Money Talk Podcast

Advisors on This Week’s Show

Kyle Tetting

Adam Baley

Mike Hoelzl

(with Max Hoelzl, engineered by Jason Scuglik)

 

MARKET CLOSINGS FOR THE WEEK

Nasdaq – 15629, up 174 points or 1.1%

Standard & Poor’s 500 – 4959, up 68 points or 1.4%

Dow Jones Industrial – 38655, up 545 points or 1.4%

10-year U.S. Treasury Note – 4.03%, down 0.13 point

Advisors on This Week’s Show

Kyle Tetting

Steve Giles

Kendall Bauer

(with Max Hoelzl, Joel Dresang, engineered by Jason Scuglik)

Week in Review (Jan. 22-26)

Significant Economic Indicators & Reports

Monday

The Conference Board said its index of leading economic indicators declined slightly in December, continuing to suggest a pending recession. The business research group said its gauge fell 0.1% from November, following a 0.5% drop from October. Over the last half of 2023, the index fell 2.9%, improving from a 4.3% decline in the first six months of the year. Of 10 leading indicators, six were positive, the organization said, but they were offset by weaker manufacturing, high interest rates and low consumer confidence. The Conference Board forecast a recession for the second and third quarters of 2024, with a revival toward the end of the year.

Tuesday

No major releases

Wednesday

No major releases

Thursday

The Commerce Department said durable goods orders were unchanged in December, following a 5.5% gain in November. Compared to the year before, long-lasting factory orders were up 4.4%, with aircraft accounting for the bulk of the increase. Excluding transportation equipment, orders rose just 0.8% from the end of 2022. A proxy for business investment gained 0.3% from November and was up 1.7% from December 2022.

The U.S. economy rose at an annual pace of 3.3% in the fourth quarter, down from 4.9% in the previous three months. The Bureau of Economic Analysis said the deceleration in gross domestic product was led by consumer spending, which slowed to a 2.8% annual rate from 3.1% in the third quarter. Also slowing: Inventories, federal spending and residential spending. Compared to the fourth quarter of 2022, GDP rose 3.1%, the strongest showing in seven quarters.

The four-week moving average for initial unemployment claims fell to its lowest level since January. The average was 45% below the all-time average dating back to 1967. The Labor Department said 1.8 million Americans claimed jobless benefits in the latest week, up 0.8% from the week before and 11% higher than the same time in 2022.

The Commerce Department reported an 8% gain in the annual rate of new home sales in December. Sales were up 4% from the year before and just below where they were heading into the COVID-19 pandemic. The median sales price dropped 14% from the year before to $413,200. In 2023, 53% of new homes were sold at $400,000 or more, compared to 63% in 2022.

Friday

The Bureau of Economic Analysis said consumer spending jumped 0.7% in December, more than double the 0.3% increase in personal income. Adjusted for inflation, spending rose 0.5% from November. Consumer spending accounts for about two-thirds of gross domestic product, so the gain was another sign of resilience amid the highest interest rates in a couple of decades. The personal consumption expenditures index, which the Federal Reserve Board follows for inflation, rose 2.6% from December 2022, the slightest incline since February 2021, which was the last time the rate was below the Fed’s 2% long-term target. The rate reached a 40-year high exceeding 7% in June 2022.

An early indicator of home sales increased in December. The National Association of Realtors’ index of pending home sales rose 8.3% from November and was up 1.3% from December 2022. The trade group said more home buyers have begun turning to the relatively larger stock of new homes for sale amid chronic shortages of existing houses. The group said an easing in mortgage rates since peaking in November also has encouraged potential home buyers. The Realtors forecast a 13% gain in annual home sales in 2024.

MARKET CLOSINGS FOR THE WEEK

Nasdaq – 15455, up 144 points or 0.9%

Standard & Poor’s 500 – 4891, up 51 points or 1.1%

Dow Jones Industrial – 38109, up 246 points or 0.6%

10-year U.S. Treasury Note – 4.16%, up 0.01 point

Advisors on This Week’s Show

Kyle Tetting

Dave Sandstrom

John Sandstrom

(with Max Hoelzl, Joel Dresang, engineered by Jason Scuglik)

Week in Review (Jan. 15-19, 2024)

Significant Economic Indicators & Reports

Monday

Markets closed in observance of Martin Luther King Jr. Day

Tuesday

No major announcements

Wednesday

The Commerce Department said retail sales rose 0.6% in December for the eighth increase in nine months, another indication of consumers’ persistent spending. The gain was widespread, with nine of 13 retail categories advancing, led by car dealers and online retailers. Gas station sales fell because of lower prices. Compared to the end of 2022, total retail sales rose nearly 6%, with 10 of 13 categories gaining, led by bars and restaurants. Adjusting for inflation, retail sales were up 2.2% since December 2022.

