Market-Moving News[i]

Sluggish April

For the second week in a row, the S&P 500 and the Dow retreated from the record highs they set at the end of March. The NASDAQ’s fractional weekly decline was smaller than those of its peers, owing in part to relatively strong performance from a handful of technology stocks.  

Stubborn inflation

The latest inflation report cast further doubt about the timeline for potential interest-rate cuts, as the Consumer Price Index rose to an annual rate of 3.5% in March, up from 3.2% the previous month. Excluding volatile food and energy prices, core inflation rose 3.8%. U.S. government bond yields rose sharply following Wednesday’s report.   

Higher for longer?

Wednesday’s hotter-than-expected inflation data reinforced recent market expectations that initial interest-rate cuts are no longer imminent—a view that was backed up later in the day by the release of minutes from the U.S. Federal Reserve’s March policy meeting. Fed officials agreed that they were prepared to keep rates at current high levels for longer than they had previously anticipated.  

Bank earnings setback

Results from three major U.S. banks that reported first-quarter numbers on Friday were mixed, with two institutions reporting year-over-year earnings declines. Entering earnings season, analysts were forecasting that overall earnings for banks in the S&P 500 dropped 18% relative to the previous year’s first quarter, according to FactSet.

Yields jump again

In the wake of Wednesday’s inflation report, the yield of the 10-year U.S. Treasury bond rose to the highest level in five months, as it climbed as high as 4.59% at one point. As recently as February 1, the 10-year yield had closed as low as 3.86%.

Gold’s allure

Gold prices rose for the third week in a row, adding to the record highs reached in previous weeks. On Friday, gold futures climbed as high as $2,448 per ounce in the morning before retreating to around $2,360 in the afternoon—up about 1% for the week and more than 9% since March 22.  

China’s trade slump

China reported a bigger-than-expected monthly drop in exports, and imports unexpectedly declined as well. The 7.5% decline in the value of exports from the world’s second-largest economy was the biggest such drop since August 2023. The data was released after Chinese financial markets closed on Friday. 

Retail sales ahead

Monday’s scheduled release of U.S. retail sales data could indicate whether a recent positive turnaround in momentum extended into March. In February, sales rebounded to a 0.6% gain after posting an unexpected 1.1% decline in January. 

The Week Ahead:  April 15-19

• Monday
  • Retail sales, U.S. Census Bureau
  • Business inventories, U.S. Census Bureau

• Tuesday
  • Housing starts, U.S. Census Bureau
  • Industrial production and capacity utilization, U.S. Federal Reserve

• Wednesday
  • No major reports scheduled

• Thursday
  • The Conference Board Leading Economic Index for the U.S.
  • Existing home sales, National Association of Realtors
  • Weekly unemployment claims, U.S. Department of Labor

• Friday
  • No major reports scheduled

Philosophy Quote of the Week

Pay Your Taxes

“Nothing will ever befall me that I will receive with gloom or a bad disposition.  I will pay my taxes gladly.  Now, all the things which cause complaint or dread are like the taxes of life – things from which, my dear Lucilius, you should never hope for exemption or seek escape.”

Seneca, Moral Letters, 96.2

Tax Tips[ii]

Tax Return Corrections and Tips for next Tax Year

Yay!  Your taxes are done for another year!  Or are they?  Here are the top 10 things to know about filing an amended tax return:

• Use Form 1040X, Amended U.S. Individual Income Tax Return, to correct errors on your tax return.  You must file an amended return on paper.  It cannot be e-fied.  Remember that if you file state income taxes, then filing an amended Federal return requires that an amended State return also needs to be filed.
• You usually should file an amended tax return if you made an error claiming your filing status, income, deductions or credits on your original return.
• You normally don’t need to file an amended return to correct math errors. The IRS will automatically make those changes for you.  Also, do not file an amended return because you forgot to attach tax forms, such as a W-2 or schedule.  The IRS will usually send you a request for those.
• You usually have three years from the date you filed your original tax return to file Form 1040X to claim a refund. You can file it within two years from the date you paid the tax, if that date is later.  That means the last day for most people to file a 2018 claim for a refund is April 15, 2022.  See the 1040X instructions for special rules that apply to certain claims.
• If you are amending more than one tax return, prepare a 1040X for each year. You should mail each year in separate envelopes.  Note the tax year of the return you are amending at the top of Form 1040X.  Check the form’s instructions for where to mail your return.
• If you use other IRS forms or schedules to make changes, make sure to attach them to your Form 1040X.
• If you are due for a refund from your original return, wait to receive that refund before filing Form 1040X to claim an additional refund.
• If you owe more tax, file your Form 1040X and pay the tax as soon as possible. This will reduce any interest and penalties.
• You can track the status of your amended tax return three weeks after you file with “Where’s My Amended Return?” This tool is available on IRS.gov or by phone at 866-464-2050.  It’s available in English and Spanish.  The tool can track the status of an amended return for the current year and up to three years back.
• To use “Where’s My Amended Return?” enter your taxpayer identification number, which is usually your Social Security number. You will also need your date of birth and zip code.  If you have filed amended returns for multiple years, select each year one-by-one.

Make plans NOW for next year’s tax return.  Here are six tips to help you start planning for this year’s taxes:

• Act When Life Changes Occur
  • Adjust your withholding when life happens by filling out a new W-4 with your employer.
• Keep Records Safe
  • Know where a copy of your return is – you don’t know when you’ll need it.
• Stay Organized
  • Create folders using your last year’s tax return, looking at the expenses and the income that you recorded.
• Shop for a Tax Professional
  • Look for a Certified Public Accountant (CPA), Enrolled Agent (EA) or Attorney. They are the only ones who can represent you before the IRS!
• Think About Itemizing
  • Look at Schedule A, Itemized Deductions, for a list of deductions.
• Keep Up With Changes
  • Subscribe to IRS Tax Tips to get emails about tax law changes, how to save money, and more. You can get Tips on IRS.gov or IRS2go, the IRS’s mobile app.

