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Weekly Economic Update: July 30, 2023

A Friday surge pushed stocks solidly into positive territory last week, ignited by cooling in an inflation gauge closely tracked by the Federal Reserve. The Dow Jones Industrial Average advanced 0.66%, while the Standard & Poor’s 500 climbed 1.01%. The Nasdaq Composite index rose 2.02% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, gained 0.74%.

Stocks Pop

Stocks were flat for much of last week amid a batch of new earnings, a 0.25% interest rate hike, and strong economic data. After beginning with gains, stocks lost momentum following the Fed’s expected rate-hike announcement on Wednesday. A bounce on Thursday sparked by a positive mega-cap tech company earnings reversed after bond yields increased.  

Stocks recovered strongly Friday on the release of the personal consumption expenditures price index, which fell to its lowest level in two years. Much of the market action was related to earnings results. With 44% of S&P 500 companies reporting, 78% have exceeded Wall Street forecasts.

Recession Deferred

Expectations of a recession were high coming into 2023. Last week may have erased this recession narrative overhang...

Who Qualifies for the Child and Dependent Care Tax Credit?

Let's outline who the Internal Revenue Service (I.R.S.) defines as a qualifying person under this care credit:

• A taxpayer’s dependent who is under the age of 13 when the care is provided.
• A taxpayer’s spouse who cannot care for themselves has lived with the taxpayer for more than half the year.

In addition to spouses and dependents, the credit may also cover someone who is mentally or physically unable to care for themselves and lives with the taxpayer for six months. This is the case if that person was the taxpayer's dependent or if they would have been the taxpayer's dependent except for one of the following:

• The qualifying person received a gross income of $4,400 or more. 
   
• The qualifying person filed a joint return. 
   
• If filing jointly, the taxpayer or spouse could be claimed as dependent on someone else’s return.

*This information is not intended to substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax professional.  Tip adapted from IRS.gov7 

Advancing Diversity -- and Your Portfolio

We see real interest from our clients in integrating equality into their investment decisions. Investors say it is important that companies they invest in have policies in place to promote diversity, equity and inclusion, hire and promote employees of diverse backgrounds, and have people of diverse backgrounds in leadership positions.

Despite progress made, we are still a long way away from achieving equality in the workplace. Thanks to investor demand, increased data and transparency driving investment strategies and more robust impact reporting capabilities, investors now have more...

Parting Shot

Happy Colorado Day!  

August 1st marks the 147-year anniversary of Colorado becoming a state. 

Photo credit: Lars Leber Photography, Black Bear Pass, Colorado

Capstone built our reputation on friendly service, impeccable honesty, and respect for every client. Our clients’ needs drive our relationship, and the focus is always on you. We strive to be highly responsive to your requests and are skilled at creating solutions customized to your goals, values, and situation.  Reach out anytime with questions. We're happy to help!

Capstone Investment Financial Group, LLC

Colorado Springs/Denver

719-477-9883

info@capstoneinvest.com