Stocks had a mixed, see-saw week as disappointing corporate reports unsettled investors who appeared to rotate away from some leading groups in favor of other names.

The Dow Jones Industrial Average picked up 0.75 percent. Meanwhile, the Standard & Poor’s 500 Index declined 0.83 percent, and the Nasdaq Composite Index dropped 2.08 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, fell 1.49 percent for the week through Thursday’s close.1

Q2 Corporate Reports Start

Last week began with some positive momentum, but after Tuesday’s close, two influential tech companies reported disappointing Q2 numbers, which soured sentiment. On Wednesday, the S&P dropped 2 percent, and the Nasdaq fell more than 3 percent.

Stocks attempted to rebound on Thursday on news that gross domestic product grew much faster than expected in Q2, but sellers swooped in near the close.3

 Stocks rallied broadly on Friday after a positive inflation report. The personal consumption expenditures index, widely considered the Fed’s preferred inflation measure, showed only a slight uptick in June—in line with expectations.4

Watch The Rotation

July 26 saw the end of the third consecutive week in which the Dow led the other two averages and its fourth straight week of gains.

At the same time, the S&P and Nasdaq have been under pressure, with both posting losses for the second consecutive week.

So far in July, the Dow is up nearly 4 percent, the S&P is down slightly, and the Nasdaq is off by over 2 percent. That’s a marked change from earlier in the year when the Nasdaq led.5

This Week: Key Economic Data

Tuesday: FOMC Meeting Begins.  Consumer Confidence. Case-Shiller Home Price Index.

Wednesday: Treasury Refunding Announcement. ADP Employment Report. Pending Home Sales. FOMC Announcement. Fed Chair Press Conference.

Thursday: ISM Manufacturing Index. Jobless Claims. Productivity and Costs. Construction Spending.

Friday: Employment Situation. Motor Vehicle Sales. Factory Orders.

Source:  Investors Business Daily – Econoday economic calendar; July 26, 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: McDonald’s Corporation (MCD)

Tuesday: Microsoft Corporation (MSFT), The Proctor & Gamble Company (PG), Merck & Co., Inc. (MRK), Advanced Micro Devices, Inc. (AMD), Pfizer Inc. (PFE), S&P Global Inc. (SPGI), Starbucks Corporation (SBUX)

Wednesday: Meta Platforms, Inc. (META), Mastercard Incorporation (MA), T-Mobile US, Inc. (TMUS), QUALCOMM Incorporated (QCOM), The Boeing Company (BA), Automatic Data Processing, Inc. (ADP)

Thursday: Apple Inc. (AAPL), Amazon.com, Inc. (AMZN), Intel Corporation (INTC), ConocoPhillips (COP), Booking Holdings Inc. (BKNG), Vertex Pharmaceuticals Incorporated (VRTX), Regeneron Pharmaceuticals, Inc. (REGN)

Friday: Berkshire Hathaway Inc. (BRK.A, BRK.B), Exxon Mobil Corporation (XOM), Chevron Corporation (CVX)

Source: Zacks, July 26, 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.

“Every man is working out his destiny in his own way and nobody can be of any help except by being kind, generous, and patient.”

– Henry Miller

Start A New Business Off On The Right Foot

Starting a new business? There are some tax tips to know to get yourself moving in a positive direction something like that the Internal Revenue Service (IRS) shares for new business owners:

Choose the proper business structure: The form of business determines which income tax return a business taxpayer needs to file. The most common business structures are a sole proprietorship, a partnership, a corporation, an S corporation, and an LLC. 

Apply for an Employer Identification Number (EIN): An EIN is used to identify a business.

*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

Summer Skincare Tips

The first and most important tip is always to wear sunscreen, even if you spend little time in the sun. Some skincare products, including makeup, have sunscreen built-in, but you should consider using a moisturizer with at least SPF 30 for extra protection. 

Another good summer tip is to lighten up your skincare routine. In the summer, you’re likely sweating, swimming, and spending time outside so you might not need as much makeup or products as you do in the winter.

Tip adapted from Allure7

I am usually only as wide as a thumb and typically travel across the nation for less than a dollar, all while lying flat. What am I?

Last week’s riddle: What has two hands but will never clap? Answer: A clock.

Flamingos in Flight
San Pablo, Potosí, Bolivia

Footnotes And Sources

1. The Wall Street Journal, July 26, 2024

2. The Wall Street Journal, July 26, 2024

3. The Wall Street Journal, July 25, 2024

4. CNBC.com, July 26, 2024

5. The Wall Street Journal, July 26, 2024

6. IRS.gov, May 8, 2024

7. Allure, May 8, 2024

Stocks were under pressure last week as investors appeared to rotate out of mega-cap tech stocks and into areas that may benefit from lower interest rates.

