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The Northern Star Newsletter 8/2/19 - S&P & Nasdaq Outgain Dow

4

Message from Jon


Market Update: 

We have seen the FED indicate a reduction in Interest rates,1 the Trade talks with China resume-although with little optimism expressed by President Trump 2-and earnings season come about with mixed results. 3 I would say, it's just another week on Wall Street. All eyes this past week have been on England's new Prime Minister election. Boris Johnson is vowing a Brexit or else approach by October 31st, giving us a new news cycle for some time to come, I think. 4

Stormguard is sitting at a bull market status, as is Dorsey/Wright, and a number of other indications at present are giving us the all clear signal to remain invested.

Till we speak again, enjoy the last weeks of summer.

Jon

 

 Sources:

  1. https://www.usatoday.com/story/money/2019/07/30/stock-market-fed-rate-cuts-without-recession-typically-boost-stocks/1861478001/
  2. https://www.wsj.com/articles/trump-warns-china-of-tougher-trade-deal-if-he-wins-second-term-11564488023
  3. https://www.barrons.com/articles/earnings-season-so-far-revenue-beats-meet-low-expectations-51564196201
  4. https://www.politico.eu/article/boris-johnson-to-leo-varadkar-brexit-will-happen-in-october-no-matter-what/

S&P & Nasdaq Outgain Dow

WEEKLY UPDATE - JULY 29, 2019


The Week on Wall Street
Last week, investors assessed earnings and the initial estimate of second-quarter economic growth, while awaiting the Federal Reserve's next announcement about interest rates.


Stocks rose for the week; particularly, tech shares. The S&P 500 gained 1.65%; the Nasdaq Composite, 2.26%. The Dow Jones Industrial Average lagged, adding just 0.14%. MSCI's EAFE index, a gauge of equity performance in developed foreign markets, ticked up 0.01%.[1][2]

Economy Grew Moderately in Q2
Analysts surveyed by Dow Jones Newswires had forecast 2.0% Gross Domestic Product (GDP) for the second quarter. The actual estimate, announced Friday by the Bureau of Economic Analysis, was slightly better at 2.1%.[3]

While this is the poorest quarterly GDP number since the opening quarter of 2017, the decline in GDP largely reflects a decrease in business investment. Consumer spending improved 4.3% in Q2, and government spending rose 5.0%, which was the biggest quarterly gain in a decade.[4]

China Trade Talks to Restart
U.S. trade delegates are scheduled to resume face-to-face negotiations with their Chinese counterparts, starting Tuesday in Shanghai. 

This renewed effort to forge a bilateral trade pact could go on for some time. Secretary of the Treasury Steven Mnuchin, who is part of the U.S. delegation, told reporters last week that it would likely take "a few more meetings" before any kind of accord can be considered.[5]

What's Next
Wednesday at about 2:00pm EST, the Federal Reserve is scheduled to conclude its July meeting. Wall Street is eager to see what the Fed will do with interest rates. The question is whether traders have priced in expectations of a cut and how they may react if no cut comes.

THE WEEK AHEAD: KEY ECONOMIC DATA
Tuesday: The federal government's June personal spending report and the Conference Board's monthly index of consumer confidence.
Wednesday: The Federal Reserve presents its latest statement on interest rates and monetary policy, and payroll titan ADP offers its July private-sector employment snapshot.
Thursday: The latest report on American manufacturing from the Institute for Supply Management. 
Friday: July jobs data from the Department of Labor, and the University of Michigan's final July Consumer Sentiment Index, measuring household confidence in the economy.

Source: Econoday / MarketWatch Calendar, July 26, 2019
The Econoday and MarketWatch economic calendars list 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.

THE WEEK AHEAD: COMPANIES REPORTING EARNINGS
Monday: RingCentral (RNG)
Tuesday: Apple (APPL), Mastercard (MA), Merck (MRK), Pfizer (PFE), Procter & Gamble (PG)
Wednesday: General Electric (GE), Qualcomm (QCOM)
Thursday: Royal Dutch Shell (RDS.A), Verizon (VZ)
Friday: Berkshire Hathaway (BRK.B), Chevron (CVX), ExxonMobil (XOM), Toyota (TM)

Source: Zacks, July 26, 2019
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Any investment should be consistent with your objectives, time frame and risk tolerance. 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.



Gray

Quote Of The Week

Fountain Pen


"Wherever you go, no matter what the weather, always bring your own sunshine."

-Anthony J. D'Angelo

Recipe Of The Week

Fork and Knife

Chili-Rubbed Ribs


[10 servings]
Ingredients:

For the Seasoning
  • ¼ cup brown sugar, packed
  • 2 Tbsp. paprika
  • 3 Tbsp. chili powder (adjust for how spicy you prefer)
  • 3 tsp. cumin
  • 3 tsp. garlic powder
  • 1 tsp. salt

For the Glaze

  • 1 cup soy sauce
  • 1 cup brown sugar, packed
  • ⅔ cup ketchup
  • ⅔ cup lemon juice
  • 1½ tsp. ginger
  • 6 lbs. pork baby back ribs


Directions:

Turn on the grill for these perfect summer ribs! With the ideal balance of sweet and spicy, you're going to want to make these ribs all summer long.

