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%.1,2,3
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.
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.4
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, 2020.5
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
This Week: Companies Reporting Earnings
Monday: Lennar Corporation (LEN).
Source: Zacks, September 10, 2021
Tax Resources for Military Members, Veterans, and Their Families
Tax Information for Members of the Military is on the main page on IRS.gov where people can go to find links to helpful info, resources, and services. The page includes resources and forms that both current and former military members, combat service, and disabled veterans might need.
Military members should check their eligibility for military tax benefits because their military status can affect whether they are eligible for certain benefits.
* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS.gov6
You can easily touch me, but not see me. You can throw me out, but not away. What am I?
Last week’s riddle: I can only live where there is light, but I die if the light shines on me. What am I? Answer: A shadow.
Footnotes and Sources
2. The Wall Street Journal, September 10, 2021
3. The Wall Street Journal, September 10, 2021
4. CNBC, September 8, 2021
5. CNBC, September 9, 2021
6. IRS.gov, October 19, 2020
7. Sharp.com, September 9, 2020
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