Gains Conclude a Great Quarter!

Weekly Commentary — 4/1/19

The Week on Wall Street

Stocks ended last week higher as volatility slowed, completing their best quarter since 2009. A Friday tweet from Treasury Secretary Steven Mnuchin encouraged investors, referring to “constructive” discussions in the ongoing U.S.-China trade negotiations.[1] The S&P 500 gained 1.27% for the week. The Dow Industrials and Nasdaq Composite both exceeded that advance: the Dow rose 1.60%; the Nasdaq, 1.42%.[2],[3],[4]

Foreign shares went the other way. The MSCI EAFE index following international stocks retreated 0.91%.[5]

2019 Could Be a Big Year for IPOs

One of the ride-share pioneers, Lyft, closed on its initial public offering (IPO) on Friday, and a glance at the IPO calendar shows that as many as 226 companies could soon go public, with Uber and Airbnb possibly among them.[6]

This IPO wave may be a signal of a market top, or it may point to a comeback for risk appetite, which could be healthy for the overall market.

Should some big-name IPOs stumble, it may deter others from moving ahead, which may influence the market psychology. Conversely, an enthusiastic reception may help support further market advances.

Good News for the Housing Market

The Fed’s dovish tone has also influenced home loan rates. Freddie Mac’s latest Primary Mortgage Market Survey shows an average interest rate of just 4.06% on a 30-year, fixed rate mortgage, compared with 4.28% a week earlier and 4.95% in December.[7]

This news is especially significant given the recent pickup in existing home sales. They jumped 11.8% in February, the biggest monthly gain in more than three years.[8]

THE WEEK AHEAD: KEY ECONOMIC DATA

Monday: February retail sales.

Wednesday: ADP’s snapshot of March private-sector hiring.

Friday: The Department of Labor’s March jobs report.

Source: Econoday / MarketWatch Calendar, March 29, 2019

THE WEEK AHEAD: COMPANIES REPORTING EARNINGS

Tuesday: GameStop (GME), Walgreens Boots Alliance (WBA)

Thursday: Constellation Brands (STZ)

Source: Morningstar.com, March 29, 2019

Indexes as of 3:29:19

“Stay hungry. Stay foolish.”  

Steve Jobs

Free Tax Services for Military; Military OneSource MilTax 

Military OneSource MilTax is a free service for the military and their families. The service offers an entire suite of tax and financial services, which are exclusively designed for military life. Highlights of MilTax include:

  • Tax preparation e-filing that’s secure and free. It’s available from January through October and takes into consideration military tax deductions and credits
  • Access to tax consultants who understand the financial needs of the military and can answer any tax-related questions you have
  • Free, in-person tax prep is available through the Volunteer Income Tax Assistance offices

MilTax is a benefit earned through military service and considers special tax issues, such as combat pay and multiple moves. The tax help is available to service members, including those in the National Guard and reserves, immediate family members, and eligible survivors. To find out more, visit https://www.militaryonesource.mil/, or call (800) 342-9647.

* 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 Military OneSource[9]

 

Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues.

If you have any questions or would like to learn more about developing strategies to pursue a prosperous and safe future, contact me today at Derek.Merkler@Parsonex.com! You can also visit my website to learn about how I help our service members and veterans plan for and achieve financial independence.

My blog discusses a myriad of financial topics and challenges, book reviews, and commentary on current events in the financial world to benefit our military and veteran community.  I attempt to be as thorough as possible when examining each subject but can never account for every possible scenario.  Please remember to consult with your advisers for advice on your particular situation.  Thank you for reading!

Advisory Services offered through Parsonex Advisory Services, Inc. 8310 S. Valley Highway, Ste. 110, Englewood, CO 80112 (303) 662-8700.


[1]https://www.marketwatch.com/story/stocks-end-higher-sp-records-strongest-quarter-in-a-decade-2019-03-29

[2]https://quotes.wsj.com/index/SPX

[3]https://quotes.wsj.com/index/DJIA

[4]https://quotes.wsj.com/index/COMP

[5]https://quotes.wsj.com/index/XX/990300/historical-prices

[6]https://www.cnbc.com/2019/02/04/a-giant-ipo-wave-is-coming-as-unicorns-whet-investor-appetite.html

[7]http://www.startribune.com/us-mortgage-rates-post-biggest-drop-in-decade-to-4-06-pct/507781302/

[8]https://www.nar.realtor/newsroom/existing-home-sales-surge-11-8-percent-in-february

[9]https://www.militaryonesource.mil/financial-legal/tax-services/miltax-free-tax-services/miltax-free-tax-services-from-military-onesource

Leave a Reply