Stocks rose last week despite conflicting stories from economic reports.

The Dow Jones Industrial Average inched up 0.29 percent while the Standard & Poor’s 500 Index powered ahead 1.31 percent. The Nasdaq Composite led, picking up 2.38 percent. The MSCI EAFE Index tracks developed overseas stock markets and rose 1.29 percent for the week through Thursday’s close.¹

All Eyes on the Jobs Report

Weak manufacturing data prompted declines early in the week, reflecting investor concerns over the economy’s strength. But stocks rallied in anticipation of the jobs report on Friday.

However, the market reaction was mixed when the stronger-than-expected jobs report finally came. The S&P 500 touched a record high intraday before profit-taking late in the session.^2,3

The Catalyst That Wasn’t

The week closed with a jobs report that underscored the economy’s resilience while highlighting the data’s mixed nature.

The 272,000 jobs added in May were higher than the 190,000 economists expected. At the same time, wages rose 4.1 percent from a year ago. The strong jobs report and surprise wage increase supported the narrative that the Fed may now wait longer before considering a move on interest rates.⁴

Although inflation now exceeds the central bank’s 2 percent target, the jobs report suggests that economic growth remains powerful despite higher short-term rates.⁴

This Week: Key Economic Data

Monday: 3-Month Treasury Bill Auction.

Wednesday: Consumer Price Index. FOMC Announcement. Fed Chair Press Conference.

Thursday: Jobless Claims. Producer Price Index (final). Fed Official John Williams speaks.

Friday: Consumer Sentiment. Fed Official Austan Goolsbee speaks.

^{Source: Investors Business Daily – Econoday economic calendar;  June 7, 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: Broadcom Inc. (AVGO)

Thursday: Adobe Inc. (ADBE), Autodesk, Inc. (ADSK)

^{Source: Zacks, June 7, 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.}

“Fight for the things that you care about, but do it in a way that will lead others to join you.”

– Ruth Bader Ginsburg

When Was the Last Time You Checked Your Withholding Status?

Most people check their withholding status at the end of the year or as filing season arrives, but the middle of the year may be as good of a time as any to double-check your withholding status and confirm its accuracy. The IRS has a handy tool called the Tax Withholding Estimator, which can help you assess the tax withheld from your wages.

The tool can also help you determine if you must complete a new W-4 to submit to your employer, complete a new W-4P, or make additional payments to the IRS. It does this by estimating your annual income, factoring in any children you may have and earned income tax credit, and accounting for other items that may affect your yearly taxes.

Before using the Tax Withholding Estimator, gather all necessary documents; this includes your W-2 from your employer, any 1099 forms you have from banks and other payers, and any other forms you need. Gathering as much information as possible will be helpful because the estimator will only be as accurate as the information you enter.

*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

Strength Training Strategies for Every Level

If you would like to build muscle mass, sometimes the optimal strategies are the simplest ones. For example, becoming proficient at the “big four” exercises can help you create a strong (literally) foundation. These four moves include the squat, deadlift, bench, and shoulder press. You can work on some of your body’s major muscle groups with these simple movements.

Another strategy involves using dumbbells and barbells. While the fancy machines in the gym may appear fun and enticing, mastering the foundational movements with free weights requires building the skill. Free weight and bodyweight training are some of the most effective exercises, and they are also the simplest.

Lastly, maintain a log and track your progress. Even doing one more rep or lifting five more pounds counts as progress. These achievements will keep you motivated and make tracking your progress easier as you get stronger.

Tip adapted from Men’s Journal⁶

You hold a sheet of cellophane. Fully unfolded, it is 3 feet long by 2 feet wide. How can you get two people to stand on it (fully unfolded) so they can’t touch or see each other?

Last week’s riddle:  What runs around a field but doesn’t move? Answer: A fence.

Salar de Uyuni Salt Flats
Tahua, Potosí, Bolivia

Footnotes and Sources

^{1. The Wall Street Journal, June 7, 2024}

^{2. CNBC.com, June 6, 2024}

^{3. The Wall Street Journal, June 7, 2024}

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

^{5. IRS.gov, January 10, 2024} 

^{6. Men’s Journal, January 29, 2023} 

Stocks edged lower in the final week of May as fresh news on economic growth and inflation failed to inspire investors.

Stocks Slide

Markets shrugged off news that the Q1 Gross Domestic Product was revised lower to 1.3 percent from the initial estimated 1.6 percent. Despite concerns that the economy was cooling faster than expected, investors didn’t believe the update was enough to influence the Fed’s decision about adjusting short-term rates.1

On Friday, investors were on edge waiting for the update on inflation. The Fed’s preferred inflation indicator, called the personal consumption and expenditures (PCE), rose 0.2 percent in April, which was in line with forecasts.2

Stocks rose slightly in pre-market trading on the news but were under pressure throughout the day as investors digested the inflation update. But in the last hour of trading, stock staged a powerful rally led by the Dow, which had its best day of the year.

