2023 | July 3

The Market

Stocks End Quarter Strong

The major U.S. stock indexes regained the ground they had lost the previous week and then some, as generally positive economic data lifted the S&P 500, the NASDAQ, and the Dow more than 2% each. For the NASDAQ, it was the ninth positive week out of the past ten. 

The S&P 500 and the NASDAQ both gained nearly 7% to record their fourth positive month in a row. The Dow climbed nearly 5% and posted its best month since November 2022. For the S&P 500, it was the best result since last October.

The first half of 2023 produced lopsided results across U.S. equity sectors. The information technology sector accounted for nearly 62% of the S&P 500’s year-to-date total net return, according to S&P Dow Jones Indices. Across the other 10 sectors, consumer discretionary generated about 19% of the broad market’s return and communication services added 16%; other sectors were either modestly positive or negative.

The U.S. Federal Reserve’s preferred gauge for tracking inflation showed that consumer prices rose in May at the slowest monthly pace in two years. The Personal Consumption Expenditures Price Index rose at a 3.8% annual rate, down from a revised 4.3% figure in April. Excluding volatile food and energy prices, core inflation rose 4.6% in May versus 4.7% in April.

A revised estimate of the U.S. economy’s growth in this year’s first quarter showed a markedly stronger result than an earlier report. Gross domestic product increased at a 2.0% annualized pace, up from the previous estimate of 1.3%, largely because consumer spending and exports were stronger than estimated previously.

Yields of U.S. government bonds rose, ending what had been a mostly quiet stretch for fixed income in June. The yield of the 10-year U.S. Treasury bond closed at 3.81% on Friday, up from 3.74% at the end of the previous week. As recently as early April, the yield had been as low as 3.29%.

An index that measures investors’ expectations of short-term U.S. stock market volatility rose slightly, snapping a string of five weekly declines in a row. On Friday, the CBOE Volatility Index (VIX) closed at 13.6 – just above its level before the start of the COVID-19 pandemic and down 32% from a recent high on May 24.

A monthly U.S. labor market update due out on Friday will show whether unexpectedly strong recent job growth extended into June. In May, the economy generated 339,000 new jobs, exceeding most economists’ expectations by a wide margin and up from 294,000 added in April. May’s unemployment rate rose to 3.7%. 

Source: John Hancock Investment Management

Happy Fourth of July!

And The Happiest Countries Are...

The World Happiness Report is published by the United Nations General Assembly. The creators of the report “believe that our success as countries should be judged by the happiness of our people.” The authors measure happiness by interviewing a nationally representative sample of people in the countries that participate.

The ranking considers happiness and misery. “A population will only experience high levels of overall life satisfaction if its people are also pro-social, healthy, and prosperous. In other words, its people must have high levels of what Aristotle called ‘eudaimonia’…When we assess a society, a situation, or a policy, we should not look only at the average happiness it brings (including for future generations). We should look especially at the scale of misery (i.e., low life satisfaction) that results.”

This year, the Index was presented in a slightly different way. It consolidated results from 2020 through 2022. The countries with the highest Happiness Index scores over that period were:

1.      Finland

2.      Denmark

3.      Iceland

4.      Israel

5.      Netherlands

The countries with the lowest scores were:

137. Afghanistan

136. Lebanon

135. Sierra Leone

134. Zimbabwe

133. Democratic Republic of Congo

The United States was the fifteenth happiest country in the world.

Phone: (615) 709-8709

Fax: (615) 505-3306

eMoney

TD Ameritrade

Advyzon

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.