A strong opening to the third-quarter earnings season sparked a late week, broad-based rally that helped stocks finish the week with solid gains.

The Dow Jones Industrial Average rose 1.58%, while the Standard & Poor’s 500 added 1.82%. The Nasdaq Composite index led, gaining 2.18% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, was up 1.37%.

Investor Optimism Returns

After beginning the week on a lackluster note, stocks turned higher on Wednesday as companies kicked off a new earnings season and details about the Fed’s taper plans emerged. Investor enthusiasm shifted into high gear the following day on positive economic data and earnings reports that exceeded investor expectations. Buying continued through Friday on fresh earnings surprises and a better-than-expected retail sales report.

The economic data allayed some concerns about inflationary pressures and economic deceleration, while early earnings results provided hope that companies had weathered the surge in summer Covid infections. Nevertheless, worries about how supply-chain disruption and higher prices may impact corporate earnings guidance haven’t gone away.

Let the Tapering Begin

Minutes from September’s Federal Open Market Committee released last week provided detail around the Fed’s plans to taper its $120 billion monthly bond purchase program. The Fed expects to reduce its purchases by $15 billion each month, beginning in mid-November/December and ending in June 2022.

This tapering schedule is somewhat faster than what investors were anticipating, reflecting the Fed’s concern that inflation has been somewhat higher and more persistent than it had anticipated, with continuing supply-chain bottlenecks raising that risk level. Fed Chair Powell’s commitment to transparency and advanced signaling of policy changes appeared to have worked, as markets greeted the news calmly. In fact, stocks rallied strongly the following day as yields moved lower.

This Week: Key Economic Data

Monday: Industrial Production.

Tuesday: Housing Starts.

Thursday: Jobless Claims. Existing Home Sales. Index of Leading Economic Indicators.

Friday: PMI (Purchasing Managers’ Index) Composite Flash.

^{Source: Econoday, October 15, 2021
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.}

This Week: Companies Reporting Earnings

Tuesday: Netflix, Inc. (NFLX), Johnson & Johnson (JNJ), Procter & Gamble (PG), Kansas City Southern (KSU).

Wednesday: Tesla, Inc. (TSLA), International Business Machines (IBM), Verizon Communications (VZ), Abbott Laboratories (ABT), United Airlines (UAL), CSX Corporation (CSX).

Thursday: AT&T, Inc. (T), Intel Corporation (INTC), Snap, Inc. (SNAP), PPG Industries, Inc. (PPG), Southwest Airlines (LUV), American Airlines Group, Inc. (AAL), Union Pacific Corporation (UNP), Chipotle Mexican Grill, Inc. (CMG), Danaher Corporation (DHR), Dow, Inc. (DOW).

Friday: American Express Company (AXP), HCA Healthcare, Inc. (HCA), Schlumberger Limited (SLB).

^{Source: Zacks, October 15, 2021
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.}

The post Investor Optimism Returns – Weekly Update for October 18, 2021 appeared first on Hixon Zuercher Capital Management.

In the monthly market update, Josh and Austin discuss the major market events from the previous month.

If you have any questions about your portfolio after watching this video, please don’t hesitate to reach out to us. We would love to talk with you. Send us an email at hello@hzcapital.com or give us a call at (419) 425-2400.

The post October 2021 Market Update Video appeared first on Hixon Zuercher Capital Management.

The overhang of bumping against the federal debt ceiling was lifted last week with an agreement to extend the debt ceiling through early December, helping propel stocks to a weekly gain.

The Dow Jones Industrial Average increased by 1.22%, while the Standard & Poor’s 500 added 0.79%. The Nasdaq Composite index gained 0.09%. The MSCI EAFE index, which tracks developed overseas stock markets, was flat (+0.11%).

Debt Ceiling Concerns Evaporate, for Now

After suffering losses on concerns over delays with raising the federal debt ceiling, stocks rebounded as the Senate moved toward finalizing a debt ceiling agreement. While the agreement is only a short-term solution, it was enough to embolden investors to buy stocks.

