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 InvestorsThe 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 MeetingThe 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 DataMonday: 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 This Week: Companies Reporting EarningsMonday: Oracle Corporation (ORCL) Tuesday: GameStop Corp. (GME) Thursday: Adobe Inc. (ADBE) Source: Zacks, September 6, 2024 |
“Give what you have to somebody; it may be better than you think.” – Henry Wadsworth Longfellow |
Tax Tips on Identity TheftHere 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
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? |
Icebergs on the Jokulsarlon glacial lake |
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Footnotes and Sources1. 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 |