Stocks spent last week digesting the sharp gains of previous weeks as investors assessed a tightening yield curve, the war in Ukraine, and an uncertain outlook for economic growth and inflation.
For March, the S&P 500 increased by 3.58%, the Nasdaq 100 added 4.22%, and the Dow Jones Industrial Average added 2.32%.
U.S. Stocks Bid Up, Yield Curve Inverts
After negative results in January and February, the S&P 500 found buyers as the end-of-quarter neared. The S&P 500, Dow Jones Industrial Average, and Nasdaq have all been clawing back at the declines from January and February. We’ll see how the positive finish to the quarter trickles over into Q2.
While U.S. stock indexes were rising in March, bonds were falling. Yields have been on the rise, and there’s been some chatter about the currently inverted yield curve. The yield curve is inverted when US 2-year notes have a higher yield than 10-year notes.
Commodities High, Inventories Low
Walk out the door and get ready to spend–that’s how it’s felt lately, with the prices of all sorts of goods and services soaring.
From industrial supplies to food, consumer discretionary items to services, it has been a wild month (and year) for almost all types of pricing. This was evident in the February Consumer Price Index (CPI) data, which showed inflation rising 7.9%.
Jobs Data Strong, Misses Estimates
Fresh jobs data from April 1st showed 431,000 jobs added in March, slightly below the 490,000 estimate. The unemployment rate declined to 3.6% as corporate America continued its hiring spree–with notable strength in the leisure and hospitality sectors.
Key Economic Data
Source: Econoday, April 1, 2022
Companies Reporting Earnings
Wednesday: Levi Strauss & Co. (LEVI).
Thursday: Conagra Brands (CAG).
Source: Zacks, April 1 2022
"Behind every stock is a company, find out what it's doing."
– Peter Lynch
Self-Employed Tax Obligations
There are a few tax considerations to consider when you work for yourself. Generally, you’re required to file and pay estimated taxes every quarter.
Determine if you are subject to tax: Subtract your business expenses from your income. If your expenses are less than your income, the difference is part of your income. If your expenses are more than your income, the difference is a net loss.
Make quarterly payments if you’ve determined you need to make quarterly payments using Form 11040-ES.
Filing annually: If you’re filing annually, you’ll need to use Schedule C to report income or loss. To file your Social Security and Medicare taxes, you should file Schedule SE Form 1040.
Deductions: If you’re using part of your home for business, you may be able to make certain deductions, such as for your office or a portion of your home’s square footage used for business purposes.
* 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.gov7
Restorative Yoga - Long and Easy Stretching
Whether you have been curious about yoga but have never tried it, or if you're a seasoned yogi looking for something new, restorative yoga has something for everyone. This gentle yoga uses props like blocks, blankets, and straps. Stretches and poses are held for a longer time, yielding many benefits.
Here are a few ways that restorative yoga can be beneficial for many people:
Check your local yoga studios or gyms to enroll in a restorative yoga class. If you can’t find one, there are online yoga courses you can try. It might be a stretch worth taking (ask your doctor if yoga might be right for you).
Tip adapted from www.mindbodygreen.com8
What do a shark, a zipper, and a comb all have in common?
Last week’s riddle: New furniture will be delivered to your office on the day before five days from the day after tomorrow. If today is August 18, when will the furniture arrive? Answer: August 24.
Lava falls near Kilauea Volcano, Big Island, Hawaii
Footnotes and Sources
2. The Wall Street Journal, April 1, 2022
3. The Wall Street Journal, April 1, 2022
4. CNBC, March 29, 2022
5. CNBC, March 30, 2022
6. The Wall Street Journal, April 1, 2022
7. IRS.gov, September 15, 2021
8. Mindbodygreen.com, June 27, 2012
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Stocks catch a bid, warning signs flash
April 05, 2022