The Week on Wall Street
A positive jobs report sent stocks soaring last Friday, capping a solid week as evidence of a global economic recovery outweighed concerns over civil unrest and tensions with China.
The Dow Jones Industrial Average jumped 6.81%, while the Standard & Poor’s 500 advanced 4.91%. The tech-heavy Nasdaq Composite Index lagged, climbing 3.42%. The MSCI EAFE Index, which tracks developed stock markets overseas, gained 5.52%.
Stocks March Higher
Despite multiple headwinds, stocks rode a wave of optimism over economic recovery and were encouraged by signs that a feared spike in COVID-19 had not occurred.
Firming oil prices and positive global manufacturing data helped boost stocks during the week. The market continued to be led by industry sectors that were most battered in the March decline, as price advances slowed in growth-oriented stocks, primarily technology names.
After a pause on Thursday, stocks surged on Friday when a jobs report surprisingly showed 2.5 million new jobs in May, with the unemployment rate falling to 13.3%. Wall Street expected a job decline of over 8 million and an unemployment rate of 19.5%.
A Wall of Worry
While the markets continued to move higher last week, many investors are concerned that the recovery may be hindered by simmering tensions with China and the civil unrest that erupted last week.
China has been a longstanding source of market worry, but the civil unrest introduces a new challenge. For now, the market appears to have shrugged off these concerns.
This past Wednesday marked the best 50-day gain for the S&P 500 in the index’s history. During a period that approximates the lifespan of a mosquito, stock market sentiment has swung from near-absolute despair in late March to positively bullish.
Often, the most impactful lessons in life tend to be those most recently learned. If the last three months have offered investors any lesson, it may be that trying to time the market is a challenging proposition.
THIS WEEK: KEY ECONOMIC DATA
Wednesday: Consumer Price Index (CPI). Federal Open Market Committee (FOMC) Meeting Announcement. Federal Reserve Chair Press Conference.
Thursday: Jobless Claims.
THIS WEEK: COMPANIES REPORTING EARNINGS
Monday: Coupa Software (COUP).
Tuesday: Chewy (CHWY).
Thursday: Lululemon (LULU).
“If I cannot do great things, I can do small things in a great way.”
– Martin Luther King Jr.
Recipe of the Week
Spinach Pomegranate Salad with Chicken
- 2 chicken breasts
- 2 tsp. olive oil (if you opt to cook in a skillet)
- 4 cups spinach
- ½ cup pomegranate seeds
- 1 Tbsp. olive oil (for dressing)
- 1 Tbsp. lemon juice
- Salt and pepper, to taste
- Season chicken with salt and pepper and grilling and cook in skillet with olive oil, as preferred, approximately 10 to 15 minutes.
- Once cooled, cut the chicken into strips.
- Toss together the spinach, pomegranate seeds, and chicken strips.
- Drizzle olive oil and lemon juice, then sprinkle with salt and pepper.
- Toss lightly and serve.
Recipe adapted from WideOpenEats.com
Deductions for Educators
- Educators can deduct up to $250 of trade or business expenses that were not reimbursed. As teachers prepare for the next school year, they should remember to keep receipts after making any purchase to support claiming this deduction.
- Qualified expenses should be in the amounts the taxpayer paid for the expenses in the same tax year.
- Professional development course fees, books, supplies, or computer equipment are all valid deductions.
- To be considered eligible, you must be a teacher, instructor, counselor, principal, or aide.
Tip adapted from IRS.gov
Cutting Down on 3-Putts
Tip adapted from YourTahoePlace
Staying Hydrated This Summer
- If you’re thirsty, you’re already dehydrated. Thirst might not be the best indicator of hydration status.
- Weigh yourself before and after exercising. Drinking 1 pint of water is recommended for every pound you lose.
- Choose water over other fluids. Water is typically the preferred means of rehydration.
- Remember to hydrate often. Exercising or not, the heat can deplete your body of much-needed fluids.
Tip adapted from American Heart Association
Tip adapted from Green Living Ideas