Stocks staged a choppy comeback last week as investors cheered positive earnings, led by mega-cap tech stocks. The rally came to pass despite fresh data showing a slowing economy and increasing inflationary pressures.

Stocks Bounce Back. Twice.

Last week opened with a rebound rally as investors breathed a sigh of relief that Middle East tensions had eased. The market rally extended into Tuesday, with investors cheering positive corporate earnings reports. By Tuesday’s market close, the S&P 500 had gained 2% for the week.1,2,3

But investor enthusiasm didn’t last, as midweek saw profit taking in all three averages. Rising bond yields threw a wet blanket on market momentum; at one point, the yield on the 10-year Treasury note rose more than 40 basis points from its low earlier in the week.4

On Thursday, markets slipped on two fresh pieces of economic data: a Gross Domestic Product (GDP) slowdown and higher consumer prices. But by midday, selling pressure slowed. Stocks pushed higher on Friday behind upbeat Q1 reports from two mega-cap tech stocks, helping the S&P 500 and the Nasdaq post their best week since November.5

Earnings Vs. Inflation

Corporate earnings and economic reports battled it out last week. In the end, earnings won, at least for this week.

The big economic news was that Q1 GDP grew at a 1.6 percent annualized rate—slower than the 2.4 percent economists expected and less than Q4 2023. The GDP report seemed to support the Goldilocks economy theory—not too hot, but not too cool—a story investors have favored this year.

The PCE (personal consumption expenditures) Index, the Fed’s preferred inflation gauge, was embedded within the GDP report. Excluding food and energy, it increased 2.8% from a year ago. It was unchanged from February and slightly higher than expected. It joined a growing list of factors pointing to an uptick in inflation, complicating the Fed’s interest rate decision.5

This Week: Key Economic Data

Tuesday: Employment Cost Index. Case-Shiller Home Price Index. Consumer Confidence.

Wednesday: FOMC Announcement and Fed Chair Press Conference. Treasury Refunding Announcement. ISM Manufacturing Index. EIA Petroleum Status Report.

Thursday: Motor Vehicle Sales. Jobless Claims. International Trade in Goods & Services. Factory Orders. Productivity and Costs.

Friday: Employment Situation.

Source: Investors Business Daily – Econoday economic calendar; April 23, 2024
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

Tuesday: Amazon.com, Inc. (AMZN), Eli Lilly and Company (LLY), The Coca-Cola Company (KO), Advanced Micro Devices, Inc. (AMD), McDonald’s Corporation (MCD), Starbucks Corporation (SBUX)

Wednesday: Mastercard Incorporated (MA), QUALCOMM Incorporated (QCOM), Pfizer Inc. (PFE), Automatic Data Processing, Inc. (ADP)

Thursday: Apple Inc. (AAPL), Amgen Inc. (AMGN), Booking Holdings Inc. (BKNG), ConocoPhillips (COP), Cigna Group (CI)

Friday: Berkshire Hathaway Inc. (BRK.A, BRK.B)

Source: Zacks, April 23, 2024
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.

“The hardest tumble a man can make is to fall over his own bluff.”

– Ambrose Bierce

IRS Program Helps Seniors Prepare Taxes

The IRS has a Free File tool, which facilitates online tax preparation, direct deposits of refunds, and electronic filing choices, designed for taxpayers on a fixed budget, including seniors and retirees. Here is some information to know about the tool:

• IRS Free File is at IRS.gov and features some significant names in the tax software provider world.
• To use the tool, taxpayers can browse multiple offers.
• The eligibility standards for Free File depend on the tax partner but are typically based on income, age, and state residency.
• Free File has most of the necessary forms when filing your taxes. Even if you have a unique tax situation, you may still be able to use Free File.
• Some Free File products are available in Spanish.
• You can also search for credits and deductions in Free File.
• Some providers in Free File also offer state return preparation. You can use the lookup tool in Free File to find the tax partner that might be appropriate for your state requirements.
• Taxpayers can access Free File through computers, smartphones, or tablets.

