Stocks were essentially unchanged last week as geopolitical tensions added some volatility to an otherwise quiet trading week.

The Dow Jones Industrial Average was flat (+0.09 percent), while the Standard & Poor’s 500 Index ticked up 0.22 percent. The Nasdaq Composite also was flat (+0.10 percent). The MSCI EAFE Index, which tracks developed overseas stock markets, was a bit more unsettled by the geopolitical events, dropping 3.74 percent.^1,2

Stocks Flat, Oil Spikes

Stocks posted modest gains on Monday, encouraged by upbeat comments in a speech by Fed Chair Jerome Powell. However, the modest gains pushed the S&P 500 and Dow to fresh records.³

As Middle East tensions escalated on the first day of October, stocks fell, bond yields rose, and oil prices rose as the news unfolded.⁴

On Wednesday, all three averages were flat. An ADP report showed higher-than-expected private sector job growth—a metric investors focus on. Oil prices continued to rise as investors watched the developments in the Middle East.^5,6

Then, on Friday, stocks rallied after the Labor Department’s September jobs report topped expectations.⁷

Jobs Out Front

The Labor Department’s jobs report gave investors some much-welcomed insights into the jobs market. At its September meeting, the Fed indicated it was watching the jobs market as closely as inflation, so updates on the jobs market are now considered as important as inflation reports.⁸

The report showed employers added 254,000 jobs, about 100,000 more than economists expected. It also showed that unemployment ticked down to 4.1 percent last month.⁹

This Week: Key Economic Data

Monday: Fed Officials Neel Kashkari, Raphael Bostic, and Alberto Musalem speak. Consumer Credit.

Tuesday: International Trade in Goods & Services. Fed Officials Raphael Bostic and Susan Collins speak.

Wednesday: FOMC Minutes. EIA Petroleum Status Report. Fed Officials Raphael Bostic, Lori Logan, Austan Goolsbee, Thomas Barkin, Susan Collins and Mary Daly speak.

Thursday: Consumer Price Index. Weekly Jobless Claims. Fed Balance Sheet. Fed Official John Williams speaks.

Friday: Producer Price Index. Consumer Sentiment. Fed Officials Austan Goolsbee, Lori Logan, and Michelle Bowman speak.

^{Source: Investors Business Daily – Econoday economic calendar; October 4, 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: PepsiCo, Inc. (PEP)

Thursday: Infosys / American Noble Gas Inc. (INFY), Delta Air Lines, Inc. (DAL)

Friday: JPMorgan Chase & Co. (JPM), Wells Fargo & Company (WFC), The Progressive Corporation (PGR), BlackRock, Inc. (BLK), The Bank of New York Mellon Corporation (BK)

^{Source: Zacks, October 4, 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.}

“You can’t judge right from looking at what’s wrong.”

– Bo Diddley

Protect Your Financial Safety in Case of a Natural Disaster

No matter where you live, you should be aware of possible natural disasters in your area and plan accordingly by considering the following tax tips:

• Update your emergency plan.

• Create electronic copies of all important documents.
• Document your valuables. Documenting ahead of time makes it easier to claim insurance and tax benefits if a disaster strikes.
• You can call the IRS at 866-562-5227 with any natural disaster-related questions. The agency can provide copies of previous tax returns, order transcripts showing most line items, and more.
• Net personal, casualty, and theft losses may be deductible if attributable to a federally declared disaster.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS¹⁰

The Scale Isn’t Everything: More-Comprehensive Ways to Measure Your Health

Put the scale away for a little while and try these techniques to focus on your overall health rather than just a number:

• Keep a journal and track your healthy habits, such as working out or eating veggies with every meal. Celebrate these small victories!

• Take progress photos and compare them throughout your journey. Take your pictures in the same pose, wearing the same outfit, at the same time every week (preferably in the morning before you’ve had breakfast).
• Check on other aspects of your health, such as your energy levels, skin, and tummy health. Developing a healthy routine does much more for your body than just lowering the number on the scale.

These are just a few ways to check in with yourself on your fitness and wellness journey without the scale.

Tip adapted from Daily Burn¹¹

I have rough skin and sometimes more than two eyes, but I can be tasty when prepared plainly and simply. Just what am I?

Last week’s riddle: What invention permits you to peer through any wall?
Answer: A window.

Hot springs, Dallol, Danakil Depression, Afar Region

Ethiopia, Africa

Footnotes and Sources

^{1. The Wall Street Journal, October 4, 2024}

^{2. Investing.com, October 4, 2024}

^{3. CNBC.com, September 30, 2024}

^{4. The Wall Street Journal, October 1, 2024}

^{5. The Wall Street Journal, October 2, 2024}

^{6. The Financial Times, October 3, 2024}

^{7. The Wall Street Journal, October 4, 2024}

^{8. The Wall Street Journal, October 2, 2024}

^{9.  The Wall Street Journal, October 4, 2024}

^{10. IRS.gov, July 24, 2024}

^{11. Daily Burn, July 24, 2024}

Stocks moved higher last week, continuing to build on the momentum generated after the Federal Reserve decided to cut short-term rates by 0.50 percent.

