WEEKLY MARKET UPDATE
April 18, 2022
Stocks posted losses in a holiday-shortened trading week as the first-quarter earnings season kicked off and investors digested new inflation data.
 
The Dow Jones Industrial Average declined 0.78%, while the Standard & Poor’s 500 fell 2.13%. The Nasdaq Composite index dropped 2.63% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, lost 1.20%.1,2,3
Watching Bonds
Stocks began the week moving lower as bond yields climbed higher, with growth stocks suffering some of the steepest declines. Investors considered China’s ongoing lockdown warily, worried it might worsen supply-chain issues.
 
Historically high consumer and producer price inflation reports were shrugged off by the stock and bond markets in the main, with bond yields slipping despite the hot inflation numbers. Despite an encouraging start to the first-quarter earnings season, stocks pulled back on Friday as bond yields resumed their move higher ahead of a three-day holiday weekend.
 
An Eye on Inflation
On Tuesday, March’s Consumer Price Index (CPI) report offered little indication that inflation may be moderating, as prices increased 8.5% year-over-year, the fastest pace in 40 years. Core inflation, excluding food and energy prices, recorded a 6.5% jump, the steepest rise since August 1982. One encouraging note was that core inflation showed potential signs of ebbing, posting a monthly increase of 0.3% versus expectations of a 0.5% increase.4
 
The following day, March’s Producer Price Index, a potential insight into future inflation, rose 11.2% year-over-year. A March survey by the National Federation of Independent Business released earlier in the week, indicated that half of the respondents were likely to raise prices in the next three months.5
 
This Week: Key Economic Data
Tuesday: Housing Starts.
Wednesday: Existing Home Sales.
Thursday: Jobless Claims. Index of Leading Economic Indicators. 
Friday: Purchasing Managers’ Index (PMI) Composite Flash.
Source: Econoday, April 14, 2022 The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. 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.
 
This Week: Companies Reporting Earnings
Monday: Bank of America Corporation (BAC), J.B. Hunt Transport Services, Inc. (JBHT).
Tuesday: Netflix, Inc. (NFLX), Johnson & Johnson (JNJ), International Business Machines Corporation (IBM), Lockheed Martin Corporation (LMT), Prologis, Inc. (PLD).
Wednesday: Tesla, Inc. (TSLA), The Procter & Gamble Company (PG), Lam Research Corporation (LRCX), CSX Corporation (CSX).
Thursday: AT&T, Inc. (T), United Airlines Holdings, Inc. (UAL), Snap, Inc. (SNAP), Blackstone, Inc. (BX), Union Pacific Corporation (UNP), Dow, Inc. (DOW).
Friday: Verizon Communications, Inc. (VZ), American Express Company (AXP), KimberlyClark Corporation (KMB). 
Source: Zacks, April 14, 2022 Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. 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. Companies may reschedule when they report earnings without notice.

Food For Thought
"You can’t use up creativity. The more you use, the more you have." 
– Maya Angelou

Tax Tips
Electronic Filing Options for Military Families
The Internal Revenue Service (IRS) offers a number of online resources for military members and their families. Some of these resources include:
 
  • IRS Free File. This program offers online tax preparation, electronic filing and direct deposit of refunds, at no cost.
  • Members of military and their families who have income below $72,000 can choose from any of the Free File tax software companies that the IRS has compiled.
  • Free File Fillable Forms is available for those who have income above $72,000.
  • Using Free File can help taxpayers figuring things like their earned income tax credit, child and dependent care credit and Recovery Rebate Credit.
  • Miltax is another free tax resource available for the military community, offered through the Department of Defense.

* 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.gov6

Healthy Living Tip
Easy Herbs to Grow Inside
Spring is in the air! Even if you don’t have a green thumb, these herbs are super easy to grow inside. Herbs add a little greenery to your home and are healthy and delicious. A win-win!

Here are some of the easiest herbs to grow inside:
  • Basil
  • Bay leaves
  • Chives
  • Mint
  • Oregano
  • Parsley
  • Rosemary
  • Thyme
When planning out your indoor herb garden, you may need to separate the herbs into their own containers because they each have different watering schedules and sunlight requirements. Thyme, rosemary, and oregano enjoy much less water than basil, for example. Once you know a little bit about the care of each herb, your garden will thank you.

Tip adapted from Gardeners.com7

Weekly Riddle
How much dirt is in a 2-foot diameter hole that is 4 feet deep? 
 
Last week’s riddle:  When you take away the whole from this,
you still have some leftover. What is it? 
Answer:  Wholesome. 

Photo of the Week
Magstræde Street, Copenhagen, Denmark
David P. Little
President | CWS®
Tyler D. Little
Vice President | BFA™
FOOTNOTES & SOURCES

1. The Wall Street Journal, April 14, 2022
2. The Wall Street Journal, April 14, 2022
3. The Wall Street Journal, April 8, 2022
4. CNBC, April 12, 2022
5. The Wall Street Journal, April 13, 2022
6. IRS.gov, February 25, 2021
7. Gardeners.com, April 9, 2021

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.
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