*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.gov6

Aloe Vera: One Powerful Plant

Aloe vera is a medicinal plant used for nearly everything. It is a cactus-type plant that grows well in many climates and has thick, juicy leaves that store water. Because of this, aloe vera is beloved for its hydrating properties. Let’s explore aloe’s many benefits and how to include them in your daily routine.

The thick, sticky gel in aloe leaves contains potent bioactive compounds, including vitamins, minerals, amino acids, and antioxidants.

Aloe vera is also known for its healing properties. Its antibacterial, antiviral, and antiseptic properties may help heal wounds and treat skin problems or as a topical treatment for first—and second-degree burns.

Lastly, aloe vera can lower blood sugar levels by enhancing insulin sensitivity and managing blood sugar. Some preliminary evidence has suggested that aloe vera may benefit people with prediabetes or type 2 diabetes. Check with your doctor or medical team for more information.

Tip adapted from Medical News Today7

I protect you. I sit on a bridge. You can see through me. People walking by might wonder what I hide. What am I?

Last week’s riddle: How can you name three consecutive days without mentioning the words Monday, Tuesday, Wednesday, Thursday, Friday, Saturday, or Sunday? Answer: Use the words yesterday, today, and tomorrow.

A green sea turtle, Queensland, Australia

Footnotes And Sources

1. The Wall Street Journal, April 26, 2024

2. CNBC.com, April 22, 2024

3. CNBC.com, April 23, 2024

4. CNBC.com, April 24, 2024

5. The Wall Street Journal, April 25, 2024

6 IRS.gov, October 23, 2023

8. Medical News Today, January 23, 2023

Stocks fell for a third straight week, as Fed Chair Jerome Powell’s mixed but upbeat message could not offset the anxiety caused by the Middle East conflict.

Stocks Retreat

Markets began the week rattled by further escalation in the Middle East over the weekend. A bit of good news punctuated an otherwise sour Monday, as a stronger-than-expected retail sales report showed consumers were spending despite rising inflation.1,2

On Tuesday, remarks from Fed Chair Jerome Powell indicated a shift in thinking—from being confident to not-so-confident about interest rate cuts in 2024. He said rates might need to stay higher until the Fed meets their 2% inflation target.3,4

On Friday, the markets saw further declines, but investors were somewhat reassured by the perception that Thursday’s retaliatory actions in the Middle East were restricted in scope.5

Silver Linings

When stocks are in a downtrend, it’s important to keep perspective and realize that markets move in cycles. Here are a couple of bright spots from last week and perhaps some good news that may influence trading in the week ahead:

• While Chair Powell said last week that the Fed may keep rates higher for longer, he also said the Fed does not intend to raise rates for now.

• Despite inflation concerns, individuals were in a spending mood in March. Retail sales increased 0.7% for the month, more than twice the consensus forecast.
• “Earning season” picks up during the next four weeks. For the week ending April 26, more than 800 companies will give updates on business conditions in Q1.6

This Week: Key Economic Data

Tuesday: PMI Composite. New Home Sales.

Wednesday: EIA Petroleum Status Report. Durable Goods. Survey of Business Uncertainty.

Thursday: Gross Domestic Product (GDP). International Trade in Goods (Advance). Jobless Claims. Pending Home Sales.

Friday: Personal Income & Outlays. Consumer Sentiment.

Source: Investors Business Daily – Econoday economic calendar; April 18, 2024
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: Verizon Communications Inc. (VZ)

Tuesday: Tesla, Inc. (TSLA), Visa Inc. (V), PepsiCo, Inc. (PEP), GE Aerospace (GE), United Parcel Service, Inc. (UPS)

Wednesday: Meta Platforms, Inc. (META), International Business Machines Corporation (IBM), AT&T Inc. (T), The Boeing Company (BA)

Thursday: Microsoft Corporation (MSFT), Alphabet Inc. (GOOG, GOOGL), Merck & Co., Inc. (MRK), T-Mobile US, Inc. (TMUS)

Friday: Exxon Mobil Corporation (XOM), Chevron Corporation (CVX)

Source: Zacks, April 18, 2024
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.

“Anything you don’t understand is dangerous until you do understand it.”

