Stocks Dip on Growth Concerns
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WEEKLY UPDATE - MARCH 11, 2019
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The Week on Wall Street As in February, investors spent most of the first full trading week of March hoping for new details in U.S.-China trade negotiations. While they waited, stock benchmarks drifted downward. From Monday's open to Friday's close, the S&P 500 lost 2.55%, while the Dow Industrials took a 2.66% fall, and the Nasdaq Composite weakened 3.12%. The MSCI EAFE index tracking developed markets outside the U.S. and Canada fell 1.09%.[1][2][3][4]
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Why did stocks lose momentum? In a hint that global economic growth might be slowing, the European Central Bank abruptly reduced its 2019 Gross Domestic Product forecast for the eurozone from 1.7% to 1.1%. A disappointing reading on U.S. hiring also raised questions.[5]
Perplexing Jobs Data According to the Department of Labor, the economy generated only 20,000 net new jobs in February. This was the smallest monthly gain since September 2017. Nevertheless, the unemployment rate fell to 3.8%, while underemployment declined sharply to 7.3%. (These decreases could reflect furloughed federal employees returning to work.) The average wage rose 3.4% in 12 months, the largest year-over-year increase in a decade.
Harsh winter weather may have impeded hiring last month, and February's payroll growth could be revised in the Department of Labor's next report.[6] Earnings Season Recap The fourth-quarter reporting season is all but over. FactSet notes that the S&P 500 has seen earnings growth of 13.4% in Q4, marking the fifth straight quarter with a double-digit rise.[7]
Final Thought Stocks lost ground last week, breaking a long string of weekly advances. The extended rally partly reflected optimism that the U.S.-China trade dispute would soon be resolved, but a deal may or may not happen. The week offered a reminder that Wall Street sees both ups and downs. Day-to-day market fluctuations should not cause you to alter your long-term approach.
THE WEEK AHEAD: KEY ECONOMIC DATA Monday: January retail sales. Tuesday: The Consumer Price Index, tracking monthly and yearly inflation. Thursday: January new home sales and February retail sales. Friday: The University of Michigan's initial March consumer sentiment index, measuring consumer confidence. Source: Econoday / MarketWatch Calendar, March 8, 2019 The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision. The release of data may be delayed without notice for a variety of reasons.
THE WEEK AHEAD: COMPANIES REPORTING EARNINGS Tuesday: Dick's Sporting Goods (DKS) Wednesday: Smart & Final (SFS) Thursday: Adobe Systems (ADBE), Broadcom (AVGO), Dollar General (DG)
Source: Morningstar.com, March 8, 2019 Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Any investment should be consistent with your objectives, time frame and risk tolerance. 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. Companies may reschedule when they report earnings without notice.
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"I'm a greater believer in luck, and I find the harder I work the more I have of it."
- Thomas Jefferson
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Southern Buttermilk Biscuits
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Serves 9
Ingredients:
- 2 cups Southern all-purpose flour (White Lily or other brand), plus more for kneading
- 1 Tbsp. baking powder
- 1 tsp. fine sea salt
- ¼ cup cold unsalted butter, cut into small pieces and chilled
- ¾ to 1 cup buttermilk
Directions:
- Begin by preheating your oven to 500°F. Use a rimmed baking sheet with a nonstick, silicone baking sheet lining the pan.
- Combine the flour, baking powder, and salt in a large bowl. Cut the butter into the dry mixture using two knives or a pastry cutter. Once the contents in the bowl resemble coarse meal, pour in the buttermilk and mix until it's just combined. You don't want to overwork it.
- Begin by lightly kneading the dough on a sparsely floured surface. Keep turning the dough; do this about 8 times. You don't want to knead for too long, or you'll overwork the dough. Lightly flour a rolling pin, then roll the dough to ½-inch thick. Cut the biscuits with a 2¼-inch round cutter dipped in flour. Be sure to press the biscuit cutter straight down (avoid twisting it). This way, the biscuits will rise evenly while baking.
- Arrange the biscuits on the baking sheet and bake for 8 to 10 minutes. Look for a golden-brown color. Cool on a rack and serve the biscuits warm with plenty of butter and honey.
Recipe adapted from Southern Kitchen
[8]
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Next time you're at your local course, take a glance at the putting green, and you'll see an infinite number of different putting styles. Even with the "pros," you'll see thousands of different grips, stances, and even, putters. It's natural to wonder why anyone putts the way they do with the "flat stick."
That's where the basics of great putting come into play.
Beginning line control: the position of your eyes and your ability to see a straight line when you look at the intended target. Control your speed: speed issues plague every golfer, regardless of their experience level, and improving your speed control may lead to massive improvements in your score.
Read the green: the correct read for any given putt can be variable based on a combination of start line and speed.
Master these putting elements, and your score is sure to drop.
Tip courtesy of Brandon Stooksbury, PGA | Golf Tips Magazine[10]
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Diversification does not guarantee profit nor is it guaranteed to protect assets.
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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.
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Consult your financial professional before making any investment decision.
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[1]
quotes.wsj.com/index/SPX
[2] quotes.wsj.com/index/DJIA
[3] quotes.wsj.com/index/NASDAQ
[4] quotes.wsj.com/index/XX/990300/historical-prices
[5] www.cnbc.com/2019/03/07/stock-market-us-china-trade-jobless-claims-in-focus.html
[6] www.usatoday.com/story/money/2019/03/08/jobs-report-just-20-000-added-february-economists-expected-181-000/3098383002/
[7] insight.factset.com/earnings-insight-q418-by-the-numbers-infographic
[8] www.southernkitchen.com/recipes/breakfast-brunch/virginia-willis-buttermilk-biscuits
[9] www.irs.gov/newsroom/reconstructing-records-after-a-natural-disaster-or-casualty-loss-irs-provides-tips-to-help-taxpayers
[10] www.golftipsmag.com/instruction/putting/the-abcs-of-great-putting/
[11] www.thankyourbody.com/10-super-simple-all-natural-beauty-tips/
[12] capechameleon.co.za/the-water-footprint-of-what-we-eat/
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