|
Stocks Mixed
Stocks started and ended the week with rallies, helping to offset sell-offs on Tuesday, Wednesday, and Thursday that hit technology stocks especially hard. Index results varied widely; the Dow rose 2.5% and finished above the 50,000-point level for the first time, the S&P 500 posted a fractional decline, and the NASDAQ fell 1.8%.
U.S. large-cap value stocks widened their year-to-date performance lead over growth stocks, marking a shift from the growth style’s dominance in recent years. A value benchmark finished 2.2% higher for the week while its growth counterpart fell 2.0%
The price of Bitcoin fell early Friday to as low as $61,000—a level that was less than half of its record high of about $126,000 set four months earlier. As of Friday afternoon, Bitcoin climbed back to around $70,000 and was down about 17% for the week. Other cryptocurrencies also tumbled.
The recent trend of heightened precious metals price volatility continued, with gold rebounding from the previous week’s decline and silver retreating. Despite gold’s weekly gain, its price of around $4,980 per ounce on Friday afternoon was well below the record of nearly $5,586 reached on January 29. Silver was trading around $77 per ounce on Friday, down from a record $121 on January 29.
With earnings season more than half over, the information technology sector continued to lead the broader market in earnings growth expectations. As of Friday, the tech sector was projected to post average fourth-quarter 2026 earnings growth of 30.4%, according to FactSet. That’s more than double the 13.0% earnings growth projection for all 11 sectors across the S&P 500.
The European Central Bank kept its policy rates unchanged for the fifth consecutive meeting, with its key interest rate at 2.0%. The move came a day after the eurozone reported that inflation slipped to 1.7%, below the bank’s target inflation rate of 2.0%.
A measure of U.S. consumer sentiment rose to the highest level in six months. Friday’s preliminary survey reading from the University of Michigan Index of Consumer Sentiment was 57.3, up from a recent low of 51.0 three months earlier. Nevertheless, the measure was well below the 64.7 reading reached 12 months ago.
A partial U.S. government shutdown that ended on Tuesday prompted the U.S. Bureau of Labor Statistics to delay Friday’s scheduled release of its monthly jobs report and set a new release date of Wednesday, February 11. In addition, a Consumer Price Index report on inflation was pushed back to Friday, February 13, two days after it had originally been scheduled.
Source: John Hancock Investment Management
| | |
When a child turns 18, they are legally considered an adult, which means parents no longer have automatic access to their medical, educational, or financial information. One of the first things parents should address is medical privacy and decision-making. Under HIPAA, doctors and hospitals cannot share medical information without the adult child’s consent. Families often put a HIPAA authorization and a healthcare proxy (medical power of attorney) in place so parents can receive information and make medical decisions if the child is incapacitated. A basic living will or advance directive can also clarify the child’s wishes in serious medical situations.
Financial and legal authority is the next major area to cover. If an 18-year-old becomes temporarily or permanently unable to manage their affairs, parents cannot step in without court involvement unless a durable power of attorney is in place. This document allows parents to handle banking, sign documents, deal with insurance, or manage bills if needed. Even for responsible young adults, this is a practical safeguard, especially for college students living away from home or young adults with limited financial experience.
Education records also deserve attention. Once a student turns 18, FERPA prevents colleges from sharing academic or disciplinary information with parents unless the student provides written consent.
It is also a good time to review any plans for the use of custoidal accounts. A custodial account created under the Uniform Transfer to Minors Act (UTMA) vests in the beneficiary when they reach the age of majority for that purpose. Typically this age is 21 but various by state. In Tennssee, the custodian can elect to defer this age of majority out as long as age 25.
| | The Data Tells a Different Story | | |
Before you read any further, ask yourself these two questions:
- How is the U.S. economy doing?
- Why did you answer the way you did?
Economic data suggest the U.S. economy is doing reasonably well. At the end of January, the Federal Reserve reported, “Available indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, and the unemployment rate has shown some signs of stabilization. Inflation remains somewhat elevated.”
What do Americans think about the economy?
While data show the economy doing well, many Americans aren’t feeling it. In February, the University of Michigan’s Surveys of Consumers Director Joanne Hsu reported:
“While sentiment is currently the highest since August 2025, recent monthly increases have been small—well under the margin of error—and the overall level of sentiment remains very low from a historical perspective. Concerns about the erosion of personal finances from high prices and elevated risk of job loss continue to be widespread.”
Last Fall, Pew Research asked Americans how the economy was doing. Seventy-four percent thought the economy was in fair to poor condition because of inflation, tariffs, the cost of living, wealth inequality, the cost of food and groceries, low wages, and a lack of good-paying jobs.
In contrast, 26% of participants said the economy was in good or excellent condition. The group cited general economic growth or improvement, lower inflation, stock market performance, and low unemployment as reasons for its view.
Overall, participants’ top concerns were:
- The price of food and consumer goods - 65%
- The cost of housing - 61%
- The price of gas and energy - 45%
- Being unable to find a job - 42%
- The performance of the stock market - 19%
Economic anxiety is a global issue
Last week, Gallup reported that economic anxiety is a global issue. Its survey of people in 107 countries found the economy topped the list of national concerns. Twenty-three percent of the people Gallup surveyed said they were concerned about the standard of living, high prices, and low wages in their countries. Jon Clifton and Benedict Vigers of Gallup reported:
- “Gross Domestic Product (GDP) — the value of goods and services produced in a specified period — is a standard metric that countries, and their leaders, use to assess their progress. However, annual GDP growth bears little relation to whether people identify the economy as their country's top challenge. Instead, there is a much stronger relationship between how people feel about their own household income and their perceptions of the economy as a national challenge.”
| | |
AJ Advisors
www.ajadvice.com
|
|
|
Phone: (615) 709-8709
Fax: (615) 709-8709
| |
| |
John Stauffer, CFP®
Partner
| |
Andrew Quinn, CFP®
Partner
| | 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. | | | | |
