Weekly Market Update | Week 46, 2024


Stocks gave back much of the post-election surge last week.

Investors processed several moving pieces last week as earnings season winds down with underlying consensus still remaining on a soft-/no-landing scenario narrative, though several factors contributed to a more defensive tone this week that saw some of the post-election rally momentum fade. Defensive tone chalked up to various factors, including stretched valuations and positioning following outsized post-election rally last week. Bond yield backup another overhang, while dampened disinflation was also highlighted by analysts after this week’s economic data readouts. Uncertainty was further punctuated by fast-evolving Trump transition developments on policy and cabinet positions with bulk of focus on tariffs, deficit, China hawk plans, and immigration.

October’s CPI and retail sales were the two big economic reports of the week. October CPI was in line on both a core and headline basis with annualized rates also as expected. Core goods came in unchanged m/m, while core services rose though decelerated from last month. Still, shelter again continued to provide upside pressure with the index for shelter accounting for over half of the monthly increase. Ultimately, analyst takeaways noted the report showed little signs of inflation reaccelerating, but disinflationary progress has slowed. Retail sales report beat on the headline but biggest focus was on large upward revision to September’s numbers. Release noted solid gains in electronics, cars & parts, restaurants & bars, with declines in furniture and department stores. 

Elsewhere, October core PPI was in line, though final demand services accelerated slightly and final demand goods turned positive after two-straight negative monthly prints. Initial jobless claims came in below consensus. Continuing claims were in line and down slightly w/w. Empire State Manufacturing index surged this month with big jumps in new orders and shipments. Finally, import and export prices both came in hotter than expected m/m.

There was some cautious Fedspeak. Powell notably said the economy is not sending signals that the Fed needs to be in a hurry to lower interest rates (echoing some Fedspeak earlier this week calling for patience and caution). St. Louis’s Musalem said Fed can move “judiciously and patiently” while both Dallas’s Logan and KC’s Schmid indicated it is unclear how many rate cuts may be needed. Meanwhile, Minneapolis’s Kashkari said he is not ready to say inflation is stuck above 2% target. Fed’s Collins stressed December rate cut not a done deal. Markets trimmed odds of December rate cut to ~60% following Powell’s Thursday remarks, down from 70% prior to speech.

Overall, there were both bullish and bearish takeaways last week. On the bearish side, bond yields rose amid concerns over disinflation, macro surprises, and potential Trump-era tariff policies. Dollar strength fueled tightening conditions fears. Powell was slightly more hawkish compared to last week, while geopolitical tensions and regulatory risks weighed on tech and China shares, adding to market uncertainty. On the bullish side, strong US equity inflows highlighted investor optimism, supported by in line CPI report and consumer resilience theme after strong retail sales readout for October.

Fixed Income

Yield Curve


September FOMC Statement   July Minutes   Credit, Liquidity and Balance Sheet    Federal Reserve Dot Plots  

Treasury.gov yields    FOMC Policy Normalization Statement     Longer- Run Goals Jan 2024

Foreign Exchange Market

Energy Complex

The Baker Hughes rig count  fell by 1 last week. There are 584 oil and gas rigs operating in the US – Down 34 from last year.

Metals Complex  

Employment Picture  

Weekly Unemployment Claims – Released Thursday 11/14/2024 – In the week ending November 9, the advance figure for seasonally adjusted initial claims was 217,000, a decrease of 4,000 from the previous week’s revised level. The 4-week moving average was 221,000 a decrease of +,250 from the previous week’s revised average.

October Jobs Report – BLS Summary – Released 11/1/2024 – The US Economy added 12k nonfarm jobs in October and the Unemployment rate remained at 4.1%. Average hourly earnings increased 13 cents to $35.46.  Hiring highlights include +52k Healthcare, +40k Government, -49k Professional and Business Services, and -46k Manufacturing.

  • Average hourly earnings increased 13 cents/0.4% to $35.46.
  • U3 unemployment rate was unchanged at 4.1%. U6 unemployment rate was unchanged at 7.7%.
  • The labor force participation rate was relatively unchanged at 62.6%.
  • Average work week increased 0.1 to 34.3 hours.