The Standard & Poor’s 500 Index gained 0.59 percent, while the Nasdaq Composite rose 0.95 percent. The Dow Jones Industrial Average added 0.62 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, gained an eye-catching 3.53 percent.1,2

Congress Passes Spending Bill

Stocks started the week tepidly but in the green, as investors mostly shrugged off Tuesday’s weak consumer confidence report. Then, at midweek, markets put on the brakes as investors appeared to take profits after a four-day winning streak.3,4

On Thursday, markets rallied on news that the final Q2 gross domestic product estimate showed the economy increased at an annual rate of 3.0 percent. Then Friday, the PCE, or Personal Consumption and Expenditures Index, showed inflation had cooled slightly more than expected in August, which some believe may influence the Fed’s decisions on short-term rates at its November meeting.5

Finally, a continuing resolution was passed by both houses of Congress last week and signed by President Biden Friday morning, assuaging concerns over a government shutdown. The resolution funds the government until December 20.6

China’s Stimulus Package

This week, the head-turning performance came from outside the U.S.

As measured by the MSCI EAFE (Europe, Australia, and Far East) Index, international stocks rose more than 3 percent following news of China’s stimulus package, which could be as much as 2 trillion yuan, or $284 billion. China’s program also cut banks’ reserve requirements and lowered a key short-term interest rate. 

While the EAFE Index doesn’t track stocks from Mainland China, the stimulus package had far-reaching implications for other countries.7,8

This Week: Key Economic Data

Monday: Fed Chair Jerome Powell speaks. Fed Official Michelle Bowman speaks.

Tuesday: ISM Manufacturing Index. Construction Spending. Fed Official Raphael Bostic speaks.

Wednesday: ADP Employment Report. Motor Vehicle Sales. Fed Officials Beth Hammack, Alberto Musalem, Michelle Bowman, and Thomas Barkin speak.

Thursday: Jobless Claims. Factory Orders. ISM Services Index. 10-Year Treasury Note announcement. Fed Officials Raphael Bostic and Neel Kashkari speak.

Friday: Employment Situation. Fed Official John Williams speaks.

Source: Investors Business Daily – Econoday economic calendar; September 27, 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: NIKE, Inc. (NKE), Paychex, Inc. (PAYX)

Thursday: Constellation Brands Inc (STZ)

Source: Zacks, September 27, 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 emblem of a philosophy is not that it contains a set of specific thoughts, but that it generates a way of thinking.”

– Samuel R. Delany

Selling Your Car or Buying From a Private Seller?
Here Are the Tax Tips You Should Know

If you’re selling your car for less than what you paid, you likely won’t need to pay any sales tax because the Internal Revenue Service (IRS) considers selling a used car for less than what you paid a capital loss. However, if you’re selling your car for more than what you paid (like if it’s a classic car you’ve restored and it’s increased in value), you may need to pay sales tax.

If you’re buying a car from a private seller, you may need to pay sales tax, but this sales tax doesn’t go to the seller – it goes to the Department of Motor Vehicles and is part of your car’s registration.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from CarGurus9

Stretches to Complement Your Workout

Here are some great stretches that will open up your hips, stretch out your hamstrings, and give your quads some love after a long run or lifting session:

• Hamstring Stretch – Lay on the ground with your legs straight up. Gently pull one leg toward you until you feel pressure. Repeat with the other leg.
• Figure Four – Sit on the ground with your legs bent and knees up. Gently rest one ankle on the quad of the opposite leg. If this is too much, straighten one leg on the floor and rest your ankle on your thigh while it’s on the ground.
• Child’s Pose – This everyday yoga movement can also be a great stretch. Hold the regular child’s pose with your knees about hip-width apart, or intensify the stretch by bringing your knees out wider.

Tip adapted from Runner’s World10

What invention permits you to peer through any wall?

Last week’s riddle: 8549176320 is a large number and unique for two reasons. First, it presents all numerical digits from 0 to 9 without repeating; what is the other reason?
Answer: When the ten numerals are spelled out and expressed as words, the words are in alphabetical order from start to finish (eight, five, four, nine, one, etc.)

