Market Update News
September 18, 2017
Presented By:  Todd Day, Portfolio Manager


The Energizer Market

Over the last couple of weeks, we have had missile launches, a hydrogen bomb, two of the worst hurricanes to hit the U.S., earthquakes, and landslides.  Now for some good news - it was another winning week on Wall Street as the Dow is coming off its best week of 2017 and the NASDAQ and S&P, not far behind.  Across the pond, European stocks are coming off a six-week high.

It may not seem that anything can stop this market, but do not get complacent.


It was a mixed bag of economic data over the last two weeks, and we are starting to see the after effects of the Hurricanes Harvey and Irma.
Initial jobless claims spiked 62k two weeks ago - thanks to a 51k surge in Texas - as the impact of Hurricane Harvey ripples (transitorily) through economic data.  T his 26% spike in claims is the largest since 2005 (and biggest absolute rise since 2012).  The 298k point is the highest since April 2015.  Last week, they fell back slightly, but we expect volatility in these numbers in the coming weeks.

For the first time since February, core consumer prices did not come in below expectations, which means inflation may be rearing its ugly head, the FED would like that. 

Soft is the assessment for the latest retail sales report which shows early Hurricane effects for some components and also downward revisions to prior months.

Hurricanes Harvey and Irma did cut into consumer sentiment but not by much.
The biggest hurricane hit yet, comes not in consumption, but on the production side of the economy as industrial production fell 0.9 percent in August which is within Econoday's consensus range but against a median call for a 0.1 percent gain. The report's three components all show declines: utilities down 5.5 percent on forced outages following Harvey; mining down 0.8 percent on lower output of oil and natural gas; and manufacturing down 0.3 percent reflecting declines in machinery and nondurables despite a rise in vehicle production that followed three straight declines.

In the latest indications of strong, tight conditions in the labor market, job openings rose to a higher-than-expected level. 


This week, the main focus will be on the Federal Reserve's 2-day meeting where they are not expected to raise rates, but many believe they will announce the beginning of the reduction of the balance sheet.  Many feel like this will act almost like another rate cut, but it is too early to know for sure.

We will get updated housing data, and after those hurricanes, I don't expect these to be good numbers.

Outside of that, we will be watching to see what the world can throw at the markets and how they continue to push higher.

So, stay tuned and we'll keep you posted.  

"All of our dreams can come true - if we have the courage to pursue them."
-   Walt Disney
Classic Chicken Parmesan

A simple, tasty take on a classic dish!

        • 1/2 cup Italian-seasoned breadcrumbs
        • 1/2 cup Parmesan cheese, grated
        • 4 chicken breasts (about 1.5 pounds), halved
        • 2 large eggs, beaten
        • 3/4 cups marinara sauce
        • 6 ounces mozzarella, shredded
        • Olive oil for cooking


Preheat oven to 450°F

1.      Mix together breadcrumbs and Parmesan cheese, and set aside.


2.      Heat olive oil in a 12" skillet on medium high.


3.      Coat each piece of chicken breast in egg and cover them with the breadcrumbs.


4.      Place coated chicken breasts in skillet and fry on both sides 

until it browns.


5.      Move fried chicken breasts to a baking dish and cover completely with the marinara sauce and shredded mozzarella.


6.      Place baking dish in oven and bake for 20 minutes. Remove and serve.


Recipe adapted from Good Housekeeping 

Maximize Miscellaneous Deductions
The IRS allows some tax deductions that do not fit into specific categories, such as whether an employee can claim the purchase of work uniforms. Knowing how to navigate these deductions can provide extra relief to help reduce taxable income and owed debts. Here is a breakdown of some items to keep in mind if you intend to claim miscellaneous deductions.
How much can you claim?
Taxpayers can typically only claim miscellaneous deductions if the total sum of what they're claiming exceeds 2% of their adjusted gross income (AGI). For example, if your AGI was $55,000, then your miscellaneous deductions must total at least $1,100.
What can you claim?
Some common deductions include the following expenses:
  • Costs incurred from finding a new job in the same field of work
  • Tools you must use to do your job
  • Dues you pay to unions
  • Travel and transportation for work
Other details may apply, and you can find more information on the IRS website .
 * 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 advisor.
Tip courtesy of

