2024 | March 4

The Markets

Stocks Rise



The S&P 500 rose around 1% and the NASDAQ added nearly 2%, with the latter index on Thursday surpassing its previous record high set in November 2021. So far in 2024, the indexes have generated positive results in seven out of nine weeks.

The S&P 500 pushed its record level higher eight times in February and climbed 5.2% overall, extending its positive streak to four months in a row. Over that stretch, the index’s cumulative gain was 21.5%. All 11 sectors were positive last month, led by communication services.

The price of the most widely traded cryptocurrency eclipsed $60,000 for the first time since November 2021 but remained below the record of nearly $69,000 that it set that month. Bitcoin’s price jumped about 44% during February and rose 20% over the latest week, as it traded above $62,000 on Friday.

Companies in the S&P 500 posted an average earnings gain of 4.0% over the same quarter a year earlier, according to FactSet data from the recently concluded fourth-quarter earnings season. That result marked the second consecutive year-over-year earnings increase following the third quarter’s 4.7% rise. Communication services posted a 45.0% gain, marking that sector’s second consecutive quarter as the earnings leader.

The U.S. Federal Reserve’s preferred gauge for tracking inflation showed that consumer prices continued to rise at a slower pace. The Personal Consumption Expenditures Price Index posted a 2.8% annual rate in January, excluding volatile food and energy prices. That result matched most economists’ expectations and marked the slowest increase since March 2021.

Inflation slipped in the 20 countries that use the euro as their currency, as the eurozone’s annual inflation rate fell to 2.6% in February from 2.8% the previous month. Excluding the volatile food and energy categories, core inflation fell to 3.1% from 3.3%.

The price of U.S. crude oil topped $80 per barrel on Friday, rising to the highest level in about four months. For the week, oil rose more than 4% amid concern that a consortium of oil-producing countries could extend the duration of recent production cuts.

A monthly labor market report due out on Friday will show whether the recent trend of better-than-expected jobs numbers extended into February. In January, the economy generated 353,000 new jobs—about double the number that most economists had been expecting. The unemployment rate stayed unchanged at 3.7%. 

Source: John Hancock Investment Management

March Madness!

Printing Houses on the Moon

For decades, Star Trek and its many spinoffs told tales of space travel. In that fictional universe, the Starfleet explored space at the behest of an interstellar government following the rules and laws of that government.

For many years, actual space exploration fell under the purview of governments, too. However, that has been changing. Today, space is a rapidly growing private sector endeavor. Estimates suggest the private space industry could be valued at $770 billion by 2027, reported Reuters.

In the next decade or so, we may see:

• Direct-to-device satellite programs. “Integrating satellite and terrestrial mobile networks could unlock new revenue for the satellite, semiconductor, and telecom industries,” wrote David Jarvis and colleagues in Deloitte Insights. “…this technology does not compete with terrestrial cellular services from mobile network operators. It provides limited connectivity in areas where there is no terrestrial cellular coverage.” (Extraterrestrial service is not yet available.)

• Growth of the Low Earth Orbit (LEO) economy. An early area of growth in the space economy is expected to take place 99 to 1,200 miles above the Earth in what’s known as LEO. According to Deloitte, “…the industry can be dissected into six broad market segments that encompass specific commercial activities.” The segments include infrastructure, services, on-orbit research and development, on-orbit manufacturing, space tourism, and media, entertainment and advertising.

• Habitable communities on the moon by 2040. “In the vast expanse of the cosmos, a visionary dream is becoming a reality: homes on the moon, an audacious endeavor spearheaded by NASA. This cosmic ambition…is now hurtling towards reality, fueled by cutting-edge technology, innovation, and unyielding determination...Imagine houses emerging from the moon’s surface…crafted from the very rock chips and mineral fragments that define the moon's rugged terrain. How, you might understandably ask? With 3D printers,” reported Architectural Digest.

The growing space industry will create opportunities for investors – and for new graduates who can pursue careers related to space in the private industry, as well as within governments.

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eMoney

Charles Schwab

Advyzon

Emily Triano

Operations Manager

emily@ajadvice.com

Maya Laws

Operations Associate

maya@ajadvice.com

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