Beijing National Stadium

Chaoyang, Beijing, China

Footnotes and Sources

1. The Wall Street Journal, September 27, 2024

2. Investing.com, September 27, 2024

3. CNBC.com, September 24, 2024

4. CNBC.com, September 25, 2024

5. BEA.gov, September 26, 2024

6. The Wall Street Journal, September 22, 2024 OR
The Hill, September 25, 2024

7. The Wall Street Journal, September 27, 2024

8. The Wall Street Journal, September 27, 2023

9.  cargurus.com, May 8. 2024

10. Runnersworld.com, May 8. 2024

Stocks moved higher last week after the Federal Reserve’s half-point rate cut, bolstered by multiple data points supporting a cooling but still strong economy and decelerating inflation.

The Standard & Poor’s 500 Index gained 1.36 percent, while the Nasdaq Composite rose 1.49 percent. The Dow Jones Industrial Average moved ahead by 1.62 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, inched up 0.42 percent.^1,2

Fed Cuts Rate 0.5 Percent

Stocks traded in a narrow range for the first half of the week as anxious investors awaited the outcome of the Federal Open Market Committee’s (FOMC) September meeting.^3,4 

Shortly after 2 pm ET Wednesday, the Fed announced it was cutting rates by a half percentage point—a more significant cut than some investors anticipated. Stocks initially rose in response and then fell. Some market watchers attributed the decline to concern that the Fed might be concerned about economic growth.^5,6 

But after sleeping on it, stocks rallied Thursday, with the Nasdaq, S&P, and Dow climbing 2.5 percent, 1.7 percent, and 1.3 percent, respectively. The Dow topped 42,000 for the first time, while the S&P crossed the 5,700 mark.^7,8

Fed’s Move

The half-point cut was the first change in the Fed Funds Rate in 14 months and the first reduction in 4½ years, bringing its target range to 4.75-5.0 percent. Fed Chair Powell said the decision reflected the Committee’s “greater confidence that inflation is moving sustainably toward 2 percent” and that the “risks to achieving its employment and inflation goals are roughly in balance.”⁹

This Week: Key Economic Data

Monday: Fed Officials Raphael Bostic, Austan Goolsbee and Neel Kashkari speak.

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

Wednesday: New Home Sales. EIA Petroleum Status Report.

Thursday: Gross Domestic Product. Durable Goods. Fed Chair Powell speaks. Pending Home Sales. Fed Officials Michael Barr, John Williams and Neel Kashkari speak. 7-Year Treasury Note Auction.

Friday: Personal Income & Outlays. International Trade in Goods. Consumer Sentiment.

^{Source: Investors Business Daily – Econoday economic calendar; September 19, 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: AutoZone, Inc. (AZO)

Wednesday: Micron Technology, Inc. (MU), Cintas Corporation (CTAS)

Thursday: Costco Wholesale Corporation (COST)

^{Source: Zacks, September 19, 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.}

“We are born not with purpose, but with potential.”

– Octavia Butler

Tax Treatment of Hobbies

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

1. The IRS taxes income differently depending on whether it comes 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 your hobby or business. 
3. In some instances, you can deduct approvable expenses only up to the amount you brought in for income. 

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS.gov¹⁰

Rest, Relaxation, and Healthy Nutrition

Here are some tips on how to stay healthy, even during long trips:

• Before heading to the airport, pack a snack box of fruits, veggies, nuts, lean proteins, and healthy bars. This way, you won’t be tempted by chips and soda while you wait for your flight. 
• Get plenty of sleep. Like at home, getting a good night’s sleep while traveling is essential. Sleep helps your body reset for the next day and will help you maintain your weight. 
• Hydrate often. 
• Take your vitamins to ensure you’re at your best. A daily pill organizer can help you remember to take them, even while traveling. 

There’s no reason why you must sacrifice all your hard work and healthy habits while visiting family or heading to warmer destinations. Continuing a healthy lifestyle while traveling will help you have even more fun!

Tip adapted from Travel & Leisure¹¹

8549176320 is a large number and unique for two reasons. First, it presents all numerical digits from 0 to 9 without repeating; what is the other reason?

Last week’s riddle: In the morning, I lie at your feet. I almost vanish in the midday sun. But I’ll be with you all day as you stand, walk, leap, and run. What am I?
Answer: Your shadow.

Trondheim old town with colourful Old warehouses in Ovre Elvehavn

Trondheim, Trondheim, Norway

Footnotes and Sources

^{1. The Wall Street Journal, September 20, 2024}

^{2. Investing.com, September 20, 2024}

^{3. CNBC.com, September 16, 2024}

^{4. The Wall Street Journal, September 18, 2024}

^{5. CNBC.com, September 18, 2024}

^{6. The Wall Street Journal, September 18, 2024}

^{7. The Wall Street Journal, September 19, 2024}

^{8. The Wall Street Journal, September 20, 2024}

^{9. The Wall Street Journal, September 18, 2024}

^{10. IRS.gov, May 8. 2024}

^{11. Travelandleisure.com, May 8. 2024}

Stocks rallied last week as investors received better-than-expected consumer and producer inflation data.

