Stocks were mostly in the negative territory for the week due to rising bond yields and government shutdown fears. The Dow Jones Industrial Average experienced a loss of 1.34%, while the Standard & Poor's 500 slid by 0.74%. The Nasdaq Composite index remained flat, gaining only 0.06% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, fell by 1.95%. |
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Stocks Follow the Bond MarketLast week, the bond market caused fluctuations in stock prices as investors worried about the increasing bond yields. Although stocks started the week with minor gains, they later continued their downward trend in September due to poor housing data and decreased consumer confidence. The surge in bond yields, which pushed the 10-year Treasury yield to nearly a 15-year high, was a significant factor that may have negatively impacted investor sentiment. Mixed Economic SignalsRecent indications suggest that the labor market has been cooling, which could be a hopeful sign for the end of rate hikes. However, the initial jobless claims report released on Thursday showed a slight increase of 204,000, which was still the second-lowest reading since January and below economists' expectations of 215,000. Additionally, continuing claims decreased by 12,000. On the same morning, the final estimate for second-quarter GDP was released, revealing an unchanged 2.1% annualized growth rate from the previous estimate. However, the consumer spending rate was revised downwards from 1.7% to 0.8%, which is a worrying development since consumer spending is the main engine of the U.S. economy. This Week: Key Economic DataMonday: Institute for Supply Management (ISM) Manufacturing Index. Tuesday: Job Openings and Turnover Survey (JOLTS). Wednesday: Automated Data Processing (ADP) Employment Report. Institute for Supply Management (ISM) Services Index. Thursday:Jobless Claims. Friday: Employment Situation. Source: Econoday, September 29, 2023
This Week: Companies Reporting EarningsThursday:Constellation Brands, Inc. (STZ) Source: Zacks, September 29, 2023
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______________________________________________________________________________________________________ Food For Thought
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"Time is the only critic without ambition." –John Steinbeck |
______________________________________________________________________________________________________ Tax Tip
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Who Can Deduct Car Expenses on Their Tax Returns?Can you deduct expenses such as gas, depreciation, and lease payments on your tax returns? If you are a business owner or self-employed individual, you may be able to. If you use your car for business and personal purposes, you will want to base any deductions on the mileage used for business. There are two ways to calculate the car expenses you can deduct. The first method calculates and deducts expenses, including depreciation, lease payments, gas and oil, tires, repairs and tune-ups, insurance, and registration fees. The second is to use the standard mileage rate, which is a rate calculated to represent gas and some of the above factors. In 2023, the standard mileage rate is 65.5 cents per mile. Taxpayers who want to use the standard mileage rate for a car they own must use this method in the first year the vehicle is available for use in their business. *This information is not intended to substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax professional. Tip adapted from IRS.gov7 |
______________________________________________________________________________________________________ Healthy Living Tip
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What Are Essential Oils?You've likely heard about the many potential benefits of essential oils, but what exactly are essential oils? Essential oils are compounds extracted from plants, obtained through distillation or cold pressing. The best essential oils are pure, with no other chemicals added. In addition to using essential oils in a diffuser as aromatherapy, you can apply them topically. Inhaling the aromas from essential oils may stimulate areas of your limbic system, a part of your brain that plays a role in emotions, behaviors, sense of smell, and long-term memory. Tip adapted from Healthline8 |
______________________________________________________________________________________________________ Weekly Riddle
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What goes in the blank below: Bob is Ken’s son. Therefore, Ken is the ______of Bob’s father.
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______________________________________________________________________________________________________ Photo Of The Week
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Gasadalur Waterfall, moody sky, Vagar, Faroe Islands |
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______________________________________________________________________________________________________ Footnotes and Sources
2. The Wall Street Journal, September 29, 2023 3. The Wall Street Journal, September 29, 2023 4. CNBC, September 26, 2023 5. FX Street, September 28, 2023 6. MarketWatch, September 28, 2023 7. IRS.gov, April 6, 2023 8. Healthline April 24, 2023 |
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Weekly Market Insights: Will A Government Shutdown Emerge?
