Weekly Market Update
May 30, 2017
Presented By:  Todd Day, Portfolio Manager


   The Teflon Market
Stocks continue to add to the year's gains.  Thursday was the S&P's 19th record close of the year -- more than last year's total of 18,  and it's just May.  Friday made it 20.  This is normally something you would not see in a downturn.  The NASDAQ has only been down 3 days this whole month.  What's  impressive is, with all of the political and geopolitical issues looming, you would expect "some" pressure.  It's too quiet out there Sarge....

I point out that earnings here and abroad have improved greatly over the last several quarters.  Economically speaking, we are seeing GDP growth around the globe - except China.  Europe is improving at the best pace.  Growth here at home has not been stellar, but we are nowhere near recessionary times.  So, this may be acting as a put under the markets (a floor). 

It's still is no time for heroics, so remain vigilant.


Well - it was another retail blunder - Tiffany's and Lowes both disappointed.  Home Depot is eating Lowes' lunch during a tremendous housing recovery.  But Costco beat estimates and Best Buy sidestepped the retail apocalypse and surged on an unexpected earnings beat.  And ULTA, a chain store with a diverse selection of cosmetics & other beauty products, plus "on-site" salon services beat.  Guess you can't get your "hair done" online. 


Yet, another piece of the second-quarter puzzle is not looking favorable. Durable goods orders, down 0.7% in April, do not confirm last month's big jump in industrial production or all the strength in the regional factory reports.

Not all of the regional reports are stellar - the Richmond FED survey came in at 1.  ( Just 1...)  Ex pectations were 15, so it lost some momentum last month.   

New order volume growth disappeared, capacity utilization shrank dramatically, order backlogs disappeared, shipments plunged, and the average workweek tumbled.  It was the 7th month of expansion, however. 

The housing data last week was also somewhat of a disappointment - we saw a big miss in newly built homes and existing home sales.  All indications point to the lack of supply which is putting pressure on the housing market.  A lack of labor supply for home builders is also putting a pinch on the number of houses being built. 

Finally, we got the first revision to first quarter's GDP, which was revised up a bit more than expected from .7% to 1.2%.  That's great and all, but we are almost in June so, this is like reading about George Washington and Abraham Lincoln - HISTORY. 


Across the pond, European stocks took a pause, but they are still outperforming the U.S.  The retreat in oil prices and concerns over geopolitics had those markets under pressure. 

Ratings agency, Moody's took China's debt down a notch - they downgraded China and warned of fading financial strength.  We'll see how this affects several Asian currencies. 


The earnings calendar is light this week - nothing that could be earth shattering. 

Personal income/spending and the jobs report highlight the economic calendar, and we'll see if the jobs growth will remain strong as we saw last month. 

Politics and geopolitics still loom heavy over the market, but we'll see if investors continue to shrug them off. 

Join me next week and I'll recap May and what we will be watching in June. 
Life is 10% what happens to you and 90% 
how you react to it.
Charles R. Swindoll
Horseradish Salmon

A healthy, no-fuss fish dish!

*   1 English cucumber

*   2 tablespoons distilled white vinegar

*   2 tablespoons fresh dill, chopped

*   2 tablespoons olive oil

*   ½ cup panko (light, crispy bread crumbs)

*    2 tablespoons prepared horseradish

*    4 salmon fillets, boneless and skinless

*    6 ounces baby spinach

*    Salt and pepper



1. Preheat oven to 475°F.

2. Cover large baking sheet with foil and set aside.

3. Grab a large bowl and combine cucumber, vinegar, 1 tablespoon dill, 1 tablespoon olive oil, and 1/8 teaspoon each of salt and pepper.

4. Find a small bowl and combine horseradish, panko, and remaining 

olive oil and dill.

5. Top salmon with 1/8 teaspoon each of salt and pepper.

6. Place salmon on the baking sheet with the smooth side facing up.

7. Press panko mixture onto each fillet, spreading evenly.

8. Bake salmon for 8 minutes or until the fish is opaque throughout and 

brown on top.

9. Combine spinach and cucumber mixture in a bowl and toss together to serve with the salmon.


Recipe adapted from Good Housekeeping 
Amending Errors on Filed Returns
Filing your taxes can be a complicated, cumbersome process. As a result, errors sometimes slip through and make it into the tax returns you file. If you noticed errors after you've filed with the IRS, you are able to make amendments.

