business-1730089_1920Stocks continued their advance on generally strong earnings reports this week despite the GDP report showing a slow first quarter economy. The S&P 500 rose 1.51%, the Dow gained 1.91%, and the NASDAQ added 2.32%.[1] On Tuesday, the NASDAQ posted record highs as it closed over 6,000 for the first time.[2] Internationally, the MSCI EAFE was up 2.97%.[3]

On Friday, April 28, we learned that first quarter GDP increased a modest 0.7%, lower than the reported consensus expectations of approximately 1%.[iv] Oil drilling and housing performed well, but consumer spending fell, largely due to poor auto sales and lower utility bills.[v] Consumer spending, the largest segment of our economy, rose by only 0.3%.[vi]

While this growth is slower than the 2.1% last quarter—and the lowest we’ve experienced in three years—the picture is likely not as negative as it may seem at first.[vii] Not only did mild weather affect consumer spending on heating, but the government has also acknowledged its challenges accurately calculating data for first quarter GDP.[viii]

In addition to these GDP readings, a number of other events and data releases contributed to market performance this week.

Domestic Developments

  • Corporate Earnings Were Largely Positive

Thus far in the first quarter, 79% of reporting companies published strong profits.[ix] In particular, consumer discretionary companies and commodity producers reported robust earnings while phone services and real estate investment trusts had weaker results.[x]

Strong Reports:[xi]
General Motors
Alphabet (parent company of Google)

Disappointing Reports:[xii]
Procter & Gamble
U.S. Steel

  • Trump Announced Tax Plan

President Trump outlined his new tax proposal, including plans to cut corporate taxes to 15%.[xiii] Individual tax rates would fall to 10%, 25%, and 35% if Congress adopts the President’s plan.[xiv]

International News

  • North American Trade Experienced Tension

On Wednesday, April 26, reports that the U.S. may pull out of NAFTA created concern in financial markets.[xv] By Thursday, however, markets calmed after President Trump said he would agree to requests from Canada and Mexico’s leaders to renegotiate the decades-long trade deal.[xvi] As these negotiations continue, two controversies lay in the background:

  1. S. dairy farmers’ claims that Canadian action concerning milk imports violates the trade agreement.[xvii]
  2. A new tariff of up to 24% on Canadian softwood lumber that President Trump announced last week.[xviii]

Finding the right solution for the negotiations is important to the U.S., Canada, and Mexico. NAFTA affects a significant portion of each country’s economy, including industries such as farming, automotive, and energy. Trade with the two countries accounted for approximately $584 billion in U.S. exports in 2016.[xix]

  • French Elections Moved Markets

Political newcomer Emmanuel Macron emerged as the frontrunner in the French election while ultra-right nationalist Marine Le Pen’s chances of winning the May 7 final election appear to be fading.[xx] After the first round election results eased investor concerns about a possible Le Pen victory, the markets reacted positively with $2.4 billion flowing into European equities by April 26.[xxi] Asian equities also rallied.[xxii]

What’s Next

With Congress avoiding a shutdown last week, the markets should focus this week on:

  • Earnings reports
  • Construction spending
  • April auto sales
  • Manufacturing data
  • Federal Reserve meeting on Wednesday

By Friday, most remaining S&P 500 companies’ earnings reports will be in, including Apple, Facebook, and Pfizer.[xxiii] Looking ahead, we will watch for what economic stories emerge from the data we receive, including the upcoming jobs report. For now, despite the first quarter’s initially slow GDP growth of 0.7%, expectations continue for 2.5% growth in 2017.[xxiv]


Monday: Construction Spending, Personal Income and Outlays, PMI Manufacturing Index, ISM Manufacturing Index

Wednesday: ADP Employment Report, PMI Service Index, ISM Non-Manufacturing Index

Thursday: International Trade, Productivity and Costs

Friday: Employment Situation

DATA AS OF 4/28/2017 1 WEEK SINCE 1/1/17 1 YEAR 5 YEAR 10 YEAR
STANDARD & POOR’S 500 1.51% 6.49% 15.44% 11.27% 4.87%
DOW 1.91% 5.96% 17.82% 9.65% 4.83%
NASDAQ 2.32% 12.34% 26.64% 14.70% 9.13%
INTERNATIONAL 2.97% 8.89% 8.30% 3.88% -1.96 %
DATA AS OF 4/28/2017 1   MONTH 6   MONTHS 1   YEAR 5   YEAR 10   YEAR
TREASURY YIELDS (CMT) 0.68% 0.99% 1.07% 1.81% 2.29%

