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The Dowden Report – June 2024

Father’s Day and Summer Solstice Greetings

Hello and welcome to the June 2024 edition of The Dowden Report!

We are fast approaching Father’s Day and, of course, the Summer Solstice. Happy Father’s Day to all the great Dad’s out there! You deserve it! As the summer approaches, Genie and I are heading to Fossil Creek, Arizona. The cool mountain air and the amazing natural pools make for the perfect get-a-way. Not to mention I get to spend time with my mom and nieces and nephews. Good times…

Financial Update: 1st Quarter Earnings

The Good News

1st quarter earnings have all wrapped up. The Good News: 80% of Technology, Healthcare, and Consumer Staples companies beat their 1st quarter estimates.

The Bad News

Energy had the lowest earnings “Beat” rate with just over half of Energy companies beating expected earnings.

The Ugly

Only 29% of Real Estate companies beat their estimates… How did they even get 29%?!?!?

S&P 500 Performance

As a whole, 76.1% of all S&P 500 companies bested their earnings estimates. That sounds reasonably good until you consider that is 1.3% below our 4-year average. Now, you might be thinking; 1.3%, Josh, that’s not a lot… and you’d be right. However, ideally that number should be going up, not down.

Consumer Discretionary Sector and Credit Card Balances

More from the UGLY front: Markets have begun to price in weaker demand as the Consumer Discretionary sector has not kept up with the broad-based market. Credit card balances rose 13.1% in the 1st quarter. Nearing all time highs, interest rates approaching 21% have driven delinquencies up 29% in the 1st quarter; and 6.9% overall. To put that in perspective, the 15-year average for credit card delinquencies is 5.3%.

Inflation Concerns

Inflation continues to be sticky. This is likely to be a problem no matter who wins in November.

Jobs Report and Market Reaction

For more positive information: the market seemed to like the jobs report. That may be a signal for the Federal Reserve to lower interest rates. We will see.

Upcoming Elections

And lastly, 2024 is an election year. No, not the November Election…  in Las Vegas we have a mayoral race June 11th. Early voting has started and mail in ballots are arriving.

Contact Information

If it’s time for your review, or if you just want to talk, give me a call, I’m always here for you. For the Dowden Report, I’m Joshua Dowden.

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Important Information:

You should always seek counsel of the appropriate advisor prior to making any investment decision. All investments are subject to risk including the loss of principal. This material was gathered from sources believed to be reliable, however, its accuracy cannot be guaranteed.

S&P 500 Index is an unmanaged index and includes a representative sample of large-cap U.S. companies in leading industries. An investment may not be made directly in an index.

Joshua Dowden is a registered representative with, and securities and advisory services offered through LPL Financial, a registered investment advisor and member FINRA/SIPC. The investment professionals are affiliated with LPL Financial and are conducting business using the name Lucia Capital Group, a separate entity from LPL Financial.

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