Is Bad News Good News?

On the economic front, last week’s news was generally disappointing. The update on Q1 GDP was a bit discouraging, and several Fed officials gave seemingly more hawkish updates. Also, the Fed’s “Beige Book” revealed modest economic growth nationwide.

Yet despite the drumbeat of bad news, stocks were resilient and closed only slightly lower for the holiday-shortened week.3

This Week: Key Economic Data

Monday: ISM Manufacturing Index. Construction Spending.

Tuesday: Motor Vehicle Sales. Factory Orders.

Wednesday: ADP Employment Report. EIA Petroleum Status Report.

Thursday: Jobless Claims. International Trade in Goods & Services. Productivity and Costs.

Friday: Employment Situation. Fed Official Lisa Cook speaks.

Source: Investors Business Daily – Econoday economic calendar;  May 31, 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: CrowdStrike (CRWD), Hewlett Packard Enterprise Company (HPE)

Wednesday: lululemon athletica Inc. (LULU), DollarTree, Inc. (DLTR)

Source: Zacks, May 31, 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.

“Lasting change is a series of compromises. And compromise is all right, as long your values don’t change.”

– Jane Goodall

Tax Season May Be Over, But The Taxpayer Bill Of Rights Applies Year-Round

Although filing season might be over for most taxpayers, the IRS is available year-round for any questions. They also have a Taxpayer Bill of Rights, which promises the level of service and information you will receive when working with the IRS.

Here are the ten fundamental rights you have as a taxpayer when interacting with the IRS:

• The right to be informed: As a taxpayer, you must know what is required to comply with tax laws.

• The right to quality service: You will receive prompt, courteous, professional assistance.
• The right to pay no more than the correct amount of tax: You only pay what is legally due, including interest and penalties.
• The right to challenge the IRS’ position and be heard: You can object to IRS actions and provide further justification with documentation.
• The right to appeal an IRS decision in an independent forum: Taxpayers are entitled to a fair and impartial administrative appeal of most IRS decisions, including certain penalties.
• The right to finality: You have the right to know how much time you have to challenge an IRS position and how soon the IRS must audit your taxes.
• The right to privacy: All IRS inquiries, examinations, and enforcement will not be more intrusive than necessary.
• The right to confidentiality: Taxpayers have the right to expect that their tax information will remain confidential.
• The right to retain representation: Taxpayers have the right to retain an authorized representative of their choice to represent them in their interactions with the IRS.
• The right to a fair and just tax system: Taxpayers have the right to expect fairness from the tax system; this includes considering all facts and circumstances that might affect their liabilities and their ability to pay or provide information in a timely fashion.

*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.gov4

Health Benefits Of Garlic

Not only is garlic delicious, but it also confers many potential health benefits.

One of the most potent benefits of garlic is that it may bolster your immune system and help you combat sickness, including the common cold. One large 12-week study found that a daily garlic supplement reduced the number of colds by 63% compared to a placebo. The average length of cold symptoms was also reduced by 70%, from 5 days in the placebo group to 1.5 days in the garlic group.

Garlic may also improve cholesterol levels, thus lowering the risk of heart disease. Garlic may reduce both total and LDL cholesterol (otherwise known as the “bad” cholesterol).

Therefore, consider adding a few garlic cloves next time you make your favorite dish.

Tip adapted from Healthline.com5

What runs around a field but doesn’t move?

Last week’s riddle: There is a word that starts and ends with T and contains “tea” as well. What word is this? Answer: Teapot.

Burj Khalifa Skyscraper
Dubai, United Arab Emirates

Footnotes And Sources

1. CNBC.com, May 30, 2024

2. CNBC.com, May 31, 2024

3. Investors Business Daily, May 30, 2024

4. IRS.gov, May 1, 2023

5. Healthline.com, January 29, 2023

Stocks notched a solid gain last week in a mega-cap, tech-led rally bolstered by positive inflation news.

Dow 40,000

The week began quietly as market averages traded in a tight range, awaiting fresh inflation news.

On Tuesday, markets rose steadily throughout the day after digesting a mixed wholesale inflation report.1

The next day, a cooler-than-expected Consumer Price Index (CPI) report sparked a broad-based rally as the upbeat news raised investors’ hopes for a rate cut. The Nasdaq Composite and Standard & Poor’s 500 (which ended above 5300 for the first time) closed the day up 1.4 percent and 1.2 percent, respectively. Meanwhile, the bellwether 10-year Treasury yield fell to 4.35 percent.2,3

Investors took a break as the week ended, mostly yawning at mixed economic data. Notably, the Dow closed just above 40,000 on Friday. 

