With growing confidence in the economy’s resilience, stocks posted another week of solid gains.
The Standard & Poor’s 500 advanced 1.79%, while the Dow Jones Industrial Average rose 0.31%. The Nasdaq Composite index picked up 1.98% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, added 0.27%.1,2,3
Stocks Extend Gains
Markets bounced around all week as investors grappled with the crosswinds of rising yields, continued hostilities in Ukraine, and hawkish comments from Fed Chair Jerome Powell. After suffering declines in two of the first three trading sessions of the week, stocks turned higher on a good jobless claims number that investors interpreted as continuing economic strength.
Stocks drifted higher as the week came to a close amid rising bond yields, which on Friday saw the 10-year Treasury yield rise for the 13th time in 16 trading sessions4 to stand at 2.48%, up 0.51% YTD.
As the end of the first quarter approaches, investors appear more comfortable with monetary policy changes than when they started 2022, but the confidence is still directed toward Value stocks, which enjoy about a 13% advantage over growth in every size category as seen below.
Many economists speculated that the invasion of Ukraine would likely shave economic growth in the short term as hostilities worsened supply chains and increased inflationary pressures. The impact, so far, has not been seen in the labor market.
Last week’s initial jobless claims fell by 28,000 to 187,000, the lowest level since December 1969. The number of people on state unemployment rolls fell to 1.35 million, from 1.42 million the previous week, while open jobs are at a near-record high of 11.3 million. Employers’ need for workers suggests that the demand for products and services has remained resilient despite the events in Eastern Europe.5
This Week: Key Economic Data
Next week, March employment data will be in focus as ADP releases its monthly employment report on Wednesday and the Labor Department posts its monthly nonfarm payrolls and unemployment rate on Friday. Other economic data expected next week include the March consumer confidence index on Tuesday, revised Q4 gross domestic product on Wednesday, and February inflation data on Thursday.
Tuesday: Consumer Confidence. JOLTS (Job Openings and Turnover Survey).
Wednesday: Gross Domestic Product (GDP). Automated Data Processing (ADP) Employment Report.
Thursday: Jobless Claims.
Friday: Employment Situation. Institute for Supply Management (ISM) Manufacturing Index.
Source: Econoday, March 25, 2022
This Week: Companies Reporting Earnings
Tuesday: Micron Technology, Inc. (MU), lululemon athletica, inc. (LULU), Chewy (CHWY).
Wednesday: Paychex, Inc. (PAYX).
Thursday: Walgreens Boots Alliance, Inc. (WBA).
Source: Zacks, March 25, 2022
"The battles that count aren't the ones for gold medals. The struggles within yourself — the invisible, inevitable battles inside all of us — that's where it's at."
– Jesse Owens
Tips for Good Recordkeeping
As you prepare to file your tax return, the first step is to ensure that your records are in order. Good recordkeeping throughout the year will make filing your taxes easier.
Here are some recordkeeping tips:
* 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
How to Drink More Water Throughout the Day
Drinking enough water, especially during the summer months, is important to keep you feeling your best. While there aren’t any strict rules on exactly how much water you should drink, you should listen to your body to ensure you’re getting enough.
Here are some tips on how to drink more water throughout the day:
Tip adapted from Healthline7
New furniture will be delivered to your office on the day before five days from the day after tomorrow. If today is August 18, when will the furniture arrive?
Last week’s riddle: Two lawyers sit at opposite ends of a large conference table. Nothing is in between them but the table, yet they don’t see each other. How is this possible? Answer: They are both sitting so that their backs are turned to each other.
South Maui beach at sunset, Maui, Hawaii.
Footnotes and Sources
2. The Wall Street Journal, March 25, 2022
3. The Wall Street Journal, March 25, 2022
4. The Wall Street Journal, March 25, 2022
5. The Wall Street Journal, March 24, 2022
6. IRS.gov, June 22, 2021
7. Healthline.com, September 30, 2021
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Weekly Market Insights: Confidence Grows In Resilient Economy
March 28, 2022