Optimism for Re-Opening
Weekly Update – June 1, 2020
The Week on Wall Street
The shortened week, which began with a powerful two-day rally of trading, was enough to drive the markets into another week of solid gains.
The Dow Jones Industrial Average rose 3.75%, while the Standard & Poor’s 500 advanced 3.01%. The Nasdaq Composite Index climbed 1.77% for the week. The MSCI EAFE Index, which tracks developed stock markets overseas, gained 6.18%.
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Rising Optimism
Returning from Memorial Day weekend, stocks surged on rising optimism over economic re-opening, declines in new infections, and progress in the development of a vaccine.
Stocks continued their march higher, lifted by signs that the White House and Congress may be working together to put together another stimulus package. But the momentum lost steam, in part due to news of China’s vote to override Hong Kong’s autonomy. Comments by President Trump on the last day of trading eased concerns.
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Rotation in Leadership
The recovery from the March lows has been powered by large-cap growth stocks, especially the mega-cap technology names. However, this week saw new sectors leading the market higher, notably the financials and industrials, while the technology and health care sectors lagged.
This leadership rotation is being referred to by some market commentators as the “re-opening trade.” If these sectors are to remain leaders, it may hinge on a steady economic recovery and escaping a second wave of COVID-19 infections.
THIS WEEK: KEY ECONOMIC DATA
Monday:
Purchasing Managers Manufacturing Index (PMI). Institute for Supply Management (ISM) Manufacturing Index.
Wednesday:
Automated Data Processing (ADP) Employment Report. PMI Services Index. ISM Non-Manufacturing Index.
Thursday:
Jobless Claims.
Friday:
Employment Situation Report.
Source: Econoday, May 29, 2020
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
Tuesday:
Dick’s Sporting Goods (DKS), Tiffany (TIF), Zoom Video (ZM), Crowdstrike (CRWD)
Wednesday:
Cloudera (CLDR), Campbell Soup (CPB)
Thursday:
Broadcom (AVGO), Docusign (DOCU), Slack Technologies (WORK)
Source: Zacks, May 29, 2020
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Any investment should be consistent with your objectives, time frame and risk tolerance. 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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The Wall Street Journal, May 29, 2020
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The Wall Street Journal, May 29, 2020
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The Wall Street Journal, May 29, 2020
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CNBC.com, May 28, 2020
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FoxBusiness.com, May 29, 2020
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“A surplus of effort could overcome a deficit of confidence.”
– Sonia Sotomayor, Associate Justice of the Supreme Court of the United States
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Serves 8
Ingredients:
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1 8-oz. package rice vermicelli
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8 oz. shrimp; cooked, peeled, and cut in half, lengthwise
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8 rice wrappers (6½ in.)
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1 carrot, finely grated
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1 cup lettuce, shredded
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¼ cup chopped fresh basil
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Water
Directions:
- Bring water to a boil in a medium-sized saucepan.
- Remove saucepan from heat and add vermicelli to water. Let it soak for 3 to 5 minutes.
- Drain and rinse with cold water.
- Dip one rice wrapper in a large bowl of hot water to soften.
- Lay the wrapper flat, then place noodles, shrimp, carrot, lettuce, and basil in the center.
- Tightly wrap ingredients.
- Repeat with remaining ingredients and wrappers.
- Serve with chili sauce.
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Recipe adapted from AllRecipes.com
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AllRecipes.com, May 29, 2020
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Tips for the “Gig” Economy
Do you rent a spare room in your house or provide car rides for a fee? If so, you may be a part of the sharing or “gig” economy. If you made any income from such platforms, you have some key financial details to address when filing your taxes.
Is the income taxable?
Yes. No matter whether you made money full or part time, the IRS taxes the income you make.
Can you take deductions?
Some business-expenses deductions may apply for taxpayers who qualify. A deduction for a business expense could be an item, such as claiming the standard mileage rate if you use your car for business.
Do taxes apply if you rent a home you also live in?
You will generally have to account for specific tax rules if you rent a home that you live in at any point throughout the year. You can identify the status of taxable rental income using the
IRS tax assistant tool
.
* 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.gov
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IRS.gov, February 25, 2020
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When to Putt with a Sand Wedge
Back in the 1970s, the great Lee Trevino introduced the sand wedge putt. Today, this unorthodox shot can rescue you from a pesky greenside lie.
When your ball is backed up against the fringe, or in some thick grass just off the edge of a slick putting surface, you may want or need to putt rather than chip, but you may also be worried about flubbing a putt. So, putt the ball onto the green using the thick leading edge of a sand wedge. This will give the ball a burst of initial topspin, more so than a typical putter, and the thick flange of the sand wedge has less chance of getting caught up in long grass or an outer cut of fringe.
Tip adapted from Shark.com
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Shark.com, May 29, 2020
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June Is Men’s Health Month
Today, June 1, marks the first day of Men’s Health Month. This health initiative was created by a Congressional health education program in 1994, to further awareness of the importance of early intervention and prevention of common diseases that can affect men during all stages of life. Just keep in mind: a conversation with your doctor is always the best way to address any health concerns you may have; this tip isn’t a substitute for medical advice.
Throughout the month, community outreach events, like health fairs, screenings, and educational seminars, bring awareness to concerns like prostate cancer, heart disease, and hypertension, among others. Information about healthy living, exercise, diet, smoking cessation, and other general wellness tips may be shared as well.
Look out for men’s health activities and functions in your area. You might just learn something new!
Tip adapted from MensHealthMonth.org
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MensHealthMonth.org, May 29, 2020
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Supplement Your Soil with Coffee Grounds
Does your yard have plants that thrive in acidic soil? Take your old, used coffee grounds, and mix them into the soil to give it a healthy boost. In fact, you can create a blend of up to 50% soil and 50% coffee grounds to help nourish plants that love acidic soil.
Before you go dumping your used coffee filters into your garden, note that “acidic” is the keyword. Types of plants that thrive in acidic soil and would love a coffee ground snack include azaleas, gardenias, blueberry bushes, dogwood trees, holly bushes, and roses. Other plants that require a more basic soil composition will die off with this mixture.
Tip adapted from The Spruce
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TheSpruce.com, May 29, 2020
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