A New Dow Milestone

Weekly Commentary — November 18th, 2019

The Week on Wall Street

Stock benchmarks were little changed for much of last week, but a rally occurred Friday after news broke that the U.S. and China could be closing in on the first phase of a new trade pact.

At Friday’s close, the Dow Jones Industrial Average crossed the 28,000 level. The Dow rose 1.17% for the week, outgaining the S&P 500 (which advanced 0.89%) and the Nasdaq Composite (which added 0.77%). The MSCI EAFE index, representing developed overseas stock markets, fell 0.77%.[1],[2]

Will There Be a Trade Breakthrough? 

Friday, Secretary of Commerce Wilbur Ross told the media that “in all likelihood,” a phase-one trade deal between China and the U.S. would presently happen, stating that the talks were “down to the last details.” Thursday evening, White House economic adviser Larry Kudlow expressed similar optimism, noting that negotiations were “coming down to the short strokes.”

That said, the Wall Street Journal reported last week that President Trump is not yet committed to signing a phase-one trade deal. Secretary Ross noted that such an agreement would be “relatively limited in scope.”[3],[4]

Consumers Boost Their Buying

Retail sales advanced 0.3% in October, according to the Department of Commerce. That surpassed the 0.2% gain forecast by economists polled by MarketWatch. Even so, households bought fewer big-ticket items than they did in September.[5]

 

THE WEEK AHEAD: KEY ECONOMIC DATA

Wednesday: Minutes from the October Federal Reserve meeting appear.

Thursday: The National Association of Realtors presents data on October existing home sales.

Friday: The University of Michigan publishes its final Consumer Sentiment Index for November (an assessment of consumer confidence).

Source: Econoday, November 15, 2019

 

THE WEEK AHEAD: COMPANIES REPORTING EARNINGS

Tuesday: Home Depot (HD), Medtronic (MDT), TJX Companies (TJX)

Wednesday: Lowe’s (LOW), Target (TGT)

Thursday: Intuit (INTU), Ross Stores (ROST)

Source: Zacks, November 15, 2019

Indices as of 11:15:19.png

 

 

 

“Life isn’t about finding yourself. Life is about creating yourself.”  

– George Bernard Shaw

It’s Never Too Early to Start Thinking About 2020 Taxes

Even though it’s only November, it’s never too early to start thinking about your

2020 taxes in April. There are a few things you can do to prepare early, including:

  • Doing a paycheck checkup. We’ve recently talked about the importance of making sure your withholding status is correct, and if you haven’t already done so, now’s the time.
  • Gathering your documents. You’ll need your W-2 and Form 1099 from any other payer (and if you’re self-employed).
  • Confirming that your employer and bank have accurate addresses. You should start to receive tax documentation in January.
  • Setting up an e-Filing profile and signing up for direct deposit for a faster refund.

 

Remember, even though the filing deadline is April 15, you can always file your taxes before then as soon as you have all your documentation. The sooner you file, the sooner you will receive your tax refund. How early do you plan for the next year’s filing?

* 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[6]

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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.wsj.com/market-data

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

[3]https://www.bloomberg.com/news/articles/2019-11-15/kudlow-says-phase-one-china-deal-down-to-the-short-strokes-k2zgbx0k

[4]https://www.foxbusiness.com/politics/u-s-china-trade-deal-near-but-trump-not-signing-yet

[5]https://www.marketwatch.com/story/us-retail-sales-rebound-in-october-but-a-small-group-of-stores-reap-most-of-the-gains-2019-11-15

[6]https://www.irs.gov/newsroom/not-too-early-here-are-steps-taxpayers-can-take-now-to-get-ready-to-file-their-taxes-in-2019

 

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