Costello Investments

02/23/2023

Last Week's Economic News
• The Consumer Price Index rose 0.5% in January after increasing 0.1% in December. Despite the January jump, prices actually declined for the 12 months ended in January, falling 0.1 percentage point to 6.4%. This was the smallest 12-month increase since the period ended October 2021. Housing costs drove inflation higher last month, with shelter prices advancing 0.7%, accounting for nearly half of the overall CPI increase. Prices for food rose 0.5%, while energy prices rebounded, climbing 2.0%. Core prices, less food and energy, rose 0.4% last month and 5.6% for the last 12 months ended in January, the smallest 12-month increase since December 2021. This report, coupled with last month's robust jobs data, will likely support more interest-rate increases by the Federal Reserve.

02/21/2023

📊If you have any questions about your finances, I'd be happy to answer them. Please feel free to reach out. ☎️T
The Markets (as of market close February 17, 2023)
Investors spent much of last week contemplating the impact of the latest inflation data and favorable economic reports. Consumer prices, producer prices, and export prices rose in January, while retail sales also increased, all of which could prompt more interest-rate hikes from the Federal Reserve. In addition, crude oil prices fell more than 4.0% last week as supplies are plentiful, and rising interest rates could stymie economic growth and slow demand for oil. Stocks ended last week mixed, with the Dow and the S&P 500 slipping lower, while the Russell 2000, the Nasdaq, and the Global Dow edged higher. Ten-year Treasury yields rose by 8.0 basis points. The dollar increased against a basket of currencies, while gold prices fell 1.25%.
Last week began on a high note, as stocks finished higher ahead of the upcoming inflation data. Investors also may have sought some bargains following the previous week's lackluster results. In any case, each of the benchmark indexes listed here posted solid gains, led by the Nasdaq, which rose 1.5%. The Russell 2000 gained 1.2%, followed by the S&P 500 and the Dow at 1.1%, while the Global Dow added 0.7%. Ten-year Treasury yields dipped to 3.71%. Crude oil prices slid 0.6% to $79.26 per barrel. The dollar and gold prices also ended the day lower.
Investors weren't sure what to make of the latest Consumer Price Index (see below), sending stocks on a topsy turvy ride for most of the day last Tuesday, ultimately closing with mixed results. The Dow (-0.5%) and the Russell 2000 (-0.1%) ended lower, the S&P 500 broke even, while the Nasdaq (0.6%) and the Global Dow (0.2%) finished the day higher. Ten-year Treasury yields climbed higher, reaching 3.76%. Crude oil prices fell for the second straight day, ending at about $79.11 per barrel. The dollar dipped, while gold prices advanced marginally.
A strong retail sales report (see below) helped drive stocks higher last Wednesday. Among the benchmark indexes listed here, the Russell 2000 led the advance, gaining 1.0%, followed by the Nasdaq (0.9%), the S&P 500 (0.3%), and the Dow (0.1%). The Global Dow was flat on the day. Ten-year Treasury yields continued to climb higher, adding 4.8 basis points to close at 3.80%. The dollar rose 0.6%, while gold prices slid nearly 1.0%. Crude oil prices dipped $0.41 to close at about $78.65 per barrel.
Stocks suffered their worst performance in a month last Thursday following a "hot" Producer Price Index (see below), which fueled worries of more interest-rate hikes. The Nasdaq (-1.8%), the S&P 500 (-1.4%), the Dow (-1.3%), and the Russell 2000 (-1.0%) fell by at least 1.0%, while the Global Dow slid 0.2%. Ten-year Treasury yields climbed to 3.84%. The dollar and gold prices advanced. Crude oil prices continued to tumble, falling $0.53 to $78.06 per barrel.
The Dow (0.4%) and the Russell 2000 (0.2%) eked out gains last Friday, while the Nasdaq (-0.6%), the S&P 500 (-0.3%), and the Global Dow (-0.1%) declined. The yield on 10-year Treasuries slipped 1.5 basis points to close the day and the week at 3.82%. Crude oil prices dropped 2.75% to about $76.28 per barrel. The dollar and gold prices moved marginally higher.

02/17/2023

📰 Last Week's Economic News
Average regular retail gas prices slid lower last week, according to the U.S. Energy Information Administration. The national average retail price for regular gasoline was $3.444 per gallon on February 6, $0.045 per gallon less than the prior week's price and unchanged from a year ago. Also, as of February 6, the East Coast price decreased $0.060 to $3.406 per gallon; the Gulf Coast price dipped $0.041 to $3.092 per gallon; the Midwest price fell $0.085 to $3.297 per gallon; the West Coast price increased $0.022 to $4.107 per gallon; and the Rocky Mountain price advanced $0.150 to $3.694 per gallon. Residential heating oil prices averaged $4.465 per gallon on February 6, $0.192 below the previous week's price but $0.547 per gallon more than a year ago.

