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Stocks Mixed
The S&P 500 and the Dow fell around 1% and 3%, respectively, snapping a six-week string of positive results. The NASDAQ edged upward to post its seventh weekly gain in a row, lifted by strong results from technology stocks.
The yield of the 10-year U.S. Treasury note climbed for the fifth week out of the past six as investors remained cautious about inflationary pressures and the pace of further interest-rate cuts. The yield of the 10-year note closed at 4.24% on Friday—up from 4.07% at the end of the previous week and well above a recent low of 3.62% on September 16.
Near the midpoint of earnings season, a handful of U.S. mega-cap technology stocks are expected to continue generating a disproportionate share of overall earnings growth. Analysts expected that the group of stocks known as the Magnificent Seven will generate average third-quarter growth of 18.1%, according to FactSet. In contrast, the other 493 companies in the S&P 500 were projected to produce growth of 0.1%.
An indicator that tracks U.S. consumer sentiment rose to the highest level in six months. Friday’s final reading from the University of Michigan’s Consumer Sentiment Index was 70.5, up from a preliminary number of 68.9 released a couple weeks earlier. The latest result marked the third monthly sentiment increase in a row.
The housing market continues to be a soft spot for the U.S. economy. The National Association of Realtors reported that sales of previously owned homes fell 1.0% in September relative to the previous month; compared with September 2023, sales were down more than 3.5%.
In addition to more quarterly earnings reports, the new week will bring the U.S. government’s initial estimate of third-quarter GDP on Wednesday and a monthly jobs report on Friday. The jobs report will show how October’s employment growth compared with September’s bigger-than-expected gain of 254,000 jobs—the strongest result in six months.
Source: John Hancock Investment Management
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The IRS has released the new tax brackets for the 2025 calendar year.
The standard deduction rises to $15,000 for individuals in 2025, up from $14,600 this year. For married couples who file jointly, it is $30,000, up from $29,200. Most filers save money by taking the standard deduction instead of itemizing deductions, which include deductions for property tax, mortgage interest, charitable donations and medical expenses.
The income thresholds for paying capital-gains tax at various rates are also indexed for inflation. Some taxpayers can sell appreciated stock and snag a 0% capital-gains tax rate. For 2025, the 0% rate applies to single filers with taxable income up to $48,350 and joint-filing couples with incomes up to $96,700.
Note that the current tax law is scheduled to sunset after the calendar year 2025. It is important to consider how your taxes could change in 2026 if this occurs. We are happy to discuss!
For more information see these websites:
https://www.wsj.com/personal-finance/taxes/tax-brackets-2025-c47c9c66
https://www.cnbc.com/2024/10/22/irs-2025-federal-income-tax-brackets.html
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A lot of important events and holidays are coming up in November. There’s Election Day, National Calzone Day, No-Shave November, the International Day for Tolerance and Talk Money Day.
That’s right! On November 8, everyone is encouraged to put their fears aside and begin talking with other people—spouses, partners, roommates, friends, adult children, and younger children—about money. It’s not going to be easy—money talk is tough for many people. Sixty-two percent of Americans who participated in a 2023 survey said they did not talk about money. Those who did have financial conversations generally conversed with a spouse or partner, reported Kamaron McNair of CNBC.
There are many reasons people avoid financial conversations. They may:
- Believe it is impolite to talk about money.
- Worry that discussions will be awkward.
- Fear being judged for their choices.
- Think their money is no one else’s business.
The issue is less prevalent among younger people than it is among older people, according to CNBC. “…56% of millennials and 49% of Gen Zers say they’re having financial conversations on the regular, compared with just 38% of Gen Xers and 22% of baby boomers…Talking about money can help young people increase their financial literacy as they learn from and teach their friends. But it’s equally important for younger people to bring up financial topics with their elders—or at least their more experienced peers—especially when it comes to making big decisions,” reported McNair.
While breaking down the money-talk barrier may be challenging, the rewards can be significant. Financial discussions can improve decision-making, strengthen relationships, and help children develop sound money habits. Our goal is to help the people we serve make financial decisions that help them live the lives they want to lead. If talking about money is a difficult hurdle, get in touch. We can help facilitate these important discussions.
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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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