Control Your Drive in Crosswinds
Golfers fighting wind that zips and zags across the fairway commonly affect their normal shot shape. And for golfers who tend to slice, this scenario will create an even bigger uphill battle. To overcome this challenge and control your drive, golfers need to hit low in order to keep the ball in play.
Here's how you can overcome crosswinds by driving low:

Step 1: When teeing the ball, position it lower than normal by a 1/2 inch.

Step 2: Grip lower on the handle than you usually do, around 1 inch.

Step 3: Shorten your backswing just a bit.

Step 4: Strike the ball level by moving the clubhead low through impact, directly above the ground.
Tip courtesy of GolfDigest

Control Pinkeye at Home
Pinkeye is the common term for conjunctivitis, which occurs when the mucous membrane lining your eyes and eyelid becomes red and swollen. While the condition may require medical care, you can also take measures at home to manage the pain and discomfort.
Here are some home treatments that can help:

Avoid wearing contacts: Switch to wearing eyeglasses until your eyes heal. You will also want to thoroughly clean your contact lens and cases.


Use a cold or hot compress: Choose the temperature that feels most soothing and put the cold or hot compress over your eyelid to control swelling and redness. Pinkeye caused by an infection can spread, so be sure to use new compresses on each eye, and never reuse a compress.


Wipe your eye without spreading germs: To control infection, wipe your eye with a clean tissue or cloth by moving from the inner-corner of your eye outward toward your cheek. Always discard used tissues or immediately clean cloth wipes in order to avoid further germ contamination.


Tip courtesy of WebMD

Manage Your Home's Temperature
Just as the heating and cooling system you use affect how efficiently you maintain temperatures in your home, so do the items within your house affect its warmth. Not only does extra heat from common items like appliances spike your AC use, it will also increase your electricity costs. You can take steps to better manage your energy use by knowing how much heat household items produce. Here are a few common items to keep in mind:
  • Large Plasma Television: The operating temperatures of these TVs can reach 104°F and add a lot of heat to a room. Be sure to turn off any large plasma televisions you're not actively watching.
  • Computers: Believe it or not, our computers can reach temperatures as high as 212°F. You can help manage how hot it gets by using the sleep mode and dusting the vents.
  • Ovens: Oven temperatures can reach upwards of 475°F, which can make cooling down your house challenging. Always remember to promptly turn off your oven, and only preheat it once you're ready to cook.
Tip courtesy of

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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

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 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 indexes 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.


The Housing Market Index (HMI) is a weighted average of separate diffusion indices based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. Each resulting index is then seasonally adjusted and weighted to produce the HMI.


The Pending Home Sales Index, a leading indicator of housing activity,  measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos and co-ops.  The PHSI looks at the monthly relationship between existing-home sale contracts and transaction closings over the last four years. The results are weighted to produce the index.


The Chicago Board Options Exchange Market Volatility Index (VIX) is a weighted measure of the implied S&P 500 volatility. VIX is quoted in percentage points and translates, roughly, to the expected movement in the S&P 500 index over the upcoming 30-day period, which is then annualized.


The BLS Consumer Price Indexes (CPI) produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Survey responses are seasonally adjusted and weighted to produce a composite index.


The Conference Board Leading Economic Index (LEI) is a composite economic index formed by averages of several individual leading economic indicators, which are weighted to produce the complete index.


Google Finance is the source for any reference to the performance of an index between two specific periods.


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 Horizon Financial Services, LLC, and should not be construed as investment advice. Neither Horizon Financial Services, LLC nor its Investment Advisor Representatives or Associates 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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