The S&P 500 Index hit its first record high in more than a year on Monday, as stocks traded well into the green zone as a result of stronger-than-expected employment numbers for June. Earnings season kicked off after the closing bell. On Tuesday, the Dow Jones Industrial Average and S&P 500 hit new record heights, and Energy stocks gained on a jump in crude oil. West Texas Intermediate crude tacked on 4.6% to settle at $46.77 a barrel. Indices closed with mixed moves on Wednesday. The Dow and S&P 500 posted marginal gains to close at new record levels once again, while the NASDAQ shed some points. Moves were mixed amid a variety of economic news. West Texas Intermediate crude oil slipped 3.85% to settle at $45 a barrel, likely causing Energy stocks to trade lower. Details released from the Federal Reserve’s Beige Book report showed economic activity increased at a modest rate since mid-May amid slight price pressures and a small decline in consumer spending. Indices closed trading with gains on Thursday with crude oil rebounding from Wednesday’s downswing. Elsewhere, initial jobless claims held steady last week, as Labor Department data showed new claims remained at an addition of 254,000 for a second week straight. Additionally, continuing claims increased by 32,000 to 2.149 million in the week ended July 2, 2016. The markets closed with mixed moves on Friday. The Dow hit a new record while the S&P 500 and NASDAQ ended fractionally in the red for the session. West Texas Intermediate crude oil settled at $45.99 a barrel. In economic news, retail sales jumped up by an unexpected 0.6% in June. Economists had expected a lesser 0.1% gain. Advances at home-improvement and garden retailers led the ascent.
The experts address several listeners’ questions including questions on radio frequency technology provider Qorvo Inc., the tax treatment of active duty income for members of the U.S. Armed Forces, and questions about HP Inc., Hewlett Packard Enterprises and the merger with Computer Sciences. The experts also discuss the Pokémon Go phenomenon.
This week on “Money Talks,” Troy Harmon, CFA, CVA, is joined by Managing Associate K.C. Smith, CFP®, and Brian Borngesser from Henssler Norton Insurance. The hosts discuss the market’s reaction to the U.K.’s decision to leave the European Union, ISM Manufacturing and Services indices, and International Trade. Brian leads a case study on how business interruption insurance can save a business should something happen that disrupts normal business operations. The experts also address listeners’ questions on stock dilution when companies issue more shares, how couples should title their invested assets and Universal Display Corporation.
Brian Borngesser with Henssler Norton Insurance discusses business interruption coverage and how it can help prevent a devastating catastrophe from turning into a financial disaster for a business.
The markets opened the week finishing to the down side on Tuesday after the Independence Day holiday on Monday. Energy stocks sold off amid retreating crude oil prices. West Texas Intermediate crude oil shed 4.9% to settle at $46.60 a barrel. In economic news, U.S. factory orders decreased by one percent in May, versus economist expectations of a 0.8 percent drop. The markets rebounded from early low levels on Wednesday to close in the green zone. Stocks gained on the release of minutes from the last Federal Reserve meeting as well as a variety of other economic news. Services industry activity increased in June. The ISM Services Index hit 56.5, up from 52.9 in May. The results exceeded expectations of a reading of 53.3. Additionally, the trade gap ticked up in May as the U.S. trade deficit rose to $41.1 billion from $37.4 billion in April. Indices were mixed on Thursday, with the Dow Jones Industrial Average and S&P 500 indices rebounded from session lows to land slightly in the red while the NASDAQ stepped up. West Texas Intermediate crude oil shed 4.9% settling at $45.09 a barrel. Department figures showed initial jobless claims fell by 16,000 to 254,000 last week. The markets ramped up on Friday with stocks gaining on favorable employment data for June. Labor Department figures showed an addition of 287,000 jobs versus expectations of 175,000. The unemployment rate ticked up to 4.9% from 4.7% in May as a result of more people entering the work force. The markets are looking ahead to next week when earnings season kicks off on Monday.
Our experts address listeners’ questions on the effects of stock dilution when companies issue more shares, how couples should title their invested assets and Universal Display Corporation.
This week on “Money Talks,” Senior Managing Associate and Principal, Jennifer Thomas, CFP®, joins hosts Matt Hames, CTFA, and Troy Harmon, CFA, CVA, to discuss the week’s market moves ahead of the Brexit vote. They touch on housing news, including housing starts, existing and new home sales, and mortgage applications. The hosts explore the advice on simplifying one’s finances in retirement by reducing the number of accounts and aiming for simpler portfolio design. As usual, they also answer listeners’ questions, including three Vanguard funds, Bunge Ltd. vs. Archer Daniels Midland, their opinions on online retirement calculators and LyondellBassell Industries.
Our experts discuss the theory of “simplification rarely makes for bad advice” when it comes to your finances in retirement.
Indices closed in green territory on Monday, even though several stocks finished off peak levels as momentum faded in the late afternoon. West Texas Intermediate crude oil tacked on 2.5% to settle at $49.19 a barrel. Stocks continued to trade into the green zone on Tuesday with Technology stocks leading the way. The positive moves came in anticipation of Federal Reserve Chair Janet Yellen’s semiannual testimony before the House Financial Services Committee in Washington. Midweek, investors proceeded with caution ahead of the Brexit referendum vote, when U.K. citizens would vote on whether to leave the European Union. Existing home sales ticked up in May with sales increasing by 1.8% from April’s revised level and also up by 4.5% from May 2015. On another note, crude oil took a breather amid a smaller-than-expected decrease in inventories. Energy Information Administration data showed reserves dipped by 900,000 barrels over the past week versus an expected decline of 1.7 million barrels. West Texas Intermediate crude oil shed 1.4% today to settle at $49.13 a barrel. The markets closed on a positive note on Thursday with Financial and Energy companies leading the way ahead of the final count of the Brexit referendum vote in the U.K. Labor Department data showed initial jobless claims decreased last week, dipping by 18,000 to 259,000, versus expectations of 270,000. Additionally, new home sales declined in May as Commerce Department figures showed sales fell by 6% to a 551,000 annualized rate versus 586,000 in April. On Friday, stocks sold off on news of the Brexit voting results. The pro-exit vote weighed on the U.S. financial markets and oil prices. West Texas Intermediate crude oil shed 4.9% to settle at $47.64 a barrel. Consumer confidence dipped in June, with a final measure of 93.5, down 0.8 point from the preliminary reading, and 1.2 points off of May’s result.
The “Money Talks” experts answer listeners’ questions on Vanguard index funds, major food processing companies Bunge Ltd. and Archer Daniels Midland. They also weigh in on the usefulness of online retirement calculators and Basic Materials holding LyondellBassell Industries.