Weekly Commentary — November 11th, 2019
The Week on Wall Street
Domestic and international stocks rose last week. Risk appetite outweighed concerns about the state of U.S.-China trade discussions.
The Dow Jones Industrial Average, Nasdaq Composite, S&P 500, and MSCI EAFE all ended the week with gains. Blue chips led the way, as the Dow added 1.22%. The Nasdaq improved 1.06%; the S&P, 0.85%. The EAFE index, tracking developed stock markets away from North America, was up 0.76%. The Dow recorded its third straight weekly gain; the S&P, its fifth.[i],[ii],[iii]
Will Tariffs Phase Out or Remain?
Thursday, a spokesman for China’s commerce ministry said that U.S. and Chinese trade representatives had “agreed to remove” existing tariffs in “phases,” while working toward a new trade deal.
On Friday morning, President Trump told the media that he had not agreed to any such condition. President Trump and Chinese President Xi Jinping are still expected to sign off on “phase one” of a new bilateral trade agreement.[iv]
Service Sector Activity Picks Up
A closely watched index of U.S. business activity posted an October gain. The Institute for Supply Management’s Purchasing Managers Index for non-manufacturing firms rose nearly two points last month to 54.7. ISM also noted an October increase for new orders.
As most U.S. companies provide services rather than manufacture products, this news is encouraging and suggests more momentum in that sector.[v]
Monday is Veterans Day; the stock market will be open, but the bond market, plus all federal government offices, will be closed.
THE WEEK AHEAD: KEY ECONOMIC DATA
Wednesday: Federal Reserve Chairman Jerome Powell begins two days of testimony on the country’s economic outlook in Congress, and the Bureau of Labor Statistics presents new inflation data in the October Consumer Price Index.
Friday: October retail sales figures arrive from the Census Bureau.
Source: Econoday, November 8, 2019
THE WEEK AHEAD: COMPANIES REPORTING EARNINGS
Tuesday: Praxair (LIN), Tyson Foods (TSN)
Wednesday: Cisco (CSCO)
Thursday: Applied Materials (AMAT), Nvidia (NVDA), Walmart (WMT)
Source: Zacks, November 8, 2019
“Brave men rejoice in adversity, just as brave soldiers triumph in war.”
– Lucius Annaeus Seneca
You’re Not Alone: The Many IRS Resources Available
The thought of filing taxes might be overwhelming to some, but the IRS has many resources available to help make it easier. These include their Frequently Asked Questions page, some basic tools about PTIN requirements, contact information, disaster relief resources, and more. In addition, they also make it easy to access some of their most popular publications, including:
- Publication 5307, Tax Reform Basics for Individuals and Families
- Circular 230, Regulations Governing Practice Before the Internal Revenue Service
- Publication 4557, Safeguarding Taxpayer Data
- Publication 5293, Data Security Resource Guide for Tax Professionals
If you have questions before, during, or after filing your tax return, the IRS is happy to help. You can also reach out to enrolled agents and find out more information about what EAs are and how you can become one.
* 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[vi]
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