– Larry Niven

Can You Claim The Child Tax Credit For Other Dependents?

Even if you cannot claim the child tax credit, you may be able to claim the credit for other dependents under your care. The IRS issues a maximum of $500 for each dependent who meets specific conditions.

These conditions include the following:

• Dependents who are age 17 or older.

• Dependents who have individual taxpayer identification numbers.
• Dependent parents or other qualifying relatives supported by the taxpayer.
• Dependents living with the taxpayer who are not related to the taxpayer.

The credit begins to phase out when the taxpayer’s income exceeds $200,000. This phaseout begins for married couples filing a joint tax return at $400,000.

Taxpayers may be able to claim this credit if the following are applicable:

• They claim the person as a dependent on the taxpayer’s return.

• They cannot use the dependent to claim the child tax credit or additional child tax credit.
• The dependent is a U.S. citizen, national, or resident alien.

This dependent credit may also combine with the child and dependent care credit and the earned income credit.

*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

Channel Your Natural Beauty

What you put on your body is equally as important as what you put in your body; this is why more people are opting for natural skincare and beauty products. Natural ingredients are better for the environment and often gentler on your skin.

When seeking a natural beauty product, check its certifications. Most natural beauty products are certified organic or natural by outside organizations. As a bonus, they may also be vegan or cruelty-free. You should also consider shopping for products that are non-toxic, palm oil-free, and produced with ethical ingredient sourcing policies and environmentally friendly packaging.

Here are some of the most common natural ingredients to look for, depending on the product and your needs:

• Aloe vera

• Almond oil
• Shea butter
• Coconut oil
• Antioxidants such as pomegranate or orange extract
• Rosehip oil
• Sunflower seed oil

The list of powerful, effective, and safe natural beauty ingredients is constantly growing, and we are advancing toward a future of gentle, sustainable beauty products.

Tip adapted from Sustainable Jungle8

How can you name three consecutive days without mentioning the words Monday, Tuesday, Wednesday, Thursday, Friday, Saturday, or Sunday?

Last week’s riddle: What has a tail and head but no body? Answer: A coin.

Familia Basilica, Barcelona, Sagrada Familia

Footnotes And Sources

1. The Wall Street Journal, April 19, 2024

2. CNBC.com, April 15, 2024

3. The Wall Street Journal, April 16, 2024

4. CNBC.com, April 16, 2024

5. CNBC.com, April 19, 2024

6. MarketWatch, April 19, 2024

7. IRS.gov, October 23, 2023

8. Sustainable Jungle, January 23, 2023

Stocks fell last week as investors sorted through conflicting inflation reports and assessed geopolitical tensions.

Inflation Spooks Markets

On Wednesday, the March Consumer Price Index (CPI) report rattled markets, revealing that inflation accelerated slightly more than expected. Bond yields rose, and stocks retreated in response, as investors feared the news could influence the Fed’s rate decision. The 10-year Treasury yield had its highest intraday jump in three years.^1,2,3

Markets rallied Thursday as investors were encouraged by the Producer Price Index (PPI) report, which measures inflation at the producer level. Unlike CPI, PPI rose less than expected, which sparked a tech-focused rally. Markets opened lower on Friday as investors wrestled with the conflicting inflation reports.

Fears of an escalating Middle East conflict also weighed on stocks during the week. Concerns about a potential weekend event led some investors to end the week in a risk-off position.⁴

Inflated Expectations

Minutes from the March Fed meeting, published Wednesday, showed officials’ concern that inflation wasn’t slowing down quickly enough toward the Fed’s 2% target. But despite sticky inflation, they reiterated that rate cuts were still on the table for this year.

The start of Q1 earnings season reinforced inflation concerns as several leading money center banks—despite many beating expectations—forecasted lower growth for the remainder of 2024 due partly to inflation and higher-than-expected rates.

On Friday, the University of Michigan’s survey showed consumer sentiment fell last month. Some concluded that the survey confirmed what consumers have been saying for months—that inflation is still in their everyday lives.^5,6

This Week: Key Economic Data

Monday: Retail Sales. Business Inventories. Housing Market Index. Empire State Manufacturing Index.

