retail sales rose and producer price increases moderated.

Producer Prices Ease

The Producer Price Index (PPI), which reflects the costs paid by domestic producers, seen as an indicator of future consumer prices, is not typically a market-moving event. That was not the case last week.

October’s PPI rose a modest 0.2%, well below the 0.4% consensus estimate. The year-over-year increase moderated to 8.0%, compared to 8.4% in September and the peak of 11.7% in March. The eye-catching element may have been the 0.1% service decline, representing the first decline since November 2020. Excluding food and energy, the PPI was flat for the month and up 6.7% from a year ago.4

A Final Word

We wish you and your family a wonderful Thanksgiving and express our gratitude for the privilege of working with you. Happy Thanksgiving!

This Week: Key Economic Data

Wednesday: Durable Goods Orders. Jobless Claims. Purchasing Managers’ Index (PMI) Composite. New Home Sales. Consumer Sentiment. FOMC Minutes.

Source: Econoday, November 18, 2022
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: Dell Technologies, Inc. (DELL), Zoom Video Communications, Inc. (ZM).

Tuesday: Best Buy Co., Inc. (BBY), Dollar Tree, Inc. (DLTR), Autodesk, Inc. (ADSK), Analog Devices, Inc. (ADI).

Wednesday: Deere & Company (DE).

Source: Zacks, November 18, 2022
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.

“A successful person is one who can lay a firm foundation with the bricks that others throw at him or her.”
– David Brinkley

What to Know About Nonemployee Compensation

If you hire an independent contractor for your business, you are generally not responsible for withholding income taxes, Social Security, or Medicare taxes from their compensation. However, by law, business taxpayers who pay nonemployee compensation of $600 or more must report these payments to the IRS.

You can report these payments using Form 1099-NEC, Nonemployee Compensation. Generally, Form 1099-NEC is due by January 31. The compensation you report is subject to backup withholding if your business has not provided a Taxpayer Identification Number to the payer or the TIN doesn’t match. It’s important to be aware of this rule regarding nonemployee compensation because employees and contractors are taxed differently, but you need to note if your payments exceed the $600 limit.

* 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.gov5

How to Use Coffee Grounds in Your Garden

Not only does coffee give us the caffeine we need to power through the day, but it can also give your garden the boost it needs to grow and thrive! Coffee grounds can improve your soil, deter pests, and give your plants the necessary nutrients.

To add coffee grounds to your garden, you can add them to your existing compost material or directly to the soil itself. Coffee grounds are “green” composting materials that are rich in nitrogen. Because of this, ensure you balance your compost with brown materials such as newspaper, cardboard, or dead plant material.

If you add the grounds directly to the soil, sprinkle them evenly rather than dump them in piles so they can expel nitrogen into the soil.

Tip adapted from The Spruce6

It has no crown, yet when the chips are down it is more powerful than a king or queen. What is it?

Last week’s riddle: I’m usually standing on a city sidewalk, and I’ll always stand by your car. But if you don’t feed me, you may get into trouble. What am I? Answer: A parking meter.

Hot air balloons at sunrise, Cappadocia, Goreme, Turkey

Footnotes and Sources

1. The Wall Street Journal, November 18, 2022
2. The Wall Street Journal, November 18, 2022
3. The Wall Street Journal, November 18, 2022
4. CNBC, November 15, 2022
5. IRS.gov, August 8, 2022
6. The Spruce, February 22, 2022

 
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.
The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.
The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. 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 technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.
U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. 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.
International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.
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.
Weekly Market Insights: Markets Down Ahead of Thanksgiving Holiday

Weekly Market Insights: Cooling Inflation Brings Market Gains

A cooling inflation number ignited a powerful rally on Thursday, sending stocks to strong gains for the week.
The Dow Jones Industrial Average gained 4.15%, while the Standard & Poor’s 500 added 5.90%. The Nasdaq Composite index rose 8.10% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, picked up 5.72%.1,2,3

Stocks Surge

A lower-than-expected inflation report triggered the biggest one-day stock market gain in more than two years as the news raised investors’ hopes that the Fed might consider easing the pace of future rate hikes. The day’s gains were pronounced in the hard-hit technology sector, as the tech-heavy Nasdaq added 7.35%.4 

Stocks initially rallied to start the week, but gave up some of the gains on Wednesday following a muddy and indecisive outcome to the midterms. Friday saw stocks build on their gains to close out an exceptional week.

Inflation Moderates

Consumer prices rose slower in October, increasing 0.4% for the month and 7.7% from 12 months ago. Both numbers were below market expectations of 0.6% and 7.9%. The core CPI (excludes energy and food sectors) rose a more modest 0.3% on a monthly basis and 6.3% from a year ago.5

The deceleration in prices was mainly attributable to price declines in used cars (-2.4%), apparel (-0.7%), and medical care services (-0.6%). Despite the progress, inflation remains well above the Fed’s 2% target rate. A look behind the numbers shows that October’s 7.7% CPI was fueled by the largest monthly jump in shelter costs since 1990 (+0.8%). Shelter costs account for one-third of the CPI. Energy was up 1.8%, while food costs rose 0.6% for the month.6

This Week: Key Economic Data

Tuesday: Producer Price Index (PPI).