Industrial production increased in December for the first time in three months as automakers boosted manufacturing output. The Federal Reserve Board said production from factories, mines and utilities rose 0.1% from November, advancing 1% from December 2022. Manufacturing production gained for the second month in a row and was up 1.2% from the year before. For the fourth quarter, total output fell at an annual rate of 3.1%. Factory output dropped at a 0.3% pace for the quarter, but it would have been a 2.2% decline if not for automakers. Industries’ capacity utilization rate – an inflation indicator – sank for the third month in a row, staying below its 50-year average for the eighth consecutive month.

Thursday

The pace of U.S. housing starts slowed while building permits rose in December. The Commerce Department said the annual rate of new construction dipped 4% from November, though it was nearly 8% ahead of the year-ago pace. Meanwhile, the annual rate of permits rose 2% from November and was up 6% from December 2022. Starts for single-family houses declined nearly 9% from November, but permits for new single-family structures rose to the fastest pace since May 2022. As new construction slowed, the level of houses being built hovered near a record high, based on data going back to 1970. The pace of single-family houses under construction was down 19% from its peak in mid-2022.

The four-week moving average for initial unemployment claims fell to its lowest level in 16 months, dropping 45% below the all-time average, which dates back to 1967. An indicator of employers’ reluctance to let workers go, the moving average was 3% below its level just before the COVID-19 pandemic, according to Labor Department data. Meanwhile, total claims for jobless benefits rose 10% from the week before to 2.1 million. That's up 12% from the year before.

Friday

Existing home sales slowed another 1% in December and ended 2023 under 4.1 million residences sold, the National Association of Realtors reported. That's the lowest year-end sales level since 1995. At the same time, as a result of low inventories, the median sales price hit a record high of $389,800 in 2023. The trade group said it expects sales to rebound in 2024, especially since mortgage rates have ticked down the last couple of months.

The University of Michigan said its preliminary January measure of consumer sentiment showed the strongest confidence in the economy in two and a half years. The index rose 29% from November, the highest two-month increase since the end of the 1991 recession. It was 7% below the long-term average, dating back to 1978, but it was up 60% from a record low in mid-2022. The university said consumers expressed more confidence that inflation has turned a corner, and the consensus was broad, even spanning partisan political affiliations.

MARKET CLOSINGS FOR THE WEEK

Nasdaq – 15311, up 338 points or 2.3%

Standard & Poor’s 500 – 4840, up 56 points or 1.2%

Dow Jones Industrial – 37864, up 397 points or 1.1%

10-year U.S. Treasury Note – 4.15%, up 0.20 point

Advisors on This Week’s Show

Kyle Tetting

Art Rothschild

(with Joel Dresang, engineered by Jason Scuglik)

Week in Review (Jan. 8-12, 2024)

Significant Economic Indicators & Reports

Monday

In another sign of strength in consumer spending, credit card debt rose again in November, at the fastest pace in a year and a half. The Federal Reserve Board reported that revolving consumer debt outstanding increased at an annual pace of nearly 18%, the steepest pace since May 2022. Consumer spending accounts for about two-thirds of U.S. economic output, as measured by the gross domestic product. Credit card debt partly reflects the confidence of consumers to keep spending.

Tuesday

The U.S. trade deficit narrowed by 2% in November to $63.2 billion, a result of both exports and imports shrinking. Exports declined by 1.9% from October, led by decreased sales of industrial supplies and automotive products. Imports also fell 1.9%, led by drops in U.S. purchases from abroad of cellphones and pharmaceutical preparations. Through the first 11 months of 2023, the deficit – which detracts from gross domestic product – narrowed more than 18%; exports gained 1%, and imports declined 3.6%.

Wednesday

No major announcements

Thursday

The four-week moving average for initial unemployment claims fell for the fourth time in five weeks. An indicator of employers’ reluctance to let workers go, the average reached 207,000 claims, which was 43% behind the average since 1967 and down from a record high of 5.3 million in April 2020. The Labor Department said 1.9 million Americans claimed jobless benefits in the week ended Dec. 30. That was up 3% from the previous week and more than 11% ahead of the same time in 2022.

Shelter costs accounted for more than half of the quicker pace of inflation in December. The Bureau of Labor Statistics reported the Consumer Price Index, the broadest measure of inflation, rose 0.3% from November. The CPI advanced 3.4% from December 2022. That’s the highest inflation rate since September but down from a 40-year high of 9.1% in June 2022. The Federal Reserve Board’s long-range inflation target is 2%. Excluding volatile prices for food and energy items, the core CPI rose by 0.3% for the fourth time in five months. Year to year, the core measure was up 3.9%, the lowest rate since May 2021.

