May 31, 2022
THE WEEK ON WALL STREET

Stocks posted solid gains for the week, buoyed by the release of Fed meeting minutes and upbeat earnings from mid-size and discount retailers.

The Dow Jones Industrial Average jumped 6.24%, while the Standard & Poor’s 500 advanced 6.58%. The Nasdaq Composite index gained 6.84% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, rose 2.09%.1,2,3
A GOOD WEEK

The stock market staged a broad rally last week, ignited by the release of minutes from the May’s Federal Open Market Committee (FOMC) meeting. The meeting notes eased concerns that the Fed might pursue a more aggressive monetary tightening stance than the Street had anticipated.

Investor sentiment rose owing to solid earnings and encouraging guidance from several mid-size and discount retailers, which eased concerns about the health of the American consumer. A smaller rise in the personal consumption expenditures price index, the Fed’s preferred measure of inflation, triggered a strong rally on Friday. The powerful move ended seven straight weeks of stock losses.4
FED MINUTES

The minutes from May’s FOMC meeting were released last week. They confirmed the likelihood of at least two successive 50 basis point interest rate hikes. The minutes also indicated they might need to raise rates to a level that acts to restrict economic growth, something that Fed Chair Jerome Powell acknowledged might be a painful process.5

Not all Fed members are fully committed to the more aggressive rate hikes. Last week, Atlanta Fed president Raphael Bostic wrote that a pause in rate increases in September might be appropriate. He joined other members in suggesting that economic conditions may warrant reconsideration of additional rate hikes beyond those already signaled by Powell.6
THE WEEK AHEAD: KEY ECONOMIC DATA

Tuesday: Consumer Confidence.

Wednesday: Institute for Supply Management (ISM) Manufacturing Index. Jobs Openings and Labor Turnover Survey (JOLTS).

Thursday: Automated Data Processing (ADP) Employment Report. Jobless Claims. Factory Orders.

Friday: Employment Situation. Institute for Supply Management (ISM) Services Index.

Source: Econoday, May 27, 2022

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.
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THE WEEK AHEAD: COMPANIES REPORTING EARNINGS

Tuesday: Salesforce, Inc. (CRM), HP, Inc. (HPQ).

Wednesday: MongoDB, Inc. (MDB).

Thursday: Broadcom, Inc. (AVGO), Hormel Foods Corporation (HRL), DocuSign (DOCU), CrowdStrike (CRWD).

Source: Zacks, May 27, 2022

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.
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President
Wealth Advisor
phil@pmgwealth.com

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Wealth Advisor
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WEEKLY QUOTE
"Deep breaths are very helpful at shallow parties."
Barbara Walters

WEEKLY TIP
A strategy is better than an assumption when it comes to couples and money. Discuss your financial goals together and stick to the approach you make to pursue them.

WEEKLY RIDDLE
There are 2 nouns in the English language that become men's names when you capitalize them - and when you capitalize them, you alter their pronunciation. Name either or both of these 2 nouns, both of which end in "b".

LAST WEEK'S RIDDLE
Two trains are crossing America from coast to coast, traveling over 3,000 miles of track. The Gentle Zephyr is going west at 70mph; the Western Wind is headed east at 80mph. So which train will be closer to the east coast when they roll by each other in Kansas?

ANSWER: Neither. When the trains meet, they will be at the same point - therefore the same distance from the east coast.
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This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested.
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All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results.
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CITATIONS:
1. The Wall Street Journal, May 27, 2022
2. The Wall Street Journal, May 27, 2022
3. The Wall Street Journal, May 27, 2022
4. CNBC, May 27, 2022
5. The Wall Street Journal, May 25, 2022
6. The Wall Street Journal, May 25, 2022