Mixed Data, Mixed Results

Edwin A. McKnight, LUTCF, ChFC®

December 17, 2024

Stocks finished the week mixed, bookending losses around midweek gains as investors digested fresh inflation data.

The Standard & Poor’s 500 Index slipped 0.64 percent, while the Nasdaq Composite Index ticked up 0.34 percent. The Dow Jones Industrial Average dropped 1.82 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, slid 1.48 percent.^1,2

Up and Down Week

Stocks fell broadly over the first part of the week. Leading chipmakers who produce semiconductors for artificial intelligence applications were under pressure after Chinese regulators announced an antimonopoly investigation.³

Investors breathed a sigh of relief Wednesday morning following news that consumer inflation in November was in line with expectations. Mega-cap tech stocks led the rally, with the Nasdaq closing above 20,000 for the first time. Meanwhile, the Dow fell as healthcare stocks came under pressure.⁴

Stocks remained in the trading range for the rest of the week on mild concerns about Thursday’s warmer-than-expected wholesale inflation report and a spending slowdown among lower-income consumers. The Dow registered its worst losing streak since 2020.^5,6,7

Closing the Gap

Over the past two years, the Magnificent 7 have led the way for S&P 500 performance, supported by outpaced earnings growth and continued optimism towards artificial intelligence. However, we expect the relative performance of the Mag 7 versus the other 493 names to narrow as the earnings margin narrows. As such, investors may benefit from seeking exposure to the future wealth creators that exist outside of today’s index leaders.

^{Article from gsam.com: Closing the Gap}

Final Fed Meeting of 2024

The consumer price index ticked up to 2.7 percent on an annualized basis in November, as expected. The market’s rally following the news reflected investor relief that inflation met expectations and that the increase from the prior month was slight.

Those two factors may reinforce the belief that the Fed would follow through with the December rate adjustment, which it penciled in back in September. The bellwether inflation measure was the last critical data point before the Fed’s two-day meeting, scheduled to end on December 18.⁸

This Week: Key Economic Data

Tuesday:Federal Open Market Committee (FOMC) Meeting Begins. Retail Sales. Industrial Production. Business Inventories.

Wednesday:Housing Starts and Permits. FOMC Announcement. Fed Chair Press Conference.

Thursday:Gross Domestic Product. Existing Home Sales. Weekly Jobless Claims.

Friday:Personal Income and Outlays. Consumer Sentiment.

^{Source: Investors Business Daily - Econoday economic calendar; December 10, 2024}^{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.}

This Week: Companies Reporting Earnings

Wednesday:Micron Technology, Inc. (MU)

Thursday:NIKE, Inc. (NKE), Cintas Corporation (CTAS), FedEx Corporation (FDX), Paychex Inc. (PAYX)

^{Source: Zacks,December 10, 2024.}^{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.}

“Who are wise in love, love most, say least.”

– Alfred, Lord Tennyson

Creamy Roasted Red Pepper and Tomato Soup

Ingredients

For the Soup:

4 large red bell peppers
6 medium tomatoes (Roma or vine-ripened)
1 medium onion, roughly chopped
4 garlic cloves, peeled
2 tbsp olive oil
4 cups (960ml) vegetable broth
1 tsp smoked paprika
½ tsp dried basil
½ tsp dried oregano
½ cup (120ml) heavy cream or coconut milk (for a vegan option)
Salt and black pepper, to taste

For Garnish (Optional):

Fresh basil leaves
Crumbled feta cheese or Parmesan (skip for vegan option)
Croutons or toasted bread

Instructions

1. Preheat the Oven:

Preheat your oven to 425°F (220°C).

2. Roast the Vegetables:

Cut the bell peppers and tomatoes in half. Remove seeds and stems from the peppers.
Place the peppers, tomatoes (cut side up), onion, and garlic on a large baking sheet.
Drizzle with olive oil and season with salt and black pepper.
Roast for 25-30 minutes, or until the vegetables are soft and slightly charred.

3. Blend the Soup:

Transfer the roasted vegetables to a blender or food processor.
Add the vegetable broth, smoked paprika, basil, and oregano. Blend until smooth. If you prefer a chunkier texture, pulse the mixture instead of blending fully.

4. Simmer:

Pour the blended mixture into a large pot and bring to a simmer over medium heat. Adjust the consistency with more broth if needed.
Stir in the heavy cream (or coconut milk) and let the soup simmer for an additional 5 minutes. Taste and adjust seasoning with salt and pepper.

5. Serve:

Ladle the soup into bowls. Garnish with fresh basil, crumbled cheese, or croutons, as desired.

The Nashville Fiddler’s Blessing

In the heart of Nashville, a cherished tradition promises joy and prosperity to anyone who plays fiddle music at iconic landmarks like the Ryman Auditorium or along Broadway. Known asThe Nashville Fiddler’s Blessing, this belief celebrates the city’s deep connection to music and the good fortune it brings to those who embrace it.

Legend ties the blessing to the early days of country music, when performers poured their souls into their craft. The Ryman, often called the “Mother Church of Country Music,” is said to amplify this magic, connecting musicians to legends like Patsy Cline and Johnny Cash. On Broadway, buskers claim their fiddle tunes attract not only tips but life-changing encounters.

The blessing isn’t just about luck—it’s about the richness of life: inspiration, connection, and passion. Visitors and musicians still flock to Nashville to test the tradition, sharing stories of unexpected opportunities and renewed spirits after playing in this sacred musical city.

So next time you hear a fiddle’s melody in Nashville, stop and listen—you might just witness the magic of the Fiddler’s Blessing.

Have You Created Your IRS Online Account?

The IRS makes it easy to create an online account where you can view all kinds of account information, such as:

Your payoff amount
The balance if you owe taxes
Your payment history
Key information from your most current tax return
Payment plan details if you have one
Select IRS notices
Economic payments (if you have any)
Your address on file with the IRS

You can even pay online and receive a digital copy of your most recent tax return transcript.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted fromIRS⁹

A “Berry” Important Superfood

Not only are blueberries delicious, but they are also a powerful superfood that has many potential health benefits. They are low in calories, can be added to countless dishes, and are the perfect easy snack. Here are some benefits of blueberries, according to Healthline:

They are high in fiber, Vitamin C, Vitamin K, and Manganese (all important nutrients)
They are high in antioxidants
They may help lower blood pressure, according to one study by PubMed Central
They may help maintain brain function and improve memory based on their antioxidant levels (according to a study by the National Institute of Health
They may reduce muscle damage after exercise and improve inflammation.

Tip adapted fromHealthline¹⁰

It is in seconds, seasons, centuries, and minutes, but you won’t find it in years, decades, or days. What is it?

Last week’s riddle: I have a bank, yet no cash. I can run, but can’t walk. I have a bed but never sleep. I have a mouth, but ingest no meals. What am I? Answer: A river.