Employment Cost Index – Released 10/31/2024 – Compensation costs for civilian workers increased 0.8% for the 3-month period ending in September 2024. Wages and salaries increased 0.8% and benefit costs increased 0.8% from June 2024. The 12-month period ending in September 2024 saw compensation costs increase by 3.9. The 12-month period ending September 2023 increased 4.3%. Wages and salaries increased 3.9 percent over the 12-month period ending in September 2024 and increased 4.6 percent for the 12-month period ending in September 2023. Benefit costs increased 3.7 percent over the 12-month period and increased 4.1 percent for the 12-month period ending in September 2023. This report is published quarterly

Job Openings & Labor Turnover Survey JOLTS – Released 10/29/2024 – The number of job openings was little changed at 7.4 million on the last business day of September, the U.S. Bureau of Labor Statistics reported. Over the month the number of hires and total separations was little changed at 5.6 million and 5.2 million, respectively. Within separations, quits (3.1 million) and discharges (1.8 million) changed little.

This Week’s Economic Data – Blue links take you to data source

Industrial Production and Capacity Utilization – Released 11/15/2024 – Industrial production decreased 0.3% in October after falling 0.5% in September. Manufacturing decreased 0.5%. Utilities output increased 0.7%. Mining increased 0.3%. Total industrial production in September was 0.6% below its year-earlier level. Capacity utilization decreased to 77.1% in October, a rate that is 2.6% below its long-run average.

Retail Sales – Released 11/15/2024 – Headline retail sales were up 0.4% in October and are up 2.8% above October 2023.

Producer Price Index – Released 11/14/2024 – The Producer Price Index for final demand increased 0.2 percent in October, seasonally adjusted. Final demand increased 0.1 percent in September and 0.2 percent in August. On an unadjusted basis, the index for final demand moved up 2.4 percent for the 12 months ended in October.

Consumer Price Index – Released 11/13/202 – The Consumer Price Index for All Urban Consumers increased 0.2% in October on a seasonally adjusted basis, after increasing the same as in each of the last three months. Over the last 12 months, the all items index increased 2.6 percent before seasonal adjustment.

Recent Economic Data – Blue Links bring you to data source

Consumer Credit – Released 11/7/2024 – Consumer credit increased at a seasonally adjusted annual rate of 3.2 percent in the third quarter. Consumer credit increased at a seasonally adjusted annual rate of 1.4 percent in September. Revolving credit increased at an annual rate of 2.8 percent, while nonrevolving credit increased at an annual rate of 3.4 percent.

U.S. Trade Balance – Released 11/5/2024  –  The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced that the goods and services deficit was $84.4 billion in September, up $13.6 billion from $70.8 billion in August. September exports were $267.9 billion, $3.2 billion less than August exports. September imports were $352.3 billion, $10.3 billion less than August imports. The September increase in the goods and services deficit reflected a increase in the goods deficit of $14.2 billion to $109.0 billion and an increase in the services surplus of $0.6 billion to $24.6 billion.

PMI Non-Manufacturing Index – Released 11/5/2024 – Economic activity in the services sector expanded in October for the fourth consecutive month indicating expansion in eight of the ten months of 2024. The Services PMI® registered 56.0 percent, the highest reading since February 2023 and 1.1 percent higher than September’s reading of 54.9 percent.

U.S. Construction Spending – Released 11/1/2024 – Construction spending during September 2024 was estimated at a seasonally adjusted annual rate of $2,148.8 billion, 0.1 percent above the revised August estimate of $2,146.0 billion. The September figure is 4.6 percent above the September 2023 estimate of $2,055.2 billion.

PMI Manufacturing Index – Released 11/1/2024 – The October Manufacturing PMI registered 46.5 percent, 0.7 percent lower Compared to September. This is the lowest Manufacturing PMI reading in 2024. The overall economy continued in expansion for the 54th month after one month of contraction in April 2020. The New Orders Index remained in contraction territory, registering 47.1 percent, 1 percentage point higher than the 46.1 percent recorded in September. The October reading of the Production Index (46.2 percent) is 3.6 percentage points lower than September’s figure of 49.8 percent.

US Light Vehicle Sales – Released 10/31/2024 – U.S. light vehicle sales were at a seasonally adjusted annual rate (SAAR) of 15.768 million units in September.

Chicago PMI – Released 10/31/2024 – Chicago PMI remained in contraction territory in October and fell to 41.6 from 46.6 points in September. The latest reading indicated that Chicago’s economic activity contracted for the 11th successive month in October, and at a solid pace, marking the steepest decline since May.

