U.S. equities finished out a bumpy week on an up note, but snapped a two-week winning streak, as investors weighed a ramp up in Q1 earnings season and continued uncertainty surrounding the timing and implications of the reopening of the U.S. economy. Moreover, Congress passed another bill this week to aid small businesses and the healthcare system to combat the severe disruption from the COVID-19 (coronavirus) pandemic. However, the economic calendar continued to provide more dismal data to keep sentiment in check, as U.S. consumer sentiment fell to lows not seen since 2011 and durable goods orders dropped more than expected, even though the internal components of the report were not as bad

U.S. equities finished higher, posting a second-straight week of gains, as new developments in the forward progress in the war against the coronavirus pandemic boosted sentiment and overshadowed a record monthly drop in Leading Indicators. Yesterday evening, a report from STAT News said Gilead Sciences' potential COVID-19 treatment, known as Remdesivir, saw "rapid" recoveries in a study of patients, President Donald Trump unveiled guidelines on reopening the world's largest economy and Dow member Boeing said it plans to restart commercial-plane production. In earnings news, Dow component Procter & Gamble posted mixed quarterly results and guidance. Treasury yields were higher as bond prices

Key Points It's smart to understand your potential capital gains tax liability before you put your house on the market. An individual can exclude up $250,000 of profit on a home sale from their taxable income; a married couple can exclude up to $500,000. To qualify for these exclusions, the seller must pass the IRS ownership and use tests. Dear Carrie, Two and a half years ago my husband and I moved from a home we had owned and lived in for ten years. At that time we bought a new house and have been renting out the old one. Will we have to pay capital gains if we sell the old house? —A Reader Dear Reader, Great question—and good you're asking it now. That's because, while there are generous

As an investor, there’s good reason to be focused on how well your investments are performing. But you don’t want to overlook other considerations that are nearly as essential. The Schwab Center for Financial Research has found that while wise investment selection and asset allocation are among the most important factors for investing success—minimizing taxes and other costs is also key. “Almost every financial decision you make has tax consequences,” says Hayden Adams, CPA, CFP®, and director of tax planning at the Schwab Center for Financial Research. “Tax planning goes beyond looking at your taxes at tax time, since by then it’s usually too late to make changes that significantly reduce y

Looking into the future with accurate vision can be a valuable skill for investment managers. Copper is the world’s third most widely used metal, ranking behind iron and aluminum and is used in highly cyclical industries such as construction and industrial machinery manufacturing. With copper’s reputation as a leading economic indicator, it can’t hurt to keep an eye on the red metal as we attempt to observe what’s ahead. As we started 2020 analysts seemed to agree that fundamentals for copper appeared positive. Prices were moving higher throughout last year’s fourth quarter as the progress in global trade relations put an encouraging bid to the market. In the absence of a major economic down

Key Points COVID-19-relevant leading indicators are painting a bleak economic picture. Murkiness in the outlook has resulted in an incredibly wide (and dour) outlook for second quarter real GDP. Beyond the obvious short-term implications of COVID-19 and its economic impact, there are longer-term secular changes likely coming. I participated in a Reuters Twitter Chat for an hour last week—one of the fastest-paced hours I’ve ever spent on Twitter. One of the initially-posted questions was whether we felt the COVID-19-related contraction in the economy would ultimately be declared a recession or a depression. I replied that we may need a new descriptor this time—perhaps a “screeching halt” (by

U.S. equities finished higher, adding to a recent rally off of the March 23rd lows in the final day of a holiday-shortened week, as the Federal Reserve delivered another flood of monetary policy stimulus, this time to the tune of $2.3 trillion. The Fed's actions are aimed at providing further relief and stability to the markets in the wake of another surge in jobless claims that has brought unemployment applications above the 16 million mark in just the past three weeks. Treasury yields fell as bond prices gained ground, while the U.S. dollar was sharply lower and gold was solidly higher. Crude oil prices dropped in late-day trading, as investors awaited details of possible production cuts f

U.S. stocks are extending a recent bounce off of March 23rd lows in the final day of a holiday-shortened week, with the Federal Reserve delivering another monetary policy bazooka blast of $2.3 trillion. The Fed's actions are aimed at providing further relief and stability to the markets in the wake of another spike in jobless claims that have breached 16 million in the past three weeks. Asia finished mostly higher and Europe is gaining ground with the global markets also continuing to find support from early signs of a flattening of the COVID-19 curve. Treasury yields are mostly lower as bond prices rise on the short-to-mid ends of the curve. The U.S. dollar is falling and gold prices are ri

As you build your nest egg and plan for retirement, one of the most important things is to estimate how your expenses might look like after you stop working. One approach is to assume you’ll need only 75% to 80% of your current income once you reach retirement, since some big work-related expenses—such as annual retirement contributions and commuting costs—will likely go away. Indeed, data compiled by the Bureau of Labor Statistics shows a reduction in spending right around the typical retirement age—65 for men and 63 for women1—and continues to decline during retirement. Declining dollars On average, household spending may drop upon retirement—and continue to decline as retirees age. Source

The U.S. equity markets ended another bumpy week on a down note, posting the third weekly decline in four, as the heightened uncertainty surrounding the depth and duration of the COVID-19's economic and social impact continued to sap sentiment. The uneasiness came amid news that global cases breached the 1 million mark and the U.S. looks to be heading into rough waters. As well, a host of March economic data painted a downbeat picture, with nonfarm payrolls in the U.S. falling by a much larger-than-expected amount and likely understated after the severe spike in jobless claims that occurred at the end of March that approached the 10 million mark. Moreover, ISM's services sector report, tilte

When you’re saving for retirement, you have to make assumptions about your future expenses in order to come up with a realistic savings target. According to the U.S. Bureau of Labor Statistics, the biggest essential expense for retirees is housing, followed by transportation, food, and health care. Let’s drill down on these four key categories to help you evaluate what you’ll truly spend in retirement—and ways to trim those expenses, if necessary. 1. Housing Housing accounts for one-third of the average retiree’s total expenses. If that seems high, consider your current expenses: If you own your home, factor in all related costs, including homeowners association fees, insurance, maintenance,