Weekly Updates

Weekly Update: May 4, 2021-Earnings Season Crests Some Expectations, Plus SFG News and Events –

May 4, 2021


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Earnings Season Crests Some Expectations


Food for Thought


Tax Tips


Healthy Living


Weekly Riddle


Photo of the week


Earnings Season Crests Some Expectations

Stocks meandered around a flatline in a busy week of corporate earnings, ending the trading week slightly lower.
The Dow Jones Industrial Average slid 0.50%, while the Standard & Poor’s 500 was flat (+0.02%). The Nasdaq Composite index surrendered 0.39%. The MSCI EAFE index, which tracks developed overseas stock markets, rose 0.18%.

Seeking Direction
Though the S&P 500 and Nasdaq established new record highs at the start of the week, stocks struggled to find traction as the week wore on.
Investor sentiment was dampened by rising COVID-19 infections in India and Japan, along with mounting inflation worries. Stocks finally caught some lift from strong quarterly reports issued by two big technology companies and an upbeat first-quarter Gross Domestic Product growth number, sending the S&P 500 to a fresh record high.
Once again, though, stocks failed to follow through, as the market retreated in the final day of trading to …

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Weekly Update: April 26, 2021-Mixed Signals, Choppy Week, Plus SFG News and Events

April 27, 2021


Table of Contents



Mixed Signals, Choppy Week


Food for Thought


Tax Tips


Healthy Living


Weekly Riddle


Photo of the week


Mixed Signals, Choppy Week

The crosscurrents of strong corporate earnings, rising global cases of COVID-19, and the specter of higher capital gains taxes led to a choppy week of trading that left stock prices slightly lower for the week.
The Dow Jones Industrial Average lost 0.46%, while the Standard & Poor’s 500 slipped 0.13%. The Nasdaq Composite index fell 0.25% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, dropped 0.47%.

A Directionless Week
Despite continued better-than-expected corporate earnings, stocks retreated as concerns over rising global COVID-19 infections weighed on investor sentiment. A mid-week rally erased much of these losses, with reopening stocks and small cap companies leading the market.
The stock market resumed its decline in reaction to reports that President Biden supported a capital gains tax increase on wealthy Americans. The Biden news prompted worries that stocks could come under pressure this year if such an increase were to go into effect next year.
Solid economic reports, along with a reassessment of the capital gains news, helped stocks to …

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Weekly Update: April 12, 2021-Tech Stocks On the Rise, Plus SFG News and Events

April 13, 2021


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Tech Stocks On the Rise


Food for Thought


Tax Tips


Healthy Living


Weekly Riddle


Photo of the week


Tech Stocks On the Rise

Strong economic data and a resurgent technology sector propelled stocks to solid gains last week.
The Dow Jones Industrial Average advanced 1.95%, while the Standard & Poor’s 500 picked up 2.71%. The tech-heavy Nasdaq Composite index gained 3.12%. The MSCI EAFE index, which tracks developed overseas stock markets, gained 1.96%.

Technology Leads
A blow-out jobs report and an all-time high in the ISM-Services Index, coupled with the continued rebound in technology stocks, powered the Dow Industrials and S&P 500 to record highs to open a new week of trading.
After taking a breather mid-week, stocks resumed their climb amid lower bond yields, widening momentum in vaccination efforts, and falling concerns over corporate tax rate hikes. As bond yields settled lower, technology shares rallied, lifting the S&P 500 to another record high on Thursday, its 19th closing record high this year.
Despite a surge in March producer prices, stocks added to their gains to close out a…

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Weekly Update: April 5, 2021-S&P 500 Rises Above 4,000, Plus SFG News and Events

April 6, 2021


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S&P Rises above 4,000


Food for Thought


Tax Tips


Healthy Living


Weekly Riddle


Photo of the week


S&P Rises Above 4,000

Overcoming a rocky start, stocks rallied into the close of a holiday-shortened week of trading as technology shares staged a powerful recovery and investors reacted positively to President Biden’s infrastructure spending proposal.
The Dow Jones Industrial Average gained 0.24%, while the Standard & Poor’s 500 picked up 1.14%. The tech-heavy Nasdaq Composite index rose 2.60%. The MSCI EAFE index, which tracks developed overseas stock markets, slipped 0.43%.

S&P 500 Hits 4,000
Monday opened with two banks reporting they face losses due to the default of a small U.S. hedge fund. That news, combined with rising yields, higher new cases of COVID-19, and a public warning of new virus variants, started the week off on an unsettled note.
Despite the shaky start, upbeat economic reports helped spark a rally that was paced by gains in the technology sector. The market also reacted positively on Wednesday to the introduction of…

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Weekly Update: March 29, 2021-Rocky Week Despite Upbeat Signals, Plus SFG News and Events

April 6, 2021


Table of Contents



Rocky Week Despite Upbeat Signals


Food for Thought


Tax Tips


Healthy Living


Weekly Riddle


Photo of the week


Rocky Week Despite Upbeat Signals

A rocky week with wide price swings led to mixed results for stocks last week, as investors grappled with anxieties over economic growth and weakness in technology and other high-growth stocks.
The Dow Jones Industrial Average added 1.36%, while the Standard & Poor’s 500 gained 1.57%. The Nasdaq Composite index fell 0.58% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, slipped 1.67%.

