Weekly Market Insights: Market Rallies But Ends Week Flat

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

Weekly Market Insights: Rate Cut Momentum; D.C. Averts Shutdown

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

Weekly Market Insights: Fed Cuts Interest Rate by Half-Point

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

Weekly Market Insights: Stocks Rally Ahead of Fed Meeting

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

Weekly Market Insights: Markets Focus on Fed’s Big September Move

Stocks fell last week as soft economic data rattled investors focused on the Fed’s next move with interest rates.

The Dow Jones Industrial Average lost 2.93 percent, while the Standard & Poor’s 500 Index dropped 4.25 percent. The tech-heavy Nasdaq Composite fell 5.77 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, declined 2.91 percent.1,2

Economic Data Unsettles Investors

The four-day trading week got off to a rough start as weak manufacturing data reawakened recessionary fears. All three major averages were down for the first session after the Labor Day holiday. For many, it was reminiscent of August 5, when stocks tumbled as recession worries unsettled investors.3

Attention shifted to Friday’s jobs report as stocks traded narrowly. Markets initially reacted positively to news that job growth rebounded slightly and unemployment ticked down. However, selling pressure increased as the trading session progressed and investors digested the underlying data. The S&P 500 had its worst week since March 2023.4

Focus on Fed’s September Meeting

The Federal Reserve seems poised to make a tough decision regarding monetary policy in its September meeting. The jobs market and other softening economic data have quickly overshadowed concerns about inflation.

However, there’s still a case to be made for a soft landing.

Job growth in August was slower than expected, but 142,000 jobs were created–an uptick that some would argue is an overall positive despite missing expectations. The drop in the unemployment rate to 4.2 percent bolstered the soft-landing narrative.5

Market observers anticipate a 0.25 percent rate adjustment in September, but some contend that the Fed may consider a more significant move. On Friday, Fed Governor Christopher Waller said he was open to a larger move if necessary. Chicago Fed President Austan Goolsbee and New York Fed President John Williams commented similarly during the week.6,7

This Week: Key Economic Data

Monday: Wholesale Inventories. Consumer Credit.

Wednesday: Consumer Price Index (CPI). EIA Petroleum Status Report.

Thursday: Producer Price Index (PPI). Jobless Claims (weekly).

Friday: Consumer Sentiment. Import and Export Prices.

Source: Investors Business Daily – Econoday economic calendar; September 6, 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: Oracle Corporation (ORCL)

Tuesday: GameStop Corp. (GME)

Thursday: Adobe Inc. (ADBE)

Source: Zacks, September 6, 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.

“Give what you have to somebody; it may be better than you think.”

– Henry Wadsworth Longfellow

Tax Tips on Identity Theft

Here are a few things that may help you against identity thieves:

The Internal Revenue Service (IRS) never will contact you via email or phone to request personal information. If you receive a scam email or call that claims to be from the IRS, report it to phishing@irs.gov.

People can steal your identity by stealing your wallet or purse, receiving the information they need over the phone or email, finding your personal information in the trash, or accessing information you provide to an unsecured website (only enter credit card information on websites that start with “https://clicktime.cloud.postoffice.net/clicktime.php?U=https%3A%2F%2F&E=info%40rfsadvisors.com&X=XID776CiiVeB3220Xd2&T=RFAD&HV=U,E,X,T&H=31eeaa5cc35903e0cb2317188d81754bb7e8131e”).

If you receive a letter from the IRS indicating that more than one tax return was filed in your name, your identity may have been stolen.

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

4 Potential Health Benefits of Coffee

  • Coffee may help you live longer: Recent studies found that coffee drinkers are less likely to die from some of the leading causes of death, including coronary heart disease, stroke, diabetes, and kidney disease.

  • Your liver may thank you: Research shows that coffee drinkers are more likely to have liver enzyme levels within a healthy range than people who don’t drink coffee.
  • You may decrease your risk of getting Alzheimer’s disease: The caffeine in two cups of coffee may protect against developing the condition. Researchers found that women aged 65 and older who drank two to three cups of coffee a day were less likely to develop dementia in general.
  • Your body may process glucose better: Studies found that people who drink more coffee are less likely to get type 2 diabetes.

Tip adapted from John Hopkins Medicine9

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?

