Weekly Market Update | April 15, 2023

The Week on Wall Street

Stocks fell last week as investors sorted through conflicting inflation reports and assessed geopolitical tensions.

Inflation Spooks Markets

On Wednesday, the March Consumer Price Index (CPI) report rattled markets, revealing that inflation accelerated slightly more than expected. Bond yields rose, and stocks retreated in response, as investors feared the news could influence the Fed’s rate decision. The 10-year Treasury yield had its highest intraday jump in three years.

Markets rallied Thursday as investors were encouraged by the Producer Price Index (PPI) report, which measures inflation at the producer level. Unlike CPI, PPI rose less than expected, which sparked a tech-focused rally. Markets opened lower on Friday as investors wrestled with the conflicting inflation reports.

Fears of an escalating Middle East conflict also weighed on stocks during the week. Concerns about a potential weekend event led some investors to end the week in a risk-off position.

Inflated Expectations

Minutes from the March Fed meeting, published Wednesday, showed officials’ concern that inflation wasn’t slowing down quickly enough toward the Fed’s 2% target. But despite sticky inflation, they reiterated that rate cuts were still on the table for this year.

The start of Q1 earnings season reinforced inflation concerns as several leading money center banks—despite many beating expectations—forecasted lower growth for the remainder of 2024 due partly to inflation and higher-than-expected rates.

On Friday, the University of Michigan’s survey showed consumer sentiment fell last month. Some concluded that the survey confirmed what consumers have been saying for months—that inflation is still in their everyday lives.

Key Economic Data

Monday: Retail Sales. Business Inventories. Housing Market Index. Empire State Manufacturing Index.

Tuesday: Housing Starts and Permits. Industrial Production.

Wednesday: EIA Petroleum Status Report. Treasury International Capital. Beige Book. 20-Year Treasury Bond Auction.

Thursday:  Jobless Claims. Existing Home Sales. EIA Natural Gas Report. Philadelphia Fed Manufacturing Index.

Source: Econoday

Companies Reporting Earnings

Monday: The Goldman Sachs Group, Inc. (GS), The Charles Schwab Corporation (CHSW)

Tuesday: UnitedHealth Group Incorporated (UNH), Johnson & Johnson (JNJ), Bank of America Corporation (BAC), Morgan Stanley (MS)

Wednesday: Abbott Laboratories (ABT), Prologis, Inc. (PLD), CSX Corporation (CSX)

Thursday:   Netflix, Inc. (NFLX), Elevance Health, Inc. (ELV), Marsh & McLennan Companies, Inc. (MMC), The Blackstone Group (BX)

Friday: The Proctor & Gamble Company (PG), American Express Company (AXP)BlackRock, Inc. (BLK), Citigroup Inc. (C), State Street Corporation (STT)

Source:Zacks.com

Quote of the Week

“The fool doth think he is wise, but the wise man knows himself to be a fool.”

– William Shakespeare

Sources: YCharts.com, April 13, 2024

Weekly performance is measured from the close of trading Monday April 8, to Friday, April 12, close.

Hydrate The Healthy Way

Are you trying to kick a soda habit but sick of water? There are many fun and healthy means to make your water taste better and encourage you to drink more. Here are some easy ways to spice up your normal water:

Add fresh fruit slices, such as lemon, lime, or orange. Not only will these fruits make your water taste better, but you may also enjoy some of the benefits of these citrus powerhouses.

Add some sliced cucumber to your water to make it feel pampered. Who needs the spa when you have a nice glass of cucumber water sitting at your desk?

Try some sugar-free, low-calorie water sweeteners. They are an appealing option for those who have a sweet tooth and crave soda but are trying to drink more water. Mix it up with sparkling water or seltzer if you miss the fizz of soda. Most sparkling waters are calorie-free or low in calories while keeping you hydrated.

It would help to drink at least half of your body weight in ounces of water daily. What are some of your favorite methods to make water more exciting?

Tip adapted from Baton Rouge Clinic

Spring Orzotto

 

 

Servings: 4-6

Ingredients:

  • 2 Tbsp. extra-virgin olive oil
  • 2 shallots, finely chopped
  • 3 garlic cloves, thinly sliced
  • 2 tsp. Diamond Crystal or 1 tsp. Morton kosher salt, divided, plus more
  • 1 lb. orzo
  • 1 cup dry white wine
  • Freshly ground pepper
  • 6 oz. sugar snap peas, strings removed, thinly sliced
  • ½ cup frozen peas, thawed
  • 1 oz. Parmesan, finely grated (about ½ cup)
  • 4 Tbsp. unsalted butter, cut into small pieces
  • 3 Tbsp. fresh lemon juice
  • ½ cup store-bought pesto

Directions:

  1. Heat 2 Tbsp. extra-virgin olive oil in a large Dutch oven or other heavy pot over medium-high. Cook 2 shallots, finely chopped, until slightly softened, about 3 minutes. Add 3 garlic cloves, thinly sliced, and 1 tsp. Diamond Crystal or ½ tsp. Morton kosher salt and cook, stirring often, until softened and fragrant, about 3 minutes.
  2. Add 1 lb. orzo and cook, stirring often, until toasted and golden in spots, about 3 minutes. Add 1 cup dry white wine and 1 tsp. Diamond Crystal or ½ tsp. Morton kosher salt. Season with lots of freshly ground pepper; cook, stirring often, until liquid is absorbed, about 2 minutes.
  3. Cook orzo, adding 5 cups water a cupful at a time, stirring often and waiting until absorbed before adding more, until almost tender, about 15 minutes total. Add 6 oz. sugar snap peas, strings removed, thinly sliced, ½ cup frozen peas, thawed, and another ½ cup water; cook, stirring often, until vegetables are crisp-tender and orzo is cooked through, 2–3 minutes. (Orzotto will continue to thicken as it cools.) Remove from heat, add 1 oz. Parmesan, finely grated (about ½ cup), 4 Tbsp. unsalted butter, cut into small pieces, and 3 Tbsp. fresh lemon juice, and stir until combined and melted. Taste and season with more salt and pepper if needed.
  4. Divide orzotto among shallow bowls and swirl a little of ½ cup store-bought pesto into each; sprinkle with more pepper.

Recipe adapted from Bon Appetit

How to Set Golf Goals

Goals are important because they give you a clear picture of what you want to achieve. Many golfers don’t set goals and then wonder why they don’t improve each year. You can separate goals into two categories: process goals and outcome goals. Process goals are that require a process to make them happen, these are not correlated to outcome results. The key to process goals are to make them specific and measurable.

Process goals include:

  • Get one lesson a month
  • Travel to one bucket list course
  • Use speed training sticks 3x per week
  • Work on my short game three days a week
  • Hit a large bucket with wedges one day per week

Outcome goals give you a clear vision or long-term goal for the year. In terms of setting outcome goals, you should never make it something along the lines of  to win a specific tournament or advance in a specific qualifier. It will put too much pressure on one event.

Tip adapted from theleftrough.com

More Digital Choices For Filing

The IRS has made it easier to file your taxes. Forms now contain electronic signature options, meaning tax professionals can conduct remote transactions.

To allow your tax professional to use the electronic signature option, you must fill out and submit Form 2848, Power of Attorney and Declaration of Representative. This form constitutes a written authorization appointing tax professionals to represent taxpayers before the IRS; this includes performing certain acts on the taxpayer’s behalf. These acts may encompass providing an e-signature.

* 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

Photo of the Week

Elevador da Bica funicular in Lisbon, Portugal

 

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.