The week’s rally ran out of gas on Friday, however, on a surprisingly weak employment report. Though the debt ceiling was the dominant concern in the markets last week, the market grappled all week with the headwinds of higher energy prices, rising bond yields, inflation, and less robust economic growth.

Fuzzy Employment Picture

Employment remains a confusing and unpredictable element of this post-pandemic economic recovery. Automated Data Processing’s employment report showed private sector jobs rose by a robust 568,000. This hiring surge may have been aided by the end of extended unemployment benefits and the return of children to school.

This improving labor outlook was reinforced the following day as weekly initial jobless claims fell below their four-week moving average, while continuing claims fell by nearly 100,000. The employment report on Friday was a different story. The economy added a disappointing 194,000 jobs, making September the slowest month for job growth this year. The unemployment rate declined to 4.8%, while an increase in wages generated inflation worries. 

This Week: Key Economic Data

Tuesday: JOLTS (Job Openings and Labor Turnover Survey).

Wednesday: Consumer Price Index. FOMC (Federal Open Market Committee) Minutes.

Thursday: Jobless Claims.

Friday: Retail Sales. Consumer Sentiment.

^{Source: Econoday, October 8, 2021
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.}

This Week: Companies Reporting Earnings

Wednesday: JPMorgan Chase (JPM), Goldman Sachs (GS), Delta Airlines (DAL), BlackRock, Inc. (BLK).

Thursday: Wells Fargo & Company (WFC), UnitedHealth Group (UNH), Citigroup, Inc. (C), Walgreens Boots Alliance, Inc. (WBA), Morgan Stanley (MS).

Friday: J.B. Hunt Transportation, Inc. (JBHY), The PNC Financial Services Group, Inc. (PNC).

^{Source: Zacks, October 8, 2021
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.}

The post Debt Ceiling Concerns Evaporate, For Now – Weekly Update for October 11, 2021 appeared first on Hixon Zuercher Capital Management.

Higher bond yields and a legislative stalemate in Washington, D.C., added up to losses for the week.

The Dow Jones Industrial Average declined 1.36%, while the Standard & Poor’s 500 lost 2.21%. The Nasdaq Composite index fell 3.20%. The MSCI EAFE index, which tracks developed overseas stock markets, shed 2.58%.

An Ugly Week

The reality of a more hawkish Fed finally hit the bond market, sparking a sell-off in bonds that sent yields higher. Higher yields hurt technology and other high-growth companies, and that weakness spread to the broader market. (Higher yields can reduce the value of a company’s future cash flow, which may reset valuations).

Congress added to the market uncertainty. It was unable to advance an infrastructure bill, and it made little progress on the debt-ceiling agreement. After a sell-off to close out September, stocks surged on Friday on news of a potential Covid-19 oral therapeutic, an easing of yields, and reports that President Biden was traveling to Capitol Hill to help break the logjam on legislation.

Powell in the News

Fed Chair Jerome Powell was at the center of two news developments last week. The first was the announcement by a prominent senator opposing Powell’s renomination, heightening market uncertainty over the leadership transition when his term expires in February 2022.⁴

Powell later made comments at a European Central Bank event, admitting that the current bout of inflation may last longer than he and many other central bankers have previously expected. But he remained steadfast that inflation would be transitory, attributing much of today’s price pressures to temporary supply bottlenecks. Powell also said that he saw little evidence of building inflationary expectations from consumers or businesses.

This Week: Key Economic Data

Tuesday: ISM (Institute for Supply Management) Services Index.

Wednesday: ADP (Automated Data Processing) Employment Report.

Thursday: Jobless Claims.

Friday: Employment Situation.

^{Source: Econoday, October 1, 2021
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.}

This Week: Companies Reporting Earnings

Tuesday: PepsiCo, Inc. (PEP).

Wednesday: Constellation Brands (STZ).

Thursday: Conagra Brands (CAG).

^{Source: Zacks, October 1, 2021
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.}

The post An Ugly Week – Weekly Update for October 4, 2021 appeared first on Hixon Zuercher Capital Management.

Stocks prices were whipsawed last week, dragged initially lower by financial contagion worries and later lifted by a supportive Fed policy statement.