Inflated Expectations

With the two critical inflation updates last week, attention shifted to the Federal Reserve’s next steps with interest rates.

The top-level CPI numbers (known as headline inflation) tend to be less important than what’s underneath: core inflation (CPI minus volatile food and energy prices) in the Fed’s eye. Core CPI came in at 0.29 percent for April, just below the 0.30 percent from Wall Street. It was the first time the core CPI was lower than forecasts in three months. The news revived speculation that the Fed might consider a rate adjustment as early as September.4,5

This Week: Key Economic Data

Monday: Fed Officials Michael Barr, Raphael Bostic, Christopher Waller, and Philip Jefferson speak for the first time. 

Tuesday: Fed Officials Michael Barr, Raphael Bostic, Christopher Waller, and Philip Jefferson speak again. John Williams speaks for the first time for the week.

Wednesday: Existing Home Sales. 20-Year Treasury Bond Auction. FOMC Meeting Minutes.

Thursday: Jobless Claims. New Home Sales. Fed Balance Sheet.

Friday: Durable Goods. Consumer Sentiment.

Source: Investors Business Daily – Econoday economic calendar;  May 17, 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: Palo Alto Networks, Inc. (PANW)

Tuesday: Lowe’s Companies, Inc. (LOW)

Wednesday: NVIDIA Corporation (NVDA), The TJX Companies, Inc. (TJX), Target Corporation (TGT)

Thursday: Intuit Inc. (INTU)

Source: Zacks, May 17, 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 most difficult thing is the decision to act, the rest is merely tenacity.”

– Amelia Earhart

Starting A New Hobby? These Tips Can Help You Understand The Tax Situation

Whether you pick up painting or cook new concoctions in your kitchen, starting a new hobby is always fun and a great avenue to learn something new. However, there are some important tax considerations when starting a new hobby, especially if you are considering turning your newfound passion into a business.

Taxpayers must report any income earned from hobbies, even if it does not involve a licensed business. While businesses should make a profit, hobbies are primarily recreation. The following nine factors can guide you in determining whether a hobby could also be considered a business, according to the IRS:

• Whether you execute the activity in a businesslike manner and maintain complete and accurate books and records.
• Whether you have personal motives in performing the activity.
• Whether the time and effort you expend in the activity indicate that you intend to make it profitable.
• Whether you depend on income from the activity for your livelihood.
• Whether your losses are due to circumstances beyond your control (or are normal in the startup phase of your type of business).
• Whether you or your financial professional understand how to parlay the activity into a successful business.
• Whether you successfully made a profit through similar activities in the past.
• Whether the activity will make a profit in some years and how much profit it will make.
• Whether you can profit from appreciating the assets used in the activity.

You can also deduct some of the expenses associated with your hobby. Within certain limits, taxpayers can typically deduct ordinary and necessary hobby expenses. An ordinary expense is common and accepted for the activity, while a necessary expense is appropriate.

*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

3 Stretches For Your Lower Back

We spend so much time sitting in our cars and at our desks that it’s no wonder that our lower backs can become tight and even sore. These three lower back stretches will help improve your flexibility and recovery and may even help if you have lower back pain.

• Figure 4 Stretch: The Figure 4 stretch will stretch your glutes, hamstrings, and lower back. To do the stretch, lay on your back with both feet on the ground. Then, cross your left foot over your right knee. Gently bring your right leg to a 90-degree angle. If you would like to increase the intensity of the stretch, grab the back of your thigh and bring your right knee toward your torso. Repeat on the other side.
• Inner Thigh Stretch/Butterfly Stretch: This stretch addresses your inner thigh and lower back. Sit on the ground and bring your feet together in front of your knees with the soles of your feet touching. Let your knees fall to the side. To increase the stretch, bring your feet closer to your torso.
• Pigeon Pose: To assume the pigeon pose, bring one leg to 90 degrees from your torso and stretch the other leg behind you so your right calf is perpendicular to your hips. To intensify the stretch, bend at the hips over your front leg. Repeat on both sides.

Tip adapted from Very Well Fit7

Rigid is my spine, my innards are mostly pale, yet I am always ready to tell a tale. What am I?

Last week’s riddle: What should the following number be in this series: 103, 107, 109, 113, 127, ___ ?  Answer: 131, as the whole series is made up of prime numbers.

Bullring Shopping Centre Birmingham, England, UK

Footnotes And Sources

1. CNBC.com, May 14, 2024

2. The Wall Street Journal, May 15, 2024

3. CNBC.com, May 17, 2024

4. CNBC.com, May 14, 2024

5. The Wall Street Journal, May 15, 2024

6. IRS.gov, November 15, 2023

7. Very Well Fit, January 24, 2023

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