02/15/2023

📰 Last Week's Economic News
The monthly report on the international trade in goods and services deficit, released February 7, is for December and shows that the goods and services trade deficit was $67.4 billion, up $6.4 billion from the November trade deficit. December exports were $250.2 billion, $2.2 billion less than November exports. December imports were $317.6 billion, $4.2 billion more than November imports. For 2022, the goods and services trade deficit increased $103.0 billion, or 12.2%, from 2021. Exports increased $453.1 billion, or 17.7%. Imports increased $556.1 billion, or 16.3%.

02/13/2023

📊If you have any questions about your finances, I'd be happy to answer them. Please feel free to reach out. ☎️
The Markets (as of market close February 10, 2023)
Stocks dipped lower last week as investors mulled the direction of the economy as the Federal Reserve continued to increase interest rates, bolstered by January's strong labor report. With the fourth-quarter corporate earnings reporting season nearing a close, fewer companies are topping profit expectations, which may be another indication of a slowing economy. Each of the benchmark indexes posted weekly losses, with the S&P 500 turning in its worst weekly performance of the year. The yield on 10-year Treasuries rose 21.0 basis points as bond prices declined. Crude oil prices jumped late last week following Russia's announcement that it plans to cut oil production by about 5.0% next month in retaliation against Western oil sanctions. The dollar inched higher, while gold prices slipped lower.
Stocks opened last week lower as investors awaited the Federal Reserve's next move. January's surging jobs report certainly supported the Fed's aggressive policy to bring down inflation and could lead to a longer period of interest-rate hikes. By the close of trading last Monday, the Russell 2000 (-1.4%), the Global Dow (-1.0%), and the Nasdaq (-1.0%) led the declining benchmark indexes, followed by the S&P 500 (-0.6%) and the Dow (-0.1%). Ten-year Treasury yields shot up 10.2 basis points to 3.63%. Crude oil prices rose for the first time in several sessions, adding $1.07 to reach $74.46 per barrel. The dollar and gold prices also advanced on the day.
Wall Street saw stocks rebound last Tuesday after Federal Reserve Chair Jerome Powell said that the process of getting inflation down (disinflation) had begun, although it has a long way to go. Investors expected the Federal Reserve to take a hawkish stance on the heels of the latest robust jobs report. By the end of the trading session, each of the benchmark indexes posted solid gains, with the Nasdaq reversing course from the previous day after gaining 1.9%. The S&P 500 added 1.3%, followed by the Dow and the Russell 2000 (0.8%) and the Global Dow (0.7%). Bond prices continued to fall, with the yield on 10-year Treasuries adding 4.0 basis points to 3.67%. Crude oil prices increased for the second straight day, climbing to $77.31 per barrel. The dollar slipped lower, while gold prices rose marginally higher.
Stocks were unable to maintain the previous day's rally, as each of the benchmark indexes listed here lost value last Wednesday. The volatile Nasdaq declined 1.7%, the Russell 2000 dropped 1.5%, the S&P 500 slid 1.1%, the Dow fell 0.6%, and the Global Dow decreased 0.2%. Ten-year Treasury yields closed at 3.65% after falling 2.1 basis points. Crude oil prices continued to rally, increasing 1.6% to reach $78.40 per barrel. The dollar and gold prices advanced.
Last Thursday saw stocks fall for the second straight session amid mixed corporate earnings data. The Russell 2000 (-1.3%) and the Nasdaq (-1.0%) led the declining benchmark indexes, followed by the S&P 500 (-0.9%), the Dow (-0.7%), and the Global Dow (-0.2%). Ten-year Treasury yields added 3.0 basis points to close at 3.68%. Crude oil ended a modest rally, falling 1.1% to $77.62 per barrel. The dollar and gold prices slid lower.
Stocks ended the week mixed last Friday, with the Nasdaq and the Global Dow trending lower, while the Dow, the S&P 500, and the Russell 2000 advanced. Ten-year Treasury yields rose 6.1 basis points to 3.74%. Crude oil prices advanced $1.74 to $79.83 per barrel. the dollar advanced, while gold prices slid lower.

02/03/2023

📰 Last Week's Economic News
1. The advance estimate of the fourth-quarter gross domestic product showed the economy accelerated at an annualized rate of 2.9%. GDP rose 3.2% in the previous quarter, after falling 1.6% and 0.6% in the first and second quarters, respectively. Personal consumption expenditures, a measure of consumer spending and a main contributor to GDP, rose 2.1% in the fourth quarter, largely due to a 2.6% increase in spending on services. Consumer spending on goods rose 1.1%. Fixed investment fell 6.7% in the fourth quarter, pulled lower by a 26.7% dip in residential fixed investment. Exports dipped 1.3% in the fourth quarter, while imports fell 4.6%. The personal consumption expenditures price index, a measure of inflation, increased 3.2%, compared with an increase of 4.7% in the third quarter.