Wednesday: Retail Sales. Industrial Production.

Thursday: Housing Starts. Jobless Claims.

Friday: Existing Home Sales. Index of Leading Economic Indicators.

Source: Econoday, November 11, 2022
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: Tyson Foods, Inc. (TSN).

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

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

Thursday: Applied Materials, Inc.(AMAT), Palo Alto Networks, Inc. (PANW), Ross Stores, Inc. (ROST).

Source: Zacks, November 11, 2022
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.

“To expect truth to come from thinking signifies that we mistake the need to think with the urge to know.”
– Hannah Arendt

Meet The Taxpayer Advocate Service

Did you know that an independent organization within the IRS is fighting for your rights as a taxpayer? The Taxpayer Advocate Service (TAS) protects taxpayers’ rights by ensuring that all taxpayers are treated fairly and know and understand their rights under the Taxpayer Bill of Rights. Here are some things to know about TAS:

  • TAS can help taxpayers resolve problems they haven’t been able to settle with the IRS on their own.

  • The service is free.

  • TAS helps all taxpayers and their representatives, including individuals, businesses, and exempt organizations.

  • If taxpayers qualify for TAS help, an advocate will be with them at every turn and do everything possible to assist throughout the process.

  • TAS also handles large-scale problems that affect many taxpayers.


* 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.gov7

What Is Compostable?

Composting is a great way to go green and keep more waste out of landfills that don’t need to be there. Composting has many benefits, including waste management and reduction, soil enhancement, reduction of greenhouse gasses, and many more.

Plus, composting doesn’t have to be hard! Let’s break down what is compostable to help you understand where to start. There are two types of compostable waste, green and brown:

  • Green materials are nitrogen-rich materials like live plant material (ex: grass clippings) and fruit/veggie waste.

  • Brown materials are carbon-rich materials like dead plant matter, bread, cardboard, or wood.


As you can see, it’s easy to get started with composting. You don’t need a complicated setup or special process to get started. These two compost categories provide the foundation of everything you need to know.

Tip adapted from Sustainable Jungle8

I’m usually standing on a city sidewalk, and I’ll always stand by your car. But if you don’t feed me, you may get into trouble. What am I?

Last week’s riddle: Create a 13-letter word using all 13 of the following letters: O A I I S T T R R D N A M. Answer: ADMINISTRATOR.

Preening flamingo, Galapagos Islands, Ecuador.

Footnotes And Sources

1. The Wall Street Journal, November 11, 2022
2. The Wall Street Journal, November 11, 2022
3. The Wall Street Journal, November 11, 2022
4. CNBC, November 10, 2022
5. CNBC, November 10, 2022
6. CNBC, November 10, 2022
7. IRS.gov, July 19, 2022
8. Sustainable Jungle, August 8, 2022

 
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.
The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.
The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. 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 technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.
U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. 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.
International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.
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.
Market Update

Market Update

The stock market reacted unfavorably on Wednesday as Republicans made modest gains in U.S. midterm elections but Democrats performed better than expected, as control of the Senate hinged on three races that were still too close to call.  Also, Georgia’s senate seat winner will not be decided until the December 6th runoff election as neither candidate gained more than 50% of the votes. 

But as of today, Thursday, the world is a better place in the eyes of Wall Street traders as the market is in the midst of a huge rally.  This may be the start of a traditional post-midterms rally as signs of cooling inflation emerge. Now that Tuesday’s election is over, and inflation looks to be heading in the right direction, strategists say the time could be right for a rally. But there is also the risk that the rally could be derailed by another hot inflation report or other factors, like a cryptocurrency meltdown. Thursday’s CPI report breaks a string of inflation surprising to the upside. The DOW jumped an impressive 1,140 points as of mid-afternoon. 

The links below show a broad based fear of the potential for a near to mid term economic slowdown across all important sectors in the US and the world. Only time will tell if today’s rally is here to stay.

 

 

 

 

World’s largest container shipping firm Maersk, a barometer for global trade, warns of ‘dark clouds on the horizon’
https://www.cnbc.com/2022/11/02/shipping-firm-maersk-a-barometer-for-trade-warns-of-dark-clouds-on-the-horizon.html

Wells Fargo mortgage – 90% decline from a year ago
https://www.cnbc.com/2022/11/02/wells-fargo-mortgage-staff-brace-for-layoffs-as-us-loan-volumes-collapse.html

The U.S. housing market to see second biggest correction of the post-WWII era—when to expect the home price bottom
https://fortune.com/2022/11/07/housing-market-to-see-second-biggest-correction-crash/

Fed Seen Aggressively Hiking to 5%, Triggering Global Recession
https://www.thewealthadvisor.com/article/fed-seen-aggressively-hiking-5-triggering-global-recession

Home prices to decline in 2023, recession ahead: Fannie Mae forecast
https://www.foxbusiness.com/personal-finance/home-prices-decline-2023-recession-fannie-mae