The Standard & Poor’s 500 Index fell 1.97 percent, while Nasdaq Composite Index declined 3.65 percent. The Dow Jones Industrial Average bucked the downward trend, up 0.72 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, slid 1.48 percent for the week through Thursday’s close.¹

Dow Leads Again

The week began very differently than it ended.

All three averages rallied over the first couple of days this week, with the Dow leading on both days. Fed Chair Powell indicated the Fed may not wait for inflation to reach its 2 percent target before considering a rate move, buoying the markets.^2,3

Then, markets hit a speed bump as investors appeared to take profits and rotated away from mega-cap tech names. The selling broadened beyond tech-related names on Thursday as all but one of the S&P 500’s 11 sectors fell.

Early Friday morning, a global tech outage caused disruptions for businesses, governments, and financial institutions, contributing to the weekly decline. Despite its losses in the second part of the week, the Dow finished in the green.^4,5,6

Upbeat Economic Data

Although stocks were under pressure, some investors saw “green shoots” in a few economic reports. Housing starts rose 3 percent in June. Building permits also ticked higher during the month. Retail sales were unchanged in June, which was better than expected. Investors were encouraged that consumers were still spending despite ongoing inflation.^7,8

This Week: Key Economic Data

Tuesday: Existing Home Sales.

Wednesday: New Home Sales. Survey of Business Uncertainty.

Thursday: Gross Domestic Product (GDP). Durable Goods. International Trade in Goods. Jobless Claims.

Friday: Personal Income and Outlays. Consumer Sentiment.

^{Source: Investors Business Daily – Econoday economic calendar;  July 19, 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: Verizon Communications Inc. (VZ)

Tuesday: Alphabet Inc. (GOOG, GOOGL), Tesla, Inc. (TSLA), Visa Inc. (V), The Coca-Cola Company (KO), Texas Instruments Incorporated (TXN), GE Aerospace (GE), Philip Morris International Inc. (PM), United Parcel Service, Inc. (UPS)

Wednesday: International Business Machines Corporation (IBM), AT&T Inc. (T)

Thursday: AbbVie Inc. (ABBV), Union Pacific Corporation (UNP), Honeywell International Inc. (HON)

^{Source: Zacks, July 19, 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.}

“We are what we repeatedly do. Excellence, then, is not an act, but a habit.”

– Aristotle

Protect Your Tax Data

The Internal Revenue Service (IRS) shared guidelines that tax pros should follow to protect taxpayer data, but these principles are sound for everyone to practice.

Anti-virus software: This software scans computer files for malicious software or malware on the device. Anti-virus vendors find new issues and update malware daily. Always install the latest software updates on your computer.

Two-factor authentication: Two-factor authentication adds an extra layer of protection beyond just a password. Not only do you enter your username and password, but you also enter a security code that the service provider can send to another device for extra protection.

Drive encryption: Drive encryption transforms sensitive data into unreadable code that unauthorized people cannot decipher easily, so only the authorized person can access the data.

*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.gov⁹

Tips for Eating Less Salt

Sodium isn’t entirely bad for our bodies, but too much can increase blood pressure and cause stress on the heart and blood vessels. Because of this, monitor your sodium intake and be aware of how much sodium is in your diet.

If you want to reduce your sodium intake, choose unprocessed or minimally processed foods. Prepared foods are generally high in added sodium compared to fresh options. Cut back on sources of high sodium, such as pepperoni pizza, white bread, processed cheese, deli meat and hot dogs, and other red meat and processed foods. Instead, eat more fruits, veggies, and whole grains, which are all lower in sodium.

Tip adapted from heart.org¹⁰

What has two hands but will never clap?

Last week’s riddle: Wide as a grapefruit, deep as a cup, but even a river can’t fill it up – What is it? Answer: A kitchen strainer.

Surat Thani Canal
Surat Thani, Thailand

Footnotes and Sources

^{1. The Wall Street Journal, July 19, 2024}

^{2. CNBC.com, July 15, 2024}

^{3. CNBC.com, July 16, 2024}

^{4. MarketWatch.com, July 17, 2024}

^{5. CNBC.com, July 18, 2024}

^{6. The Wall Street Journal, July 19, 2024}

^{7. KPMG.com, July 17, 2024}

^{8. AP.com, July 16, 2024}

^{9. IRS.gov, May 8, 2024}

^{10. Heart.org, May 8, 2024}

Stocks advanced last week as market leadership shifted amid fresh inflation data and quarterly corporate reports starting to roll in.