  1. Mix seasoning ingredients together and rub on ribs.
     
  2. Refrigerate for at least 30 minutes.
     
  3. Wrap ribs in aluminum foil and grill over indirect medium heat for 1 to 1½ hours or until tender.
     
  4. While the ribs are cooking, combine glaze ingredients and cook over medium heat until all the sugar is dissolved (about 7 minutes).
     
  5. Remove ribs from foil, place over direct heat, and brush with half the glaze. Grill for another 25 to 30 minutes, turning occasionally and brushing with the remaining glaze until they're finished cooking. 

 

Recipe adapted from Taste of Home[6]
 

Gray


Tax Tips

Document

Tax Tips for Students with Summer Jobs


Do you have a child or grandchild working this summer? Well, you might want to share the following tax tips with them!

  • If they have a self-employed job this summer, such as being a nanny, babysitter, or landscaper, they may have to pay their estimated taxdirectly to the IRS because they won't have an employer withholding taxes for them.
     
  • In addition, these self-employed students may be able to deduct some of their costs as business expenses. Tell your children or grandchildren to keep detailed records of their expenses this summer.
     
  • Remember, tip income is taxable too (even if it's cash).
     
  • Although your little summer worker might not earn enough to owe income tax, they will likely still owe Social Security and Medicare taxes. Most employers will withhold these taxes or if they're self-employed, they might have to pay these taxes themselves. 
Do you know a young person trying to earn a little extra income this summer? Share these tips with them to make sure they are up on their tax requirements. 

* 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.gov[7]

Golf Tip

Golfer

Stay Safe in the Summer Heat


Thanks to the long days and abundance of sunshine, summer may be the best season for golfers. But depending on where you live, it can also be extremely hot. These tips will help keep you safe out there, while you enjoy your game in these summer months:

  • Make sure to drink plenty of water, as you can easily get dehydrated out on the course. Keep water in your bag and in your cart, and take advantage of water stations on the course. In fact, you should start drinking water even before you start playing.
     
  • Wearing sunscreen is important for anyone out in the sun, but it's especially important for golfers because you're out there for hours at a time. Choose a sunscreen that is SPF 30 or more and reapply it at least every two hours. You might also want to wear a sun-protective lip balm.
     
  • Reconsider your club selection as you play in the summer because the ball goes farther when it's hot outside. 
Enjoy a beautiful summer day on the course, but make sure to take care of your body in the heat. 


Tip adapted from GolfDiscount.com[8]


Healthy Lifestyle

Medical Cross

Macro Tracking: Your New "Diet" Secret Weapon?


If you're like a lot of people, you might want to lose a few pounds this summer. But tracking all the calories you eat can get tedious and restricting yourself rarely leads to long-term success.

Instead of tracking calories, paying attention to your macronutrients, which include protein, fat, and carbohydrates, might be a more sustainable option. First, calculate your total daily energy expenditure based on your age, weight, and activity level. Then, figure out your "macros" in grams.

Focusing on eating enough protein, carbs, and fat is a more-flexible way to "diet" compared to calorie counting, and it will teach you how to make healthier decisions moving forward. Eventually, many people who begin by tracking their macronutrients learn what to intuitively eat to reach their goals, and this approach can help you slim down, lose fat (but maintain muscle), and help you learn how to include the foods you love in your diet without being too restrictive. 


Tip adapted from Healthline[9]


Green Living

Leaf

Numbers, Numbers Everywhere

Have you ever wondered what the numbers on the bottom of plastic bottles and containers mean? Here's a cheat sheet to some of the most-common types of plastics and how to recycle them:

#1 - Plastics labeled with a "1," usually plastic soda or water bottles, are made out of polyethylene terephthalate, which is the easiest plastic to recycle! Even more reason to make sure they end up in the recycling bin.

#2 - Plastics labeled with a "2" are made from high-density polyethylene, which is also easy to recycle. This plastic is used for milk containers, detergent bottles, and other containers made out of thicker plastic. 

#3 - Plastics with a #3 are polyvinyl chloride (PVC) plastics, which aren't easily recyclable and are harmful to the environment. Many plastic toys, packaging, and furniture are made from #3 plastic.

#4 - Number 4 plastic is the type of plastic used for grocery bags, sandwich bags, and food wrapping. Generally, it can only be recycled into the same type of plastic.

This cheat sheet should help you understand when and how you can recycle your plastic!


Tip adapted from Green Living Tips[10]

Share the Wealth of Knowledge!

 

Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!

 

Gray 

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

Diversification does not guarantee profit nor is it guaranteed to protect assets.

International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

The Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of stocks of technology companies and growth companies. 

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indices from Europe, Australia, and Southeast Asia. 