Tuesday: Housing Starts and Permits. Industrial Production.

Wednesday: EIA Petroleum Status Report. Treasury International Capital. Beige Book. 20-Year Treasury Bond Auction.

Thursday: Jobless Claims. Existing Home Sales. EIA Natural Gas Report. Philadelphia Fed Manufacturing Index.

^{Source: Investors Business Daily – Econoday economic calendar; April 11, 2024
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: The Goldman Sachs Group, Inc. (GS), The Charles Schwab Corporation (CHSW)

Tuesday: UnitedHealth Group Incorporated (UNH), Johnson & Johnson (JNJ), Bank of America Corporation (BAC), Morgan Stanley (MS)

Wednesday: Abbott Laboratories (ABT), Prologis, Inc. (PLD), CSX Corporation (CSX)

Thursday: Netflix, Inc. (NFLX), Elevance Health, Inc. (ELV), Marsh & McLennan Companies, Inc. (MMC), The Blackstone Group (BX)

Friday: The Proctor & Gamble Company (PG), American Express Company (AXP)

^{Source: Zacks, April 11, 2024
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.}

“The fool doth think he is wise, but the wise man knows himself to be a fool.”

– William Shakespeare

More Digital Choices For Filing

The IRS has made it easier to file your taxes. Forms now contain electronic signature options, meaning tax professionals can conduct remote transactions.

To allow your tax professional to use the electronic signature option, you must fill out and submit Form 2848, Power of Attorney and Declaration of Representative. This form constitutes a written authorization appointing tax professionals to represent taxpayers before the IRS; this includes performing certain acts on the taxpayer’s behalf. These acts may encompass providing an e-signature.

*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

Hydrate the Healthy Way

Are you trying to kick a soda habit but sick of water? There are many fun and healthy means to make your water taste better and encourage you to drink more. Here are some easy ways to spice up your normal water:

Add fresh fruit slices, such as lemon, lime, or orange. Not only will these fruits make your water taste better, but you may also enjoy some of the benefits of these citrus powerhouses.

Add some sliced cucumber to your water to make it feel pampered. Who needs the spa when you have a nice glass of cucumber water sitting at your desk?

Try some sugar-free, low-calorie water sweeteners. They are an appealing option for those who have a sweet tooth and crave soda but are trying to drink more water. Mix it up with sparkling water or seltzer if you miss the fizz of soda. Most sparkling waters are calorie-free or low in calories while keeping you hydrated.

It would help to drink at least half of your body weight in ounces of water daily. What are some of your favorite methods to make water more exciting?

Tip adapted from Baton Rouge Clinic⁸

What has a tail and head but no body?

Last week’s riddle: You have 31 baseballs in a box, and 31 kids are lined up to get them. You give each kid a baseball, but in the end, one baseball remains in the box. How is this possible? Answer: When you give the last baseball away, you give it away within the box—that is, the 31st kid to get a baseball also gets the box.

Elevador da Bica funicular in Lisbon, Portugal

Footnotes and Sources

^{1. The Wall Street Journal, April 12, 2024}

^{2. CNBC.com, April 10, 2024}

^{3. The Wall Street Journal, April 11, 2024}

^{4. CNBC.com, April 12, 2024}

^{5. MarketWatch.com, April 11, 2024}

^{6. CNBC.com, April 10, 2024}

7. IRS.gov, February 13, 2023

8. Baton Rouge Clinic, January 23, 2023

Stocks dropped last week as investors focused on “what’s next” for interest rates after mixed comments from multiple Fed officials.

Fed Officials Weigh In

Stocks struggled out of the gate again last week, ending Monday and Tuesday in the red on concerns that recent economic data could derail the Fed’s plan for short-term rates.

The markets recovered Wednesday through Thursday morning when weekly jobless claims were better than expected. But stocks fell broadly Thursday afternoon following mixed comments from multiple Fed officials. All three averages ended the day down more than 1 percent for the first time in a month.^1,2

On Friday, a strong jobs report gave investors much-needed confidence. The U.S. economy created 303,000 jobs in March—higher than economists’ expectations—while unemployment dropped slightly to 3.8 percent. Markets rallied after the news, but not enough to recoup all weekly losses.³

What’s the Scoop?

