Market Update
Stocks posted strong gains for November, which saw the S&P and the Dow have their best months of the year. The gains likely reflected investor optimism that a second Trump administration will favor businesses, with the hope that the President-elect will take a more moderate stance on trade tariffs. All 11 market sectors ended November higher, led by consumer discretionary and financials. Year to date, financials and information technology increased by more than 36.0%.
The latest data showed inflation has stubbornly resisted falling lower. Growth of the U.S. economy continued at a modest pace. Job growth rose by a mere 12,000 in October, and the unemployment rate was unchanged at 4.1%, while the number of unemployed increased marginally. The employment data may have been skewed due to Hurricanes Milton and Helene, so the Fed will likely wait until more information is available before assessing whether the labor sector has suddenly decelerated.
The S&P reported earnings growth of 5.8% in the third quarter. Roughly 75% of companies reported earnings per share above estimates, which is below the five-year average of 77% but equal to the 10-year average. Seven of the 11 sectors reported year-over-year growth, led by the communication services and health care sectors.
International Markets
Eurozone inflation in November rose 2.3%, in line with expectations. Lackluster economic growth in Canada dampened hopes for continued monetary policy easing by the Bank of Canada. Third-quarter Canadian GDP grew at an annualized rate of 1.0%, falling short of the central bank’s 1.5% projection. As a result, the yield on Canada’s 10-year Treasury bond fell to 3.17%, its lowest level in over a month, while the Canadian dollar neared its mid-2020 low. Elsewhere, China’s economy grew by 0.9% in the third quarter of 2024. In September, The People’s Bank of China introduced the biggest stimulus package for the economy since the pandemic, including significant cuts to interest and mortgage rates. The plans also included help for the struggling stock market and measures to encourage banks to lend more to individuals and businesses. For November, the STOXX Europe 600 Index dipped 0.1%; the United Kingdom’s FTSE rose 1.4%; Japan’s Nikkei 225 Index gained 0.4%; while China’s Shanghai Composite Index increased 1.7%.
On a Personal Note
Jeff worked on rehabbing his knee after surgery last month. The process is going very well, but he had to pass on the Thanksgiving Family Football Game. Drew celebrated his daughter Abby’s 18th birthday with a trip to Las Vegas to see Billy Joel. She was dazzled by the bright lights and Billy Joel never disappoints! Chris’s oldest daughter had her first two gymnastics meets last month. She says she still has some new skills to add to her routines, but she did very well in the meets regardless. Lisa spent a lot of quality time with her family at Thanksgiving. All the kids were in town, so it made for a wonderful holiday. Davide made his annual fried turkey. This year, Lisa’s nephew wanted to learn how to cook one. As you can see from the picture, it turned out amazing! Sam’s family continued their annual tradition of cutting down a live Christmas tree. This might be their largest tree yet at about 13 feet tall! Peter and Taylor had their family baby shower to celebrate Baby Morgan. This is the first grandchild for Peter’s parents and the first great grandchild for his grandparents!
