The following economic awareness entry is based on short-term events and therefore should not be taken as information towards making investment decisions, which are of a long-term nature. It is only meant to provide clarity regarding current economic events, as there is often a large degree of incorrect information dispersed through the media or other sources.
Economic Awareness: Stocks Extend Rally; Eyes On Tech
Stocks managed to gain ground last week as investors turned their focus to corporate earnings.
Earnings in Focus
At the start of the week, stocks extended the previous week’s rally with some high-growth companies leading the move higher. Strong company profits fueled the market the middle of the week, until an earnings disappointment from a mega-cap company took investors by surprise. The earnings miss deflated sentiment as it heightened worries of what it may portend for other technology companies yet to report. These anxieties led to a sell-off that reverberated across the market.
Subsequent earnings beats from several technology and social media names, and an above-consensus rise in new payrolls on Friday, helped the market close with week with a solid gain.
Omicron and Unemployment
A string of employment reports pointed to a generally healthy labor market, despite the Omicron surge late last year. The Job Openings and Turnover Survey (JOLTS) showed a hiring slowdown, with near-record high job openings and worker resignations. The ADP (Automated Data Processing) employment report saw private payrolls shrink by 301,000. That was the first monthly decline since December 2020.4,5
More encouragingly, initial jobless claims declined, while continuing jobless claims apparently reached their lowest level since 1973. A strong January employment report showed 467,000 jobs added during the month, with upward revisions to previously released November and December.6,7
This Week: Key Economic Data
Thursday: Consumer Price Index (CPI). Jobless Claims.
Friday: Consumer Sentiment.
Source: Econoday, February 4, 2022
This Week: Companies Reporting Earnings
Monday: Amgen, Inc. (AMGN).
Tuesday: Pfizer, Inc.(PFE), Chipotle Mexican Grill, Inc. (CMG), Sysco Corporation (SYY).
Wednesday: CVS Health Corporation (CVS), The Walt Disney Company (DIS), Twilio, Inc. (TWLO), Yum Brands, Inc. (YUM), O’Reilly Automotive, Inc. (ORLY).
Thursday: Twitter, Inc. (TWTR), The CocaCola Company (KO), Illumina, Inc. (ILMN), Duke Energy Corporation (DUK), PepsiCo, Inc. (PEP), Kellogg Company (K), Expedia Group, Inc. (EXPE).
Friday: Dominion Energy, Inc. (D).
Source: Zacks, February 4, 2022
“Keep some room in your heart for the unimaginable.”
– Mary Oliver
Did You Know That You Have the Right to Challenge the IRS?
As a taxpayer, you have the right to challenge the IRS’ position. This is part of the Taxpayer Bill of Rights, which outlines your fundamental rights when working with the IRS.
With this right, you can:
In some circumstances, you may have the opportunity to have a hearing before an independent Office of Appeals.
* 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.gov8
Zero-Waste Grocery Shopping Tips
There are many ways to have an eco-friendly shopping trip at the grocery store. Here are a few tips to reduce plastic usage and aim for a zero-waste trip to the store:
Tip adapted from Green Matters9
They never move, even when we walk on them, but signs and arrows may indicate that they go “up” and “down.” What are they?
Last week’s riddle: Two children are born in the same hospital (and in the same hospital room) in the same year, month, day, and minute. They have the same two parents, yet they are not twins and have no brothers. How is this possible? Answer: They are sisters, and their mother had triplets (all girls).
Field of sunflowers (Helianthus annuus) on the island of Noakhali, South-eastern Bangladesh.
Footnotes and Sources
1. The Wall Street Journal, February 4, 2022
2. The Wall Street Journal, February 4, 2022
3. The Wall Street Journal, February 4, 2022
4. The Wall Street Journal, February 1, 2022
5. CNBC, February 2, 2022
6. CNBC, February 3, 2022
7. CNBC, February 4, 2022
8. IRS.gov, September 1, 2021
9. Greenmatters.com, November 19, 2020
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