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Markets drifted lower last week as uninspired investors digested mixed
news on the economic front.
The Dow Jones Industrial Average lost 0.91% while the Standard & Poor’s
500 slid 1.48%. The Nasdaq Composite index stumbled 1.54% for the
week. The MSCI EAFE index, which tracks developed overseas stock
markets, slipped 0.26%.1,2,3
Stocks Drift Lower
Stocks traded without much conviction last week, pushed lower, in part, by
a broad retreat in technology. Rising interest rates also dampened
enthusiasm, feeding concerns over their effect on current stock
Markets seemed deaf to a stream of news, moving little on the House
impeachment vote, encouraging news on the vaccine front, reassurances
from Fed Chair Powell, or a jump in jobless claims. Energy and financials
continued their recent advance, while smaller capitalization stocks rose on
expectations of becoming beneficiaries of any stimulus bill.4,5
Stocks turned lower to close the week, following the unveiling of president-elect Biden’s stimulus plan and a weaker-than-expected retail sales
New Stimulus Proposal
Biden revealed his long-anticipated stimulus proposal last week,
announcing a $1.9 trillion spending plan to provide further help to an
Along with monetary easing, fiscal stimulus has been one of the major
drivers of the stock market recovery, which is why investors have
anxiously awaited his plan.
His proposal seeks to help individuals, including direct payments for
qualifying Americans and enhanced unemployment aid. The proposal
would also include help for small businesses with a new grant program in
addition to the Paycheck Protection Program, and would bolster state
finances by funding frontline workers, vaccine distribution, reopening
schools, and vital services.
The market reaction was muted. Investors will be watching the extent to
which Congress amends Biden’s proposal and the speed at which it’s
picked up by the legislature.
This Week: Key Economic Data
Thursday: Housing Starts. Jobless Claims.
Friday: Existing Home Sales. PMI (Purchasing Managers’ Index)
Source: Econoday, January 15, 2021
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.
This Week: Companies Reporting Earnings
Tuesday: Netflix (NFLX), Bank of America (BAC), Goldman Sachs (GS),
J.B. Hunt Transportation (JBHT).
Wednesday: UnitedHealth Group (UNH), Morgan Stanley (MS), United
Thursday: IBM (IBM), CSX Corporation (CSX), Union Pacific (UNP).
Friday: Kansas City Southern (KSU), PPG Industries (PPG).
Source: Zacks, January 15, 2021
Companies mentioned are for informational purposes only. It should not be
considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. 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.
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-Vincent A. Simeone
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Help is available for taxpayers who need tax information for prior years,
but who did not keep copies of their returns. There are ways to get the
information you need.
Keep in mind the IRS recommends that taxpayers keep copies of their
returns and any documentation for at least three years after they are filed:
Ask your software provider or tax preparer. This is often the
easiest way to get a copy of your tax returns.
Order a tax transcript. Taxpayers who cannot get a copy of a
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Tip adapted from IRS7
Being SMART About Fitness Goals
Putting exercise on the backburner? You might want to make it a priority.
Here’s why. “For many of us, the struggle isn’t knowing what to do or not
having options, it’s actually doing it,” says Olga Hays, an American
Council on Exercise-certified wellness promotion specialist at Sharp
HealthCare. “With so much disruption and uncertainty in our lives, it is
simply too tempting to put exercising on the back burner.”
According to Hays, in order to stick with a workout regimen, you need to
be intentional about making regular physical activity one of your priorities.
Here’s where setting SMART goals can help.
Instead of simply saying you’re going to “exercise more,” state a SMART
exercise goal. SMART stands for:
Specific: State the objective you wish to meet as specifically as
possible: “I am going to commit to doing a full-body video workout
several times a week.”
Measurable: Identify quantifiable criteria to allow you to measure
your progress: “I am going to do this workout three times a week for
at least 30 minutes each time. I will track my progress in my workout
Attainable: Your goal should be ambitious, but not impossible: “I am
committing to three times a week, not seven times a week, because it
is realistic and achievable for me with my current schedule.”
Relevant: The goals you set need to align with your current
circumstances and priorities: “I will do it to stay healthy and strong
during these times and to feel less stressed.”
Time-bound: Allocate a specific time period for completing your
goal: “I will commit to this plan for a month. In 30 days, I will have
had 12 workouts and will reassess my goal after that.”
Tip adapted from Sharp.com8
Four cars approach an intersection with four-way stop signs
simultaneously, each car coming from a different direction. After stopping,
the drivers all accelerate at the same time. However, there is no accident.
How is this possible?
Tenerife, Canary Islands, Spain.
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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 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 the links 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.
1. The Wall Street Journal, January 15, 2021
2. The Wall Street Journal, January 15, 2021
3. The Wall Street Journal, January 15, 2021
4. CNBC.com, January 14, 2021
5. Yahoo.Finance.com, January 14, 2021
6. The Wall Street Journal, January 15, 2021
7. IRS.gov, October 20, 2020
8. Sharp.com, September 9, 2020