Questions? Let's Talk

(888) 880-5724

Contact Us Online &
Sign Up for Email Updates

Jobs Down, Stocks Up – May 11, 2020

The Week on Wall Street

Despite a historic downturn in employment, stocks managed to climb higher last week as investors were emboldened by the pace of economic re-openings, both here and abroad.

The Dow Jones Industrial Average gained 2.56%, while the Standard & Poor’s 500 advanced 3.50%. The Nasdaq Composite Index jumped 6.00% for the week. The MSCI EAFE Index, which tracks developed overseas stock markets, slipped 1.09%.1The Wall Street Journal, May 8, 2020,2The Wall Street Journal, May 8, 2020,3The Wall Street Journal, May 8, 2020

Tech Stocks Power NASDAQ

Last week’s trading was driven by a crosscurrent of emotions — worries about weak corporate earnings pace of business re-openings as well as optimism over the pickup in economic activity and progress on developing a vaccine.

Stocks posted back-to-back daily gains to end the week despite troubling employment data. Perhaps the headline of the week was that the technology-heavy NASDAQ Composite Index moved into positive territory year-to-date.4The Wall Street Journal, May 8, 2020,5The Wall Street Journal, May 8, 2020

A “Silver Lining” in the Jobs Report?

Last week brought into stark focus the number of jobs lost since the start of the economic shutdown. Since mid-March, unemployment insurance claims have reached 33.5 million. The pace of newly unemployed has slowed down, however, with recent weeks at about half the rate at the peak in late March.6CNBC, May 6, 2020,7CNBC, May 6, 2020

April’s employment report, released on Friday, saw a spike to 14.7% in the unemployment rate. As severe as these numbers may be, 88% of April’s newly unemployed characterized their job loss as temporary rather than permanent, as opposed to 47% of the newly unemployed in March who said their job loss was temporary.8The Wall Street Journal, May 8, 2020,9The Wall Street Journal, May 8, 2020

Robert Roman
CEO, Managing Director
MGO | Wealth Advisors

THE WEEK AHEAD:
KEY ECONOMIC DATA

Tuesday: Consumer Price Index.
Thursday: Jobless Claims. 
Friday: Retail Sales; Industrial Production.

Source: Econoday, May 8, 2020
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.

THE WEEK AHEAD:
COMPANIES REPORTING EARNINGS

Monday: Under Armour (UAA), Simon Property (SPG), Caesars Entertainment (CZR).
Wednesday: Cisco Systems (CSCO).

Source: Zacks, May 8, 2020
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Any investment should be consistent with your objectives, time frame and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.

quote_banner

“We must be willing to let go of the life we planned so as to have the life that is waiting for us.”
– Joseph Campbell

tax_banner

Have You Heard About the Taxpayer Advocate Service?

The Taxpayer Advocate Service is an independent group within the IRS that works to protect taxpayers under the Taxpayer Bill of Rights. They also help taxpayers resolve issues and act as the taxpayer’s voice within the IRS. Here’s what you should know:

  • Advocates can help you resolve lingering issues with the IRS that you cannot resolve alone.
  • They work with individuals, businesses, and tax-exempt organizations at no charge.
  • You may be eligible for help if your IRS problem is causing financial stress or if you believe an IRS procedure is flawed.
  • You can find a Taxpayer Advocate through your local directory and at www.taxpayeradvocate.irs.gov.

* 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.gov10taxpayeradvocate.irs.gov, May 8, 2020

golf_banner

Keeping Calm on the Course

To some extent, you play golf not only against the course, but also against yourself; the game is psychological as well as physical. Anxiety and doubt can creep into a round, especially during competition.

How do you deal with these factors when they threaten to interfere with you? First of all, visualize the shot you want to make. See it happen in your mind’s eye. Visualization has guided many pros to hit good or great shots under pressure. Focus on your breathing; steady it to calm your heart rate, and in turn, your muscles. Next, give your attention to the moment and the task at hand, rather than running down the variables of what might happen.

