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
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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.
“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
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
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
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
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
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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|