Stocks Churn
After a promising start to the week, stocks turned negative on mounting concerns about economic growth in Europe, with broad losses in energy, cyclicals, and technology.
Though bond yields backed off their highs and Secretary of the Treasury Janet Yellen and Fed Chair Jerome Powell both struck an optimistic tone on the economy, stocks posted back-to-back losses on Tuesday and Wednesday.
Thursday trading was emblematic of the week’s volatile action. The S&P 500 dropped nearly one percent earlier in the day following Powell’s comment about the Fed eventually rolling back its bond purchase program, then rallied to close with a…

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Weekly Update: March 22, 2021-Modest Losses After Choppy Week, Plus SFG News and Events

March 23, 2021


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Modest Losses After Choppy Week


Food for Thought


Tax Tips


Healthy Living


Weekly Riddle


Photo of the week


Modest Losses After Choppy Week

Rising bond yields and improving economic conditions led to a choppy week of trading that ended in modest losses for investors.
The Dow Jones Industrial Average fell 0.46%, while the Standard & Poor’s 500 declined 0.77%. The Nasdaq Composite index lost 0.79% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, gained 1.24%.

Rising Yields
The stock market began the week on a positive note, rising on optimism over the economic reopenings and a decline in bond yields. Technology shares staged a strong turnaround from the previous week.
Following the FOMC (Federal Open Market Committee) meeting announcement reaffirming the Fed’s easy-money policies, the Dow Industrials and the S&P 500 recorded new record closing highs.
Markets reversed themselves on Thursday as a surge in yields sent technology …

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Weekly Update: March 15, 2021-Economy Reacts to COVID-19 Stimulus, Plus SFG News and Events

March 16, 2021


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Economy Reacts to COVID-19 Stimulus


Food for Thought


Tax Tips


Healthy Living


Weekly Riddle


Photo of the week


Economy Reacts to COVID-19 Stimulus

Stocks touched new record highs last week as bond yields steadied, a fiscal relief bill was signed into law, and confidence in a strong economic recovery grew.
The Dow Jones Industrial Average gained 4.07%, while the Standard & Poor’s 500 tacked on 2.64%. The Nasdaq Composite index rose 3.09% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, gained 3.01%.

Dow 32,000
Stocks marched higher as bond yields leveled off and the $1.9 trillion stimulus bill moved through the legislative process. A muted inflation number and a better-than-expected jobless claims report evidenced an improving economy absent an attendant rise in inflation.
The technology sector was particularly volatile, with the Nasdaq Composite falling into correction territory to start the week as investors rotated into cyclical opportunities.
Technology rebounded strongly as bond yields stabilized and bargain hunters purchased tech names at reduced prices. The bounceback propelled the S&P 500 to a record high, while the reopening trade drove the Dow Industrials …

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Weekly Update: March 8, 2021-Stocks React Sharply to Bonds, Plus SFG News and Events

March 9, 2021


Table of Contents



Rising Bond Yields Diminish Stocks


Food for Thought


Tax Tips


Healthy Living


Weekly Riddle


Photo of the week


Stocks React Sharply to Bonds

Stocks were mixed last week as rising bond yields and heightening inflation fears sent stocks on a wild ride, capped by a remarkable Friday afternoon rally.

The Dow Jones Industrial Average gained 1.82%, while the Standard & Poor’s 500 increased by 0.81%. The Nasdaq Composite index fell 2.06% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, rose 0.76%.

Rising Yields Whipsaw Stocks
The week began on an ebullient note as stocks surged on a retreat in bond yields and approval of a new vaccine, with sharp gains in reopening stocks, hard-hit technology companies, and small-cap companies.
But the optimism proved fleeting as worries over rising bond yields upended the high valuation growth stocks and sent the broader market lower. Deteriorating investor sentiment culminated in a steep sell-off on Thursday, sparked by comments from Fed Chair Jerome Powell that did little to allay investors’ concerns about rising yields and …

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Weekly Update: March 1, 2021-Rising Bond Yields Diminish Stocks, Plus SFG News and Events

March 2, 2021


Table of Contents



Rising Bond Yields Diminish Stocks


Food for Thought


Tax Tips


Healthy Living


Weekly Riddle


Photo of the week


Rising Bond Yields Diminish Stocks

Stocks dropped amid rising long-term bond yields, with sharp declines in high-valuation growth stocks leading the overall market lower.
The Dow Jones Industrial Average slipped 1.78%, while the Standard & Poor’s 500 declined 2.45%. The Nasdaq Composite index, home to many high-valuation growth plays, fell 4.92% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, edged up 0.37%.

Rising Rates Derail Stocks
The 10-year Treasury yield climbed last week, from 1.34% to 1.42%, sending shudders through the stock market. While investors generally understand that economic strength may lead to higher bond yields, it was the speed at which bond yields rose that proved unsettling. Generally, when yields rise, bond prices tend to fall.
Rising yields also drove sector rotation, with economic reopening stocks (e.g., energy, financials, and industrials) outperforming stay-at-home stocks, especially many of the big technology names.
The trend of higher yields was mitigated by testimony on Tuesday and Wednesday by Fed Chair Jerome Powell. He provided some assurances that the Fed remained committed to its current easy money policy stance.
A surge in yields on Thursday, however, sparked a new wave of…

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Weekly Update: February 22, 2021-Rising Inflation Concerns, Plus SFG News and Events

February 23, 2021


Table of Contents



Rising Inflation Concerns


Food for Thought


Tax Tips


Healthy Living


Weekly Riddle


Photo of the week


Rising Inflation Concerns

Mixed Signals
The 10-year Treasury Note yield hit its highest level in a year last week on worries of a pick-up in inflation, while the 30-year Treasury Bond yield ticked over 2.0%. Rising yields weighed on the high-valuation growth stocks, most specifically the big tech names, in addition to dragging down interest rate sensitive sectors, like utilities and real estate investment trusts (REITs).
Economic data painted a mixed picture of the economy. Jobless claims reflected a still-struggling labor market while a strong retail sales number and…

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