Forefront’s Market Notes:
June 24th, 2024
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
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.
A Notable AI Driver
Some investors and market analysts are examining the underlying long-term drivers of AI more closely, given its outsized impact on market averages like the S&P 500 and Nasdaq.
One such underlying driver is “DRAM”: Dynamic Random Access Memory, the AI-turbocharged version of a RAM semiconductor, more commonly referred to as “memory chips.” Companies making DRAM chips are an essential part of the AI ecosystem. Expect attention to shift to prominent DRAM players as they report earnings in Q2.6
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
Footnotes and Sources
1. The Wall Street Journal, June 21, 2024
2. CNBC.com, June 17, 2024
3. The Wall Street Journal, June 20, 2024
4. MarketWatch.com, June 18, 2024
5. The Wall Street Journal, June 21, 2024
6. MarketWatch.com, June 20, 2024
7. IRS.gov, January 12, 2023
Stock market calendar this week:
| TIME (ET) | REPORT |
| MONDAY, JUNE 24 | |
| 3:00 AM | Fed Gov. Christopher Waller speech in Rome |
| 8:30 AM | Chicago Fed President Austan Goolsbee TV appearance |
| 2:00 PM | San Francisco Fed President Mary Daly speech |
| TUESDAY, JUNE 25 | |
| 7:00 AM | Fed Gov. Michelle Bowman speech in London |
| 9:00 AM | S&P Case-Shiller home price index (20 cities) |
| 10:00 AM | Consumer confidence |
| 12:00 PM | Fed Gov. Lisa Cook speech |
| WEDNESDAY, JUNE 26 | |
| 10:00 AM | New home sales |
| THURSDAY, JUNE 27 | |
| 8:30 AM | Initial jobless claims |
| 8:30 AM | GDP (2nd revision) |
| 8:30 AM | Durable-goods orders |
| 8:30 AM | Durable-goods minus transportation |
| 10:00 AM | Pending home sales |
| FRIDAY, JUNE 28 | |
| 6:00 AM | Richmond Fed President Tom Barkin speech in Paris |
| 8:30 AM | Personal income (nominal) |
| 8:30 AM | Personal spending (nominal) |
| 8:30 AM | PCE index] |
| 8:30 AM | PCE (year-over-year) |
| 8:30 AM | Core PCE index |
| 8:30 AM | Core PCE (year-over-year) |
| 9:45 AM | Chicago Business Barometer (PMI) |
| 10:00 AM | Consumer sentiment (final) |
| 12:00 PM | Fed Gov. Michelle Bowman speech |
Most anticipated earnings for this week:
Did you miss our last blog?
Forefront Market Notes: June 17th
About Amit: I am a first generation American, the son of a working-class Indian family, and I lived through my parents’ struggle to find their place in this country, to put down roots that would sustain them as well as their children in a new land. As they encouraged me to excel in school and fostered my hobbies and interests, I was keenly aware of the dynamic between them. I understood that there was a difference between where they came from individually and where we were now. They worked hard in their individual capacities, but they weren’t always on the same page about financial issues – and that can make or break a family’s future. I didn’t know it at the time, but this laid the groundwork for my passion towards financial services and helping families succeed.