01/30/2023

📊If you have any questions about your finances, I'd be happy to answer them. Please feel free to reach out. ☎️
The Markets (as of market close January 27, 2023)
Wall Street ended last week higher on favorable inflation, economic, and corporate earnings data. Investors now must await the Federal Reserve's meeting this week to see whether the Fed will soften its policy of aggressive interest-rate hikes. Fourth-quarter corporate earnings season is wide open with roughly 68% of the companies comprising the S&P 500 reporting earnings ahead of consensus estimates. Each of the benchmark indexes listed here posted solid gains by the end of last week, led by the tech-heavy Nasdaq. Heading into the final two trading days of January, the Nasdaq has gained 11.0%, while the Russell 2000 and the Global Dow are up over 8.0%. Crude oil prices closed the week lower ahead of the upcoming OPEC+ committee meeting coupled with the European Union's ban on Russian oil products. Ten-year Treasury yields inched higher, while the dollar and gold prices slipped.
Tech shares led a stock market rally last Monday ahead of earnings reports from several major technology companies. The Nasdaq gained 2.0%, with the Russell 2000 adding 1.3% and the S&P 500 climbing 1.2%. The Dow and the Global Dow rose 0.8%. Ten-year Treasury yields gained 4.1 basis points, closing at 3.52%. Crude oil prices continued to advance, reaching $81.69 per barrel. The dollar was flat, while gold prices advanced.
The stock rally ended last Tuesday as only the Dow and the Global Dow were able to post modest gains. The Nasdaq and the Russell 2000 slid 0.3%, while the S&P 500 dipped 0.1%. Bond prices advanced, pulling yields lower. Ten-year Treasury yields closed at 3.46%, after falling 5.6 basis points. Crude oil prices ended the day at around $80.10 per barrel, down $1.52 from the previous day. The dollar fell marginally, while gold prices continued to advance, gaining $9.70 to reach $1,938.30 per ounce.
Stocks ended last Wednesday mixed as investors sifted through a boatload of corporate earnings data. The Russell 2000 and the Global Dow eked out 0.3% gains, the Dow and the S&P 500 ended close to where they began, while the Nasdaq dipped 0.2%. The yield on 10-year Treasuries was flat, the dollar slipped lower, while gold prices climbed to $1,946.40 per ounce. Crude oil prices rose marginally to $80.49 per barrel.
Wall Street ended a choppy session higher last Thursday, with each of the benchmark indexes posting gains. The Nasdaq led the charge, adding 1.8%, followed by the S&P 500 (1.1%), the Russell 2000 (0.7%), and the Dow and the Global Dow (0.6%). Ten-year Treasury yields rose to 3.49%. Crude oil prices rose nearly $1.00 to $81.10 per barrel. The dollar inched higher, while gold prices fell for the first time in several sessions.
Stocks reversed course from the previous day, closing last Friday higher. The Nasdaq gained 1.0% to lead the benchmark indexes listed here, followed by the Russell 2000 and the Global Dow, which added 0.4%. The S&P 500 rose 0.3% and the Dow inched up 0.1%. The yield on 10-year Treasuries gained 2.5 basis points to close at 3.51%. Crude oil prices slid $1.60, the first decline in several sessions, closing the week at $79.41 per barrel. The dollar gained marginally, while gold prices fell for the second consecutive day.

01/23/2023

What Is a Self-Employed Retirement Plan?
A self-employed retirement plan is a tax-deferred retirement savings program for self-employed individuals. In the past, the term "Keogh plan" or "H.R. 10 plan" was used to distinguish a retirement plan established by a self-employed individual from a plan established by a corporation or other entity. However, self-employed retirement plans are now generally referred to by the name that is used for the particular type of plan, such as SEP IRA, SIMPLE IRA, SIMPLE 401(k), or self-employed 401(k) (also known as a solo 401(k) or an individual 401(k)).

If you have any questions about your finances, I'd be happy to answer them. Please feel free to reach out. ☎️
http://www.costelloinvestmentadvisor.com/What-Is-a-Self-Employed-Retirement-Plan.c99.htm

Tax-deferred retirement plans for self-employed individuals have higher contribution limits than IRAs.

01/20/2023

The Social Security Administration’s retirement estimator gives estimates of your future benefits based on your actual Social Security earnings record.

