2024 | October 7

The Markets

Stocks Flat

The major U.S. stock indexes alternated between small daily gains and losses before mounting a modest rally on Friday to end with fractional gains for the week overall. It was enough to push the S&P 500 and the Dow just above the record highs they set the previous week; the NASDAQ ended up 2.7% below the record high that it set three months ago.

The U.S. economy generated 254,000 new jobs in September, exceeding economists’ consensus forecast for around 140,000 and delivering the strongest result in six months. Moreover, the initially reported jobs growth figures for July and August were revised upward by a total of 72,000 and the unemployment rate slipped to 4.1% from 4.2% the previous month.

Friday’s stronger-than-expected jobs report appeared to rein in investors’ short-term expectations for aggressive interest-rate cutting by the U.S. Federal Reserve, as the yield of the 2-year Treasury note rose sharply. The yield jumped from 3.70% at Thursday’s close to 3.92% on Friday; at the end of the previous week, the yield was 3.56%. 

The price of U.S. crude oil jumped about 9% for the week to nearly $75 per barrel on Friday afternoon amid escalating geopolitical tensions in the Middle East. Friday’s price was the highest since late August, but it remained well below a recent high of around $83 in early July.

The U.S. stock market’s return profile for September closely resembled that of August’s result, as stocks fell sharply in the opening week but recovered to finish positive overall. The S&P 500 finished September at a record high and posted an overall total return of 2.1%—the index’s tenth positive month out of the past eleven.

As major U.S. banks prepare to open quarterly earnings season on Friday, October 11, analysts expect that third-quarter earnings per share for companies in the S&P 500 rose by an average of 4.2%, according to FactSet. Such an outcome would mark the fifth consecutive quarter of year-over-year earnings growth.

On the heels of the U.S. Federal Reserve’s recent interest-rate cut, a Consumer Price Index report scheduled for release on Thursday will show whether the recent cooling trend for inflation extended into September. The most recent CPI report covering August showed an annual rate of 2.5%, down from July’s 2.9% figure and the lowest since February 2021.

Source: John Hancock Investment Management

Small Business Reporting Requirement – Beneficial Ownership Interest

What Do You Know About Holidays?

Holidays and the economy are inextricably intertwined. Halloween, Thanksgiving, Hannukah, Christmas, Yaldā Night, Kwanzaa, Mother’s Day, Father’s Day, Lunar New Year and other celebrations give the U.S. economy a boost because people spend money to observe them. It works the other way, too. The state of the economy can affect how much consumers spend on holidays. When the economy is doing well, they typically have more to spend, and vice versa.

See what you know about holidays by taking this brief quiz.

1. Which of the following events did Americans spend the most on in 2024?

a. Fourth of July

b. The Super Bowl

c. St. Patrick’s Day

d. Father’s Day

2. Americans are expected to spend about $104 per person on Halloween in 2024. Some of that money will be spent on costumes. According to a National Retail Federation survey, which costume ranks in the top five for both children and pets?

a. Pumpkin

b. Ghost

c. Hot dog

d. Superhero

3. In 2024, back-to-school shoppers (K-12) expected to spend the highest percentage of their budgets on which of the following categories?

a. Shoes

b. Electronics

c. Classroom supplies

d. Clothing

4. A recent survey found that Gen Xers like Thanksgiving and Memorial Day holidays the best, while Baby Boomers prefer Memorial Day and Veteran’s Day. Which holidays are at the top of the list for Millennials?

a. Thanksgiving Day and Mother’s Day

b. Memorial Day and Veteran’s Day

c. Christmas and Martin Luther King Day

d. Halloween and New Year’s Eve

Answers: 1) d; 2) b; 3) b; 4) a

Phone: (615) 709-8709

Fax: (615) 505-3306

eMoney

Charles Schwab

Advyzon

Emily Triano

Operations Manager

emily@ajadvice.com

Maya Laws

Operations Associate

maya@ajadvice.com

Past performance does not guarantee 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, strategy, or product (including those recommended or undertaken by AJ Advisors, LLC), or any non-investment related content, made reference to directly or indirectly in this communication will be profitable, equal any indicated historical performance level(s), be suitable for your portfolio or individual circumstances, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. You should not assume that any discussion or information contained in this communication serves as the receipt of, or as a substitute for, personalized investment advice. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to their individual situation, they are encouraged to consult with the professional adviser of their choosing. AJ Advisors, LLC is neither a law firm nor a certified public accounting firm and no portion of the content herein should be construed as legal or accounting advice. If you are an AJ Advisors, LLC client, please remember to contact the firm, in writing, if there are any changes in your financial situation or investment objectives or if you wish to impose, add, or modify any reasonable restrictions on our investment advisory services. Until so notified, AJ Advisors, LLC will continue to rely on the most recent information provided. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available upon request.