In a volatile trading week, stocks extended their losses as economic growth and inflation concerns soured investor sentiment. The Dow Jones Industrial Average dropped 2.14%, while the Standard & Poor’s 500 lost 2.41%. The Nasdaq Composite index fell 2.80% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, slumped 3.21%.1,2,3 |
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A Turbulent WeekInflation moved to center stage last week with the release of April’s Consumer Price Index (CPI) and the Producer Price Index. Both numbers came near their 40-year highs but were lower than March’s year-over-year numbers. The results heightened investor anxiety about future Fed monetary tightening and its impact on economic growth. In recent weeks, technology stocks have borne the brunt of the downdraft as investors lightened up on risk exposures, with some of the mega-cap tech names getting swept up in the selling pressure. Cooling import price increases buoyed spirits on Friday, helping spark a rally that reduced the week’s losses. Inflation Stays HotInvestors were greeted with a mixed CPI report, looking for signs that inflation may be cooling. Year-over-year costs rose 8.3%, slower than the previous month but faster than consensus estimates. Excluding food and energy, core inflation climbed 6.2%. Buried beneath the headline number was a 5.1% yearly increase in shelter costs, the most significant increase since 1991. Shelter costs account for one-third of the CPI.4 Inflation has been a weight on markets all year. Investors are concerned that the persistence of higher prices may tip the economy into recession as increased spending on essential needs crimps consumers’ spending power. This Week: Key Economic DataTuesday: Retail Sales. Industrial Production. Wednesday: Housing Starts. Thursday: Existing Home Sales. Jobless Claims. Index of Leading Economic Indicators. Source: Econoday, May 13, 2022 This Week: Companies Reporting EarningsTuesday: Walmart, Inc. (WMT), The Home Depot, Inc. (HD). Wednesday: Cisco Systems, Inc. (CSCO), Target Corporation (TGT), Lowe’s Companies, Inc. (LOW), The TJX Companies, Inc. (TJX), Analog Devices, Inc. (ADI). Check out GPM's latest Core Portfolio Insight on our holding Analog Devices. Thursday: Applied Materials, Inc. (AMAT), Palo Alto Networks, Inc. (PANW), Ross Stores, Inc. (ROST). Friday: Deere & Company (DE). Source: Zacks, May 13, 2022 |
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"Though we see the same world, we see it through different eyes." – Virginia Woolf |
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Receive Your Tax Return Quicker With Direct DepositWant to receive your tax return quicker? The IRS shares that the best way to get your refund is to file your return online and provide your direct deposit info. In addition to receiving your refund quicker, there are a few other benefits of using direct deposit. One benefit is splitting your refund into several financial accounts through direct deposit, including checking, savings, health and education, and certain retirement accounts. Using direct deposit is also fast, secure, and accessible. To sign up for a direct deposit, you need to provide your bank account number and routing number. Taxpayers should have this information available when ready to file because the IRS can't accept this information after filing a return. * 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.gov5 |
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How to Start a Meditation PracticeIf you’re interested in starting a meditation practice, the good news is that you don’t need much to get started. Here are some tips:
Tip adapted from Mindful6 |
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Name two words in the English language that have the letter "I" twice in the middle of the word. Last week’s riddle: A librarian finds that pages have been ripped out of a novel. Pages 28, 29, 148, 211 and 212 are torn out. Given this, how many separate sheets of paper have been torn from the book? Answer: 4 sheets of paper. Pages 211 and 212 will be on opposite sides of the same sheet of paper. |
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Japanese white-eye amongst pink Plumerias. |
Footnotes and Sources
2. The Wall Street Journal, May 13, 2022 3. The Wall Street Journal, May 13, 2022 4. CNBC, May 11, 2022 5. IRS.gov, February 16, 2021 6. mindful.org, February 22, 2022 |
Copyright 2022 FMG Suite. |

Weekly Market Insights: Inflation Takes Center Stage
May 16, 2022