Last week’s riddle: Brian bets Denise that he can find something made out of wood in his workshop that can’t be sawed. Brian wins the bet; what is this common substance?
Answer: Sawdust

Icebergs on the Jokulsarlon glacial lake

Jökulsárlón Ice Beach, Vatnajökull National Park, Iceland

 

Footnotes and Sources

1. The Wall Street Journal, September 6, 2024

2. Investing.com, August 30, 2024

3. The Wall Street Journal, September 3, 2024

4. The Wall Street Journal, September 6, 2024

5. The Wall Street Journal, September 6, 2024

6. Marketwatch.com, September 5, 2024

7. CNBC.com, September 6, 2024

8. IRS.gov, May 8. 2024

9. Hopkinsmedicine.org, May 8. 2024

Weekly Market Insights: Stocks React to Key Data and Earnings

There were mixed results for stocks last week as upbeat economic data and a critical Q2 corporate report shaped the week.

The Dow Jones Industrial Average rose 0.94 percent, while the Standard & Poor’s 500 Index increased 0.24 percent. The Nasdaq Composite lagged, falling 0.92 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, gained 0.35 percent.1,2

Key Economic Data

Markets began the week quiet as investors awaited Q2 earnings from Nvidia, the world’s most influential name in artificial intelligence.

The chipmaker–the second largest stock in the S&P 500 by market capitalization–dipped on the news, putting pressure on the Nasdaq and S&P 500. (The Nasdaq and S&P 500 are market-weighted averages, so larger companies have an outsized impact.)3

Nvidia is mentioned to show its influence on the overall stock market. It should not be considered a solicitation for the purchase or sale of the company.

On Thursday, an upward revision in Gross Domestic Product (GDP) data boosted markets, although stocks fell later in the day. Friday’s Personal Consumption and Expenditures (PCE) data seemed to confirm that inflation remained tame, welcome news for investors who are anticipating the Fed may adjust rates in September.4

 

Softer Landing in Focus?

Several pieces of data helped build a narrative that the economy may be coming in for a soft landing.

Second-quarter GDP growth was revised upward, from 2.8 percent to 3.0 percent. That’s an improvement from Q1 GDP, which rose 1.4 percent. Some market watchers were concerned about the Q2 revision after pending home sales in July hit its lowest monthly level in 23 years.5

Meanwhile, the Federal Reserve’s preferred measure of inflation, the PCE Index, came in 0.2 percent higher in July–in line with expectations. Core PCE inflation, which the Fed tracks closely, edged up 0.2 percent–also in line with forecasts.6

This Week: Key Economic Data

Tuesday: ISM Manufacturing Index. Construction Spending.

Wednesday: International Trade in Goods and Services. Motor Vehicle Sales. Factory Orders.

Thursday: Jobless Claims. ADP Employment Report.

Friday: Employment Situation. Fed Official John Williams speaks.

Source: Investors Business Daily – Econoday economic calendar; August 30, 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: Hewlett Packard Enterprise Company (HPE), Dollar Tree, Inc. (DLTR)

Thursday: Broadcom Inc. (AVGO)

Source: Zacks, August 30, 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.

“Nothing will ever be attempted, if all possible objections must be first overcome.”

– Samuel Johnson

Reporting Cash Payments

Individuals, companies, corporations, partnerships, associations, trusts, and estates 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 previous year.  

All you need to do is file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. The form requires information about the giver and receiver 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

What Are Alkaline Foods, and How Can They Benefit You?

Eating healthy foods and exercising are two primary components of a healthy lifestyle, but maintaining a healthy pH is another. All foods are either acidic or alkaline, and knowing which can help you lose weight, reduce inflammation, and have more energy. Our kidneys control our body’s pH levels, and focusing on an alkaline diet may help them do their job more efficiently.  

Alkaline foods include legumes, vegetables, fruits, nuts, and natural fats. An alkaline-based diet focuses more on these foods and less on processed foods, dairy, grains, and alcohol, all of which are acidic. 

While there’s still some debate over whether the alkaline diet is all it’s cracked up to be, it may offer more health benefits because it is rooted in eating whole, unprocessed foods.

Tip adapted from Healthline8

Brian bets Denise that he can find something made out of wood in his workshop that can’t be sawed. Brian wins the bet; what is this common substance?

Last week’s riddle: Anna, a supermarket clerk, has not slept during any of the past six nights, yet she is not tired. How can this be?Answer: Anna sleeps in the daytime.

Western Arctic caribou herd
National Petroleum Reserve, Alaska, United States

 

Footnotes and Sources

1. The Wall Street Journal, August 30, 2024

2. Investing.com, August 30, 2024

3. CNBC.com, August 28, 2024

4. The Wall Street Journal, August 30, 2024

5. The Wall Street Journal, August 29, 2024

6. CNBC.com, August 30, 2024

7. IRS.gov, May 8. 2024

8. Healthline.com, May 8, 2024

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