Health Tip of the Week[iii]

Stress relievers: Tips to tame stress

Stress getting to you? Try some of these tips for stress relief.

By Mayo Clinic Staff

Is stress making you angry and grouchy? Stress relievers can help bring back calm and peace to your busy life. You don't have to put a lot of time or thought into stress relievers. If your stress is getting out of control and you need quick relief, try one of these tips.

Get active

Almost any form of physical activity can act as a stress reliever. Even if you're not an athlete or you're out of shape, exercise can still be a good stress reliever.

Physical activity can pump up your feel-good endorphins and other natural neural chemicals that boost your sense of well-being. Exercise also can refocus your mind on your body's movements. This refocus can improve your mood and help the day's irritations fade away. So go on a walk, take a jog, work in your garden, clean your house, bike, swim, weight train, vacuum or do anything else that gets you active.

Eat a healthy diet

Eating a healthy diet is an important part of taking care of yourself. Aim to eat many fruits, vegetables and whole grains.

Avoid unhealthy habits

Some people may deal with stress with unhealthy habits. These may include drinking too much caffeine or alcohol, smoking, eating too much, or using illegal substances. These habits can harm your health and increase your stress levels.

Meditate

During meditation, you focus your attention and quiet the stream of jumbled thoughts that may be crowding your mind and causing stress. Meditation can give you a sense of calm, peace and balance that can help both your emotional well-being and your overall health. Meditation can empower us to enhance our well-being.

You can practice guided meditation, guided imagery, mindfulness, visualization and other forms of meditation anywhere at any time. For example, you could meditate when you're out for a walk, riding the bus to work or waiting at your health care provider's office. Try an app to show you how to do these exercises. And you can try deep breathing anywhere.

Laugh more

A good sense of humor can't cure all ailments. But it can help you feel better, even if you have to force a fake laugh through your grumpiness. When you laugh, it lightens your mental load. It also causes positive physical changes in the body. Laughter fires up and then cools down your stress response.

So read some jokes, tell some jokes, watch a comedy or hang out with your funny friends. Or give laughter yoga a try.

Connect with others

When you're stressed and irritable, you may want to isolate yourself. Instead, reach out to family and friends and make social connections. Even one good friend who listens can make a difference.

Social contact is a good stress reliever because it can offer distraction, give support, and help you put up with life's ups and downs. So take a coffee break with a friend, email a relative or visit your place of worship.

Got more time? Try volunteering for a charity and help yourself while helping others.

Assert yourself

You might want to do it all, but you can't, at least not without paying a price. Learning to say no or being willing to delegate can help you manage your to-do list and your stress. Healthy boundaries are important in a wellness journey. Everyone has physical and emotional limits.

Saying yes may seem like an easy way to keep the peace, prevent conflicts and get the job done right. But instead, it may cause you inner conflict because your needs and those of your family come second. Putting yourself second can lead to stress, anger, resentment and even the wish to take revenge. And that's not a very calm and peaceful reaction. Remember, you're a priority.

Try yoga

With its series of postures and breathing exercises, yoga is a popular stress reliever. Yoga brings together physical and mental disciplines that may help you reach peace of body and mind. Yoga can help you relax and ease stress and anxiety.

Try yoga on your own or find a class — you can find classes in many areas. Hatha yoga, especially, is a good stress reliever because of its slower pace and easier movements.

Get enough sleep

Stress can cause you to have trouble falling asleep. When you have too much to do — and too much to think about — your sleep can suffer. But sleep is the time when your brain and body recharge. Most adults need about 7 to 9 hours of sleep each night.

And how well and how long you sleep can affect your mood, energy level, focus and overall functioning. If you have sleep troubles, make sure that you have a quiet, relaxing bedtime routine. For example, listen to soothing music, make sure the area you sleep in is cool, dark and quiet, put phones and tablets away, and stick to a regular schedule.

Keep a journal

Writing down your thoughts and feelings can be a good release for otherwise pent-up feelings. Don't think about what to write — let it happen. Write anything that comes to mind. No one else needs to read it. So don't aim for perfect grammar or spelling.

Let your thoughts flow on paper, or on the computer screen. Once you're done, you can toss out what you wrote or save it to think about later.

Get musical and be creative

Listening to or playing music is a good stress reliever. It can provide a mental distraction, lessen muscle tension and lower stress hormones. Turn up the volume and let your mind be absorbed by the music.

If music isn't one of your interests, turn your attention to another hobby you enjoy. For example, try gardening, sewing, reading or sketching. Or try anything that makes you focus on what you're doing rather than what you think you should be doing.

Seek counseling

If new stressors are making it hard for you to cope or if self-care measures aren't relieving your stress, you may want to think about therapy or counseling. Therapy also may be a good idea if you feel overwhelmed or trapped. You also may think about therapy if you worry a great deal, or if you have trouble carrying out daily routines or meeting duties at work, home or school.

Professional counselors or therapists can help you find the sources of your stress and learn new coping tools.

[i]https://www.jhinvestments.com/weekly-market-recap#investment-returns, accessed 04.15.2024.

[ii] Hockensmith, Robert F.  52 Ways to Outsmart the IRS, Weekly Tax Tips to Save You Money.  Kindle edition, pages 69-72, accessed 04.15.2024.

[iii]https://www.mayoclinic.org/healthy-lifestyle/stress-management/in-depth/stress-relievers/art-20047257accessed 04.15.2024.