Friday

The Bureau of Labor Statistics reported that wholesale inflation retreated 0.1% in December, the third consecutive decline. The Producer Price Index fell because of a drop in goods prices, chiefly diesel fuel. The index was up 1% from the year before, compared to a 6.4% increase at the same time in 2022 and a record 11.7% in March 2022. Excluding volatile prices for food, energy and trade services, the so-called core PPI rose 0.2% from November and was up 2.5% from December 2022.

MARKET CLOSINGS FOR THE WEEK

Nasdaq – 14973, up 449 points or 3.1%

Standard & Poor’s 500 – 4784, up 87 points or 1.8%

Dow Jones Industrial – 37593, up 127 points or 0.3%

10-year U.S. Treasury Note – 3.95%, down 0.09 point

Advisors on This Week’s Show

Kyle Tetting

Adam Baley

(with Max Hoelzl, Joel Dresang, engineered by Jason Scuglik)

Week in Review (Jan. 1-5, 2024)

Significant Economic Indicators & Reports

Monday

Markets and government offices closed

Tuesday

U.S. construction spending rose in November for the 10th month in a row. The Commerce Department said the seasonally adjusted annual rate of construction expenditures advanced 0.4% from October to more than $2 trillion. Residential construction accounted for 44% of the spending and rose 1% from the October rate, led by an increase in single-family housing projects. Total construction spending was up 11% from November 2022, led by a 59% rise among manufacturers.

Wednesday

The Institute for Supply Management reported that its manufacturing index signaled contraction in December for the 14th month in a row. Based on surveys of purchasing managers, the index showed the industry slumping slightly less than in November with demand weakening more. On the brighter side, production expanded for the first time in a couple of months, and supplier deliveries improved for the 15th month in a row. The trade group said its index suggests the overall economy is contracting at a 0.5% annual rate.

U.S. employers posted 8.8 million job openings in November, down marginally from October and the lowest level since early 2021. Openings reached a record high of 12 million in March 2022 and remained above the pre-pandemic level of about 7 million. The Bureau of Labor Statistics said the number of hires and separations both declined in November, with the number of workers quitting their jobs reaching below the level just before the pandemic. Job openings stayed well above the number of unemployed job seekers, showing a continued gap between the demand and supply of workers.

Thursday

The four-week moving average for initial unemployment claims fell for the third time in four weeks, its lowest level since late October, 43% below the all-time average and about where it was just before the COVID-19 pandemic. Data from the Labor Department showed more than 1.8 million Americans were claiming unemployment benefits in the latest week. That was little changed from the week before but up 16% from the same time last year.

Friday

U.S. employers added 216,000 jobs in December, lower than the monthly average for 2023 (225,000) and 2022 (399,000). Other data in the report from the Bureau of Labor Statistics suggests a strong but cooling labor market. Temporary help jobs – often a harbinger of overall hiring trends – fell for the 15th month in a row. The average hourly wage rose 4.1% from December 2022, the first acceleration in gains since June. The same report showed the unemployment rate unchanged at 3.7%, but a number of other household measures showed conditions weakening slightly from the year before.

The U.S. services sector barely grew in December, gaining for the 12th month in a row, though at the slowest pace since May, according to the Institute for Supply Management. The trade group’s services index showed new orders slowing and employment receding since November. Purchasing managers told the ISM they’re concerned about economic uncertainty, geopolitical conflicts and labor constraints.

A report from the Commerce Department showed manufacturing orders rising in November for the third time in four months. The value of orders rose 2.6% from October and was 0.7% ahead of November 2022. Excluding volatile orders for transportation equipment – most notably commercial airline parts, orders increased 0.1% for the month and declined 1.4% from November 2022. A proxy for business investments was up 0.8% from October and 1.7% from the year before.

MARKET CLOSINGS FOR THE WEEK

Nasdaq – 14524, down 487 points or 3.2%

Standard & Poor’s 500 – 4697, down 73 points or 1.5%

Dow Jones Industrial – 37466, down 224 points or 0.6%

10-year U.S. Treasury Note – 4.04%, up 0.18 point

Landaas & Company newsletter  December edition now available.

Advisors on This Week’s Show

Kyle Tetting

Adam Baley

Kendall Bauer

(with Max Hoelzl, Joel Dresang, engineered by Jason Scuglik)

Week in Review (Dec. 25-29, 2023)

Significant Economic Indicators & Reports

Monday

No major releases

Tuesday

Housing inflation continued to climb in October. The S&P CoreLogic Case-Shiller national index rose 4.8% from its year-earlier measure. It was the fifth consecutive acceleration and the ninth in a row, based on seasonally adjusted monthly gains. A representative for the index described broad-based price growth nationwide reaching its fastest pace since 2022, when the Federal Reserve began a string of interest rate increases. With rates easing in recent months, analysts expect home prices to keep escalating.

