Market Slips as Q1 Reports Arrive

Stocks started the four-day week with modest gains. Trade volatility subsided as several money center banks reported Q1 numbers at or above expectations.³

Stocks trended lower midweek after Federal Reserve Chair Jerome Powell expressed concern that tariffs would likely “move us further away from our goals”—including keeping inflation in check.⁴

Stocks were mixed on the week’s last trading day as traders evaluated White House news that trade deals were progressing with Japan, China, and the European Union. The S&P 500 ended the day higher, but the Dow Industrials were under pressure after a large healthcare company gave a disappointing Q1 report.⁵

^{Source: YCharts.com, April 19, 2025. Weekly performance is measured from Monday, April 11, to Thursday, April 17. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.}

Stocks were under pressure following comments from Fed Chair Powell, who expressed concern about the ability of the Fed to balance its inflation and employment goals given the current trade situation. He said, “Tariffs are highly likely to generate at least a temporary rise in inflation,” and “the inflationary effects could be more persistent.”⁶

These are Powell’s latest remarks about tariffs. The Fed Chair made similar comments earlier this month at an event in Alexandria, Virginia.⁷

Monday: Leading Economic Indicators.

Tuesday: Philadelphia Fed President Harker speaks.

Wednesday: Chicago Fed President Austan Goolsbee, St. Louis Fed President Alberto Musalem, Atlanta Fed President Bostic, and Fed Governor Christopher Waller speak. PMI Services. PMI Manufacturing. New Home Sales. Fed Beige Book.

Thursday: Durable Goods. Weekly Jobless Claims.

Friday: Consumer Sentiment (final).

^{Source: Investors Business Daily – Econoday economic calendar; April 17, 2025
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.}

Tuesday: Tesla, Inc. (TSLA), GE Aerospace (GE), Verizon Communications Inc. (VZ), Intuitive Surgical, Inc. (ISRG), RTX Corporation (RTX), Danaher Corporation (DHR), Lockheed Martin Corporation (LMT), Elevance Health, Inc. (ELV)

Wednesday: Phillip Morris International Inc. (PM), International Business Machines Corporation (IBM), AT&T Inc. (T), ServiceNow, Inc. (NOW), Thermo Fisher Scientific Inc. (TMO), Boston Scientific Corporation (BSX), NextEra Energy, Inc. (NEE), Texas Instruments Incorporated (TXN), The Boeing Company (BA), CME Group Inc. (CME)

Thursday: Alphabet Inc. (GOOG/GOOGL), The Proctor & Gamble Company (PG), T-Mobile US, Inc. (TMUS), Merck & Co., Inc. (MRK), PepsiCo, Inc. (PEP), Union Pacific Corporation (UNP), Gilead Sciences, Inc. (GLD), Comcast Corporation (CMCSA), Fiserv, Inc. (FI), Bristol Myers Squibb Company (BMY)

Friday: AbbVie Inc. (ABBV)

^{Source: Zacks, April 17, 2025. 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 Small Business Health Care Tax Credit

The IRS introduced the small business healthcare tax credit in an effort to extend healthcare benefits. This credit may benefit employers with fewer than 25 full-time equivalent employees, offer a qualified health plan through a Small Business Health Options Marketplace, and pay at least 50% of the employee-only health care coverage cost. There may also be some average wage requirements.

The maximum credit covers:

• 50% of premiums paid for small business employers
• 35% of premiums paid for small tax-exempt employers

The credit may also be available for two consecutive taxable years.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional. 

Tip adapted from IRS⁸

Games to Exercise Your Brain

Brain training is a great way to keep your mind sharp, and these fun games are designed for people of all ages. Improve your mental fitness with games like:

• Sudoku – This strategy game requires you to find the correct order of numbers 1-9 in a 3×3 grid. There can only be one of each number in each row and column.
• Crossword Puzzles – Find the correct word for each clue. The words intersect and share letters, so you have to make sure you have the right word otherwise the puzzle won’t fit!
• Peak – A brain training app for your phone or tablet. It offers several different games designed to improve cognitive function and problem-solving. 

Tip adapted from Very Well Mind⁹

Hassan II Mosque
Casablanca, Morocco

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The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.

The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.

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