Tip adapted from Maderas Golf11Maderas Golf Blog, May 8, 2020

healthy_banner

Benefits of Walking It Off

    Many people have trouble starting an exercise routine. One way to begin is simply by walking more. Just 150 minutes per week (or 30 minutes five days a week) has been correlated with numerous health advantages. Remember: this tip isn’t a substitute for medical advice. Always talk to your doctor before embarking on any new exercise program. Now, onto those benefits!

    Walking may help you to:

    • Burn more calories and increases energy levels.
    • Have a better immune response, relief for joint pain, reduce blood sugar levels, and strengthen your cardiovascular system.
    • Improve your creativity, mood, and longevity.

    Even with social-distancing and stay-at-home measures in place throughout much of the country, talking a daily walk (and maybe running into a few neighbors, at the appropriate distance, of course) might be one tool of many to help you cope with the stress we are all currently facing.

    Tip adapted from Healthline.com12Healthline.com, May 8, 2020

    green_banner

    Recycling Coffee Pods

    Coffee pod machines are wonderful alternatives to making a whole pot of coffee.

    But coffee pods, as convenient as they are, are mostly made of plastic. While it’s convenient for your kitchen, it’s also not helpful for the environment.

    Fortunately, there are a number of options for you to keep your morning cup of coffee “green.” If you have a Nespresso machine, there are programs in place to recycle all the coffee pods used. Sur La Table and Williams Sonoma both accept Nespresso coffee pods for recycling. You can also search online for a free pod bag that will come with a free UPS label. Just ship in your empty coffee pods, and you’re all set.

    K-Cups are a little harder to recycle. Look for the #5 in between the recycling symbol on the bottom of the pods to make sure you can recycle them. You can also buy reusable K-Cups that you pack with your own coffee.

    Tip adapted from Good Housekeeping13 Good Housekeeping, May 8, 2020

    Share the Wealth of Knowledge!

    Please share this market update with family, friends or colleagues. If you would like us to add them to our list, simply click on the “Forward email” link below. We love being introduced!

    If you would like to opt-out of future emails, please reply to this email with UNSUBSCRIBE in the subject line.
    Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

    Diversification does not guarantee profit nor is it guaranteed to protect assets.

    International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors.

    The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

    The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

    The Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of stocks of technology companies and growth companies.

    The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indices from Europe, Australia and Southeast Asia.

    The S&P U.S. Investment Grade Corporate Bond Index contains U.S.- and foreign-issued investment-grade corporate bonds denominated in U.S. dollars.

    The SPUSCIG launched on April 09, 2013. All information for an index prior to its Launch Date is back-tested, based on the methodology that was in effect on the Launch Date. Back-tested performance, which is hypothetical and not actual performance, is subject to inherent limitations because it reflects application of an Index methodology and selection of index constituents in hindsight. No theoretical approach can take into account all of the factors in the markets in general and the impact of decisions that might have been made during the actual operation of an index. Actual returns may differ from, and be lower than, back-tested returns.

    The S&P/Case-Shiller Home Price Indices are the leading measures of U.S. residential real estate prices, tracking changes in the value of residential real estate. The index is made up of measures of real estate prices in 20 cities and weighted to produce the index.

    The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

    Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

    Past performance does not guarantee future results.

    You cannot invest directly in an index.

    Consult your financial professional before making any investment decision.

    Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

    By clicking on these links, you will leave our server, as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.

    Our Firm

    Headquartered in Newport Beach, California, MGO Wealth Advisors, LLC is a very different kind of investment management firm. more >>>

    References   [ + ]

    1, 2, 3, 4, 5, 8, 9. The Wall Street Journal, May 8, 2020
    6, 7. CNBC, May 6, 2020
    10. taxpayeradvocate.irs.gov, May 8, 2020
    11. Maderas Golf Blog, May 8, 2020
    12. Healthline.com, May 8, 2020
    13. Good Housekeeping, May 8, 2020