Here are some key tips to help you take the right steps.
Can you file amended returns electronically?
No. You must file an amended return by mailing the IRS a paper copy of form 1040X.
What changes does the IRS allow you to make?
Taxpayers can amend their return for specific reasons:


You can make changes to your return when you need edits such as updating your income amounts, correcting your filing status, and claiming deductions.


Not Allowed:

Math errors: You typically do not need to file an amended return to change any math errors. The IRS calculates all math and automatically corrects any incorrect calculations that your return includes.

Missing forms: You also don't need to file a new return if you forgot to include a form, such as your W-2. The IRS will send you a letter to request any missing documents you forgot to send.
You typically have three years to file an amended return from the date that you originally filed. Other details apply, so be sure to check out further guidance 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 IRS.gov

Fix Your Play By Flattening Your Backhand Swing
Cupping your wrist in your backswing can ruin your game, even when your swing is otherwise tight. When players cup, they bend their left wrist (right for lefties) until the back of the hand and the forearm form an angle. This position will affect other aspects of your stance, resulting in you folding your lead arm and separating your arms away from your chest and body. The result? A shot that can do everything from slicing or fading to traveling high and angling right - causing you to lose distance.
To flatten your wrist, try the "Book Drill," which you can practice anywhere that you have a hardcover book or clipboard (or other similar item) on hand.

1.   Place the book in your hands: Use your normal golf grip so the book is between your hands and forearms.


2.  Take slow backswings: As you do, pay attention to which forearm your book touches. When the book touches your right forearm (left for lefties), observe your left wrist (right for lefties) for a break or angle rather than being flat and bowed.


3.   Repeat backswing: In this next round, you'll want make sure the book touches your left forearm rather than your right (swapped for lefties). When this happens, your wrist should be flat.

Keep repeating this process until your backswing naturally lands the book at your left forearm.

Tip courtesy of Golf Tips Magazine

Tips to Keep Your Blood Pressure Down

Having high blood pressure is serious. While the proper medication can help you manage your blood pressure, you can also address aspects of your lifestyle to help keep your levels in check.

Below are a few changes that can positively affect and help lower your blood pressure.
Tip 1: Lose weight
Losing weight is one of the top life changes that may decrease your blood pressure - and even dropping 10 pounds can make a difference. People who are overweight can also develop sleep apnea, which may increase your blood pressure, as well. Gaining weight around your waistline can also increase blood pressure, so closely watching (and minimizing) how you gain fat is important.
Tip 2: Eat less sodium
Generally, people should aim to eat no more than 2300 milligrams of sodium a day. And if you're over 50 years old, you should limit yourself to 1500 mg each day. By doing things like eating less processed food and better scrutinizing food labels, even small salt reductions can decrease your blood pressure by 2 to 8 mm Hg.
Tip 3: Stop smoking
Every time you smoke, you work against your health. In fact, each cigarette increases your blood pressure - and it remains high for minutes after smoking. By choosing to quit cigarettes, you will help lower your blood pressure.

Tip courtesy of Mayo Clinic

Grow These Plants to Attract Bees
All over, bee populations are plummeting - which is worrisome, considering they are responsible for pollinating 1/3 of the food we eat. Due to developments such as changes in agriculture practices, many bees no longer have access to the same habitat and food they need to survive. You can help our bee populations by choosing to fill your garden with bee-attracting plants. Here are a handful of flowers that bees love and will make your garden pop.

Bee Balm: Native to North America, Bee Balm grows throughout the country and bees love the flowers. Various species exist, and you can choose from a variety of blooming colors.


Lavender: Lavender isn't just an herb that's good for things like teas and cooking, it's also a great bee attractor. The lavender's flowers are quite aromatic, which bloom from spring through summer.


Sunflower: Bees love the big flowery heads of sunflowers, which they forage for pollen and nectar. Sunflowers can live all over the country, and you can choose from annual and perennial varieties.


Cranesbill: These flowers are a type of geranium that bloom from spring through early winter. The long flowering cycle provides a lengthy timeframe for feeding your bees, while providing long-lasting burst of colors in your garden.

Tip courtesy of Natural Living Ideas 
Share the Wealth of Knowledge!

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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. 

John Brais, Owner & Founder
Investment Advisor Representative
Certified Retirement Financial Advisor
Horizon Financial Services, LLC
3880 Vest Mill Road, Suite 100
Winston Salem, NC 27103
(336) 659-7060


Investment advisory services are offered through Horizon Financial Services, LLC, a North Carolina State Registered Investment Advisor.  Insurance products are offered through 

New Horizon Financial Services, Inc.  Horizon Financial Services, LLC and New Horizon Financial Services Inc. are affiliated companies.