The week began just slightly up after last Friday’s red session. While the broader market experienced gains, the overall results were tempered with a tumble in Biotechnology stocks following criticism from Hilary Clinton and the New York Times. Global stocks fell the next day, dragged down by shares of miners and other raw materials producers. Biotechnology drug makers suffered another day of criticism, resulting in their stock prices declining. Stock prices in Europe fell on news that Volkswagen’s clean diesel engines produce more emissions than U.S. and European standards allow. U.S. stock markets continued to lag mid-week with crude oil falling to $44.48 a barrel. Down trading sessions on Thursday and Friday cumulated the week’s red results. Labor Department data showed new jobless claims climbed by 3,000 to 267,000.
Our stock analysts discuss Volkswagen’s scandal of circumventing emissions tests with their clean diesel engines. They explore how the problems with diesel engines may affect other engine makers from sports car maker Porsche to industrial truck engine maker Cummins.
Our experts discuss listeners’ questions on casino operator Pinnacle Entertainment, health care company Centene Corp. and small-cap NIC, Inc., a company that helps governments use the Internet. They also discuss the tax on a foreign inheritance.
This week on “Money Talks,” Matt Hames, CTFA and Troy Harmon, CFA, CVA are joined by Managing Associate Ben Crowe, CFP®, CFA, C.P.A. to discuss the market’s reaction to the Fed’s announcement that they will not increase interest rates, citing risks from abroad, downward pressure on inflation and weak commodities prices. The rate has been held between 0% and 0.25% since December 2008. They experts also discuss a case study that demonstrates how borrowing from your 401(k) may make sense in certain circumstances. Matt, Troy and Ben also answer questions on steel producers, truck manufacturers, Healthcare leader Johnson & Johnson and insurance holding company Federated National Holding Co.
Our experts discuss a case study that demonstrates how a 401(k) loan may make sense to cover a unique short-term cash need.
The week began on a down note with Energy stocks leading the decline alongside a dip in crude oil prices; however, the slip was reversed Tuesday, as Energy stocks rallied ahead of the Federal Open Market Committee meeting. In other economic news, U.S. retail sales ticked up 0.2% in August from a 0.7% gain in July. Discounting cars and gas, sales climbed 0.4%. The rally continued Wednesday as crude oil experienced strong gains. The Consumer Price Index showed inflation retreated in August with a 0.1% dip in headline inflation versus expectations of no change. Energy prices slipped 2% last month, while food prices edged up 0.2%. Thursday’s big news came by way of the highly anticipated comments from the Federal Open Market Committee meeting. The Federal Reserve kept its interest rate unchanged. Stocks retreated after Fed Chair Janet Yellen said that global developments overshadowed signs of strength in America. Additionally, housing starts fell by 3% to 1.13 million units in August, missing expectations of a lesser dip to 1.16 million. Friday’s down market pushed the week into the red zone with the Materials and Telecommunications sectors leading the decline.
Our experts answer listener questions on U.S. Steel and AK Steel Holdings, as well as a transportation play to take advantage of a pick-up in the economy. They also provide their opinions on Johnson & Johnson, Celgene Corp., diesel engine manufacturer Cummins Inc., and truck manufacturer PACCAR, Inc. The hosts also provide thoughts on insurance holding company Federated National Holding Co.
This week on “Money Talks,” Managing Associate Charlie Holloway, CFP®, CDFA™, joins Matt Hames, CTFA and Troy Harmon, CFA, CVA, to discuss year-to-date sector performance, small business optimism, the July Job Openings and Labor Turnover Survey and wholesale trade figures. The hosts also delve into a strategy that enables an investor to access retirement funds before age 59 ½ by using the five-year rule for Roth IRA conversions. The hosts also answer listeners’ questions on the Henssler investment criteria, digital transactions between companies, banks and governments, Crown Castle International, Nestlé S.A., and Hershey Co.
Our experts discuss a case study on how investors can take advantage of the five-year rule on Roth conversions to access retirement funds before age 59 ½ and avoid an early withdrawal penalty.
The holiday-shortened week ended with the three major indices all closing above 2%. Tuesday stocks rallied for their biggest one-day gain in two weeks. The surge was the largest percentage and point gain since Aug. 26, when stocks roared back from a selloff caused by unease about slowing growth in China, the world’s second-biggest economy. Tuesday’s gains were knocked back by Wednesday’s decline. The Dow Jones Industrial Average declined 1.4%, despite rising nearly 172 points earlier in the day, following sharp gains in Asia and Europe after China’s finance ministry signaled that fiscal stimulus was on the way. Thursday’s action pushed nine of the ten S&P 500 sectors into positive territory with only Utilities lagging. Indices closed in the green zone on Friday, with Technology and Healthcare leading the day. The Producer Price Index held up better than expected in August as it was unchanged. Additionally, the University of Michigan consumer confidence index for September lost 6.2 points to 85.7. The September reading is well below the consensus estimate of 91.5 and is the third consecutive monthly decline, putting it at its lowest this year. Meanwhile, crude oil shed $1.29 to settle at $44.63 a barrel.