Stocks posted modest gains last week, with quarterly earnings season in full swing and the election on the horizon. The Standard & Poor’s 500 Index increased 0.85 percent, while the Nasdaq Composite Index rose 0.80 percent. The Dow Jones Industrial Average advanced 0.96 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, fell 0.31 percent.1,2 Six in a RowStocks bolted out of the gate as the week began. The S&P 500 and the Dow Industrials hit record highs, with the Dow crossing 43,000 for the first time.3 Midweek, news of stronger-than-expected retail sales report contributed to overall market momentum. Retail sales rose a seasonally adjusted 0.4 percent in September, topping economists forecasts.4 As the week wrapped up, the technology sector helped fuel a rally that pushed the S&P and Nasdaq to another record high. It was the sixth straight week of gains for the S&P 500, Nasdaq, and Dow Industrials.5 |
 |
Insight from Corporate ReportsThere were many market forces pushing each other around last week. Corporate earnings reports drove much of the market action. Some of the most extensive financial stocks surprised on the upside, supporting a narrative that the economy remains strong. At the same time, a corporate report from one of the world’s largest chip manufacturing contractors revealed continued strong global demand for AI microchips. However, increasing investor anxiety was a constant undertow in trading as the November elections drew nearer.6 This Week: Key Economic DataMonday:Fed Officials Lori Logan, Neel Kashkari, and Jeffrey Schmid speak. Tuesday: Fed Official Patrick Harker speaks. Wednesday:Existing Home Sales. Beige Book. Fed Officials Michelle Bowman and Thomas Barkin speak. Thursday:New Home Sales. Weekly Jobless Claims. Fed Official Beth Hammack speaks. Friday:Durable Goods. Consumer Sentiment. Source: Investors Business Daily - Econoday economic calendar; October 18, 2024 This Week: Companies Reporting EarningsTuesday:GE Aerospace (GE), Philip Morris International Inc. (PM), Verizon Communications Inc. (VZ), Texas Instruments Incorporated (TXN), RTX Corporation (RTX), Lockheed Martin Corporation (LMT), Fiserv, Inc. (FI) Wednesday:Tesla, Inc. (TSLA), The CocaCola Company (KO), T-Mobile US, Inc. (TMUS), Thermo Fisher Scientific Inc. (TMO), International Business Machines Corporation (IBM), ServiceNow, Inc. (NOW), AT&T Inc. (T), Boston Scientific Corporation (BSX), The Boeing Company (BA) Thursday:Amazon.com, Inc. (AMZN), S&P Global Inc. (SPGI), Union Pacific Corporation (UNP), United Parcel Service, Inc. (UPS) Source: Zacks, October 18, 2024 |
 |
“Never be limited by other people’s limited imaginations.” – Mae Jemison |
 |
Tax Incentives Can Help You Further Your EducationTax credits help with the cost of higher education by managing the income tax you may need to pay. The two tax credits available are the American Opportunity Tax Credit and the Lifetime Learning Credit. Some education savings plans offer tax benefits if the individual qualifies. Also, you may be able to deduct higher education costs – such as tuition, student loan interest, and qualified education expenses – from your tax return. Knowing your potential tax benefits may save you money if you’ve always dreamed about returning to school, whether to further your career or just learn something new. This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional. Tip adapted from IRS7 |
 |
The Benefits of Brain TrainingWe know how important it is to exercise our bodies, but exercising our brains is just as important. When we continue to learn, our brains are better for it. Here are just a few benefits of “brain training,” or exercising your brain:
There are many fun ways to exercise your brain, one of which is to continue learning new things. Attend a pottery, painting, or foreign language class in your neighborhood, or check for discounts on community college courses. Another great way to exercise your brain is to socialize with others, spend time in nature, and practice mind puzzles, such as crosswords, Sudoku, or a game in a brain-training app. Tip adapted from American Psychological Association8 |
 |
How could Gail drive her car from Cleveland to Miami with a flat tire? Last week’s riddle: If six pheasants are in a stand of cattails, and a hunter shoots one of them, how many will remain amid the cattails? |
 |
 |
Two lions (Panthera leo) resting high up in a tree Moremi Game Reserve, Okavango Delta, Botswana |
Footnotes and Sources1. The Wall Street Journal, October 18, 2024 2. Investing.com, October 18, 2024 3. CNBC.com, October 15, 2024 4. The Wall Street Journal, October 17, 2024 5. The Wall Street Journal, October 18, 2024 6. The Wall Street Journal, October 18, 2024 7. IRS.gov, July 3, 2024 8. American Psychological Association, July 24, 2024 |
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.
The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.
The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.
U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.
Please consult your financial professional for additional information.
This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.
Copyright 2024 FMG Suite.
Advisory services are offered through Q2 Wealth Management (“Q2”), a Registered Investment Adviser. Insurance products and services are offered through Q2 Wealth Insurance, an affiliated insurance company. Q2 Wealth Management and Q2 Wealth Insurance are not affiliated with or endorsed by the Social Security Administration or any other government agency. ⦁ Information presented herein is intended for a broad audience, as educational in nature, and does not intend to make an offer or solicitation for the purchase or sale of securities, products, or services. This content may be dated. It is not intended to provide any tax or legal advice or provide the basis for any financial decision(s). Be sure to consult your investment adviser, tax professional, or legal counsel concerning your specific situation before considering any information discussed herein. ⦁ Investing always involves risk and possible loss of capital. Past performance is not indicative of future results. ⦁ Q2 has a reasonable belief that this marketing does not include any false or materially misleading statements or omissions of facts regarding Q2’s services, investments, or client experiences. Q2 has a reasonable belief that the content as a whole will not cause an untrue or misleading implication regarding Q2’s services, investments, or client experiences. ⦁ This communication shall in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents other than those States in which Q2 is registered or where otherwise legally permitted. ⦁ The securities industry personnel in question may only transact business in those states where they are registered or otherwise excluded or exempted from state registration requirements. ⦁ All expressions of opinion are subject to change without notice. All information is subject to change without notice. Any views or opinions expressed may not reflect those of Q2. ⦁ The Adviser believes that the content provided by third parties and/or linked content is reasonably reliable and does not contain untrue statements of material fact, or misleading information. This content may be dated. ⦁ “Likes” are not intended to be endorsements of our firm, our advisers, or our services. Please be aware that while we monitor comments and “likes”, we do not endorse or necessarily share the same opinions expressed by site users. We request that you do not post or comment. ⦁ Third-party rankings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client's evaluation. ⦁ Charts, graphs, and formulas may be discussed and displayed which are not intended to be used by themselves to determine which securities to buy or sell, or when to buy or sell them. Such charts and graphs offer limited information and should not be used on their own to make investment decisions.