financial news & updates
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Stocks cooled off in the wake of the previous week’s rally, and the major U.S. indexes finished mixed overall. The NASDAQ gained more than 2%, the S&P 500 and the Dow were little changed, and growth stocks generally outperformed their value counterparts. The S&P 500 closed on Friday at 4,145.2 for a gain of 0.4% on the week.
Despite the recent slowdown in U.S. economic growth, the labor market continues to exceed expectations. The government reported on Friday that the economy added 528,000 jobs in July—far exceeding most economists’ forecasts—and unemployment slipped to 3.5% from 3.6%.
The latest monthly employment gain marked a milestone, as the U.S. economy recouped the 22 million jobs lost in the initial months of the pandemic nearly two and a half years ago. The unemployment rate also returned to its February 2020 pre-pandemic level.
Earnings performance continued to improve, as second-quarter profits at companies in the S&P 500 were expected to increase 6.7%, based on companies that have reported so far and forecasts for firms that haven’t yet released earnings, according to FactSet. That’s up from the 5.8% rise that had been projected at the end of the previous week. About 87% of companies had reported results as of Friday.
The price of U.S. crude oil fell below $90 per barrel for the first time since the Russia-Ukraine war began in February. Oil was trading around $88 on Friday afternoon for an overall decline of nearly 10% for the week.
Friday’s stronger-than-expected jobs report added to the selling pressure on prices of government bonds, sending yields sharply higher. The yield of the 10-year U.S. Treasury bond climbed to around 2.84% on Friday, up from 2.64% at the end of the previous week.
With inflation continuing to surge, the Bank of England raised interest rates by a half percentage point—the United Kingdom’s largest rate increase since the bank was made independent from the British government in 1997. Policymakers projected the U.K.’s longest recession since the global financial crisis.
A Consumer Price Index report scheduled to be released on Wednesday will show whether the U.S. economy got any relief last month from surging inflation. In June, inflation accelerated at an 9.1% annual rate—the highest in more than four decades and above the previous month’s 8.6% figure.
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Medicare Prescription Drug Provisions |
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The Senate Finance Committee recently released legislative text from the Kaiser Family Foundation to be included in a forthcoming reconciliation bill. It includes several provisions to lower prescription drug costs for people with Medicare and private insurance, and to reduce drug spending by the federal government. The provisions would be implemented over several years beginning in 2023 as illustrated in this chart.
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What Do You Do When It’s Really Hot Outside? |
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In the United Kingdom, they’re cooling off by eating ice cream. It has been hot in England this summer. Temperatures reached 104 degrees Fahrenheit for the first time ever. Asphalt buckled at airports and on roads, and the British government recommended that people stay home, reported Becky Sullivan of NPR.
Those who ventured out could visit a pop-up store offering a unique treat: ice cream flavored to taste like savory sauces, condiments, breakfast cereals, and other foods that might be found in a British pantry. The adventurous could pick up pints of ice cream flavored to taste like:
- Tomato ketchup
- Rolled oats
- Coco pops
- Soy sauce
- Black tea
- Mayonnaise
- Salad cream
- Golden syrup
- Worcestershire sauce
- Baked beans
“There's lots of weird flavors and...me and my sister were very excited to try lots of them," one nine-year-old customer told Natalie Thomas of Reuters.
What’s do you like to do when it’s hot outside?
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this newsletter (article) (including the investments and/or investment strategies recommended or undertaken by AJ Advisors), will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter (article) serves as the receipt of, or as a substitute for, personalized investment advice from AJ Advisors. Please remember to contact AJ Advisors, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you want to impose, add, to modify any reasonable restrictions to our investment advisory services, or if you wish to direct that AJ Advisors to effect any specific transactions for your account. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.
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AJ Advisors
www.ajadvice.com
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Phone: (615) 709-8709
Fax: (615) 505-3306
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John Stauffer, CFP®
Partner
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Andrew Quinn, CFP®
Partner
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Emily Triano
Operation Associate
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Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this newsletter (article) (including the investments and/or investment strategies recommended or undertaken by AJ Advisors), will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter (article) serves as the receipt of, or as a substitute for, personalized investment advice from AJ Advisors. Please remember to contact AJ Advisors, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you want to impose, add, to modify any reasonable restrictions to our investment advisory services, or if you wish to direct that AJ Advisors to effect any specific transactions for your account. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request. |
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