Chief Investment Officer Troy Harmon, CFA, CVA, is joined by Research Analysts Nick Antonucci, CVA, and Jacob Keen, to take a deeper look into the market’s recent decline, including proposed tariffs, presidential cabinet upheaval, basic economic indicators, valuation, and The Federal Reserve’s quantitative tightening.
April kicked off with heavy selling across U.S. equity markets with all major indices off more than 2% on Monday. The Nasdaq 100 dipped negative year to date for the first time in 2018, and 10 of 11 S&P sectors are lower on the year. Sentiment reversed Tuesday as stocks rebounded from Monday’s selloff with all 11 sectors moving higher in a late-day rally. The Dow Jones Industrial Average rose almost 400 points or 1.6%, while the S&P 500 and NASDAQ Composite rose 1.3% and 1% respectively. Midweek, China announced retaliatory tariffs against the United States, and the initial reaction saw many industrial heavyweights opening down significantly, with the announced tariffs affecting soybeans, beef, tobacco, and most notably aircraft among other products. It was a key test of support for U.S. equities, with the Dow closing more than 700 points off its lows gaining 0.96% on the day. The S&P 500 and Nasdaq saw even stronger daily gains to pare back recent losses closing up 1.16% and 1.45% higher, respectively. Stocks posted gains for a third consecutive day Thursday, the first such occurrence in a month. Investors’ fears regarding a potential trade war with China seem to have subsided as all three major indices once again closed higher on the day. With heightened volatility as of late, investors are likely looking ahead to first quarter earnings season with hopes that strong earnings growth will help to soothe some of the worries in the market. Stocks traded markedly lower on Friday after President Trump asked the U.S. Trade Representative to consider $100 billion worth of additional tariffs on China, while a poor jobs report was also released in the pre-market hours. The wage inflation reading came in at 2.7%, which lessened some fears, but comments from the President that markets may feel “pain” pressured equities into the close. The Dow Jones Industrial Average, the NASDAQ composite, and S&P 500 all saw declines of more than 2% on the day. The selling was widespread with all sectors finishing in the red, and investors seeking safer investments pushed bond yields lower as well.
The “Money Talks” hosts answer listeners’ questions on Trump’s issue with Amazon using the United States Postal Service and Elon Musk’s April Fool’s Day prank.
This week on “Money Talks,” Bil Lako, CFP®, and Troy Harmon, CFA, CVA, are joined by Managing Associate, Shawna Theriault, CPA, CFP®, CDFA®, to discuss the week’s market moves, the Federal Open Market Committee’s two-day meeting on monetary policy, and housing news including mortgage applications, existing home sales and new home sales. Shawna and Bil continue the housing discussion when they address recently released guidance from the IRS regarding the deductibility of home equity loan interest in context of the Tax Cuts and Jobs Act. The experts also answer listeners’ questions on SP Plus Corp, Modine Manufacturing Co., and the medical exam requirements for a life insurance policy. They also discuss one listener’s bond holdings that were moved into an equity income portfolio when rates were extremely low.
Bil Lako, CFP®, and Troy Harmon, CFA, CVA, are joined by Managing Associate, Shawna Theriault, C.P.A., CFP®,CDFA®, to talk about recently released guidance from the IRS regarding the deductibility of home equity loan interest in context of the Tax Cuts and Jobs Act.
Stocks slipped on Monday with Technology shares dragging down the stock indices. The Dow Jones Industrial Average dropped 1.3%, falling back into negative territory for 2018. Facebook lost about $36.4 billion in market value on the discovery that a firm tied to Trump’s 2016 election campaign gathered data from millions of Facebook profiles without authorization. The market climbed on Tuesday despite Facebook’s continued decline. Midweek, the major indices closed fractionally in red territory as stocks traded lower in the wake of news from the Federal Reserve’s two-day meeting. The Federal Open Market Committee agreed to boost the target range for the Fed funds rate by 25 basis points to a range of 1.5% — 1.75%, as anticipated. The Fed also revised its forecast for GDP growth this year from 2.5% to 2.7% and foresees expansion of 2.4% in 2019. Looking elsewhere, existing-home sales ticked up in February, as total sales increased 3% for the month and are up 1.1% from a year ago. Indices dipped down on Thursday after President Trump announced a trade action against China. On another note, the U.S. labor market continues to tighten as Department of Labor data showed the four-week moving average for initial jobless claims slid 750 from the previous week’s revised average to 221,500. Stocks dipped Friday as potential trade war concerns ramped up. Facebook also traded lower for a fifth straight session. On another note, durable goods orders jumped up in February. Orders for goods designed to last several years increased by 3.1% last month. The results exceeded estimates of a 1.7% gain.
The “Money Talks” experts answer listeners’ questions on SP Plus Corp, Modine Manufacturing Co., and the medical exam requirements for a life insurance policy. They also discuss one listener’s bond holdings that were moved into an equity income portfolio when rates were extremely low.
This week on “Money Talks,” Bil Lako, CFP®, and Troy Harmon, CFA, CVA, are joined by Senior Associate Jarrett McKenzie, CFP®, CWS®, to discuss the week’s market movements, economic releases the Consumer Price and Producer Price indices, and a wrap of fourth quarter 2017 earnings season. They also touch on housing data for February. The big discussion this week was about Bitcoin, including what it is, what it isn’t in our opinion, and whether or not investors should add bitcoin to their portfolios. The hosts also answer a listener’s question on keeping money for living expenses in bonds or if he should separate it from his portfolio.
This week on “Money Talks,” Bil Lako, CFP®, and Troy Harmon, CFA, CVA, are joined by Senior Associate Jarrett McKenzie, CFP®, CWS®, for the big discussion on Bitcoin, including what it is, what it isn’t in our opinion, and whether or not investors should add bitcoin to their portfolios.
Both the Dow Jones Industrial Average and the S&P 500 Index started the week slightly down, as investors continued to assess the proposed tariffs on steel and aluminum imports. The slip continued Tuesday after early market momentum faded following news of Secretary of State, Rex Tillerson’s ouster. Elsewhere, consumer prices ticked up in February, as the Consumer Price Index rose 0.2%, cooling slightly from a 0.5% jump in January. The core measure, which excludes food and energy, also increased by 0.2%, following a 0.3% gain in January. Indices were still in the red zone on Wednesday as investors weighted new signs that protectionist trade policies could spread to other countries, slowing international trade and weakening global economic growth. In economic releases, the Producer Price Index rose 0.2%, versus expectations of a 0.1% increase, and following a 0.4% gain in January. Additionally, Retail Sales slipped in February, falling 0.1% versus an expected 0.3% gain. Discounting gas and cars, sales stepped up 0.3%. Mixed moves were on deck Thursday, with the Dow stepping up while the S&P 500 and NASDAQ Composite shed some points. In economic news, initial jobless claims decreased last week, as Department of Labor data showed new claims fell 4,000 to 226,000 for the week ended March 10. On another note, import prices increased by 0.4% in February following a downwardly revised 0.8% jump in January. Heading into St. Patrick’s Day Weekend, the major indices finally landed in the green zone on Friday. Housing starts decreased to an annual rate of 1.24 million in February. The results were weaker than expected and fell shy of January’s upwardly revised 1.33 million. Furthermore, the University of Michigan’s consumer sentiment index showed confidence is on the upswing. In a preliminary reading for March, the consumer sentiment index jumped to 102, marking the highest level since 2004, from February’s reading of 99.7.