Stocks notched a solid gain last week, rallying behind upbeat earnings, a dovish Fed, and mixed economic data. Stocks Pop, Drop, Then RallyMarkets began the week with an upward bump as positive news from some mega-cap tech companies outweighed disappointing updates from other tech names. The tone quickly changed on Tuesday as higher-than-expected Q1 wage growth triggered inflation and interest-rate anxiety—just as the Federal Open Market Committee kicked off its third meeting of the year. Each of the three major averages dropped more than 1.5 percent on the last trading day of April.1 When the Fed announced it was holding rates steady on Wednesday, stocks initially rallied on the news, but sellers got the upper hand late in the trading session, and prices ended the day slightly down.2 On Thursday, stocks trended higher as more companies reported upbeat Q1 results. Then, on Friday, stocks pushed higher after the April jobs report indicated that unemployment ticked up and the economy slowed. The 175,000 jobs created in April represented slower growth than the over 300,000 added in March and less than the 240,000 economists expected. Some Fed watchers believe that the news bolstered chances that the Fed may adjust rates sooner rather than later.3 |
Source: YCharts.com, May 4, 2024. Weekly performance is measured from Monday, April 29, to Friday, May 3. |
Uncertain Hurtin’Markets hate uncertainty, so Fed Chair Jerome Powell attempted to clarify the Fed’s stance on the outlook for interest rates at the close of its two-day meeting. Determining what’s next for interest rates in the context of stubborn inflation is no simple task. But Powell was as straightforward as possible at the press conference. “I think it’s unlikely that the next policy rate move will be a hike,” he said. “I’d say it’s unlikely.”4,5 This Week: Key Economic DataWednesday: EIA Petroleum Report. Thursday: Jobless Claims. EIA Natural Gas Report. Fed Balance Sheet. Friday: Consumer Sentiment. Treasury Statement. Source: Investors Business Daily - Econoday economic calendar; May 2, 2024 This Week: Companies Reporting EarningsMonday: Vertex Pharmaceuticals Incorporated (VRTX) Tuesday: The Walt Disney Company (DIS), Arista Networks, Inc. (ANET) Wednesday: Uber Technologies, Inc. (UBER), Airbnb, Inc. (ABNB), Shopify Inc. (SHOP), Emerson Electric Co. (EMR) Source: Zacks, May 2, 2024 |
"Optimism is the faith that leads to achievement." – Helen Keller |
Do You Need to Report Cash Payments?If you receive a cash payment of over $10,000, you may be required to report it to the IRS. In this case, a cash payment includes U.S. or foreign currency and can also include cashier's checks, bank drafts, traveler's checks, or money orders. In addition, cash payments to individuals can also include payments from companies, corporations, partnerships, or associations. For example, these could consist of payments from the following parties:
So, how do you report cash payments? Taxpayers should complete Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. You can file this form electronically or mail a copy to the IRS. You must submit Form 8300 within 15 days after receiving the cash payment. *This information is not intended to be a substitute for specific, individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional. Tip adapted from IRS.gov6 |
What Are Polyphenols?You may have heard of polyphenols before, as they have garnered attention in the health and wellness community. But what are they, and what are their benefits? Polyphenols are a category of plant compounds that may offer various health benefits, from boosting brain health and digestion to protecting against heart disease, type 2 diabetes, and even some cancers. There are many sources of polyphenols, including dark chocolate, tea, and dark berries. Even red wine may contain polyphenols. There are four main types of polyphenols:
Tip adapted from Healthline7 |
I can’t be captured or held, and I certainly am not seen ... yet I can occasionally be heard, and I am often all around you. What am I?
Last week’s riddle: I protect you. I sit on a bridge. You can see through me. People walking by might wonder what I hide. What am I? Answer: Sunglasses |
Alligator in the wild, Porto Jofre, Mato Grosso, Brazil |
Footnotes and Sources1. The Wall Street Journal, May 3, 2024 2. CNBC.com, May 1, 2024 3. The Wall Street Journal, May 3, 2024 4. The Wall Street Journal, May 3, 2024 5. CNBC.com, May 1, 2024 6 IRS.gov, July 26, 2023 8. Healthline, January 24, 2023 |
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Weekly Market Insights: Volatility, Uncertainty Rule the Week for Markets
May 06, 2024