Mortgage demand falls even as rates slip from recent highs
https://www.cnbc.com/2022/11/02/mortgage-demand-falls-even-as-rates-slip-from-recent-highs.html

US diesel shortage hits crisis point
https://www.linkedin.com/news/story/us-diesel-shortage-hits-crisis-point-6048810/

Amazon sell-off pushes market cap below $1 trillion for first time since April 2020
https://www.cnbc.com/2022/11/01/amazon-plunge-pushes-valuation-below-1-trillion-first-time-since-2020.html

Homebuilders say they’re on the edge of a steeper downturn as buyers pull back
https://www.cnbc.com/2022/10/31/homebuilders-say-steeper-downturn-is-coming-as-buyers-pull-back.html

Saudi Arabia, U.S. on High Alert After Warning of Imminent Iranian Attack
https://www.wsj.com/articles/saudi-arabia-u-s-on-high-alert-after-warning-of-imminent-iranian-attack-11667319274

Sunken casino riverboat revealed by low water levels of Mississippi River
https://www.walb.com/2022/10/31/sunken-casino-riverboat-revealed-by-low-water-levels-mississippi-river/

Massive Fallout in the US Housing Market Right Now
https://www.youtube.com/watch?v=-s8PZKZb4J4

NYTimes: Food Prices Soar, and So Do Companies’ Profits
https://nyti.ms/3DOVKNS

NYTimes: Chip Makers, Once in High Demand, Confront Sudden Challenges
https://nyti.ms/3TJeYtN

NYTimes: Corporate America Has a Message for the Fed About Inflation
https://nyti.ms/3t73FjL

The Biggest Crash in History as Bank Run Sparks Liquidity Crisis
https://www.youtube.com/watch?v=95xOAsq46jM

The Fed Is About To Drop The Hammer On The Stock Market
https://seekingalpha.com/article/4551130-spy-fed-to-drop-hammer-on-stock-market

Amazon warehouse site canceled and sold to rental apartments developers
https://www.gulfshorebusiness.com/fort-myers-land-part-of-former-amazon-site-sells-for-70m/

Pending home sales see big drop
https://www.nbcnews.com/nightly-news/video/pending-home-sales-see-big-drop-151836741672

U.K. inflation pushes higher with food costs up 11.6% with the shop-price index hitting a 17-year high.

OPEC+ two million barrel per day production cut started yesterday with oil prices rising.

S&P 500 earnings estimates for 2023 take ‘complete U-turn’ as recession risks loom
https://www.marketwatch.com/story/s-p-500-earnings-estimates-for-2023-take-complete-u-turn-as-recession-risks-loom-according-to-bofa-11667843447

Carvana Stock Drops
https://www.cnn.com/2022/11/07/cars/carvana-stock-drop/index.html

Salesforce to cut hundreds of employees
https://www.cnbc.com/2022/11/08/salesforce-cut-hundreds-of-employees-on-monday.html

The housing market is slowing. It’s time for homeowners to sit tight
https://www.inquirer.com/economy/home-prices-philadelphia-mortgage-rates-affordability-20221106.html

We’ve Reached the Point of No Return and the U.S. Will Soon Follow Unless…
https://www.youtube.com/watch?v=mGToOeOjL3E

Consumer confidence in housing hits new low, says Fannie Maehttps://www.cnbc.com/2022/11/07/consumer-confidence-in-housing-hits-new-low-says-fannie-mae.html

‘If you don’t need it, don’t buy it right now’: Here’s where the latest Fed rate hike will hit you hardest and what you can do about it
https://finance.yahoo.com/news/dont-dont-buy-now-heres-220000623.html

Norcold to shut down all U.S. refrigerator manufacturing
https://www.rvtravel.com/norcold-shut-refrigerator-manufacturing-rvt-1077b/

Thousands of tech workers were laid off last week. Experts say it’s just the beginning.
https://www.businessinsider.com/twitter-stripe-lyft-mass-layoffs-just-the-beginning-2022-11

Biggest Housing Market Crash of The Decade!
https://www.youtube.com/watch?v=vac7s-k660c

Wall Street: The layoffs are coming
https://newsletter.businessinsider.com/view/5b047f2e2ddf9c561f6e57b7hm9y1.a1/83d0de5c4

Brace for the Fed to steer the US into recession
https://markets.businessinsider.com/news/stocks/recession-us-economy-nouriel-roubini-sam-zell-warn-fed-rates-2022-11

Bed Bath & Beyond Suppliers Pull the Plug
https://www.newsbreak.com/news/2811740224501/bed-bath-beyond-suppliers-pull-the-plug

Thousands of tech workers were laid off last week. Experts say it’s just the beginning.
https://www.businessinsider.com/twitter-stripe-lyft-mass-layoffs-just-the-beginning-2022-11

Housing inventory jumps as homes take longer to sell
https://www.youtube.com/watch?v=QRssBjF9F40

Amazon Becomes World’s First Public Company to Lose $1 Trillion in Market Value
https://www.bloomberg.com/news/articles/2022-11-09/amazon-hits-unwelcome-milestone-with-1-trillion-in-value-lost

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