Notes: All index returns (except S&P 500) exclude reinvested dividends, and the 5- year and 10-year returns are annualized. The total returns for the S&P 500 assume reinvestment of dividends on the last day of the month. This may account for differences between the index returns published on and the index returns published elsewhere. International performance is represented by the MSCI EAFE Index. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly.

Horseradish Salmonsalmon-518032_1920

A healthy, no-fuss fish dish!


1 English cucumber

2 TBSP distilled white vinegar

2 TBSP fresh dill, chopped

2 TBSP olive oil

½ cup panko (light, crispy bread crumbs)

2 TBSP prepared horseradish

4 salmon fillets, boneless and skinless

6 oz baby spinach


  1. Preheat oven to 475°F.
  2. Cover large baking sheet with foil and set aside.
  3. Grab a large bowl and combine cucumber, vinegar, 1 TBSP dill, 1 TBSP olive oil, and ⅛ tsp each of salt and pepper.
  4. In a small bowl, combine horseradish, panko, and remaining olive oil and dill.
  5. Top salmon with ⅛ tsp each of salt and pepper.
  6. Place salmon on the baking sheet with the smooth side facing up.
  7. Press panko mixture onto each fillet, spreading evenly.
  8. Bake salmon for 8 minutes, or until the fish is opaque throughout and brown on top.
  9. Combine spinach and cucumber mixture in a bowl and toss together to serve with the salmon.

Recipe adapted from Good Housekeeping[i]

office-620822_1920Amending Errors on Filed Returns*

Filing your taxes can be a complicated, cumbersome process. As a result, errors sometimes slip through and make it into the tax returns you file. If you noticed errors after you’ve filed with the IRS, you are able to make amendments. Here are some key tips to help you take the right steps.

Can you file amended returns electronically?

No. You must file an amended return by mailing the IRS a paper copy of form 1040X.

What changes does the IRS allow you to make?

Taxpayers can amend their return for specific reasons:

  • Allowed: You can make changes to your return when you have edits such as updating your income amounts, correcting your filing status, and claiming deductions.
  •  Not Allowed:
  • Math errors: You typically do not need to file an amended return to change any math errors. The IRS calculates all math and automatically corrects wrong calculations that your return includes.
  • Missing forms: You don’t need to file a new return if you forgot to include a form, such as your W-2. The IRS will send you a letter to request missing documents.

You usually have three years to file an amended return from the date that you originally filed. Other details apply, so be sure to check out further guidance on the IRS website.

*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 advisor.

Tip courtesy of[i]

Tips to Keep Your Blood Pressure Downunit-of-pressure-990462_1920

Having high blood pressure is serious. While the proper medication can help you manage your blood pressure, you also can address aspects of your lifestyle to help keep your levels in check. Below are a few changes that can positively affect and help lower your blood pressure.

Tip 1: Lose weight

Losing weight is one of the top life changes that may decrease your blood pressure. Even
dropping 10 pounds can make a difference. People who are overweight also can develop sleep apnea, which also may increase your blood pressure. Gaining weight around your waistline can increase blood pressure, so closely watching (and minimizing) how you gain fat is important.

Tip 2: Eat less sodium

Generally, people should aim to eat no more than 2300 mg of sodium a day. If you’re older than 50, limit yourself to 1500 mg each day. By doing things like eating less processed food and scrutinizing food labels, even small salt reductions can decrease your blood pressure by 2 to 8 mm Hg.

Tip 3: Stop smoking

Every time you smoke, you work against your health. In fact, each cigarette increases your blood pressure — and it remains high for minutes after smoking. By quitting smoking, you will help lower your blood pressure.

Tip courtesy of Mayo Clinic[ii]




























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