Powell Somber on Recovery – May 18, 2020
The Week on Wall Street
Stocks drifted lower last week, weighed down by Federal Reserve Chairman Jerome Powell’s unsettling comments on the economy and signs of renewed tensions with China.
The Dow Jones Industrial Average fell 2.65%, while the Standard & Poor’s 500 retreated 2.26%. The Nasdaq Composite Index slipped 1.17% for the week. The MSCI EAFE Index, which tracks developed stock markets overseas, slid 3.66%.1The Wall Street Journal, May 15, 2020,2The Wall Street Journal, May 15, 2020,3The Wall Street Journal, May 15, 2020
Stocks Pull Back
Stocks moved lower throughout most of last week on worries that the emerging economic reopening might accelerate the spread of COVID-19. Comments by Fed Chair Powell added to the downside pressure when he expressed concern about the path ahead for the U.S. economy.
The stock market managed to find some firmer footing, posting a strong gain on Thursday. Stocks rallied again on Friday, overcoming headlines that suggested a souring relationship with China and a report that showed U.S. retail sales dropped 16.4% in April.4CNBC.com, May 15, 2020
Fed Chair Powell spoke last Wednesday and painted a somber economic outlook, remarking that “the path ahead is highly uncertain and subject to significant downside risks.” He urged the White House and Congress to pass additional financial relief to help the economic recovery, adding that there was no plan on the Fed’s part to cut the federal funds rate to below zero.5The Wall Street Journal, May 13, 2020
Powell also referenced internal Fed research that found those least able to weather the current economic environment were most impacted, with nearly 40% of households making less than $40,000 per year having lost a job in March.6The Wall Street Journal, May 13, 2020
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MGO | Wealth Advisors
THE WEEK AHEAD:
KEY ECONOMIC DATA
Tuesday: Housing Starts.
Wednesday: FOMC (Federal Open Market Committee) Minutes.
Thursday: Jobless Claims. Existing Home Sales. Index of Leading Economic Indicators.
Source: Econoday, May 15, 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: Baidu (BIDU)
Tuesday: Walmart (WMT), Home Depot (HD)
Wednesday: Kohls (KSS), Target (TGT), Lowes Cos. (LOW), Expedia Group (EXPE)
Thursday: Nvidia (NVDA), TJX Cos. (TJX), Ross Stores (ROST), Intuit (INTU)
Friday: Deere (DE), Alibaba Group (BABA), Pinduoduo (PDD)
Source: Zacks, May 15, 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.
“Let us make our future now, and let us make our dreams tomorrow’s reality.”
– Malala Yousafzai
How to Amend Your Return
If you discover that you’ve made an error on your tax return, you may need to file an amended return. Though you don’t need to file if you’ve made a simple math error or left out forms (the IRS corrects for those automatically), you should file an amended return for any missed credits, deductions, filing status, or income.
- Use Form 1040X to file an amended return.
- You’ll need to use separate forms for each year that you need to amend.
- If you use any other forms or need to submit new documentation, attach them to the 1040X form.
- Pay any additional taxes you owe as soon as possible to avoid accruing additional interest and penalties.
* 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.gov7IRS.gov, June 4, 2019
A Simple Drag Drill to Promote More Power
Good golfers have a common full-swing characteristic: they have learned to use both their arms and their lower body to power the ball during the downswing. To acquaint yourself with the way the legs and hips should act as the clubhead approaches the ball, try this simple drill.
Address a ball as you normally would, but don’t take the club back. Instead, only move the clubhead forward. Try to drag the ball off the grass and into the air. If you just use your hands and arms, you will do this inconsistently. When you start moving the club with your body, it will happen more consistently, and you will get the feeling of how to turn fully and apply more power on the downswing.
Tip adapted from Culbertson Hills Golf Resort8Culbertsonhills.com, May 15, 2020
What Is Intermittent Fasting?
Intermittent fasting (IF) has gotten a lot of attention lately, and many people are eager to try it. IF is associated with several health benefits, including weight loss, improved heart and brain health, and lowered risk of cancer, among others. Interested? First, you should consult your health provider before you begin any new dietary regimen. This tip is not a substitute for medical advice.
The most common methods include:
- The 16-8 method involves consuming all your daily meals in an eight-hour period and fasting for the remaining 16. Research shows that an 18-6 method is even more effective, but many people find this too restrictive. It’s also been shown that consuming your meals earlier in the day may be more beneficial.
- The Eat-Stop-Eat method and the 5:2 diet work similarly. They both recommend eating as usual for five days a week, but on two non-consecutive days, you either fast or eat around 500 to 600 calories, respectively.
If IF is something you’re considering, gather your information from credible sources and be sure to run your plans by your doctor first to make sure there aren’t any contraindications.
Tip adapted from Healthline.com9Healthline.com, May 15, 2020
Finding Local Recycling Options
Every state has its own recycling rules, which makes knowing what you can and can’t recycle confusing.
Fortunately, there are quite a few websites that will help you figure out what you can recycle and wear. Earth911.com is a fantastic resource. You can search by your zip code and the item you want to recycle. Batteries, in particular, are something that you’ll want to confirm are recyclable in your area. If your curbside recycling doesn’t take them, there are many mail-in and drop-off locations.
Check out Earth911.com today and find out what you can do to keep waste out of landfills.
Tip adapted from Good Housekeeping10Good Housekeeping, May 15, 2020
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References [ + ]
|1, 2, 3.||↑||The Wall Street Journal, May 15, 2020|
|4.||↑||CNBC.com, May 15, 2020|
|5, 6.||↑||The Wall Street Journal, May 13, 2020|
|7.||↑||IRS.gov, June 4, 2019|
|8.||↑||Culbertsonhills.com, May 15, 2020|
|9.||↑||Healthline.com, May 15, 2020|
|10.||↑||Good Housekeeping, May 15, 2020|