Market-Moving News[i]
Uneven Results
The S&P 500 rose around 1% and the NASDAQ added nearly 2%, with the latter index on U.S. stock indexes got off to a shaky start on Monday and Tuesday but reversed course as the week progressed to remain only slightly below their recently established record highs. The NASDAQ and the Dow finished down around 1% for the week while the S&P 500 posted a fractional decline.
Steady labor market
February’s jobs growth figure of 275,000 came in above most economists’ expectations for around 200,000 and extended a recent run of solidly positive labor market momentum. However, initial jobs gain estimates for December and January were revised downward, the unemployment rate rose to 3.9%, and wage growth slowed.
Powell’s Caution
In testimony before Congress, U.S. Federal Reserve Chair Jerome Powell reiterated the central bank's intention to cut interest rates at some point this year, provided inflation data continues to show continued easing. “We want to see a little bit more data,” Powell said during one of the week’s two congressional hearings.
Gold’s glitter
The price of gold futures surged more than 6% for the week to a record high of around $2,200 an ounce on Friday afternoon. The price was up from a recent low of about $1,990 on February 14.
Bitcoin record
A week after eclipsing $60,000, the price of the most widely traded cryptocurrency climbed to a record high and touched $70,000 at one point on Friday. In the afternoon, Bitcoin was trading around $69,000. Year to date, the cryptocurrency was up more than 60%.
Steady European rates
The European Central Bank kept its key interest rate unchanged at a record high as policymakers signaled that they want to see further progress in reducing inflation before cutting rates. The bank kept its deposit rate at 4% for the fourth meeting in a row and said that future rate decisions would be based on incoming data.
Yield pullback
The yield of the 10-year U.S. Treasury bond fell to its lowest level in five weeks. The yield closed around 4.08% on Friday, down from a recent closing high of 4.33% on February 22. However, the yield remained well above its year-end 2023 level of 3.88%.
Price check ahead
A Consumer Price Index report scheduled for release on Tuesday will show whether a recent trend of slightly hotter-than-expected inflation extended into February. Last month’s CPI report showed an annual rate of 3.1% in January; a separate report on wholesale prices showed the fastest monthly price rise in five months.
The Week Ahead: March 4-8
- Monday
- No major reports scheduled
- Tuesday
- Consumer Price Index, U.S. Bureau of Labor Statistics
- Federal budget, U.S. Department of the Treasury
- Wednesday
- No major reports scheduled
- Thursday
- Retail sales, U.S. Census Bureau
- Business inventories, U.S. Census Bureau
- Producer Price Index, U.S. Bureau of Labor Statistics
- Weekly unemployment claims, U.S. Department of Labor
- Friday
- Industrial production and capacity utilization, U.S. Federal Reserve
- Export and import prices, U.S. Bureau of Labor Statistics
- University of Michigan Index of Consumer Sentiment, preliminary result
Philosophy Quote of the Week:
Awareness is Freedom
“The unrestricted person, who has in hand what they will in all events, is free. But anyone who can be restricted, coerced, or pushed into something against what they will is a slave.”
Epictetus, Discourses, 4.1.128b-129a
Tax Tips
Itemizing vs. Standard Deduction: 3 Tips to Help you Choose[ii]
The IRS Offers These Tips to Help You Choose:
- Figure your itemized deductions. Add up deductible expenses you paid during the year. These may include expenses like:
- Home mortgage interest, up to $750,000 in mortgage debt. You cannot deduct interest on a mortgage that was used to pay off credit cards, student loans, or a car loan.
- State and local income taxes or sales taxes (but not both), real estate and personal property taxes, up to $10,000.
- Gifts to charities (cash and non-cash), up to 50% of your adjusted gross income (AGI).
- Casualty or theft losses if in a Federal Declared Disaster.
- Unreimbursed medical, dental, optical expenses and health insurance.
- Unreimbursed miscellaneous Employee Expenses.
- Know your standard deduction. If you don’t itemize, your basic standard deduction depends on your filing status (each year the numbers change, be sure to know this year’s numbers by asking your tax professional). Your standard deduction is higher if you’re 65 or older and/or blind. If someone can claim you as a dependent, that can limit the amount of your standard deduction.
- Single
- Married Filing Jointly
- Head of Household
- Married Filing Separately
- Qualified Widow(er) (widows and widowers with minor children)
- Check the exceptions. Some people don’t qualify for the standard deduction and therefore should itemize. This includes married couples who file separate returns when one spouse itemizes.
Health Tip of the Week[iii]
Diabetes prevention: 5 tips for taking control
Changing your lifestyle could be a big step toward diabetes prevention — and it's never too late to start. Consider these tips.
Lifestyle changes can help prevent the onset of type 2 diabetes, the most common form of the disease. Prevention is especially important if you're currently at an increased risk of type 2 diabetes because of excess weight or obesity, high cholesterol, or a family history of diabetes.
If you have been diagnosed with prediabetes — high blood sugar that doesn't reach the threshold of a diabetes diagnosis — lifestyle changes can prevent or delay the onset of disease.
