Hello Eagle Wealth Community,
Lately, "inflation" seems to be the media's favorite word. Everywhere you turn, there's another story about the impact of inflation. Some news outlets have reported that confectionary prices have surged over 30% from last year's Halloween.
If we break down some of our favorite candy, the news isn't sweet. According to the U.S. Bureau of Labor Statistics, prices for peanut butter are nearly 9 percent higher compared to 2021. And cocoa, chocolate's main ingredient, has also risen by more than 9 percent since December. 1, 2
However, although current inflationary pressures are nothing to joke about, some seasonal signs of hope are on the horizon.
Consumer confidence remains high despite the squeeze we're all feeling. Goblins and ghouls will collectively spend $3.1 billion on candy alone, outpacing last year's spending of about $3 billion. What does this suggest to us? Consumers, the driving force of our economy, are confident despite the many financial challenges they currently face.3
So tonight, remember that whether you're handing out the sweetest of treats or helping your little ones hunt for full-sized candy bars, our confidence in one another and our nation will carry us through these uncertain times.
Have a happy (and safe) Halloween,
Your Eagle Wealth Team
Pumpkin Pie Brownies
Tonight may be all about the candy for kids but if you’re looking for a delectable treat these pumpkin brownies are for you!
- 18 ounces brownie mix, (Ghirardelli recommended)
- ¼ cup water
- ⅓ cup vegetable oil
- 1 large egg
- ½ cup semisweet chocolate chips
For the Pumpkin Layer
- 7.5 ounces pumpkin puree (½ can) – NOT pumpkin pie filling
- 6 ounces cream cheese (¾ brick), room temperature
- 3 tablespoons granulated sugar
- 1 tablespoon pumpkin pie spice
- Preheat oven according to box mix (325°F for Ghirardelli). Spray an 8×8-inch baking pan with nonstick spray. Set aside.
- In a medium bowl, make the brownie mix according to the directions on the box. Add the chocolate chips to the brownie mix and set aside.
- 18 ounces brownie mix,¼ cup water,⅓ cup vegetable oil,1 large egg,½ cup semisweet chocolate chips
- In a medium bowl, mix the pumpkin, cream cheese, sugar, and pumpkin pie spice together until very smooth.
- 7.5 ounces pumpkin puree, 6 ounces cream cheese, 3 tablespoons granulated sugar, 1 tablespoon pumpkin pie spice.
- Pour half of the brownie mix into the prepared pan and spread out so the entire bottom of the pan is covered.
- Spoon the pumpkin filling onto the brownie batter in chunks or spread it out evenly, then cover the pumpkin with the rest of the brownie batter and smooth out the top.
Recipe adapted from the Cookie Rookie
The Week on Wall Street
Stocks overcame poor earnings results from some of America’s largest companies to post gains last week as investors cheered positive earnings surprises, easing inflation and a rebound in economic growth.
The Dow Jones Industrial Average rose 5.72%, while the Standard & Poor’s 500 advanced 3.95%. The Nasdaq Composite index added 2.24% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, gained 4.89%.1,2,3
A "Spook-Tacular" Week
Some mega-cap technology companies were under pressure last week on weak earnings and tepid fourth-quarter guidance. They reported multiple headwinds, including declining advertising revenues, loose expense control, and a slowdown in cloud growth.
Meanwhile, positive earnings surprises from “old economy” companies powered markets higher. This market bifurcation was evident in the divergence in the performance of the Dow Industrials and the Nasdaq. The S&P 500 posted a substantial gain despite its disproportionate weighting of mega-cap stocks, which helped illustrate the power of the rally. Momentum accelerated into Friday, aided by an easing in inflation and a solid third-quarter Gross Domestic Product (GDP) report.
Economic Growth Exceeds Expectations
After two straight quarters of negative economic growth, the initial estimate of the third quarter’s GDP came in at a solid 2.6%, exceeding economists’ 2.3% estimate. The surprising economic performance was largely attributable to an increase in exports, which narrowed the trade deficit, a development that may not repeat going forward.4
Particularly encouraging was the personal consumption expenditure price index, a report used by the Fed to track inflation. It increased 4.2%, well below the 7.3% jump from a quarter ago.5
THE WEEK AHEAD
KEY ECONOMIC DATA
Tuesday: Institute for Supply Management (ISM) Manufacturing Index. Job Openings and Labor Turnover Survey (JOLTS).
Wednesday: Federal Open Market Committee (FOMC) Announcement. Automated Data Processing (ADP) Employment Report.
Thursday: Jobless Claims. Factory Orders. Institute for Supply Management (ISM) Services Index.
Friday: Employment Situation.
Source: Econoday, October 28, 2022
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.
COMPANIES REPORTING EARNINGS
Tuesday: Pfizer, Inc. (PFE), Eli Lilly & Company (LLY), Marathon Petroleum Corporation (MPC).
Wednesday: CVS Health Corporation (CVS), Qualcomm, Inc. (QCOM), Fortinet, Inc. (FTNT), Humana, Inc. (HUM), Cigna Corporation (CI), Booking Holdings, Inc. (BKNG), Prudential Financial, Inc. (PRU).
Thursday: Block, Inc. (SQ), PayPal Holdings, Inc. (PYPL), Amgen, Inc. (AMGN), ConocoPhillips (COP), Regeneron Pharmaceuticals, Inc. (REGN).
Friday: Dominion Energy, Inc. (D), EOG Resources, Inc. (EOG).
Source: Zacks, October 28, 2022
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.
Disclosures and Footnotes
Any companies mentioned are for informational purposes only, and this should not be considered a solicitation for the purchase or sale of their securities. Any investment should be consistent with your objectives, time frame, and risk tolerance.
1. Washingtontimes.com, October 5, 2022
2. Foxbusiness.com, October 5, 2022
3. NYpost.com, January 10, 2022
4. The Wall Street Journal, October 28, 2022
5. CNBC, October 27, 2022
6. IRS.gov, July 25, 2022
7. Healthline, November 27, 2019
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.
The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.
The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. 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 technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.
U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. 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.
International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.
Please consult your financial professional for additional information.
This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security. Copyright 2022 FMG Suite.