Personal Income – Released 10/31/2024 – Personal income increased $71.6 billion (0.3 percent at a monthly rate) in September. Disposable personal income (DPI)—personal income less personal current taxes—increased $57.4 billion (0.3 percent). Personal consumption expenditures (PCE) increased $105.8 billion (0.5 percent).

Advance Estimate of 3rd Quarter 2024 GDP – Released 10/30/2024 – Real gross domestic product (GDP) increased at an annual rate of 2.8 percent in the third quarter of 2024, according to the “advance” estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 3.0 percent. The GDP estimate released today is based on source data that are incomplete or subject to further revision. The increase in real GDP primarily reflected increases in consumer spending, exports, and federal government spending. Imports, which are a subtraction in the calculation of GDP, increased. Compared to the second quarter, the deceleration in real GDP in the third quarter primarily reflected a downturn in private inventory investment and a larger decrease in residential fixed investment. These movements were partly offset by accelerations in exports, consumer spending, and federal government spending. Imports accelerated.

Consumer Confidence – Released 10/29/2024 – Consumer Confidence increased from 99.2 to 108.7 in October. The Expectations Index which is based on consumers’ short-term outlook for income, business, and labor market conditions, increased by 6.3 points to 89.1, well above the threshold of 80 that usually signals a recession ahead. In October’s reading, all five components of the Index improved. Consumers’ assessments of current business conditions turned positive. Views on the current availability of jobs rebounded after several months of weakness, potentially reflecting better labor market data. Compared to last month, consumers were substantially more optimistic about future business conditions and remained positive about future income.

Durable Goods – Released 10/25/2024 – New orders for manufactured durable goods in September, down three of the last four months, decreased $2.2 billion or 0.8% to $284.8 billion, the U.S. Census Bureau announced today. This followed a 0.8 percent August decrease. Excluding transportation, new orders increased 0.4 percent. Excluding defense, new orders decreased 1.1 percent. Transportation equipment, also down three of the last four months, drove the decrease, $3.1 billion or 3.1 percent to $95.4 billion. Shipments of manufactured durable goods in September, down two consecutive months, decreased $1.8 billion or 0.6 percent to $287.3 billion. This followed a 0.6 percent August decrease. Transportation equipment, also down two consecutive months, drove the decrease, $2.3 billion or 2.4 percent to $94.4 billion.

New Residential Sales – Released 10/24/2024 – Sales of new single‐family houses in September 2024 were at a seasonally adjusted annual rate of 738,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development.  This is 4.1 percent above the revised August rate of 709,000 and is 6.3 percent above the September 2023 estimate of 694,000. The median sales price of new houses sold in September 2024 was $426,300.  The average sales price was $501,000. 

Existing Home Sales – Released 10/23/2024 – Existing home sales in September decreased 1.0% from August and fell 3.5% year over year. Existing home sales decreased to 3.84 million in September seasonally adjusted. The median price of existing homes for sale increased to $404,500, up 3.0% from one year ago.

Housing Starts – Released 10/18/2024 – September housing starts came in at 1,354,000, 0.5% below the August estimate and is 0.7% above the September 2023 rate. Building permits were 2.9% below the August rate at $1,470,000 and is 5.7% below the September 2023 rate. 

This week we get data on Housing Starts and Existing Home Sales.

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Data Sources: 

Conference Board Economic Indicators   Bureau of Economic Analysis (BEA)   Congressional Budget Office (CBO)     U.S. Bureau of Labor Statistics (BLS)    Federal Reserve Economic Data (FRED Charts)

CME Fed Watch   U.S. Treasury – Yields   U.S. Census Bureau    Institute for Supply Management (ISM)    Weekly DOL Employment Data    BLS Monthly Jobs Report    JOLTS      All capital in one visualization 2020

US Energy Admn (EIA)   BLS Consumer Price Index CPI      BLS Producer Price Index PPIAtlanta Fed GDPNOW    NY Fed Nowcast GDP     US Census Bureau Housing Starts   U.S. Energy Admn

Consumer Credit  USCB Retail Sales   Construction Spending      Federal Reserve Dot Plots 2017   NY Empire Index    Philadelphia Federal Reserve   P/E Ratio Data -Yardeni Research

Technical Analysis Info: Koyfin.com  StockCharts.com – Financial Charts    Exponential vs Simple Moving Average

Other links: 1973 Arab Oil Embargo    Hunt Brothers Silver    Asian Contagion   Long-Term Capital bailout