The Standard & Poor’s 500 Index advanced 0.87 percent, while the Dow Jones Industrial Average picked up 1.59 percent. The tech-heavy Nasdaq Composite Index, which has led all year, rose 0.25 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, rallied 1.62 percent for the week through Thursday’s close.¹

Dow Breaks 40,000 (Again)

Mega-cap tech led modest gains for the S&P 500 and Nasdaq in the first two days of the week, with the Dow posting modest losses both days.

But that narrow trading range didn’t last long as market leadership shifted midweek. Upbeat corporate earnings reports and milder-than-expected consumer inflation in June drove momentum in a handful of larger industrial and consumer stocks.^2,3

Q2 earnings season got into full swing later in the week, dominated mostly by financial and consumer-oriented companies. Markets seemed initially unfazed by better-than-expected reports from some money center banks. Some observers suggested higher interest rates may be one of the reasons for the market’s lukewarm response.⁴

The Dow ended the week with a solid gain after three consecutive weeks of trailing the S&P 500 and Nasdaq. The Dow also closed above 40,000, the first time it had done so since May, and hit a 52-week intraday high on Friday.

Mixed Inflation News

Two inflation reports came out last week: PPI and CPI.

The Producer Price Index, which measures the change in wholesale prices, rose 2.6 percent in June year over year—its largest increase in 16 months. By contrast, the Consumer Price Index, which tracks consumer prices, showed that the pace of inflation slowed in June.

Markets shrugged off the conflicting data, instead embracing the cooler CPI data. The Fed is likely taking notes for its next Fed meeting, scheduled for July 30-31.⁵

This Week: Key Economic Data

Monday: Fed Chair Jerome Powell and Fed Official Mary Daly speak.

Tuesday: Retail Sales. Import and Export Prices. Business Inventories. Housing Market Index. Fed Official Adriana Kugler speaks.

Wednesday: Housing Starts and Permits. Industrial Production. Fed Official Thomas Barkin speaks.

Thursday: Jobless Claims. Fed Officials Michelle Bowman, Mary Daly and Lorie Logan speak. Fed Balance Sheet.

Friday: Fed Officials John Williams and Raphael Bostic speak.

^{Source: Investors Business Daily – Econoday economic calendar;  July 12, 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: The Goldman Sachs Group, Inc. (GS), BlackRock, Inc. (BLK)

Tuesday: UnitedHealth Group Incorporated (UNH), Bank of America Corporation (BAC), Morgan Stanley (MS), The Charles Schwab Corporation (SCHW)

Wednesday: Johnson & Johnson (JNJ), Elevance Health, Inc. (ELV), Prologis, Inc. (PLD)

Thursday: Netflix, Inc. (NFLX), Abbott Laboratories, Inc. (ABT), Marsh & McLennan Companies, Inc. (MMC), The Blackstone Group (BX), Infosys (INFY)

Friday: American Express Company (AXP)

^{Source: Zacks, July 12, 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.}

“Do not merely practice your art, but force your way into its secrets; it deserves that, for only art and science can exalt man to divinity.”

– Ludwig van Beethoven

Give Back to Your Community By Working as a Tax Volunteer

If you’re looking for a way to give back to your community and help people with low-to-moderate incomes, consider applying to volunteer with the Volunteer Income Tax Assistance or Tax Counseling for the Elderly programs. These programs offer free tax help to senior citizens, persons with disabilities, and those who speak limited English to understand their tax situations.

Here are some of the perks of being a VITA or TCE volunteer:

• Flexible hours: Generally, volunteers contribute 3-5 hours per week. Some sites are open all year, but most programs are open from January to April.

• Convenience: Thousands of VITA and TCE sites are set up in neighborhoods across the country, so it’s convenient to volunteer at a location close to home. These locations are usually community centers, libraries, schools, and malls.
• No experience needed: You don’t have to be a tax pro to volunteer because all volunteers receive special training and can serve in various roles.

*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 to Look for on a Nutrition Label

Nutrition labels contain helpful information that can guide you in the right direction as you eat healthier. But do you know how to read one correctly? The serving size is the first thing you will see on a nutrition label; this shows how many calories a serving contains.

The following section is the nutrients. This section helps you determine a food’s nutritional value. Pay close attention to saturated fat and added sugar. Lastly, you have the % Daily Value (DV), the percentage of each nutrient in a single serving in terms of the recommended amount.

Tip adapted from heart.org⁷

Wide as a grapefruit, deep as a cup, but even a river can’t fill it up – What is it?

