2024 | July 8

The Markets

Stocks Gain

The NASDAQ and the S&P 500 pushed their record levels higher again, posting weekly total returns of 3.5% and 2.0%, respectively. For the NASDAQ, it was the tenth positive week out of the past eleven. The Dow gained 0.7% and remained 1.6% below its record set in mid-May.

June’s gain of 206,000 jobs exceeded economists’ consensus forecast for around 190,000, but a rise in unemployment to 4.1% left the jobless rate at the highest level since November 2021. Moreover, April’s and May’s initially reported jobs growth figures were revised downward by a total of 111,000, adding to the recent data indicating a modest slowdown in jobs growth.

Friday’s jobs report appeared to strengthen expectations of a potential U.S. Federal Reserve rate cut later this year, as yields of government bonds fell. The yield of the 10-year U.S. Treasury was about 4.28% at Friday’s close, down from 4.37% at the end of the previous week. Yields of 2- and 30-year notes also declined.

Oil prices climbed for the fourth week in a row to the highest level in more than two months, with U.S. crude trading above $83 per barrel on Friday afternoon. The latest gain came as a weekly report showed a decline in U.S. oil inventory, confirming recent forecasts from analysts who expect tight supplies throughout the summer.

A recent decline in the price of the most widely traded cryptocurrency accelerated as Bitcoin fell below $54,000 at one point on Friday, the lowest level in more than four months. In afternoon trading, the price recovered somewhat to about $56,500. As recently as June 5, Bitcoin was trading above $71,000.

Companies in the S&P 500 modestly increased their dividend payments in this year’s second quarter as a handful of large-cap stocks began paying dividends for the first time. Companies in the S&P 500 paid out $153.4 billion in dividends, up more than 1% from $151.6 billion in this year’s first quarter, according to S&P Dow Jones Indices.

A Consumer Price Index report scheduled for release on Thursday will show whether May’s stable inflation extended into June. The CPI report covering May showed an annual rate of 3.3%—better than economists’ consensus forecast for 3.4%, but unchanged from the prior month’s figure. 

Source: John Hancock Investment Management

New Market Highs

How Do You Measure Wealth?

When sorting countries into “rich” and “poor” categories, economists often look at gross domestic product or GDP, which measures the amount of goods and services a country produces over a specific period of time. Using this measure, the United States is at the top of the heap with China in second place.

There are other ways to measure a country’s wealth, too. These include:

• Income per person (in U.S. dollars),
• Income per person, adjusted for local prices (aka purchasing power parity), and
• Income adjusted for prices and hours worked.

The United States is not the world’s leader by any of these measures, according to calculations completed by The Economist. Here’s how the U.S. placed: 

• Income per person (in U.S. dollars): 6th 
• Income per person, adjusted for local prices: 9th 
• Income adjusted for prices and hours worked: 10th 

China’s standing also was much lower when these measures were used. It ranked 69th in income per person, 75th when income per person was adjusted for local prices, and 97th when price-adjusted income was measured by hours worked.

So, who were the economic leaders? 

Luxembourg took the gold in income per person (in U.S. dollars) and income per person adjusted for prices. When income was adjusted for prices and hours worked, Norway was the world leader.

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