The Dow Jones Industrial Average gained 0.62%, while the Standard & Poor’s 500 advanced 0.51%. The Nasdaq Composite index was flat (+0.02%) for the week. The MSCI EAFE index, which tracks developed overseas stock markets, ticked higher by 0.20%.

A Wild Week

Last week began with a sharp sell-off on contagion concerns that the financial difficulties of a large, debt-laden Chinese property developer could spread to other parts of the global financial system. This added to an existing list of worries that included Delta variant infections, slowing economic activity, debt ceiling brinkmanship in Washington, and Fed tapering uncertainty.

By mid-week stocks bounced back strongly on news that downgraded the risk coming from China and a Fed announcement that its bond purchases would continue, though it did anticipate a moderation in such purchases coming soon. When the dust settled, a week that had appeared set for losses ended in small gains.

Coming Soon

The Federal Reserve concluded its FOMC (Federal Open Market Committee) meeting last week, announcing that it may start tapering its monthly bond purchases soon, perhaps as early as November, and could raise rates sometime next year.

Fed Chair Jerome Powell provided further detail in a subsequent press conference, saying that bond purchases may end entirely by the middle of 2022. The support for hiking interest rates also increased, with half of the 18 Fed officials expecting interest rates to be higher by the close of next year, up from just seven who thought similarly in June. The Fed also cut its GDP growth projection to 5.9%, compared with its June estimate of 7%, while raising its inflation forecast from 3% to 3.7%.

This Week: Key Economic Data

Monday: Durable Goods Orders.

Tuesday: Consumer Confidence.

Thursday: Jobless Claims. Gross Domestic Product (GDP).

Friday: ISM (Institute for Supply Management) Manufacturing Index.

^{Source: Econoday, September 24, 2021
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.}

This Week: Companies Reporting Earnings

Tuesday: Micron Technologies, Inc. (MU).

Wednesday: Cintas Corporation (CTAS).

Thursday: McCormick & Company (MKC), CarMax, Inc. (KMX).

^{Source: Zacks, September 24, 2021
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.}

The post A Wild Week – Weekly Update for September 27, 2021 appeared first on Hixon Zuercher Capital Management.

Stocks weakened ahead of this week’s Federal Reserve meeting and amid persistent concerns about the Delta variant’s impact on the economy.

The Dow Jones Industrial Average was flat (-0.07%), while the Standard & Poor’s 500 fell 0.57%. The Nasdaq Composite index lost 0.47% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, dropped 0.65%.

Stocks Struggle

Despite a string of economic reports painting a healthy picture of the U.S. economy, investor sentiment remained cautious. While tamer inflation and higher-than-expected retail sales may typically be constructive for the market, any investor enthusiasm it generated was fleeting.

The market appeared all week to be encumbered by a tentative, apprehensive mood. The Delta variant remained an overhang, but it was more than that. Investors appeared concerned about September, which historically has been a weak month for stock prices. The market also was concerned about fiscal and tax policy proposals emanating from Washington D.C., news of an economic slowdown in China, and by what the Fed may announce following its September 21-22 Federal Open Market Committee meeting.

Taking the Economic Pulse

A series of economic reports released last week provided investors with a broad snapshot of the state of the economic recovery.

Inflation showed signs of moderating, rising 0.3%—an elevated rate, but well below June and July’s increases of 0.9% and 0.5%, respectively. The consumer remained strong as retail sales rose 0.7%, an unexpected jump. Manufacturing reached pre-pandemic, while the labor market continued its recovery, with initial jobless claims coming in near pandemic lows and continuing claims hitting a new pandemic low.

This Week: Key Economic Data

Tuesday: Housing Starts.

Wednesday: Existing Home Sales. FOMC (Federal Open Market Committee) Announcement.

Thursday: Jobless Claims. Index of Leading Economic Indicators. PMI (Purchasing Managers’ Index) Composite Flash.

Friday: New Home Sales.

^{Source: Econoday, September 17, 2021
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.}

This Week: Companies Reporting Earnings

Tuesday: Adobe, Inc. (ADBE), Fedex Corporation (FDX), Autozone, Inc. (AZO).

