Stocks Rise Modestly Over Short Trading Week

Edwin A. McKnight, LUTCF, ChFC®

June 25, 2024

Watch this video to uncover Edwin McKnight's passion for providing financial clarity and peace of mind. As President of McKnight Advisory Group, Inc., he shares how his firm helps people of all ages make informed decisions about Social Security, investments, and charitable giving. Discover how Edwin's personalized approach ensures financial security and reduces anxiety, making his firm a trusted partner for comprehensive financial advisory services.

Stocks edged higher over the four trading days last week, with the three major averages taking turns leading based on various economic and artificial intelligence (AI) news.

The Dow Jones Industrial Average rose 1.45 percent–its best week since May–while the Standard & Poor’s 500 Index gained 0.61 percent. The Nasdaq Composite, which has led all year, ended flat. The MSCI EAFE Index, tracking developed overseas stock markets, rose 0.94 percent for the week through Thursday’s close.¹

Mixed Economic News

All three averages began the week with gains, including new highs for the S&P 500. However, stocks posted only modest gains on Tuesday as mixed economic data came in. Retail sales rose 0.1 percent—less than expected, although better than in April when sales fell.^2,3,4

Markets were closed for the Juneteenth holiday on Wednesday.

As the week ended, it was the Dow’s turn to lead as sentiment shifted on mega-cap tech names as investors again questioned the sustainability of AI market drivers. Home prices hit a new high in May—this, paired with high mortgage rates, caused existing home sales to fall for the third consecutive month.^4,5

Consistency Is Key

Since 2014, an average of just 22% of S&P 500 stocks traded at a loss of at least –10% on the first trading day of December in each calendar year. Meanwhile, when looking throughout the year, an average of 55% of stocks traded at the same loss on any given trading day. This demonstrates why a consistent approach to loss harvesting provides a better opportunity to realize losses, maximize savings, and generate alpha, in our view.

^{Article from GSAM.com: Consistency is Key}

^{Source: YCharts.com, June 22, 2024. Weekly performance is measured from Friday, June 14, to Friday, June 21.}
^{TR = total return for the index, which includes any dividends as well as any other cash distributions during the period.}
^{Treasury note yield is expressed in basis points.}

"Time is the only critic without ambition."

– John Steinbeck

Who Can Deduct Car Expenses On Their Tax Returns?

Can you deduct expenses such as gas, depreciation, and lease payments on your tax returns? If you are a business owner or self-employed individual, you may be able to. If you use your car for business and personal purposes, you may split the expenses and base the deductions on a portion of the mileage used for business.

There are two methods to calculate the car expenses you can deduct. The first method involves calculating and deducting expenses, including depreciation, lease payments, gas and oil, tires, repairs and tune-ups, insurance, and registration fees.

The second entails using the standard mileage rate, which is a rate calculated to represent gas and some of the above factors. In 2021, the standard mileage rate is 56 cents per mile. Taxpayers who want to use the standard mileage rate for a car they own must use this method in the first year the vehicle is available for use in their business.

*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

Healthy Summer Tips

Staying healthy this summer will help you enjoy the season even more. Here are some of our favorite healthy summer tips:

Stay safe in the sun, and always wear sunscreen. Use an SPF 30 or above with both UVA and UVB protection. If possible, hang out in shaded areas.
Challenge your family and friends to some healthy competition, such as through a game of Capture the Flag, a scavenger hunt, a volleyball, flag football, or a dodgeball game.
Eat smart by indulging in a few of your favorite foods but still making healthy choices. Swap red meat out for chicken, choose fruits and veggies rather than chips, and eat sweets sparingly. Countless healthy barbecue and cookout recipes are delicious and will still satisfy that summer picnic spirit.

Summer can be an ideal time to remain active by swimming, playing games, and enjoying some of your favorite healthy bites.

Tip adapted from Prevent Cancer Foundation⁸

At a stop sign on a rural road, there are two trucks in front of a truck, two trucks behind a truck, and one truck in the middle of two trucks. How many trucks are there in total?

Last week’s riddle: It can be told, made, cracked, and played. What is it? Answer: A joke.