2023 | October 16

The Market

Stocks Flat

The S&P 500 managed to snap a string of four negative weeks in a row, posting a fractional gain, while the Dow fell slightly and the NASDAQ rose nearly 2%. It didn’t come without turbulence, as shifting expectations leading up to Friday’s monthly U.S. employment report buffeted the markets. 

The U.S. labor market’s resilience continued to dampen the near-term prospects of a recession, as the gain of 336,000 jobs in September was the biggest in eight months and roughly double the number that most economists had been expecting. In addition, prior monthly estimates of jobs growth were revised upward and September’s unemployment rate was unchanged at 3.8%.

Friday’s strong jobs report helped to accelerate the recent price sell-off in the bond market, as the 10-year U.S. Treasury’s yield climbed to the highest level since 2007. It closed around 4.79% on Friday, up from 3.30% just six months earlier. On Friday morning, the 30-year Treasury’s yield briefly topped 5.00% before settling below that threshold.

The further rise in bond yields reflected growing market expectations that the U.S. Federal Reserve may extend its timeline for potentially transitioning to rate-cutting mode, after having raised rates sharply since early 2022. One measure of market expectations indicated a growing consensus that the Fed may hold off until July 2024 to begin cutting. 

Expectations are low heading into earnings season, which opens late this week as major banks begin reporting third-quarter results. As of Friday, analysts surveyed by FactSet were expecting companies in the S&P 500 to post an average earnings decrease of 0.3% compared with the same period a year earlier. If there is a decline, it would be the fourth consecutive quarter of shrinking earnings. 

Prospects of lower global demand for petroleum weighed on oil prices, and U.S. crude dropped to around $83 per barrel for a nearly 9% weekly decline, the biggest since March 2023. As recently as September 27, oil traded as high as $94—a year-to-date high.

The price of gold fell on Thursday to its lowest level in seven months, with gold futures trading at around $1,816 per ounce. The price was down from a recent peak of about $1,945 on September 20.  

A Consumer Price Index report scheduled to be released on Thursday will show whether the recently mixed trends on the path of inflation extended into September. The most recent CPI report for August showed that inflation rose 0.6% on a month-to-month basis. Higher energy prices fueled much of the increase; excluding energy and food prices, core inflation rose at a more modest 0.3%.

Source: John Hancock Investment Management

Social Security 2024 Cost of Living Adjustment

Where In the World Do People Sleep Well?

Scientists have been studying how to slow aging and extend longevity. One factor that can affect your lifespan is how well you sleep. According to a new study, there are five hallmarks of a good sleeper. They:

1)     Sleep 7 to 8 hours a night,

2)     Have little difficulty falling asleep,

3)     Stay asleep through the night on most nights,

4)     Feel well-rested after waking up most mornings, and

5)     Don’t rely on sleeping pills.

People who are good sleepers tend have longer life expectancy, reported the American College of Cardiology. Men who sleep well live 4.7 years longer, on average, and women who sleep well gain 2.4 years, on average.

Of course, there are always exceptions. Scientists have discovered that some people are naturally short sleepers. They can get far less sleep, often four to six hours a night, without suffering any negative effects. So far, research has identified three genes that allow people to sleep less without experiencing physical or cognitive costs, reported Genetic Engineering and Biotechnology News.

Where you live may affect the quality of your sleep, too, according to a National University in Singapore study. It found that the least successful sleepers are in Asia, where people tend to snooze for less than 6.5 hours a night during the week. The most successful sleepers are in Ireland, New Zealand, Slovakia and the Netherlands. In general, people in countries with high-quality sleep averaged seven hours on weeknights. People in the United States weren’t far behind, slumbering for 6.9 hours, on average, from Monday through Friday.

Life expectancy is a key factor when planning for retirement. If you have any questions about how lifespan can affect retirement saving and retirement income, get in touch.

Phone: (615) 709-8709

Fax: (615) 505-3306

eMoney

Charles Schwab

Advyzon

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