Wednesday: General Mills (GIS).

Thursday: Costco Wholesale Corporation (COST), Darden Restaurants, Inc. (DRI), Trip.com Group (TCOM).

^{Source: Zacks, September 17, 2021
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.}

The post Stocks Struggle – Weekly Update for September 20, 2021 appeared first on Hixon Zuercher Capital Management.

I am thrilled to share the announcement we made Tuesday night at Tony’s book release event. If you haven’t heard, our co-Founder and Chief Operating Officer, Tony Hixon, has released a new book, Retirement Stepping Stones. You will want to be sure to check out the video trailer for the book here.

Our work at Hixon Zuercher is one of the many ways we’re actively trying to honor the legacy of Tony’s mom, Pam. Her story is tragic, but she was the type of woman who wouldn’t want her tragedy to be someone else’s narrative as well. My hope for this book is that Tony, and, by extension, our firm can help educate and empower others to plan for a FULFILLING and JOYFUL RETIREMENT. At the core of our work has always been a desire to help and serve others. In my mind, there’s no better way to do that than to approach retirement planning with a holistic and comprehensive process. We’ve always been a people-first firm, and this tragic event has spurred us to lean in and continue to prioritize the well-being of our clients in the work that we do.

The mission of Hixon Zuercher Capital Management is to provide wealth creation and investment management solutions that enable our clients to achieve financial freedom.

Our goal since starting the firm has been to help people win with their investments. Our focus is helping people retire successfully. In the past our definition of a successful retirement was simple: Our clients wouldn’t run out of money during retirement, and their wealth would outlive them.

Over the past nineteen years our team has become incredibly proficient in the world of financial planning. And now, Pam’s legacy is a part of our story. Our financial planning process has shifted beyond the numbers to include intentional coaching in our work. Until now the life coaching our advisors have offered to retiring clients has been an informal part of our conversations.

Today, I would like to announce that, beginning January 1^st of 2022 we will now be able to offer our clients and friends the opportunity to work with a Life Coach. We want to ensure that every client transitioning into retirement, or clients that are already in retirement, have the opportunity to work with a coach that will open the door to conversations about lifestyle, mental health, and the retirement transition. The purpose of offering a Retirement Coaching service is to ensure that we can help any client who wants it the opportunity to gain clarity on the life they are retiring to.

Scott Miller To Lead Our Retirement Coaching Program

Twenty-two years ago, a couple from our church invited my wife and I into their home to be part of a small group who would meet on a weekly basis. The purpose of those gatherings was to build community, encourage one another, and to grow spiritually. We spent two years as a group learning together, and during that time I formed a friendship with the leader of that group, Scott Miller.

Over the past twenty-two years, Scott has become a person I would go to when looking for advice as I navigated life. In fact, Scott played a key role when I was looking for feedback before making the decision to start our firm in 2002. Scott and I have been meeting for lunch once a month over the past twenty-two years, and he has been someone I can count on to help me navigate life’s biggest challenges.

Not only has Scott been a coach to me, but I have been his financial advisor. Scott and his wife, Steph, were one of our very first clients. Years ago, Scott and I began to plan for the day he would exit his dental practice and transition into retirement. Scott’s desire for retirement was to retire FROM dentistry an retire TO some sort of life coaching. Eventually, it would become clear that Scott Miller would be our firm’s very first Life Coach.

Scott joined our firm in July and having completely retired from dentistry he is now solely focused on helping us create our Retirement Coaching Program that we will make available to clients and friends this coming January.

The greatest thing we have learned from working with our clients is that wealth is much more than money. Helping our clients establish financial freedom is not our only goal. By offering our Retirement Coaching service, we want you to empower our clients to plan for a FULFILLING and JOYFUL retirement.

To learn more about Scott, see his bio here.

The post Introducing Our Life Coaching Service; Scott Miller to Lead the Program appeared first on Hixon Zuercher Capital Management.

Hi, I’m Tony Hixon, author of Retirement Stepping Stones: Find Meaning, Live with Purpose and Leave a Legacy.

