Weekly Market Update | January 13, 2020

Further Gains for Stocks

The Week on Wall Street

The market had a choppy five days, with traders reacting to geopolitical developments and weaker-than-expected jobs data. Even so, the three major U.S. equity indices posted weekly gains and continued their strong start to the new year. During Friday’s trading session, the Dow Jones Industrial Average topped 29,000 for the first time.

Rising 1.75% for the week, the Nasdaq Composite outgained both the Dow (up 0.66%) and the S&P 500 (up 0.94%). The story for foreign stocks was different: the MSCI EAFE index declined 0.30%.

Holiday Hiring Numbers

Wall Street was unimpressed by the latest jobs report from the Department of Labor. Employers added 145,000 net new workers in December; economists surveyed by Dow Jones had forecast a gain of 160,000. Wages grew less than 3% year-over-year for the first time in 17 months.

Unemployment remained at a 50-year low of 3.5%, however. The broader U-6 jobless rate, which also includes the underemployed, declined to 6.7%, the lowest in 26 years of recordkeeping.

Oil Prices Decline

The rally in crude oil spurred by strained U.S.-Iran relations ebbed this past week. At Friday’s closing bell, WTI crude was worth $59.04 a barrel on the New York Mercantile Exchange, down 6.36% for the week and 3.31% year-to-date.

What’s Ahead

A new earnings season starts Tuesday, with big banks leading off and reporting fourth-quarter results. Chinese Vice Premier Liu He will be in Washington, D.C., through Wednesday, and during his visit, he and President Trump are expected to sign the phase-one trade deal between the U.S. and China.

Key Economic Data

Tuesday:  The December Consumer Price Index, providing a look at inflation last month and for all of 2019.

Thursday: December retail sales figures from the Department of Commerce.

Friday: The University of Michigan’s preliminary January Consumer Sentiment Index, assessing consumer confidence levels from multiple angles.

Source: Econoday / MarketWatch Calendar

Companies Reporting Earnings

Tuesday: Citigroup (C), Delta Air Lines (DAL), JPMorgan Chase (JPM), Wells Fargo (WFC)

Wednesday: Bank of America (BAC), Goldman Sachs (GS), United Health (UNH), US Bancorp (USB)

Thursday: Morgan Stanley (MS)

Friday: Schlumberger (SLB)

Source:Zacks.com

Quote of the Week

“Make the most of yourself by fanning the tiny, inner sparks of possibility into flames of achievement.”

– Gola Meir

Sources: The Wall Street Journal, January 10, 2020; Treasury.gov, January 10, 2020

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, January 3 to the Friday January  10 close. Weekly performance for the MSCI-EAFE is measured from the Friday January 3 open to the Thursday January 9 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.

Reduce Your Risk of Getting Sick With One Simple Trick!

During the 2018-2019 flu season, the U.S. Centers for Disease Control and Prevention estimated that nearly 43 million people contracted the flu. The CDC says the best method of flu prevention is receiving the annual vaccine, but handwashing can also significantly reduce your risk of catching the flu as well as other contagious illnesses.

Just 20 seconds of briskly washing your hands with soap and rinsing under running water could lower your overall risk of respiratory illness by around 20%. Gastrointestinal ones, up to 30%. It’s fast, easy, convenient, and very inexpensive, yet many of us take this healthy habit for granted. In fact, 81% of us don’t regularly wash our hands after using the restroom. Yikes!

While this information should not substitute for medical advice from your health care provider, implementing better habits, like frequent handwashing, may be a good tool to help you and your loved ones stay healthier this flu season.

Tip adapted from Centers for Disease Control and Prevention

Hummus

Serves: 2-4

Ingredients:

  • One 15 oz. can of garbanzo beans (chickpeas), drained
  • ¼ cup of extra virgin olive oil
  • ¼ cup of lime juice
  • 2 Tbsp. tahini
  • 1 (or more, to taste) peeled clove of garlic, or equivalent minced garlic
  • ¼ tsp. cumin
  • 1 tsp. cayenne pepper
  • 1 tsp. paprika

Directions:

  1. Combine all ingredients, apart from spices, into blender; blend until smooth.
  2. Add spices and blend until evenly distributed.
  3. Looking for smoother consistency? Add a tablespoon of water and blend, as desired.
  4. Spicier? Add more cayenne, or other spices, to taste.

Recipe adapted from allrecipes.com

Avoid Overthinking Greenside Bunker Shots

Getting out of a greenside bunker with a lip of 3’ or less is really pretty simple. Some golfers try to micromanage or overthink the shot: they try to pick it off the sand, or they open their stance or their clubface to the point where they are altering their entire swing path.

Focus on basics rather than extremes. Open your stance a few degrees to the left (assuming you play right-handed), aim slightly left of your target, and work your feet into the sand and increase the flex in your knees. You want to come down about 2” behind the ball, accelerating through the impact area, so that you are essentially throwing the ball onto the green on a “carpet” or “spray” of sand. A sand wedge (54-60 degrees of loft) is the right tool for the job.

Tip adapted from Plum Creek Golf

Passport Power

Did you know that if you owe $52,000 or more to the Internal Revenue Service, the IRS can revoke your passport? That’s right. Under the Fixing America’s Surface Transportation (FAST) Act, the IRS has the power to revoke the passport of any taxpayer owing $52,000 or more, including penalties and interest.

Notably, if you are currently paying off the debt or are contesting a tax bill in court, you should not be affected. However, anyone under an IRS tax lien could find their ability to travel hampered.

If you have any questions about tax debts or other complex tax issues, contact a qualified attorney or tax specialist.

* 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

Clean Out Electronic Clutter

If you were lucky enough to get an upgraded phone or computer this holiday season, you might not know what to do with the old one. Fortunately, there are many green options to get rid of your old electronics that are also good for the environment.

Old electronics that are still in good working order can be cleared of personal information and either donated or passed on to someone else who can use them.

Electronics not working well enough to be donated? Check out your local area for scheduled electronic waste recycling days. Special recycling centers in your area might also specifically deal with recycling electronics too.

Tip adapted from The Spruce.com

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.