Earnings Season Begins
WEEKLY UPDATE - APRIL 16, 2018
In This Issue
Market volatility continues. Stocks slid on Friday, April 13, but still held on to gains for the week. [1] The S&P 500 increased 1.99%, the Dow added 1.79%, and the NASDAQ was up 2.77%. [2] International stocks in the MSCI EAFE also rose, gaining 1.45% .[3]
Similar to recent weeks, international events continued to sway markets: Concerns about trade disputes affected investor behavior. Meanwhile, escalating conflict in Syria may have weighed on people's minds. [4] 

As we track these developments, we want to share insight about another important occurrence from last week: the beginning of corporate earnings season.  

1st Quarter Corporate Earnings Season 

1. Expectations remain very high
Analysts anticipate a particularly strong earnings season. Thomson Reuters data predicts that S&P 500 companies' profits were 18.6% higher in the 1 st quarter of 2018 than in 2017. If accurate, this increase would be the largest since 2011. [5] 

So far, data seems on track. According to The Earnings Scout, 1 st-quarter earnings growth is currently at 26.8%. [6]

2. Banks outperform but stocks drop
On Friday, 3 major banks released their reports - and each beat projections for earnings and revenue. Despite this positive news, however, their stocks experienced sizable declines that contributed to overall market losses.  

Why would strong quarterly results create stocks losses?  

The markets anticipated this positive performance and had already priced it into the shares. [7] As a result, any less-than-ideal news seemed to outweigh the expected earnings and revenue increases. In particular, 2 facts drove losses: [8]  
  • 1 bank may have to pay a $1 billion penalty 
  • All 3 banks experienced slow loan growth 
We are in the early stages of earnings season, and many major corporations still need to release their reports. In the coming weeks, we'll continue monitoring these developments to better understand our economy. As always, please contact us if you have questions about how the data affects your finances and life .    


ECONOMIC CALENDAR
Monday: Retail Sales, Housing Market Index
Tuesday: Housing Starts, Industrial Production
Thursday: Jobless Claims




Notes: All index returns (except S&P 500) exclude reinvested dividends, and the 5-year and 10-year returns are annualized. The total returns for the S&P 500 assume reinvestment of dividends on the last day of the month. This may account for differences between the index returns published on  Morningstar.com and the index returns published elsewhere. International performance is represented by the MSCI EAFE Index. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly.


" Courage is being scared to death, but saddling up anyway."

- John Wayne

Fudgy Beet Brownies

Yields:16 brownies

Ingredients:  
  • ½ cup (1 stick) unsalted butter, plus more for the pan
  • 6 ounces bittersweet chocolate, chopped
  • ½ cup firmly packed brown sugar
  • 8 ounces cooked peeled whole beets (about 4 small beets), pureed in blender or food processor
  • 1 teaspoon pure vanilla extract
  • 1 teaspoon espresso powder
  • ¼ teaspoon kosher salt
  • 2 large eggs, at room temperature
  • ½ cup white whole wheat flour
Directions:  
  1. Heat the oven to 350°F. 
  2. Apply butter on an 8-inch square baking dish. 
  3. Line the bottom of the dish with parchment paper, leaving overhang on each side. 
  4. Apply butter on the paper.
  5. Melt chocolate and ½ cup butter in a medium saucepan on low; stir the mix occasionally until it is smooth. 
  6. Let the mix cool slightly after removing it from the heat.
  7. Whisk in sugar, beets, vanilla, expresso powder, and salt.
  8. Add eggs one at a time and whisk until fully mixed.
  9. Slowly pour flour in until it combines with the mix.
  10. Put the batter into a prepared baking dish. 
  11. Bake until you can remove a knife inserted in the center and it comes out clean or with just a few crumbs, 30-35 minutes.
  12. Let the pan cool for 10 minutes. Use overhangs to move it to a cutting board. 
  13. Cut into 16 squares.
   
Recipe adapted from Good Housekeeping [9]

Looking for a More Powerful Swing?

Players trying to put more punch into their swings sometimes find their efforts falling short.  

During their swings, players often incorrectly use the technique of pushing the handle ahead of the clubhead through impact. It's a common approach golfers use to correct wristy, flippy motions at impact. However, the maneuver tends to reduce their ability to generate fast swing speed.

To correct this habit, Golf Channel instructor Mike Jacobs tells players to hold their drivers with their right arm only and, while standing still, to push the handle quickly toward the target. (For left-handed players, use your left hand in this exercise.)

This exercise gives players the feeling of the clubhead staying behind. The move conveys the sense during a swing that the player is trying to force the club to swing backward, which requires your hands, arms, or body to force your head into good position for the club to strike the ball.

Jacobs states that players should instead stop trying to get their hands forward at impact and focus on pulling the handle rather than pushing it.  

The swing through impact should feel as if you're pulling up toward the middle of your chest. This makes the club rotate and increase speed at the head end .


Tip adapted from Golf Digest[11]
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Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

Diversification does not guarantee profit nor is it guaranteed to protect assets.

International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

The 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 stocks of technology companies and growth companies.  

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indices from Europe, Australia, and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

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.

These are the views of Platinum Advisor Strategies, LLC, and not necessarily those of the named representative,  
Broker dealer or Investment Advisor, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer or Investment Advisor gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

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[1] www.cnbc.com/2018/04/13/us-stock-futures-dow-data-earnings-tech-and-politics-on-the-agenda.html

[2] http://performance.morningstar.com/Performance/index-c/performance-return.action?t=SPX®ion=usa&culture=en-US



[3] www.msci.com/end-of-day-data-search

[4] www.cnbc.com/2018/04/13/us-stock-futures-dow-data-earnings-tech-and-politics-on-the-agenda.html

www.reuters.com/article/us-usa-stocks/wall-street-falls-as-bank-stocks-syria-conflict-weigh-idUSKBN1HK1KH

[5] www.reuters.com/article/us-usa-stocks/wall-street-falls-as-bank-stocks-syria-conflict-weigh-idUSKBN1HK1KH

[6] www.cnbc.com/2018/04/13/us-stock-futures-dow-data-earnings-tech-and-politics-on-the-agenda.html

[7] www.cnbc.com/2018/04/13/us-stock-futures-dow-data-earnings-tech-and-politics-on-the-agenda.html

www.cnbc.com/2018/04/15/from-geopolitics-to-earnings-what-will-move-markets-most-ahead.html

[8]  www.reuters.com/article/us-usa-stocks/wall-street-falls-as-bank-stocks-syria-conflict-weigh-idUSKBN1HK1KH

[9]  www.goodhousekeeping.com/food-recipes/dessert/a47524/fudgy-beet-brownies-recipe/

[10] www.irs.gov/newsroom/the-right-to-quality-service-taxpayer-bill-of-rights-2
[11]  www.golfdigest.com/story/quick-tips-for-more-power

[12] www.webmd.com/a-to-z-guides/discomfort-15/tame-allergies/slideshow-allergy-myths-facts

[13] www.earthshare.org/2008/09/to-market-to-ma.html
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