Weekly Market Update | October 14, 2019

Trade Winds Move the Market

The Week on Wall Street

Stock prices pushed higher last week, as investors remained hyper-focused on any new developments with the U.S. trade negotiations with China.

The Dow Jones Industrial Average picked up 0.91%, while the Standard & Poor’s 500 rose 0.62%. The Nasdaq Composite index gained 0.93% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, added 2.28%.

Trade Winds

For nearly two years, investors’ moods have seemed to swing with each twist in the ongoing trade saga between the U.S. and China. Last week was no different.

On Tuesday, stock prices fell sharply on concerns that U.S.-China trade tensions had escalated. The White House announced the addition of 28 new Chinese companies to its list of firms that are banned from doing business in the U.S. Later in the day, White House officials confirmed that they had implemented travel bans on selected Chinese officials.

But prices bounced back Thursday and surged higher Friday on White House reports that suggested the trade talks between the two countries were “going really well.” Near the close Friday, the White House confirmed that the U.S. has come to a “very substantial phase one deal” with China.

Quarterly Earnings

Investors may start to get a better glimpse into third-quarter earnings this week, as more than 150 companies are expected to report on their operations.

As “earnings season” get underway, some attention may shift from the U.S.-China trade negotiations and toward company reports.

What’s Next

Some U.S. financial markets will be open, and some will be closed, on Monday, October 14, in observance of the federal holiday Columbus Day. The U.S. bonds markets and most banks will be closed. But the New York Stock Exchange and the NASDAQ will be open for regular hours.

Key Economic Data

Wednesday: September Retail Sales are reported before the markets open.

Thursday: Housing Starts for September are released. A “start” is defined as the beginning of excavation of the foundation for the building. Philadelphia Fed Business Outlook Survey. The survey can provide insights into the manufacturing sector.

Source: Econoday / MarketWatch Calendar

Companies Reporting Earnings

Tuesday: Netflix (NFLX), Johnson & Johnson (JNJ), The Goldman Sachs Group (GS)

Wednesday: Abbott Laboratories (ABT), United Rentals (URI), Winnebago Industries (WGO)

Thursday: Morgan Stanley (MS), PayPal Holdings (PYPL), Intuitive Surgical (ISRG)

Friday: Coca-Cola (KO), Schlumberger Limited (SLB), American Express (AXP)

Source:Zacks.com

Quote of the Week

“Employ thy time well, if thou meanest to get leisure.”

– Benjamin Franklin

Sources: The Wall Street Journal, October 11, 2019; Treasury.gov, October 11, 2019

The market indexes discussed are unmanaged and generally considered representative of their respective markets. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results. Weekly performance for the Dow Jones Industrial Average, Standard & Poor’s 500 index, and NASDAQ Composite is measured from the close of  trading Friday, October 4 27 to the Friday October 11 close. Weekly performance for the MSCI-EAFE is measured from the Friday October 4 open to the Thursday October 10 close. U.S. Treasury Notes are guaranteed by federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it might be worth more or less than the original price paid.  Weekly and year-to-date 10-year Treasury note yields are expressed in basis points.  International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility

What’s the Spoonful on Artificial Sweeteners?

Artificial sweeteners are chemical compounds designed to taste like sugar, and many people choose them because they are sweeter and have little to no calories. But the debate on these sugar substitutes isn’t so sweet. Some health professionals claim that they can increase a person’s risk of cancer, while others say they are completely safe and can aid in weight loss. So, what’s the truth?

There’s no answer to whether these sweeteners are “good” or “bad” because, ultimately, it depends on your personal health goals and concerns. Some important notes, though, are:

  • More than 30 studies have found no links between artificial sweeteners and cancer
  • Artificial sweeteners can be a smart choice for people with diabetes because they don’t spike your blood sugar
  • Artificial sweeteners are less likely to cause tooth decay than natural sugar
  • Artificial sweeteners may actually increase appetite

    Tip adapted from Healthline

Pretty-in-Pink Deviled Eggs

to Celebrate Breast Cancer Awareness Month

Servings: 12

These pretty pink deviled eggs are the perfect appetizer to celebrate Breast Cancer Awareness Month. Bring them to a local fundraiser or just enjoy them on your own. Either way, they’re sure to be delicious.

Ingredients:

  • 6 hardboiled eggs
  • 1 jar of pickled beets (you’ll use the beets and the juice)
  • 3 Tbsp. mayonnaise
  • 1 Tbsp. Dijon mustard
  • ½ cups pickled beets, grated
  • 1 Tbsp. onion, grated
  • 1 Tbsp. celery, finely chopped
  • A sprinkle of salt and pepper

Directions:

  1. Peel the eggs.
  2. Place the eggs in the beet juice and add water until the eggs are covered. Let them soak for 2 to 4 hours or until pink.
  3. Halve the eggs and take out the yolks.
  4. Mix the yolks with the mustard, grated beets, grated onion, and finely chopped celery. Salt and pepper to taste.
  5. Use a pastry bag to squeeze out the mixture into the halved eggs.

Recipe adapted from Eclectic Recipes

The Towel Drill Can Help with Longer Drives

Many golfers already know that they key to hitting long, straight drives is to strike the ball on your upswing. But for many, this is easier said than done. Most of the clubs in your bag require you to hit down on the ball, but not your driver. Too often, we hit the ball as the club is going down, which results in shorter, pop-up drives.

This towel drill is surprisingly simple, but can work, for many golfers. Next time you tee up at the driving range or during your practice shots, place a rolled-up towel a few inches in front of the ball. The obstacle will help you keep your swing up to avoid hitting the towel. When you hit higher up on the ball, you’ll notice more distance and better flight path. Increasing where you hit the ball, by even a few degrees, improves your angle of attack.

Tip adapted from Golf Tips Magazine

Do a Paycheck Checkup

Every year, the IRS recommends doing what they call a “Paycheck Checkup.” This includes checking your withholding status to make sure enough taxes are being taken out of your paycheck. You should do a Paycheck Checkup in the beginning of the year, but it can be done in any season.

Check your withholding status if you have:

  • Gotten married or divorced
  • Had or adopted a child
  • Bought a houseRetired
  • Filed for bankruptcy
  • Got a new job or lost a job

The IRS also recommends checking on any streams of taxable income that are not subject to withholding, such as interest, dividends, capital gains, self-employment income, or IRA distributions. You should also check your withholding if you’ve experienced changes to your medical expenses, taxes, charitable gifts, education credits, dependent care expenses, and more. These life changes might affect your deductions or tax credits. These Paycheck Checkups will help make sure you’re in a good place when it’s time to file taxes.

* 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.gov

How to Fight the Palm Oil Problem

Palm oil is in countless household items, from margarine and prepared foods to beauty products and cleaners. It’s a cheap, attainable oil and is used for both industrial and residential necessities. But there’s a dark side to this worldwide oil.

Palm oil plantations are one of the biggest contributors to deforestation, which leads to the loss of natural habitats, animals, and trees that have stood for centuries. But how can we give up palm oil if it’s in nearly everything? For right now, we can’t, so the next best thing is to only buy products made with Certified Sustainable Palm Oil (CSPO). The Roundtable on Sustainable Palm Oil has developed a set of environmental and social criteria that help minimize the negative impact of palm oil cultivation on the environment and communities in palm oil-producing regions.

Look for the CSPO designation next time you are shopping for products that contain palm oil, which might help encourage the industry to shift toward more-sustainable production.

Tip adapted from Roundtable on Sustainable Palm Oil

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.