The Dow Jones Industrial Average rose 2.60 percent, while the Standard & Poor’s 500 Index gained 4.02 percent. The Nasdaq Composite led, picking up 5.95 percent as tech stocks rebounded. The MSCI EAFE Index, which tracks developed overseas stock markets, rose 1.01 percent.^1,2

A Wednesday to Remember

Stocks bounced out of the gate at the start of the week as “risk on” investors made moves before the pending release of the twin inflation reports–the Consumer Price Index (CPI) and Producer Price Index (PPI). The three major averages added slightly more than 1 percent in Monday trading.³

On Wednesday, stocks initially dipped following the release of the CPI as traders appeared disappointed by the report. By midday, sentiment changed. The S&P 500, down as much as 1.6 percent in early trading, gained 1.1 percent by the closing bell. More inflation data out Thursday showed wholesale price increases were tempered, which helped stocks move higher through the balance of the week.^4,5

Small Caps Shine

Small-cap stocks, as measured by the Russell 2000 Index, have pushed higher in recent weeks, which is a telling move for some Wall Street observers. The Russell 2000 has outperformed the S&P 500 by more than 4 percent during Q3 so far.⁶

One reason is that smaller stocks tend to respond when they anticipate interest rates will trend lower. Investors appear to be positioning themselves in small cap issues, expecting the Fed may adjust rates at its September meeting as it looks to guide the economy to a soft landing.⁷

This Week: Key Economic Data

Monday: Empire State Manufacturing Index.

Tuesday: FOMC meeting – Day 1. Retail Sales. Industrial Production. Fed Official Lorie Logan speaks.

Wednesday: FOMC meeting – Day 2. Housing Starts and Permits. FOMC Announcement. Fed Chair Press Conference.

Thursday: Existing Home Sales. Weekly Jobless Claims.

Friday: Fed Official Patrick Harker speaks.

^{Source: Investors Business Daily – Econoday economic calendar; September 13, 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

Wednesday: General Mills, Inc. (GIS)

Thursday: FedEx Corporation (FDX)

^{Source: Zacks, September 13, 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.}

“A career is born in public, talent in privacy.”

– Marilyn Monroe

Check Your Withholding Status Online

The Withholding Calculator can help you determine whether you should submit a new W-4 to your employer, and you also can use the results to adjust your income tax withholding. If you have a more complex tax situation, you may need to use Publication 505, Tax Withholding and Estimated Tax form. This form can help you determine your self-employment tax, alternative minimum tax, or tax on unearned income by dependents. Publication 505 also can help if you receive non-wage income, including capital gains, royalties, dividends, and more.

Checking your withholding is essential to deducting the right amount of taxes; these handy tools can help.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS.gov⁸

Low-Impact Exercises for Healthy Joints

Here are some of our favorite low-impact exercises:

• Swimming – Not only is swimming a low-impact exercise, but it’s also a full-body workout. Hop in the pool, do some laps, or splash around for fun. Either way, it’s great for exercising and staying cool.
• Kickboxing – It sounds intense, but kickboxing is a low-impact exercise for your joints. If possible, modify your workout to focus more on the sport’s cardio movements and not the combat aspect.  
• TRX Exercises – The TRX strap is often seen hanging from a bar at the gym. This simple accessory makes it easy to do lunges, pullups, and squats without putting pressure on your joints.
• Cycling – Indoors or outdoors, cycling is a great exercise and easy on your knees.

Tip adapted from Healthline⁹

In the morning, I lie at your feet. I almost vanish in the midday sun. But I’ll be with you all day as you stand, walk, leap, and run. What am I?

Last week’s riddle: A 10k cross-country run through the woods attracts 36 entrants. The day is unseasonably hot, and the course is confusing. Three runners get lost, five quit, and 28 finish the run. What happens to the other entrants? Answer: The whereabouts of all entrants are known as 3 + 5 + 28 = 36.

Skyline of Malmo Sweden with Famous Turning Torso Building

Malmö, Skåne län, Sweden

Footnotes and Sources

^{1. The Wall Street Journal, September 13, 2024}

^{2. Investing.com, September 13, 2024}

^{3. The Wall Street Journal, September 10, 2024}

^{4. The Wall Street Journal, September 11, 2024}

^{5. CNBC.com, September 12, 2024}

^{6. The Wall Street Journal, September 13, 2024}

^{7. MarketWatch.com, September 12, 2024}

^{8. IRS.gov, May 8. 2024}

^{9. Healthline, May 8. 2024}