Money Talks – January 16, 2016

This week on “Money Talks,” Principal Bil Lako, CFP® and Research Analyst Nick Antonucci join Matt Hames, CTFA, to discuss the week’s market performance, from where the fear causing the selloff stems and what is happening with the interest rate yield curve. They also discuss employment, wholesale trade and the Fed’s Beige Book. With the market off to a rocky start, our experts take a deeper look into dividend stocks and how to evaluate them for your portfolio. They also address several listeners’ questions this week, including a follow up from last week’s 401(k) contribution question, life insurance offers for children, insurance companies Markel Corp. and White Mountain Insurance Group, and big brands Apple, Inc. and Chipotle Mexican Grill.

Market Roundup: Markets Close Week Down More than 2%

The indices closed mixed on Monday with late day trading leading the Dow and S&P 500 into the green zone. The NASDAQ shed some points, and Small-Cap stocks briefly fell into a bear market. On Tuesday, a late afternoon rally left indices positive for the day, with NASDAQ trading leading the advance. Crude oil briefly fell below $30 a barrel; however, West Texas Intermediate crude managed to settle at $30.79 a barrel. U.S. stocks tumbled on Wednesday to their lowest close since September, and oil prices gave up an early rally on mounting worries about the global economy. In economic reports, the Fed’s Beige Book reported growth in consumer and housing sectors. Expansion in manufacturing, agriculture and energy sectors continued to lag in recent months. Trading closed in green territory on Thursday as Labor Department data showed initial jobless claims increased to 284,000 last week. Unfortunately, indices closed the session well into the red zone on Friday with stocks trading into territory not seen since August. West Texas Intermediate crude dipped 5.7% to settle at $29.14 a barrel.

Money Talks – January 9, 2016

This week on “Money Talks,” Associate Jarrett McKenzie, CFP®, CWS®, joins Matt Hames, CTFA, and Troy Harmon, CFA, CVA, to discuss the turbulent ride the market has taken at the start of 2016. They also discuss the Institute for Supply Management’s Manufacturing and Nonmanufacturing indices, international trade, mortgage applications and Interest rates. In this week’s case study, our experts explore a listener’s dilemma on timing his 401(k) contributions and whether he should pay off his mortgage before retirement, discussing the decisions from both a financial and emotional standpoint. The hosts also address listeners’ questions on oil and energy prices, companies BP and Marathon Oil, as well as, tax deductions for 529 plan contributions, and diagnostic testing service provider Quest Diagnostics.

Market Roundup: Markets End First Full Week of Trading Down Nearly 5%

A sharp selloff in China’s market resulted in a rocky trading day for the U.S. markets. Most blue chip stocks retreated, and Energy stocks traded lower on a downswing in crude oil prices. West Texas Intermediate crude dipped 0.8%, settling at $36.76 a barrel. Trading on Tuesday closed with gains, with Consumer Staples and Telecommunication stocks helping the tepid recovery from the sharp selloff that started the year. The rally was short-lived as the markets closed Wednesday in the red zone, brought down by Energy stocks. Additionally, Energy Information Administration showed an unexpected increase of 2.6 million barrels in crude inventories in the past week. Analysts were forecasting a decline in reserves. National Association of Realtors data showed a 0.9% decrease in November for pending home sales. Stocks continued to tumble Thursday following Labor Department data which showed that initial jobless claims fell by 10,000 to 277,000 last week. The decline seemed to level out on Friday when the Bureau of Labor Statistics showed an addition of 292,000 jobs in December. Looking elsewhere, manufacturing levels made a fractional retreat in December. The Institute for Supply Management’s survey slipped to 48.2 from November’s reading of 48.6.