Money Talks – October 29, 2016

This week on “Money Talks,” Troy Harmon, CFA, CVA, is joined by Principal Jennifer Thomas, CFP® and Managing Associate K.C. Smith, CFP® to discuss the week’s economic news, including Consumer Confidence, home prices and durable goods orders, along with the week’s market moves. K.C. and Jennifer delve into a case study about tax loss selling and how selling some positions in your portfolio can help your tax situation. The experts also answer listeners’ questions on Cisco Systems, Bristol-Myers Squibb, W.W. Grainger and 3M. They also address what an investor should do with a non-deductible traditional IRA and what the options are with a UGMA account.

Market Roundup: Markets Slip for the Week on Weaker than Expected Earnings and Falling Oil Prices

Stocks stepped up on Monday despite West Texas Intermediate crude falling 0.7% to settle at $50.52 a barrel. Indices ended trading in the red zone on Tuesday on news that consumer sentiment dipped in October. The Conference Board Consumer Confidence Index declined 4.9 points to 98.6, a three-month low. Trading closed with mixed moves on Wednesday. The Dow ended in the green while the S&P 500 and NASDAQ shed some points. Moves were mixed on a variety of earnings releases. Meanwhile, crude oil fell to a three-week low level, with West Texas Intermediate crude slipping by 1.66%, settling at $49.13 a barrel. The Energy Information Administration data showed a decrease of 600,000 domestic barrels last week versus expectations of a 400,000 increase. Looking elsewhere, new home sales ticked up in September, as Commerce Department figures showed sales climbed 3.1% last month to an annual rate of 593,000. On Thursday, stocks swung between gains and losses throughout the day. The markets also saw a selloff in government bonds, which kept investors on edge. In economic news, new orders for durable goods fell in September led by a sizable drop in defense orders. Indices closed again in red territory on Friday with stocks retreating from early session highs on a variety of economic news. Crude oil traded lower on mixed quarterly details from large oil companies. Commerce Department data showed the U.S. economy grew at an annualized rate of 2.9% in the third quarter, which marked the fastest gross domestic product growth in two years. Elsewhere, a second measure of consumer confidence dipped in October. In a final reading, the University of Michigan’s Consumer Sentiment report hit 87.2, down from 91.2 in September.

A Mixed Session

Trading closed with mixed moves on Wednesday. The Dow ended in the green while the S&P 500 and Nasdaq shed some points. Moves were mixed on a variety of economic news. Boeing tacked on 5% to lead advancers on the Dow, while energy brands such as Royal Dutch Shell, Chevron, and PetroChina led decliners.