Last Week
The Santa Claus rally that started in November 2023 continued to jingle away as the market logged its 53rd record high for 2024. While the Scrooges bemoaned inflation and tariffs, other investors embraced the strong economic data and loaded their sleds with shares in all industry sectors besides Oil & Gas. Advancing issues more than doubled declining issues on light holiday trading. The S&P 500, The Nasdaq Composite, and the Russell 2000 gained approximately 1%, with the yield on the 10-year Treasury dropping 23 basis points to 4.18%, a decline of more than 5% for the week.
The economic data included the lowest level of weekly initial jobless claims in seven months, the PCE report that showed in-line inflation, and that third-quarter GDP registered at a healthy 2.8%. There was some concern over President-elect Donald Trump’s proposed tariff policies, in which he said he would levy a 25% tax on all goods coming from Mexico and Canada and charge an additional 10% tax on products from China above any new tariffs. Thus far, traders have restrained themselves from reacting to those prospective policies that most economists suggest could reignite inflationary pressures.
On the Chicago Sports Scene, the Bears brass could not show restraint following another excruciating loss on Thanksgiving and fired Coach Matt Eberflus.
It is the first time in the team’s 100-plus-year history that they have fired a head coach during the season.
This Week
The labor market will be in focus with the Bureau of Labor Statistics Jobs Openings and Labor Turnover Survey on Tuesday and its November employment report on Friday. The expectations are for both reports to show a steady jobs market. The number of jobs added in October plunged to just 12K due to devastation from hurricanes and a prolonged strike at Boeing. A surprise one way or the other on the jobs report could influence the Fed’s interest rate decision at the upcoming meeting.
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