Stocks roared back last week, fueled by upbeat Q4 corporate reports and economic news that stalled inflationary fears.

The Standard & Poor’s 500 Index rose 2.91 percent, while the Nasdaq Composite Index advanced 2.45 percent. The Dow Jones Industrial Average led, picking up 3.69 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, added 2.00 percent.

Goldilocks Is Back

The “Goldilocks” narrative—an economy that’s neither too hot nor too cold—made a comeback last week.

Tuesday’s Producer Price Index report showed that wholesale prices rose less than expected in December—one piece of evidence suggesting a cooling economy.

Stocks jumped out of the gate Wednesday after the December Consumer Price Index (CPI) report showed core inflation (minus volatile energy and food prices) rose less than expected. Investors also cheered Q4 reports from a handful of money center banks and positive news out of the Middle East.

Stocks took a breather Thursday before pushing higher again on Friday.

The S&P and Dow Industrials had their best week since early November, and the Nasdaq saw its best weekly performance since early December. The yield on the 10-year Treasury note fell roughly 20 basis points over the week.

Slowing Inflation

Investors welcomed the inflation reports, believing wholesale and consumer prices might trend lower in 2025.

First, producer prices came in at 0.2 percent, which was less than the 0.4 percent increase anticipated. Then consumer prices came in at 2.9 percent, slightly elevated, but the real story was core inflation. When you subtract out food and gas prices, CPI saw its smallest monthly increase since July.

Monday: Markets closed – MLK Jr holiday

Wednesday: Treasury Buyback Announcement. 20-Year Treasury Bond Auction.

Thursday: EIA Petroleum Status Report. Weekly Jobless Claims. Fed Balance Sheet.

Friday: Existing Home Sales. Consumer Sentiment.

Source: Econoday

Tuesday: Netflix, Inc. (NFLX), The Charles Schwab Corporation (SCHW), Prologis, Inc. (PLD), Interactive Brokers Group, Inc. (IBKR), 3M Company (MMM), Capital One Financial Corporation (COF)

Wednesday: The Proctor & Gamble Company (PG), Johnson & Johnson (JNJ), Abbott Laboratories (ABT), The Progressive Corporation (PGR), GE Vernova Inc. (GEV)

Thursday: Intuitive Surgical, Inc. (ISRG), GE Aerospace (GE), Texas Instruments Incorporated (TXN), Union Pacific Corporation (UNP), Elevance Health, Inc. (ELV)

Friday: American Express Company (AXP), Verizon Communications Inc. (VZ), NextEra Energy, Inc. (NEE), HCA Healthcare, Inc. (HCA)

Source:Zacks.com

Sources: YCharts.com, January 18, 2024

Weekly performance is measured from the close of trading Friday January 13, to Friday, January 17 close.

What’s The Deal With Downward Dog?

Even if you’ve never set foot on a yoga mat, you’ve probably heard of one of the most popular poses called Downward Dog.

The pose is popular because it has many benefits, such as increased flexibility and spinal strength. In yoga, it’s a resting posture to let your muscles lengthen and straighten. It can help stretch your back, neck, hamstrings, and calves. You can sit in the pose without moving (a static hold) or “walk the dog,” which includes pushing your heels toward the ground to stretch out your calves.

If you’re new to downward dog, practice proper form by bending your knees and focusing on lengthening your back and arms. Ideally, your body should be in an inverted “V” shape. Eventually, you may straighten your legs and have your heels touch the floor!

Tip adapted  from  Ekhart Yoga

Stuffed Cabbage

Serves: 6

Ingredients:

• 1/2 cup short grained white rice, rinsed and drained
• 2 pounds ground pork
• 1 cup diced onion
• 4 cloves garlic, grated
• 1 teaspoon kosher salt
• 1/2 teaspoon freshly ground black pepper
• 1 1/2 tablespoons smoked paprika
• 1/4 teaspoon chili flakes
• 1 tablespoon fresh dill, chopped
• 1 egg
• 1 whole cabbage head
• 1 28 oz. can tomato puree
• salt and pepper to taste
• 1/2 cup water
• fresh dill and sour cream, for serving (optional)

Directions:

1. Start by par-boiling the rice. Bring a small pot of water to a boil and add the washed rice. Let boil for 5 minutes before draining and running under cold water. Set aside.
2. Preheat the oven to 350°F. For the filing, add the ground pork, par-boiled rice, onion, garlic, salt, pepper, smoked paprika, chili flakes, chopped dill, and egg to a large bowl. With clean hands, mix thoroughly until incorporated. Set aside.
3. Bring a large pot of salted water to a boil. Meanwhile, use a paring knife to cut the core out of the cabbage. Add the whole head of cabbage to the water, and let boil for 2-3 minutes. The outer leaves of the cabbage will start to come loose, and you should be able to peel them away and out of the water with a pair of tongs. Set aside and repeat the process, letting the outer leaves become soft before removing. You should have enough filling for 12-14 cabbage rolls. Any leftover cabbage can be removed from the water and saved for another recipe.
4. Once the cabbage leaves are cool, add about 3 tablespoons of the filling to each. Holding the cabbage leaf lengthwise away from you, fold in the sides and roll into a tight log. Set aside and repeat with each leaf, keeping the seam side down.
5. Add the can of tomato puree to a large bowl and season to taste with salt and pepper. Pour half of the sauce into a 9 x 13 baking dish and spread evenly across the bottom. Add the cabbage rolls, seam side down and packed tightly together. Add ½ cup of water to the remaining sauce and pour evenly over the arranged cabbage rolls. Cover the baking dish tightly with foil and put into the preheated oven for 1 hr, or until the rolls are cooked through and the tomato sauce is reduced. Serve immediately, with optional sour cream and extra fresh dill to garnish.

Recipe adapted from Food52

Open the Club Face

To hit great shots, you have to open the clubface to get the ball out of the trap. One of the biggest mistakes most golfers make on a sand shot is not opening the face.

For the most part, amateur golfers are terrified of opening the clubface in the sand. Just like the fear of opening the face to hit a flat shot, it gives so many players fear that if they open it they will hit it fat and leave in the bunker. Or they’ll hit a groove low and blade it over the green.

It’s time to dispel that myth once and for all. To hit consistently good bunker shots, you have to open the clubface.

Remember, you’re not touching the ball with the club. You’re hitting the sand, which then throws the ball out of the bunker and on the green.

Tip adapted from theleftrough.com

Beware Of Phishing Scams

A phishing scam occurs when someone pretends to be a trusted source, such as a bank, tax preparer, or credit card company, to access your personal information.

If you believe you may be part of a phishing scam, here are some recommendations from the IRS:

• Never open an email from a sender that you don’t recognize.
• Never disclose personal information to anyone online, including your passwords, bank account numbers, credit card numbers, or Social Security number. The IRS will never ask for this information via email.
• When possible, use two-factor authentication to protect your accounts. Two-factor authentication requires a secondary form of identification (such as a phone number) to access your account.

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

Photo of the Week

Dolomite Mountains at Sunset

Dolomitic Alps, northeastern Italy

Financial planning and investment advisory services offered through Cleveland Wealth, LLC, a Registered Investment Advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified wealth advisor and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.