On March 22^nd, 2011 my mom, Pam Hixon, chose to take her life. While the reasons have many twists and turns, her decision was mainly a result of being unprepared for retirement. To be clear, she was very prepared financially, but the non-financial side…sustaining meaning and purpose, she hadn’t spent enough time on.  She knew exactly what she was retiring from, but she was not prepared for what she was retiring to. She found herself, retired from a profession where she provided care of others, and her patients needing her for their very existence, to not feeling needed at all.  Within a few short weeks after retirement, she began to regret her decision.  Retirement hadn’t been all it was cracked up to be.  Her friends and social network were all still employed.  My dad was still working.  And she felt alone, isolated, desperate.  Anxiety and debilitating depression set in as she felt a loss of meaning and an extreme loss of purpose. Within six months of retirement, having exhausted all perceivable outlets in her mind to get better, she chose to take her life, she committed suicide.

Yesterday, my book, Retirement Stepping Stones, was released to the world!  In it, I lay out specific steps for a pre-retiree to work through to prepare for retirement from a non-financial viewpoint.  Things like: Taking time to articulate your values, define your skillset, your interests, your unique ability, and then pairing that with the sheer amount of time available within a week, are immensely critical.  The 40+ hours you’ve spent at the office are now going to be spent doing something else.  Visions of trips to Arizona and spending time with the grandkids will certainly fill a bit of that time, but not near enough to help you still feel engaged and purposeful.

Over the last 10 years, I’ve learned a lot and I’ve chosen to communicate this message and these learnings into book form.

Please take a moment to watch the Book Trailer by clicking on the below image.

My book is now available for purchase!  Check out www.tonyhixon.com/book to order a copy of yours today!

The post Tony Hixon Releases Book appeared first on Hixon Zuercher Capital Management.

In a quiet week of news, stocks moved lower amid simmering concerns over the Delta variant’s effect on the progress of economic reopening.

The Dow Jones Industrial Average declined 2.15%, while the Standard & Poor’s 500 dropped 1.69%. The Nasdaq Composite index fell 1.61% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, slipped 0.63%.

Stocks Weaken

In a holiday-shortened week of trading, markets were choppy as investors grew cautious in the face of a potential Fed tapering decision later this month and the impact of Delta on the economic recovery.

What little news there was, it was decidedly mixed. Job growth showed real strength coming off a shaky employment report the previous Friday, while the Producer Price Index surged by 8.3% year-over-year, representing the largest annual increase since November 2010. The release reminded investors that inflation remained a market risk. Stocks tried to stage a rebound on Friday before sagging to close out the week.

Jobs Improvement

After a disappointing employment report, two labor market reports last week appeared to show that the labor market recovery appeared intact. The JOLTS report (Job Openings and Labor Turnover Survey) showed 10.9 million open jobs, a number that exceeded the number of unemployed by more than two million. The rate of hiring, however, decelerated, perhaps explaining why the August employment report fell short of expectations.

A day later the weekly initial jobless claims fell to a new pandemic low of 310,000, coming in below its four-week moving average of 339,500. Continuing claims fell to their lowest level since March 14, 2020.

This Week: Key Economic Data

Tuesday: Consumer Price Index.

Wednesday: Industrial Production.

Thursday: Jobless Claims. Retail Sales.

Friday: Consumer Sentiment.

^{Source: Econoday, September 10, 2021
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.}

This Week: Companies Reporting Earnings

Monday: Lennar Corporation (LEN).

^{Source: Zacks, September 10, 2021
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.}

The post Stocks Weaken – Weekly Update for September 13, 2021 appeared first on Hixon Zuercher Capital Management.

Join Austin and Josh as they bring you 5 facts you need to know, and 5 you don’t, about the major market events from this past month.

If you have any questions about your portfolio after watching this video, please don’t hesitate to reach out to us. We would love to talk with you. Send us an email at hello@hzcapital.com or give us a call at (419) 425-2400.

The post September 2021 Market Update Video appeared first on Hixon Zuercher Capital Management.