Making a few changes in your lifestyle now may help you avoid the serious health complications of diabetes in the future, such as nerve, kidney and heart damage. It's never too late to start.
1. Lose extra weight
Losing weight reduces the risk of diabetes. People in one large study reduced their risk of developing diabetes by almost 60% after losing approximately 7% of their body weight with changes in exercise and diet.
The American Diabetes Association recommends that people with prediabetes lose at least 7% to 10% of their body weight to prevent disease progression. More weight loss will translate into even greater benefits.
Set a weight-loss goal based on your current body weight. Talk to your doctor about reasonable short-term goals and expectations, such as a losing 1 to 2 pounds a week.
2. Be more physically active
There are many benefits to regular physical activity. Exercise can help you:
- Lose weight
- Lower your blood sugar
- Boost your sensitivity to insulin — which helps keep your blood sugar within a normal range
Goals for most adults to promote weight loss and maintain a healthy weight include:
- Aerobic exercise.Aim for 30 minutes or more of moderate to vigorous aerobic exercise — such as brisk walking, swimming, biking or running — on most days for a total of at least 150 minutes a week.
- Resistance exercise.Resistance exercise — at least 2 to 3 times a week — increases your strength, balance and ability to maintain an active life. Resistance training includes weightlifting, yoga and calisthenics.
- Limited inactivity.Breaking up long bouts of inactivity, such as sitting at the computer, can help control blood sugar levels. Take a few minutes to stand, walk around or do some light activity every 30 minutes.
3. Eat healthy plant foods
Plants provide vitamins, minerals and carbohydrates in your diet. Carbohydrates include sugars and starches — the energy sources for your body — and fiber. Dietary fiber, also known as roughage or bulk, is the part of plant foods your body can't digest or absorb.
Fiber-rich foods promote weight loss and lower the risk of diabetes. Eat a variety of healthy, fiber-rich foods, which include:
- Fruits, such as tomatoes, peppers and fruit from trees
- Nonstarchy vegetables, such as leafy greens, broccoli and cauliflower
- Legumes, such as beans, chickpeas and lentils
- Whole grains, such as whole-wheat pasta and bread, whole-grain rice, whole oats, and quinoa
The benefits of fiber include:
- Slowing the absorption of sugars and lowering blood sugar levels
- Interfering with the absorption of dietary fat and cholesterol
- Managing other risk factors that affect heart health, such as blood pressure and inflammation
- Helping you eat less because fiber-rich foods are more filling and energy rich
Avoid foods that are "bad carbohydrates" — high in sugar with little fiber or nutrients: white bread and pastries, pasta from white flour, fruit juices, and processed foods with sugar or high-fructose corn syrup.
4. Eat healthy fats
Fatty foods are high in calories and should be eaten in moderation. To help lose and manage weight, your diet should include a variety of foods with unsaturated fats, sometimes called "good fats."
Unsaturated fats — both monounsaturated and polyunsaturated fats — promote healthy blood cholesterol levels and good heart and vascular health. Sources of good fats include:
- Olive, sunflower, safflower, cottonseed and canola oils
- Nuts and seeds, such as almonds, peanuts, flaxseed and pumpkin seeds
- Fatty fish, such as salmon, mackerel, sardines, tuna and cod
Saturated fats, the "bad fats," are found in dairy products and meats. These should be a small part of your diet. You can limit saturated fats by eating low-fat dairy products and lean chicken and pork.
5. Skip fad diets and make healthier choices
Many fad diets — such as the glycemic index, paleo or keto diets — may help you lose weight. There is little research, however, about the long-term benefits of these diets or their benefit in preventing diabetes.
Your dietary goal should be to lose weight and then maintain a healthier weight moving forward. Healthy dietary decisions, therefore, need to include a strategy that you can maintain as a lifelong habit. Making healthy decisions that reflect some of your own preferences for food and traditions may be beneficial for you over time.
One simple strategy to help you make good food choices and eat appropriate portions sizes is to divide up your plate. These three divisions on your plate promote healthy eating:
- One-half: fruit and nonstarchy vegetables
- One-quarter: whole grains
- One-quarter: protein-rich foods, such as legumes, fish or lean meats
When to see your doctor
The American Diabetes Association recommends routine screening with diagnostic tests for type 2 diabetes for all adults age 45 or older and for the following groups:
- People younger than 45 who are overweight or obese and have one or more risk factors associated with diabetes
- Women who have had gestational diabetes
- People who have been diagnosed with prediabetes
- Children who are overweight or obese and who have a family history of type 2 diabetes or other risk factors
Share your concerns about diabetes prevention with your doctor. He or she will appreciate your efforts to prevent diabetes and may offer additional suggestions based on your medical history or other factors.
[i]https://www.jhinvestments.com/weekly-market-recap#investment-returns, accessed 03.11.2024.
[ii] Hockensmith, Robert F. 52 Ways to Outsmart the IRS, 2nd Edition. Kindel Edition, location 50-51 of 226. Accessed 03.11.2024.
[iii]https://www.mayoclinic.org/diseases-conditions/type-2-diabetes/in-depth/diabetes-prevention/art-20047639 Accessed 03.11.2024.