Broker Check
Weekly Market Insights: 2024 Started With Doubts and Uncertainty

Weekly Market Insights: 2024 Started With Doubts and Uncertainty

January 08, 2024

Stocks fell during the first week of 2024, following a successful end to last year. Investors were cautious due to concerns about inflation and uncertainty surrounding the Fed's signals.

New Year Blues

The stock market had a tough start in the first week of the new year, primarily due to the decline in the technology sector. Market experts referred to it as the "reverse Goldilocks" effect, meaning that the market believed that investors were becoming too optimistic about the possibility of a Fed rate cut. Throughout the week, stocks were volatile and ended each day with a decline, except for Friday. The Dow Industrials, Nasdaq Composite, and S&P 500 all closed on a positive note on Friday after jobs data helped mitigate the week's losses.

All About the Fed

The manufacturing news on Wednesday was better than expected, which boosted the market. However, when the December Federal Open Market Committee meeting minutes were released, it was revealed that the Fed members had discussed rate cuts for 2024 without going into specific details. On Thursday, news about the jobs and services sector painted a better picture of the economy. However, the stock prices responded negatively as the 10-year Treasury hit 4%.

Source: YCharts.com, January 6, 2024. Weekly performance is measured from the close of trading on Friday, December 29, to Friday, January 5, close. Treasury note yield is expressed in basis points.

Jobs Data in Focus

On Friday, employers added 216,000 jobs in December which surpassed economists' expectations and the 173,000 jobs added in November. The news of unemployment remaining steady at 3.7% also helped boost sentiment.

This Week: Key Economic Data

Tuesday: International Trade in Goods.

Wednesday: EIA Petroleum Status Report.

Thursday: Jobless Claims. Consumer Price Index. Treasury Statement.

Friday: Producer Price Index.

Source: Investor’s Business Daily, Econoday economic calendar; January 5, 2024
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.

This Week: Companies Reporting Earnings

Monday: Jefferies Financial Group (JEF)

Tuesday: Albertsons Companies (ACI)

Wednesday: KB Home (KBH), Rite Aid Corporation (RADCQ)

Thursday: Infosys (INFY)

Friday: UnitedHealth Group Inc (UNH), JP Morgan Chase & Co (JPM), Bank of America Corporation (BAC), Wells Fargo & Co (WFC)

Source: Zacks, January 5, 2024
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.

__________________________________________________________________________

Food For Thought

"It is always a silly thing to give advice, but to give good advice is absolutely fatal."

– Oscar Wilde

__________________________________________________________________________

Tax Tip

Errors to Avoid When Filing Your Extended Tax Return

If you file an extension of your tax return, it’s essential to avoid the common errors described below to submit a complete and accurate tax return:

If you decide to file an extension for your tax return, it is crucial to avoid common mistakes that can lead to an incomplete or inaccurate tax return. Here are some errors to avoid:

- Missing or incorrect Social Security number (SSN): Ensure that your return has your accurate SSN, matching the one on your Social Security card.
- Spelling errors: Although it may seem simple, mistakes can happen. If you use a name other than the one printed on your Social Security card, make sure to use the name on the card.
- Incorrect filing status: Claiming the wrong filing status can invalidate your return. Choose the correct option, and consider using electronic filing software to prevent errors. The interactive tax assistant tool can also help you determine your filing status and any credits you should or should not claim.
- Math mistakes: Simple addition and subtraction errors can delay your return. Consider using electronic filing software that automatically does the math to avoid errors.
- Incorrect bank account information: If you decide to receive your refund via direct deposit, make sure to provide the correct bank account information. Giving an incorrect account number can further delay your refund.
- Unsigned forms: Finally, double-check that all sections of your forms are signed. Missing signatures can delay your return.

Please note that this information is not intended to replace specific individualized tax advice. We recommend that you discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS.gov5

__________________________________________________________________________

Food For Thought

A Beginner’s Guide to Juicing 

Juicing can be a great way to add more fruits and vegetables to your diet, especially when you're pressed for time. It's simple to start and offers numerous health benefits.

The first step is to choose the type of juicer you want. There are two common types: masticating and centrifugal juicers. Masticating juicers "chew" the food and are slower. You need to cut the produce into smaller pieces to fit in the juicer, but you retain more nutrients. Centrifugal juicers are more affordable and use a spinning disk to extract juice. They require less preparation, but the juice has fewer nutrients.

The next step is to decide what to juice. You'll need to experiment to find the best combinations and which fruits and vegetables yield the most juice. Here are two easy recipes to get you started:

Green Juice
- Celery
- Cucumber
- Apple, pineapple, orange, or lemon
- Spinach or kale

Purple Juice
- Beets (you can juice the green tops as well)
- Kale
- Carrots

You can add ginger, turmeric, or even garlic to give your juice a boost of flavor.

Tip adapted from Live Simply Natural6

__________________________________________________________________________

Riddle Of The Week

It has avenues, rivers, and parks, but no grass, water, or asphalt. What is it?

 

Last week’s riddle: Victor is assigned to paint suite numbers on doors at an office building with 100 suites, which will be numbered from 1 to 100. How many times will he have to paint the number 8? Answer: 20 times - 8, 18, 28, 38, 48, 58, 68, 78, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 98.

__________________________________________________________________________

Photo Of The Week 

White Pelicans in the water at the Ding Darling Wildlife Reserve at Sanibel, Florida

 

Footnotes and Sources


1. The Wall Street Journal, January 5, 2024

2. The Wall Street Journal, January 5, 2024

3. The Wall Street Journal, January 5, 2024

4. The Wall Street Journal, January 5, 2024

5. IRS.gov, September 6, 2023

6. Livesimplynatural.com, October 9, 2023


Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.

The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.

The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.

U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.

Please consult your financial professional for additional information.

This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.

Copyright 2024 FMG Suite.