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Major indices were up last week, with the S&P 500 and Dow Jones reaching record closing highs. The winning sectors in the S&P 500 were Information Technology and Financials, while the laggards were Utilities and Real Estate. Although the week was great for the markets, part of the country experienced the destructive forces of yet another hurricane.
Data Source: Factset® Performance Period: 10/7/2024 to 10/11/2024
Last week in the economy, consumer credit underwhelmed expectations by coming in at $8.9 billion for August. This was a vast reduction from $26.6 billion in credit from July. On Tuesday, the NFIB Small Business Optimism Index for September rose slightly to 91.5 after August’s 91.2 reading, but is still under the 50-year average of 98. Wholesale inventories for August increased 0.1%, a bit below July’s 0.2% rise. Initial jobless claims increased 33,000 from the week prior to 258,000 – numbers were reportedly impacted by recent hurricanes and Boeing strikes. The inflationary measure of the consumer price index (CPI) revealed a 0.2% increase for September. On a yearly basis, the rise of CPI to 2.4% was slightly below the prior yearly increase of 2.5%, nearing the Fed’s ideal 2% annual uptick.
The economic data this week should bring insight into general trade trends through the import price index, U.S. retail sales, industrial production, and business inventories. Home builder confidence, housing starts and building permits will shed light on the real estate market.
Just as Florida was beginning recovering from the impact of hurricane Helene, the state was pummeled by the severe winds and flooding of Milton. The storm surges, tornadoes, and high winds were brutal and millions of Floridians were without power on Thursday. Though the brunt of the hurricane was felt by those living in its path, the natural disaster has Atlanta Fed President Raphael Bostic warning about the possible economic ripple effect. Bostic believes that the back-to-back hurricanes could make their mark on economic data for several months. Hurricane Helene, alone, cost hundreds of billions in damage, and piling Milton on top of that puts a temporary dent in the local economy, will reduce tourism, and have a negative effect on the labor market. This all adds uncertainty to the markets, as the Fed must sort through the data before their November meeting to determine how much has been impacted by natural disaster versus what reflects the economy as a whole. Thoughts and prayers are with all those impacted by the devastation from the hurricanes. As relief efforts are underway in affected areas, we hope some comfort can be gleaned from Psalm 46:1: “God is our refuge and strength, an ever-present help in trouble.”
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.