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

These are the views of Platinum Advisor Strategies, LLC, and not necessarily those of the named representative, 
Broker dealer or Investment Advisor and should not be construed as investment advice. Neither the named representative nor the named Broker dealer or Investment Advisor gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

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Dorsey/Wright

Dorsey, Wright & Associates, LLC is a subsidiary of Nasdaq, Inc. Nasdaq, Inc. is a publicly-traded corporation (NDAQ). Its subsidiaries include The Nasdaq Stock Market LLC, Nasdaq PHLX LLC and Nasdaq BX, Inc., all of which are SEC-registered national securities exchanges, Nasdaq Execution Services, LLC, a registered broker-dealer that routes orders in equities and options to the appropriate market center for execution, Chi-X Canada ATS Ltd., a Canadian alternative trading system for the trading of TSX and TSXV-listed securities, and Nasdaq Futures, Inc., a CFTC Designated Contract Market for the trading of energy futures in oil, gas, and U.S. power. Nasdaq, Inc. also has subsidiaries that are foreign securities exchanges that receive listing and trading fees.

Dorsey Wright will not publish research or make recommendations concerning NDAQ, nor trade the security for its Investment Management clients. Dorsey Wright may, however, publish research on, recommend or trade other securities listed on the Nasdaq exchanges, which receive fees from the listed companies and futures. Dorsey Wright will not take into account where a security is listed or traded in exercising its independent judgment for clients. In addition, Dorsey Wright does not manage or control where clients' broker/dealers route orders for execution. Accordingly, client orders may be routed to the subsidiaries of Nasdaq, Inc. for execution. These markets receive trading fees.

Nasdaq, Inc. and its subsidiaries receive index licensing fees from investment product sponsors, as well as index calculation fees from index providers. These fees may be asset based. With respect to ETFs and other investment products for which Nasdaq, Inc. or its subsidiaries may receive licensing or asset-based fees, Dorsey Wright may, from time to time, (i) recommend such an ETF or other investment product in research for which Dorsey Wright receives fees; (ii) include such an ETF or other investment product in models or indexes for which Dorsey Wright receives an asset based fee; and/or (iii) recommend or include such an ETF or other investment product in the investment management accounts. While Dorsey Wright does not receive any portion of Nasdaq's fees directly, the firm may indirectly benefit as a subsidiary that is part of a Nasdaq business unit. To manage this potential conflict of interest, in the case of Dorsey Wright research or index and model licensing, Dorsey Wright would only include the Nasdaq investment product if the product helps to meet the stated objectives of the strategy and it otherwise meets the rules-based methodology associated with the strategy. In the case of the investment management accounts, Dorsey Wright will only recommend or include the Nasdaq investment product when the recommendation is suitable and meets the client's stated investment objectives. Dorsey Wright will not take into account the fees received by Nasdaq, Inc. and its affiliates in exercising Dorsey Wright's independent judgment for clients.

Some performance information presented on this website is the result of back-tested performance. Back-tested performance is hypothetical and is provided for informational purposes to illustrate the effects of the strategy during a specific period. The hypothetical returns have been developed and tested by DWA, but have not been verified by any third party and are unaudited. Back-testing performance differs from actual performance because it is achieved through retroactive application of a model investment methodology designed with the benefit of hindsight. Model performance data (both back-tested and live) does not represent the impact of material economic and market factors might have on an investment advisor's decision making process if the advisor were actually managing client money. Past performance is not a guide to future performance. Future returns are not guaranteed, and a loss of original capital may occur.

There are risks inherent in international investments, which may make such investments unsuitable for certain clients. These include, for example, economic, political, currency exchange, rate fluctuations, and limited availability of information on international securities. DWA, and its affiliates make no representation that the companies which issue securities which are the subject of their research reports are subject to, or in compliance with certain informational reporting requirements imposed by the Securities Exchange Act of 1934. Sales of securities covered on this site or in this report may be made in only those jurisdictions where such securities are qualified for sale. Investors in securities with values influenced by foreign currencies, effectively assume currency risk, because foreign-currency-denominated securities are subject to fluctuations in exchange rates that could have an adverse effect on the value or price of, or income derived from, such securities.

Options trading involves risk and is not suitable for all investors. When participating in a covered call strategy, the investor is at risk of having to sell the stock if the stock's price rises above the strike price. Remember, in exchange for receiving the premium of having sold the calls, the investor is obligated to sell the stock if the option is exercised. The relative strength strategy is NOT a guarantee. There may be times where all investments and strategies are unfavorable and depreciate in value. There may be instances when fundamental, technical, and quantitative opinions may not be in concert.

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[1] www.wsj.com/market-data
[2] quotes.wsj.com/index/XX/990300/historical-prices

[3] www.cnbc.com/2019/07/26/us-gdp-second-quarter-2019.html

[4] www.cnbc.com/2019/07/26/us-gdp-second-quarter-2019.html

[5] www.reuters.com/article/us-usa-trade-china/top-us-china-trade-negotiators-to-meet-in-shanghai-next-week-idUSKCN1UJ1JI

[6] www.tasteofhome.com/recipes/big-john-s-chili-rubbed-ribs/

[7] www.irs.gov/newsroom/tax-tips-for-students-with-summer-jobs

[8] www.golfdiscount.com/blog/guides/15-helpful-tips-for-summer-golf/

[9] www.healthline.com/nutrition/iifym-guide

[10] www.greenlivingtips.com/articles/recycling-by-the-numbers.html

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