Special Delivery

Markets largely tracked lower last week, but the Nasdaq bucked the trend and achieved a new record high on Friday. The S&P 500 sector gains for the week were headed by Consumer Discretionary, while losses were largely led by Materials, Industrials, and Health Care. Gold and silver have been rallying lately, with gold reaching new record highs. Recent economic data shows that the markets have seen a shifting landscape in the pharmaceutical space that could provide some unique opportunities.

Weekly Performance

Data Source: Factset®        Performance Period:      10/21/2024  to 10/25/2024

Economic data released last week were sparse but insightful. The week began with September’s U.S. leading economic indicators declining by 0.5%, largely due to deficiencies in factory orders and manufacturing. Month-over-month existing home sales dropped a percentage point in September to its lowest level since 2010, as mortgage rates and house prices remain higher. Building permits declined by 3.1%, a bit more than expected. However, September’s new homes sales outpaced both forecasts and August’s number. Additional good news reported was that initial jobless claims came in lower than anticipated. Durable goods orders for September declined 0.8%, but still beat the anticipated 1.1% drop.

This week primarily brings labor market data with job openings, ADP employment, the U.S. employment report, and hourly wages. Also released is consumer confidence, which provides insight into the kind of expectations consumers have for commerce. Personal income and spending provide color into earning and spending levels. GDP will indicate the overall health of the economy. Pending home sales will give an additional pulse check on the real estate market.

There appears to be a shift occurring in the pharmaceutical space. As well-known pharmacies such as CVS, Walgreens, and Rite Aid have collectively been shuttering thousands of store locations, Walmart is seizing a new opportunity. According to its recent release, the large retailer will soon be offering same-day delivery for prescriptions with the option to add other merchandise. Customers will be able to choose delivery times that align with their own schedules and access speedy delivery along with insurance for eligible transactions. It will be possible to get prescriptions delivered along with blankets, soup, and tissues or whatever else customers want. Failing pharmacies have been the woes of falling prescription reimbursement rates. In some regions, population declines, theft, and the increased reliance of online services have been to blame. For these reasons, pharmacy deserts have appeared in many communities that relied on the local convenience for years. Amazon currently has a same-day pharmacy service that is limited to only eight regions. Walmart is competing with the online powerhouse as a uniquely positioned retailer that has nationwide locations, diverse merchandise and a strong, varied customer base. Its pharmacy service is slated to be available across 49 states in 2025. As fewer pharmacy locations are available, it will be interesting to observe how other companies offer services like Walmart’s to fill in the gaps. While it is a great blessing to have access to medicine, the even greater wonder is access to God the Father as the Psalmist declares: “Praise the Lord, my soul, and forget not all his benefits- who forgives all your sins and heals all your diseases” (Psalm 103:2-3).

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.