01/19/2023

How Can I Estimate My Future Social Security Benefits?
Estimating your future Social Security benefits used to be a difficult task, but not any longer. For an estimate of your projected benefits, go to www.ssa.gov/estimator. The retirement estimator gives estimates based on your actual Social Security earnings record.
If you have any questions about your finances, I'd be happy to answer them. Please feel free to reach out. ☎️
http://www.costelloinvestmentadvisor.com/How-Can-I-Estimate-My-Future-Social-Security-Benefits.c98.htm

The Social Security Administration’s retirement estimator gives estimates of your future benefits based on your actual Social Security earnings record.

01/17/2023

📊If you have any questions about your finances, I'd be happy to answer them. Please feel free to reach out. ☎️

The Markets (as of market close January 13, 2023)
Stocks advanced for the second week in a row to kick off 2023. Investors were encouraged by inflation data that showed prices slid lower in December. The interest-rate-sensitive Nasdaq posted gains for six consecutive sessions, its longest streak since 2021, while the Nasdaq and the S&P 500 enjoyed their biggest weekly gains in nearly two months. China's economic reopening boosted prospects for increased energy demand, sending crude oil prices higher. The dollar declined last week, which helped gold prices surge to the highest level since April.
Last Monday saw stocks end the day with mixed results. Among the benchmark indexes listed here, the Nasdaq and the Global Dow gained 0.6%, while the Russell 2000 advanced 0.2%. The large caps of the Dow (-0.3%) and the S&P 500 (-0.1%) ended the session lower after trending up most of the day. Investors' hopes for a softening of interest-rate hikes were dampened by a few Federal Reserve officials who suggested that interest rates could hit 5.0%. Bond prices advanced pulling yields lower, with 10-year Treasury yields falling 5.2 basis points to 3.51%. Crude oil prices rose to $74.81 per barrel. The dollar slid lower, while gold prices rose more than a quarter of a percent to $1,875.70 per ounce.
Stocks jumped higher last Tuesday on hopes that the consumer price index for December will show further softening, which could prompt the Federal Reserve to slow the pace of its interest-rate hikes. The Russell 2000 led the benchmark indexes, gaining 1.5%, followed by the Nasdaq (1.0%), the S&P 500 (0.7%), the Dow (0.6%), and the Global Dow (0.2%). As stock values rose, bond prices fell, pushing yields higher, with 10-year Treasury yields adding 10.4 basis points to close at 3.62%. Crude oil prices changed little from the previous day. The dollar and gold prices advanced.
Equities advanced last Wednesday for a second consecutive day as investors seemed to be betting that inflation would continue to soften, strengthening the case for a Federal Reserve pullback on interest-rate hikes. The Nasdaq led the benchmark indexes, gaining 1.8%. The S&P 500 jumped 1.35, followed by the Russell 2000 (1.1%), the Dow (0.8%), and the Global Dow (0.7%). Ten-year Treasury yields fell 6.7 basis points to 3.55%. Crude oil prices rose 3.4% to $77.65 per barrel, supported by expectations of stronger demand from China. The dollar inched higher, while gold prices continued to rally, adding $4.10 per ounce to reach $1,880.60 per ounce.
Not surprisingly, investors were encouraged after the release of the latest consumer price index (see below). Stocks advanced for the third consecutive day last Thursday, led by the Russell 2000 (1.7%) and the Global Dow (1.4%). The Dow and the Nasdaq rose 0.6%, while the S&P 500 gained 0.3%. Ten-year Treasury yields fell 10.5 basis points to 3.44%. Crude oil prices rose to $78.34 per barrel. The dollar edged lower, while gold prices climbed higher, hitting $1,900.80 per ounce.
Stocks continued their rally last Friday. The Nasdaq and the Global Dow gained 0.7%, while the Russell 2000 rose 0.6%, the S&P 500 advanced 0.4%, and the Dow climbed 0.3%. Ten-year Treasury yields added 6.2 basis points to close at 3.51%. Crude oil prices advanced $1.57 to reach $79.96 per barrel. The dollar slipped for the second consecutive day, while gold prices vaulted up 1.3% to $1,921.90 per ounce.

01/13/2023

Will Social Security Retire Before You Do?
People have traditionally seen Social Security benefits as the foundation of their retirement planning programs. The Social Security contributions deducted from workers’ paychecks have, in effect, served as a government-enforced retirement savings plan.

However, the Social Security system is under increasing strain. Better health care and longer life spans have resulted in an increasing number of people drawing Social Security benefits. As the baby boom generation (those born between 1946 and 1964) has begun to retire, even greater demands are being placed on the system.

If you have any questions about your finances, I'd be happy to answer them. Please feel free to reach out. ☎️
http://www.costelloinvestmentadvisor.com/Will-Social-Security-Retire-Before-You-Do.c97.htm

Greater demand is being placed on the Social Security system as the baby boom generation has begun to retire.