Forefront’s Market Notes:
October 14th, 2024
Stocks advanced last week despite mixed inflation data, lurching oil prices, and lingering anxiety about the Middle East.
The Standard & Poor’s 500 Index gained 1.11 percent, while the Nasdaq Composite rose 1.13 percent. The Dow Jones Industrial Average picked up 1.21 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, added 0.23 percent.1,2
Up And Down Week
Stocks slipped on Monday as oil continued to rise but moved higher on Tuesday as the technology sector showed the way. Oil prices fell back as investors took a wait-and-see stance concerning Middle East tensions.3
The S&P 500 and Dow Industrials hit fresh record highs on Wednesday but dipped Thursday morning after the latest Consumer Price Index (CPI) data showed inflation was warmer than expected.4,5
Earnings season kicked off Friday, and update reports from a few money center banks injected some enthusiasm into markets. Also, the Producer Price Index (PPI) report showed wholesale prices stayed flat last month, a welcomed update for investors. All three averages closed higher for the fifth consecutive week.6
Source: YCharts.com, October 12, 2024. Weekly performance is measured from Monday, October 7, to Friday, October 11. 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.
Inflation Moves Markets
Despite news that showed retail inflation continued to decelerate in September, anxious investors focused on the fact that CPI came in slightly warmer than economists expected for September. Meanwhile, Friday’s PPI reading came in slightly better than economists expected, adding a layer of complexity for the Fed as it evaluates the inflation story.7,8
Passport Power
Did you know that the IRS can revoke your passport if you owe the Internal Revenue Service $62,000 or more? That’s right; the IRS can revoke the passports of any taxpayer owing $62,000 or more, including penalties and interest.
Notably, if you’re currently paying off the debt or are contesting a tax bill in court, you should not be affected. However, anyone under an IRS tax lien could find their ability to travel hampered.
Contact a qualified attorney or tax specialist with questions about tax debts or other complex tax issues.
*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 IRS9
Footnotes and Sources
1. The Wall Street Journal, October 11, 2024
2. Investing.com, October 11, 2024
3. CNBC.com, October 8, 2024
4. MarketWatch.com, October 9, 2024
5. The Wall Street Journal, October 10, 2024
6. The Wall Street Journal, October 10, 2024
7. The Wall Street Journal, October 11, 2024
8. MarketWatch.com, October 11, 2024
9. IRS.gov, June 12, 2024
Stock market calendar this week:
| Time (ET) | Report |
| MONDAY, OCT. 14 | |
| Columbus Day holiday. Bond market closed. | |
| 3:00 PM | Federal Reserve Governor Christopher Waller speaks |
| TUESDAY, OCT. 15 | |
| 8:30 AM | Empire State manufacturing survey |
| 1:00 PM | Fed Governor Adriana Kugler speaks |
| WEDNESDAY, OCT. 16 | |
| 8:30 AM | Import price index |
| 8:30 AM | Import price index minus fuel |
| THURSDAY, OCT. 17 | |
| 8:30 AM | Initial jobless claims |
| 8:30 AM | U.S. retail sales |
| 8:30 AM | Retail sales minus autos |
| 9:15 AM | Philadelphia Fed manufacturing index |
| 9:15 AM | Industrial production |
| 9:15 AM | Capacity utilization |
| 10:00 AM | Business inventories |
| 10:00 AM | Home builder confidence index |
| FRIDAY, OCT. 18 | |
| 8:30 AM | Housing starts |
| 8:30 AM | Building permits |
| 12:10 PM | Federal Reserve Governor Christopher Waller speaks |
Most anticipated earnings for this week:
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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.