The Fiduciary Advisor Report – Monday, February 3, 2020

THE WEEK ON WALL STREET

Stock benchmarks declined for a second straight week as coronavirus news tempered risk appetite.

The S&P 500 fell 2.14% on the week. The Nasdaq Composite dipped 1.76%, and the Dow Jones Industrial Average, 2.55%. Away from North America, developed markets slumped 2.24%, according to MSCI’s EAFE index.^1,2

THE Fed Makes a Minor Move

The Federal Reserve left short-term interest rates alone at its January meeting, but it did make what Fed chairman Jerome Powell called a “small technical adjustment” in view of its continuing purchases of Treasuries. Wednesday, it slightly increased the interest rate paid to banks that park excess capital reserves at the Fed.

The move may give the Fed a bit more control over short-term rates this quarter and assist the operations of U.S. financial markets.³

Encouraging New Consumer Data

Rising to 131.6 in January, the Conference Board’s Consumer Confidence Index reached its highest level since August. Consumer spending increased 0.3% in December, according to a new Department of Commerce report.^4,5

Economy Expanded at a 2.1% Pace in Fourth Quarter

The Bureau of Economic Analysis released this estimate Thursday. That number matches the gross domestic product of the third quarter and affirms that the U.S. avoided a fall slowdown.⁶

T I P   O F   T H E   W E E K

Auto insurance providers offer a wide range of discounts, perhaps wider than many consumers realize. They may lower rates for good drivers, honor students, seniors, long-time customers, or households or companies insuring multiple cars or trucks. Asking about a carrier’s variety of discounts could lead to savings.

THE WEEK AHEAD: KEY ECONOMIC DATA

Monday: The latest snapshot of factory sector health from the Institute for Supply Management, presenting January data.

Wednesday: ISM’s January report on the state of non-manufacturing businesses and the latest private-sector payrolls report from Automatic Data Processing (ADP).

Friday: The Department of Labor releases its January employment report.

Source: MarketWatch, January 31, 2020

The MarketWatch 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.

THE WEEK AHEAD: COMPANIES REPORTING EARNINGS

Monday: Alphabet (GOOG), Sysco (SYY)

Tuesday: BP (BP), Fiserv (FISV), Gilead Sciences (GIL), Walt Disney (DIS)

Wednesday: GlaxoSmithKline (GSK), Merck (MRK), Qualcomm (QCOM), Toyota (TM)

Thursday: Bristol-Myers Squibb (BMY), Cigna (CI), Philip Morris (PM), Sanofi (SNY)

Friday: AbbVie (ABBV), Honda (HMC), Novo Nordisk (NVO)

Source: Zacks.com, January 31, 2020

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.

Q U O T E   O F   T H E   W E E K

“Management is nothing more than motivating other people.”

LEE IACOCCA

T H E   W E E K L Y   R I D D L E

There is a word for a place in Europe, a place where many travelers like to go. But if you take the first letter of this word and put it at the end of the other four letters in the word, you have something no one likes. What is this word?

LAST WEEK’S RIDDLE: I’m a word some use to measure bits of time, but you won’t find me on a clock or anything that chimes. I will never fit upon a clock face, but I am used to identify a place. What word am I?

ANSWER: Mississippi (e.g. one Mississippi, two Mississippi, three Mississippi…).

CITATIONS:

1 – wsj.com/market-data [1/31/20]

2 – quotes.wsj.com/index/XX/MSCI%20GLOBAL/990300/historical-prices [1/31/20]

3 – marketwatch.com/story/fed-holds-benchmark-interest-rate-steady-sees-economy-growing-at-moderate-pace-2020-01-29 [1/29/20]

4 – investing.com/economic-calendar/cb-consumer-confidence-48 [1/28/20]

5 – investing.com/economic-calendar/personal-spending-235 [1/31/20]

6 – marketwatch.com/story/economy-grows-21-in-the-4th-quarter-as-gdp-gets-big-boost-from-falling-trade-deficit-2020-01-30 [1/30/20]

CHART CITATIONS:

wsj.com/market-data [1/31/20]

quotes.wsj.com/index/XX/MSCI%20GLOBAL/990300/historical-prices [1/31/20]

quotes.wsj.com/index/SPX/historical-prices [1/31/20]

treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldAll [1/31/20]

This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This material was prepared by MarketingLibrary.Net Inc., for Mark Lund, Mark is known as a Wealth Advisor, The 401k Advisor, Investor Coach, Financial Advisor, Financial Planner, Investment Advisor and author of The Effective Investor. Mark offers investment advisory services through Stonecreek Wealth Advisors, Inc. a fiduciary, independent, fee-only, Registered Investment Advisor firm providing investment and retirement planning for individuals and 401k consulting for small businesses. Mark’s newsletter is called The Fiduciary Report. Cities served in Utah are: Salt Lake County, Park City, Salt Lake City, Murray, West Jordan, Sandy, Draper, South Jordan, Provo, Orem, Lehi, Highland, Alpine Utah, American Fork, and Utah County.

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