Several Fed officials made speeches last week, including Chair Jerome Powell. In a Wednesday speech at Stanford University, Powell said it was a “bumpy” path to a soft landing, but Fed officials are continuing to look at the long-term trends.⁴

Last week, Atlanta Fed President Raphael Bostic suggested one cut. San Francisco Fed President Mary Daly noted no guarantees, and Cleveland’s President Loretta Mester said rate cuts may come later this year. Minneapolis President Neel Kashkari rattled markets by suggesting that no cuts may be on the table, followed by Fed Governor Michelle Bowman, who said on Friday that it’s possible rates may have to move higher to control inflation.^5,6

The flurry of comments comes following the end of the Fed’s blackout period. Fed officials are not allowed to make public comments except for very narrow windows during the year.

This Week: Key Economic Data

Tuesday: NFIB Small Business Optimism Index.

Wednesday: Consumer Price Index (CPI). FOMC Minutes. EIA Petroleum Status. Treasury Statement.

Thursday: Jobless Claims. Producer Price Index—Final. Fed Balance Sheet. EIA Natural Gas Report.

Friday: Import and Export Prices. Consumer Sentiment.

^{Source: Investors Business Daily – Econoday economic calendar; April 2, 2024
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

Tuesday: Albertsons Companies, Inc. (ACI)

Wednesday: Delta Air Lines, Inc. (DAL)

Thursday: The Progressive Corporation (PGR), Infosys (INFY), Constellation Brands Inc (STZ)

Friday: JPMorgan Chase & Co. (JPM), Wells Fargo & Company (WFC), BlackRock, Inc. (BLK), Citigroup Inc. (C), State Street Corporation (STT)

^{Source: Zacks, April 2, 2024
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.}

“Always it’s spring and everyone’s in love and flowers pick themselves.”

– E.E. Cummings

Reporting Cash Payments

Are you expecting a little extra cash from a gift or sale? The IRS would like to know. Individuals, corporations, and partnerships must 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 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 last year.

File Form 8300, titled Report of Cash Payments Over $10,000 Received in a Trade or Business. This form requires information about the benefactor and the recipient of the cash, a description of the transaction, and information about any other parties involved.

*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

The Health Benefits of a Meat-Free Day

The overwhelming health benefits of a plant-based diet are clear, but becoming entirely vegetarian or vegan is not for everyone. Luckily, one can still enjoy many health benefits by being “meat-free” for just one day per week. Here are some of the main benefits of this healthy lifestyle transition:

• You’ll be reducing your consumption of potentially dangerous processed meat—According to the World Health Organization, processed meats rank alongside cigarettes as a major cause of cancer.

• You’ll decrease your risk of heart disease—Coronary heart disease is linked to a meat-based diet, and most cardiovascular diseases can be prevented by switching to a plant-based diet.
• You’ll be ingesting more vitamins, minerals, and fiber—On your meat-free days, you will likely prioritize other foods such as veggies, fruits, whole grains, and other plant-based products. This variety will help you round out your diet.

These are merely a few benefits of being meat-free for a day. Want more inspiration? Google “Meatless Monday” for recipe suggestions.

Tip adapted from MindFood.com⁸

You have 31 baseballs in a box, and 31 kids are lined up to get them. You give each kid a baseball, but in the end, one baseball remains in the box. How is this possible?

Last week’s riddle: They have not flesh, nor feathers, nor scales, nor bone. Yet they have fingers and thumbs of their own. What are they? Answer: Gloves.

Fira de Barcelona, Barcelona, Spain

Footnotes and Sources

1. The Wall Street Journal, April 5, 2024

2. The Wall Street Journal, April 4, 2024

3. The Wall Street Journal, April 5, 2024

4. CNBC.com, April 3, 2024

5. CNBC.com, April 5, 2024

6. CNBC.com, April 5, 2024

7. IRS.gov, May 17, 2023

8. MindFood.com, January 23, 2023