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Stocks Gain
U.S. stock indexes rose for the third week in a row as earnings season wound down, with the S&P 500 adding around 2% and the NASDAQ rising about 1%. The recent gains leave the indexes slightly below the record levels they achieved prior to a market pullback in the first half of April.
The recent trend of higher-than-expected inflation numbers appears to be weighing on U.S. consumers, as a measure of consumer sentiment fell sharply. The University of Michigan’s sentiment survey for May posted a preliminary reading of 67.4, down from 77.2 in April. Friday’s survey results also showed that consumers expect the inflation rate to rise rather than fall.
An index that measures investors’ expectations of short-term U.S. stock market volatility fell for the third week in a row. The CBOE Volatility Index (VIX) was down nearly 7% for the week; relative to a recent high on April 15, the index was down more than 34%.
New filings for unemployment benefits rose to the highest level in more than eight months. The latest weekly update from the U.S. government recorded about 231,000 unemployment claims, up from 209,000 the prior week. The results follow a recent slowdown in U.S. jobs growth.
The United Kingdom’s economy has returned to growth after experiencing a shallow recession in the second half of 2023. The government reported on Friday that GDP expanded at a 0.6% annual rate in this year’s first quarter. The figure exceeded economists’ expectations and marked the nation’s fastest growth rate in nearly three years.
A Consumer Price Index report scheduled for release on Wednesday will show whether a recent trend of slightly hotter-than-expected inflation extended into April. Last month’s CPI report showed an annual rate of 3.5% in March, up from 3.2% the previous month. Excluding volatile food and energy prices, core inflation rose 3.8% in March.
Source: John Hancock Investment Management
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How to Blow $10,000 in One Year | |
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A recent social media post popped up that got our attention and we wanted to pass it along. Money and finance are as much about behavior as knowledge. Our lives are so very busy that it is easy to get distracted. Small purchases can add up to significant amounts over time. Companies spend millions of dollars to try and get you to part with your hard-earned money.
Could you imagine if you had to go to the store to get everything you purchase through Amazon? You might end up realizing that you don’t really need what you purchased. Certainly, there is a balance and if you are saving well for your future, you can indulge in small expenses along the way. But if you are struggling to cover all of your expenses, take a step back and think about what is necessary or not.
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For decades, companies have plundered the digital world for valuable treasure – information about you. When it comes to controlling how personal data are used, some people are better protected than others. It often depends on where you live.
For example, in 2016, the European Union (EU) adopted its General Data Protection Regulation (GDPR). The law is built on the idea that individuals have the right to own their personal information and decide who can use it, reported Fredric Bellamy of Reuters.
In contrast, federal law in the U.S. allows businesses and organizations to collect personal data without the express consent of the people whose information is being collected. The government may step in to prevent or mitigate harm to the individual in certain sectors.
In addition to choosing the type of data websites may collect, consumers can consult the free buyer’s guide created by a software firm’s foundation. The guide, called *Privacy Not Included, rates the privacy and security of connected toys, gadgets, and smart products. Among the many groups that have earned a warning label in the buyer’s guide are:
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Dating apps: “Most dating apps (80%) may share or sell your personal information for advertising…It’s a bit strange because…apps work on a subscription model. So with dating apps, it’s not your money or your privacy. It’s often both. We also couldn’t confirm whether half (52%) of the apps do the bare minimum to keep all your personal information safe, by meeting our Minimum Security Standards,” reported Jen Caltrider, Misha Rykov and Zoë MacDonald.
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Automobile companies: “Car makers have been bragging about their cars being ‘computers on wheels’ for years to promote their advanced features. However, the conversation about what driving a computer means for its occupants' privacy hasn’t really caught up…[car brands] can collect personal information from how you interact with your car, the connected services you use in your car, the car’s app (which provides a gateway to information on your phone), and can gather even more information about you from third party sources.” One company sold personal driving data to brokers who used the information to formulate “risk scores”. The scores were then sold to insurance companies, causing some drivers’ premiums to increase significantly.
Some states have stepped in to provide additional protections for their residents. In March of 2024, there were “…15 states – California, Virginia, Connecticut, Colorado, Utah, Iowa, Indiana, Tennessee, Oregon, Montana, Texas, Delaware, Florida, New Jersey, and New Hampshire – that have comprehensive data privacy laws in place,” reported Bloomberg Law.
In April, federal lawmakers proposed a law, the American Privacy Rights Act, that could give consumers control over how their information is used by companies that collect it, as well as the right to opt out of certain types of data collection, reported Cristiano Lima-Strong of The Washington Post.
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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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