New Video — February Market Update Available Now

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Weekly Market Commentary



We made it through January!  Did that feel like the longest month for you too?  Between the holidays and gloomy weather, those big economic headlines were a lot to unpack. 

So, we asked City National Rochdale Senior Portfolio Manager, Robert Meckstroth, CFA to compile the most important information into a simple short video.  He reviews what happened in the markets in January and more importantly, what may unfold in 2023.  Click here to watch it. 

Inside you’ll find the answers to some of your biggest economic questions. 
  • Why does the market go down when new jobs are being created?
  • What’s the probability of a mild recession?
  • How are current mortgage rates impacting the housing market?

Run time: 15 minutes, 43 seconds


Our priority is always to help you make informed choices and stay on track.  We’re here to talk through any financial questions or concerns you may have.  So please reach out if you need us.

Until next week,
Your Eagle Wealth Team

P.S.  Have you ever wondered why January seems like the longest month?  There’s a reason.  Check out the science behind why it feels so long. 
 

Matt’s Very Sneaky 60th Birthday Surprise Party


Matt Hobson thought he already celebrated the big 6-0 quietly a few weeks ago.  The Eagle Wealth team held a lunch-hour pizza party and then he stopped at his favorite beer club on the way home to sit in the sunshine. 

Little did he know, his sly wife, Lynn, was plotting a surprise party.  After his actual birthday, they headed to Portland for a relaxing weekend dining out and visiting the Portland Winter Light Festival.  When he was least expecting it, they walked to their dinner reservation, and he found himself surrounded by his siblings and best friends.   The night was full of good food, delicious drinks, and even better conversation.  Cheers to you, Matt!
 


The Week on Wall Street

Stocks drifted lower as a week of mixed earnings reports and resurgent worries over Fed monetary policy dragged on investor sentiment. 

The Dow Jones Industrial Average slipped 0.17%, while the Standard & Poor’s 500 declined 1.11%. The Nasdaq Composite index lost 2.41%. The MSCI EAFE index, which tracks developed overseas stock markets, dipped 0.30%.1,2,3

 

Rally Stalls

Stocks struggled last week, weighed down by rising bond yields, a firming U.S. dollar, geopolitical tensions, and generally unimpressive corporate earnings reports. Perhaps the most consequential overhang was the potential direction of monetary policy.

Initially, traders were relieved by comments made by Fed Chair Jerome Powell earlier in the week that he had not struck a more aggressive tone following the strong employment report released after the Federal Open Market Committee (FOMC) meeting. The relief was short-lived, however, as anxieties over future monetary policy resurfaced, exacerbated by comments by one Fed governor who suggested restrictive monetary policy would be necessary for a few years to tamp down inflation.

 

Powell Repeats Himself

Investors were particularly eager on Tuesday to hear Powell’s first comments following the strong employment report the previous Friday. The concern was that the surprise job number would change Powell’s outlook coming out of the last FOMC meeting.

Powell instead repeated his post-FOMC meeting remarks, which were that a disinflationary trend was underway, and there remained a distance to travel before the measures taken tamed inflation. The Fed would be data-dependent in making future rate decisions. Powell also pointed out that the robust job growth showed why it might take so long to reduce inflation to the Fed’s target level.4 

THE WEEK AHEAD

KEY ECONOMIC DATA


Tuesday:  Consumer Price Index (CPI).
Wednesday:  Retail Sales.
Thursday:  Jobless Claims. Producer Price Index (PPI). Housing Starts.
Friday:  Index of Leading Economic Indicators. 

 

Source: Econoday, February 10, 2023
The Econoday 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.

COMPANIES REPORTING EARNINGS


Tuesday:  The CocaCola Company (KO), Zoetis, Inc. (ZTS), Marriott International, Inc. (MAR).
Wednesday:  Cisco Systems, Inc. (CSCO), Shopify, Inc. (SHOP), Albemarle Corporation (ALB).
Thursday:  Applied Materials, Inc. (AMAT), The Southern Company (SO).
Friday:  Deere & Company (DE).

Source: Zacks, February 10, 2023
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. 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.

Disclosures and Footnotes

Any companies mentioned are for informational purposes only, and this should not be considered a solicitation for the purchase or sale of their securities. Any investment should be consistent with your objectives, time frame, and risk tolerance.

1. The Wall Street Journal, February 10, 2023
2. The Wall Street Journal, February 10, 2023
3. The Wall Street Journal, February 10, 2023
4. The Wall Street Journal, February 7, 2023
5. IRS.gov, October 20, 2022
 

Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. 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.

The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.

The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.

The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.

U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.

Please consult your financial professional for additional information.

This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security. Copyright 2022 FMG Suite.