Last week’s riddle: All around yet can’t be seen, has no throat but can be heard. What is it? Answer: The wind

Australian Cape Fur Seals at Play
Narooma, NSW, Australia

Footnotes and Sources

^{1. The Wall Street Journal, July 12, 2024}

^{2. The Wall Street Journal, July 12, 2024}

^{3. The Wall Street Journal, July 11, 2024}

^{4. The Wall Street Journal, July 12, 2024}

^{5. The Wall Street Journal, July 12, 2024}

^{6. IRS.gov, May 8. 2024}

^{7.  heart.org, May 8, 2024}

Stocks steadily advanced over the holiday week thanks to strength in mega-cap tech issues and encouraging jobs data.

The Standard & Poor’s 500 Index rose 1.95 percent, while the Nasdaq Composite Index added 3.50 percent. The Dow Jones Industrial Average edged up a modest 0.66 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, rose 2.30 percent for the week through Thursday’s close.¹

Nasdaq, S&P Extend Runs

ADP’s employment report on Wednesday showed private-sector employers added 150,000 jobs in June—slightly slower than May’s pace—adding to investor hopes that a slowing economy may prompt the Fed to adjust short-term rates as early as September. The Nasdaq and the S&P hit their 23rd and 33rd record closes, respectively, for the year.²

Friday morning’s jobs report from the Labor Department showed 206,000 jobs added last month, which also suggested a strong-but-cooling economy. News of slower job growth, slowing wage growth, and a slight uptick in unemployment helped drive down Treasury yields, and stocks finished the short week with a strong rally. The Nasdaq and S&P both closed at all-time highs on Friday.³

Still Catching Up?

Driving much of the job growth in last week’s reports was a post-pandemic catchup effect: sectors such as healthcare and leisure/hospitality showed they are still recovering.⁴

The private-sector jobs data and the Labor Department report painted a similar picture of an economy creating jobs but at a slower rate than in the past.^5,6

This Week: Key Economic Data

Tuesday: Fed Chair Jerome Powell speaks.

Wednesday: Petroleum Status Report. Fed Officials Austan Goolsbee and Michelle Bowman speak.

Thursday: Consumer Price Index (CPI). Jobless Claims. Fed Officials Raphael Bostic and Alberto Musalem speak. Fed Balance Sheet.

Friday: Wholesale Inflation (Producer Price Index). Consumer Sentiment.

^{Source: Investors Business Daily – Econoday economic calendar;  July 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

Thursday: PepsiCo, Inc. (PEP), The Progressive Corporation (PGR), Delta Air Lines, Inc. (DAL), Conagra Brands (CAG)

Friday: JPMorgan Chase & Co. (JPM), Wells Fargo & Company (WFC), Citigroup Inc. (C), The Bank of New York Mellon Corporation (BK)

^{Source: Zacks, July 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.}

“I want to believe that there is a mountain so high that I will spend my entire life striving to reach the top of it.”

– Cicely Tyson

How to Apply for Tax-Exempt Status for Organizations

If an organization wants to apply for tax-exempt status under Section 501(c)(3), it starts by filling out a Form 1023-series application. It must submit a complete application and the user fee. Organizations also need their employer identification number to complete the application. Generally, an organization that is required to apply for recognition of exemption must notify the Internal Revenue Service (IRS) within 27 months from the date of formation.

Some organizations (including churches or public charities whose annual gross receipts are less than $5,000) may not need to apply for 501(c)(3) status to be tax-exempt. When the IRS determines an organization qualifies for exemption under Section 501(c)(3), it will also be classified as a foundation unless it is a public charity.

*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.gov⁷

Brain Health Supplements: Are They Worth the Hype?

Over-the-counter brain health supplements claim to improve memory and promise enhanced memory and sharper attention and focus. Unfortunately, the FDA doesn’t oversee product testing or ingredient accuracy; instead, it looks for supplements that make health claims related to treating specific diseases. Because of this, a brain health supplement could claim that it helps with mental alertness or memory loss.

Most brain health supplements contain omega-3 fatty acids, such as those found in fish oil. Rather than choosing a supplement, some health professionals recommend eating a healthy diet full of vitamins, minerals, and healthy fats. Also, exercising your brain like any other muscle may help with memory. Ongoing education is a great way to keep your brain moving.

Tip adapted from Harvard Medical School⁸

All around yet can’t be seen, has no throat but can be heard. What is it?

Last week’s riddle: This house attracts travelers with its brightness, yet it is often the loneliest home on the coast. What kind of house is this? Answer: A lighthouse.

New York City, New York

Footnotes and Sources

^{1. The Wall Street Journal, July 5, 2024}

^{2. The Wall Street Journal, July 3, 2024}

^{3. The Wall Street Journal, July 5, 2024}

^{4. The Wall Street Journal, July 5, 2024}

^{5. The Wall Street Journal, July 5, 2024}

^{6. Marketwatch.com, July 5, 2024}

^{7.  IRS.gov, May 7, 2024}

^{8. Harvard Medical School, May 7, 2024}