Weekly Commentary — June 10th, 2019
The Week on Wall Street
Stocks rallied during a week in which Wall Street was buffeted by headlines. The S&P 500 rose 4.41%. The Nasdaq Composite and Dow Jones Industrial Average respectively added 3.88% and 4.71%. The MSCI EAFE index of overseas stocks improved 2.02% across five days., Following a mixed Monday, the market jumped Tuesday after dovish remarks from Federal Reserve Chairman Jerome Powell. Breaking out of a 6-week losing streak, the Dow had its best week since November.
Jerome Powell’s Comments
Speaking at the Federal Reserve Bank of Chicago, the Fed chair stated that central bank officials “will act as appropriate to sustain the expansion” of the economy in the face of “recent developments involving trade negotiations and other matters.”
The next 2-day Fed policy meeting ends on June 19, with a press conference to follow.
Employers added just 75,000 net new jobs to their payrolls in May, according to the Department of Labor. Economists polled by Reuters thought that the gain would be 185,000. The main unemployment rate held at 3.6% last month; the U-6 rate, which includes the underemployed and those who have stopped looking for work, fell 0.2% to 7.1%.
To some analysts, the weak May hiring number hinted at private-sector concern over tariffs. To others, it simply signified the possibility that the economy may be at or near full employment.
While breaking news does often merit investor attention, refrain from letting the headlines of the moment prompt you into emotional decisions. Brace yourself for further headlines that may drive market volatility because new developments are arriving quickly in the financial markets.
THE WEEK AHEAD: KEY ECONOMIC DATA
Wednesday: The latest Consumer Price Index, showing the rate of inflation in May and across the past 12 months.
Friday: The Census Bureau’s May retail sales report as well as the University of Michigan’s initial June consumer sentiment index, measuring consumer confidence levels.
Source: Econoday / MarketWatch Calendar, June 7, 2019
THE WEEK AHEAD: COMPANIES REPORTING EARNINGS
Tuesday: H&R Block (HRB)
Wednesday: Lululemon Athletica(LULU)
Thursday: Broadcom (AVGO)
Source: Morningstar.com, June 7, 2019
“You may have to fight a battle more than once to win it.”
– Margaret Thatcher
If you make a mistake on your income taxes, you may receive a penalty from the IRS. In some circumstances, the IRS can provide relief from certain penalties, such as:
- Failing to file a tax return
- Failing to pay on time
- Failing to deposit certain taxes as required
Types of penalty relief offered by the IRS:
If you can show that you tried to meet your obligations, but didn’t succeed in doing so, you may be forgiven. Some circumstances would be a house fire, a natural disaster, or a death in the family.
Administrative Waiver and First-Time Penalty Abatement
Relief may be possible if you:
- Didn’t previously have to file a return or had no penalties for the three years prior to the IRS assessed penalty.
- Filed all currently required returns or filed an extension of time to file.
- Paid or arranged to pay any tax due.
It’s possible you’ve received incorrect written advice from the IRS, which may result in an exception.
* 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.gov
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