Gratitude and Gains

Last week, the financial markets painted a mixed yet optimistic picture. Major indices, including the Russell 2000, experienced moderate gains, buoyed by strength in Utilities and Energy, which led the S&P 500 sectors. Conversely, Communication Services and Consumer Discretionary sectors lost ground. Meanwhile, gold saw a significant rally, erasing losses from earlier in November, signaling renewed investor interest amidst global uncertainties.

Weekly Performance

Data Source: Factset®        Performance Period:      11/18/2024  to 11/22/2024
The economic calendar last week provided a nuanced view of the U.S. economy, especially in the housing sector. The NAHB Housing Market Index for November edged up to 46, surpassing the expected reading of 42, a modest improvement in builder sentiment. However, October’s housing starts and building permits fell below forecasts, reflecting lingering challenges in the construction industry. Existing home sales, on the other hand, rose marginally, a good sign for the real estate sector. Beyond housing, broader economic indicators presented a mixed narrative. The leading economic index contracted by -0.3%, which was less than anticipated and signaled resilience despite economic headwinds. Labor market data was stronger than expected, with initial jobless claims coming in at 213,000 versus the forecasted 220,000. Additionally, the Services PMI exceeded projections, while Manufacturing PMI remained steady with estimates, offering further evidence of a stable, although uneven, economic environment.

Looking ahead, this week promises a slew of crucial economic data leading up to the Thanksgiving holiday. Reports on consumer confidence, GDP, personal income, spending, PCE, and pending home sales will provide further insights into the economy’s health, inflationary trends, and the housing market’s trajectory. These data points will help piece together the larger economic puzzle and may shape market sentiment heading into the holiday season.

As Thanksgiving approaches, there is an added reason for celebration beyond the financial and economic landscapes. Following several years of elevated prices, the cost of a Thanksgiving dinner is projected to decline by approximately 9% compared to 2022, according to the American Farm Bureau Federation. This reprieve is largely driven by a decrease in turkey prices, despite a notable drop in supply. Reduced consumption, with Americans eating about one pound less turkey per person this year, has pushed prices downward. The decline in costs extends to other staples such as vegetables, milk, and pies, though processed foods have seen a price increase. Retailers like Costco, Aldi, and Walmart have further lightened the financial burden by offering bundled Thanksgiving meal deals at competitive prices.

This affordability will hopefully allow families to gather around the dinner table with less financial strain, making it easier to focus on the true spirit of Thanksgiving—gratitude. Beyond the meal, the holiday serves as a time for reflection, appreciation, and togetherness. As we count our blessings, let us remember the words of the psalmist: “I will praise the name of God with a song; I will magnify him with thanksgiving” (Psalm 69:30). Thanksgiving is not only a celebration of abundance but also a time to recognize and give thanks for the gifts we have received.

Sources: Yahoo Finance, Reuters.com, and JP Morgan Market Insights

 Sources: Yahoo Finance, Reuters.com, and JP Morgan Market Insights. Securities offered through Osaic Wealth, Inc. member FINRA/SIPC. Investment advisory services offered through Faithward Advisors LLC. Osaic Wealth is separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Wealth. Dream More, Plan More, Do More is a registered trademark of Faithward Advisors, LLC, Reg. U.S. Pat. & Tm. Off. Any opinions expressed in this forum are not the opinion or view of Faithward Advisors or American Portfolios Financial Services, Inc. (APFS). They have not been reviewed by either firm for completeness or accuracy. These opinions are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. Readers should conduct their own review and exercise judgment prior to investing. Investments are not guaranteed, involve risk and may result in a loss of principal. Past performance does not guarantee future results. Investments are not suitable for all types of investors.