The Week on Wall Street
A jump in COVID-19 cases dampened investor enthusiasm last week, sending stock prices lower on worries that rising infections could derail the economic recovery.
The Dow Jones Industrial Average slumped 3.31%, while the Standard & Poor’s 500 retreated 2.86%. The Nasdaq Composite Index lost 1.90% for the week. The MSCI EAFE Index, which tracks developed stock markets overseas, declined 1.28%.
A Rocky Week for Stocks
Investors began the week overlooking a jump in COVID-19 cases in some early reopening states, sending stocks higher and powering the Nasdaq Composite to close above 10,000 and establish a new record high on successive days. But the market quickly reversed course as investors reacted to data showing a troubling spike in nationwide COVID-19 cases.
In Thursday’s trading, stocks opened lower but then rallied late in the day on no apparent news. Stocks resumed their decline on Friday, falling on news that Texas and Florida were rolling back some reopening plans amid rising COVID-19 infections.
Investor expectations for an economic rebound took a hit last week, following reports of an increase in nationwide COVID-19 cases. The pace of infections had picked up in 33 states, with the seven-day average of new cases higher than the average over the last two weeks.
While traders understood that reopening and increased testing would lead to an uptick in reported cases, the numbers were a bit unsettling. The week’s action reminded investors that the market remains tightly tethered to COVID-19 developments.
THIS WEEK: KEY ECONOMIC DATA
Wednesday: ADP (Automatic Data Processing) Employment Report. Purchasing Managers Index (PMI) Manufacturing Index. Institute for Supply Management (ISM) Manufacturing Index. Federal Open Market Committee (FOMC) Minutes.
Thursday: Employment Situation Report. Jobless Claims. Factory Orders.
THIS WEEK: COMPANIES REPORTING EARNINGS
Monday: Micron Technologies (MU).
Tuesday: FedEx Corp. (FDX), Conagra Brands (CAG).
Wednesday: Constellation Brands (STZ), General Mills (GIS).
“Those who dream by day are cognizant of many things which escape those who dream only by night.”
– Edgar Allan Poe
Recipe of the Week
Sesame Soba Salad
- ¼ cup rice vinegar
- ½ tsp. toasted sesame oil (more for drizzling)
- 2 tsp. freshly grated ginger
- 1 garlic clove, freshly grated
- 1 tsp. pure maple syrup, honey, or agave
- 6 oz. of soba noodles
- 1 sliced avocado
- A squeeze of lemon
- 2 cups of sugar snap peas
- ½ cup edamame (without the shell)
- Thinly sliced radishes
- Fresh mint
- Sesame seeds for garnish
- To make the dressing, combine all the dressing ingredients together in a small bowl and set aside.
- Cook the soba noodles, according to package directions. Drain, then rinse in cold water.
- Divide the soba noodles into individual servings and top with lemon juice, avocado, snap peas, edamame, radish, mint, and sesame seeds. Drizzle with more sesame oil if preferred.
Working from Home and Expecting Some Tax Deductions? Not so Fast.
With the COVID-19 pandemic changing the way nearly everyone works in 2020, many people have found themselves working from home. While it is true that some home office expenses can be tax deductible, there’s a specific distinction that taxpayers should be aware of.
As a result of the Tax Cuts and Jobs Act of 2017, for the tax years 2018-2025, you may not be able to deduct home office expenses if you are an employee. This is different than working from home and being self-employed or an independent contractor. These types of workers may still be able to write off some of their home office expenses.
* 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.
Practice for Feel First
Every golfer knows that Jack Nicklaus is happy to share his golfing tips (he even published a whole book of them in the early 70s!). One of his many shared is “practice for feel first.”
Many golfers get ready for their game by heading straight to the driving range to hit as many hard drives as possible. Practicing with your smaller clubs will help you establish a proper feel before moving on to the longer ones.
Mind Your Own Beeswax
 The Wall Street Journal, June 26, 2020
 The Wall Street Journal, June 26, 2020
 Marketwatch.com, June 23, 2020
 FoxBusiness.com, June 26, 2020
 The Wall Street Journal, June 25, 2020
 LoveAndLemons.com, June 26, 2020
 Forbes.com, March 23, 2020
 Practical-Golf.com, June 26, 2020
 MyFoodDiary.com, June 26, 2020
 BeesWrap.com, June 26, 2020