Wednesday

No major releases

Thursday

The four-week moving average for initial unemployment claims fell for the third week in a row and the fifth time in six weeks, suggesting ongoing strength in the labor market. The measure of employers’ willingness to let workers go was 42% below its 56-year average, according to Labor Department data. Total claims reached more than 1.8 million, down less than 1% from the week before but up 17% from where it stood at the same time in 2022.

The National Association of Realtors said softer mortgage rates spurred more interest in home buying in November, but its pending home sales index remained unchanged from the month before. The index was down more than 5% from the year before. The trade group said lower mortgage rates and the prospect of the Fed reducing interest rates in 2024 should boost home sales in the new year.

Friday

No major releases

MARKET CLOSINGS FOR THE WEEK

Nasdaq – 15011, up 19 points or 0.1%

Standard & Poor’s 500 – 4770, up 15 points or 0.3%

Dow Jones Industrial – 37689, up 303 points or 0.8%

10-year U.S. Treasury Note – 3.87%, down 0.4 point

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Landaas & Company newsletter  December edition now available.

Advisors on This Week’s Show

Steve Giles

Dave Sandstrom

(with Max Hoelzl, Joel Dresang, engineered by Jason Scuglik)

Week in Review (Dec. 11-15, 2023)

Significant Economic Indicators & Reports

Monday

No major announcements

Tuesday

The broadest measure of inflation continued to ease in November, declining on a year-to-year rate to 3.1%. The Bureau of Labor Statistics reported that the Consumer Price Index was still above the long-range Federal Reserve target of 2%, but it was down from a four-decade high of 9.1% in June 2022. For the month, the CPI added 0.1% from October as shelter costs edged up and gas prices declined. Excluding volatile costs for energy and food, the core 12-month inflation rate was 4%, tied with October as the lowest since August 2021.

Wednesday

Inflation on the wholesale level flattened in November, as the Producer Price Index remained unchanged following a 0.4% decline in October. Compared to the year before, the PPI rose 0.9%, the lowest since June, which was the slimmest advance since the early months of the COVID-19 pandemic. Excluding food, energy and trade, the core PPI rose 0.1% for the month and was up 2.5% from Nov. 2022.

The policy-making committee of the Federal Reserve Board held steady on short-term interest rates, deciding not to change the cost of short-term borrowing for its third meeting since July. Since March 2022, the Fed had raised rates 10 times to their highest level in 22 years in an effort to control four-decade high inflation. The Federal Open Market Committee projected this week that it would lower borrowing costs by three-quarters of a percentage point by the end of 2024,

Thursday

The Commerce Department reported a 0.3% increase in retail sales in November, more than reversing a decline of 0.3% in October. The rise was broadly distributed: Eight of 13 major categories had higher sales in November, excluding gas stations, where lower prices cut into revenue. Consumer spending notably rose at bars and restaurants, often an indicator of consumer confidence. About two-thirds of U.S. economic activity is driven by consumer spending. Compared to November 2022, only two retail categories had lower sales, besides gas stations: Furniture stores and home-and-garden centers.

The four-week moving average for initial unemployment claims fell for the third time in four weeks, dipping to 42% below its 56-year average. Although data can be marginally affected by seasonal downtime, including around Thanksgiving, the Labor Department reported total claims rising 18% from the week before to nearly 1.9 million. That’s also up about 18% from where it stood the year before but still suggested employers’ reluctance to let workers go.

Friday

The return of striking autoworkers helped boost industrial production in November, according to the Federal Reserve. Total industrial output rose 0.2% in November, though it lagged 0.4% from the year before. Manufacturing production was up 0.3% from October but was down 0.2% excluding automotive. Capacity utilization rate, an early indicator of inflation pressure, rose marginally to 78.8% in November, staying below the 50-year average of 79.7%.

MARKET CLOSINGS FOR THE WEEK

Nasdaq – 14814, up 410 points or 2.8%

Standard & Poor’s 500 – 4719, up 115 points or 2.5%

Dow Jones Industrial – 37309, up 1061 points or 2.9%

10-year U.S. Treasury Note – 3.93%, down 0.32 point

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Landaas & Company newsletter  December edition now available.

Advisors on This Week’s Show

Kyle Tetting

Tom Pappenfus

Mike Hoelzl

(with Max Hoelzl, Joel Dresang, engineered by Jason Scuglik)

Week in Review (Dec. 4-8, 2023)

SIGNIFICANT ECONOMIC INDICATORS & REPORTS

Monday

The manufacturing sector showed broad weakness in October, with factory orders sinking 3.6% from September, down for the first time in three months. A plunge in commercial aircraft orders led the decline. Excluding transportation equipment, orders still fell 1.2% for the month, the Commerce Department reported. Total orders were up a scant 0.5% from the year before but up 1.2% without counting transportation. Orders for core capital goods, a measure of business investment, receded 0.3% from September and were up 1.8% from October 2022.

Tuesday

The service sector expanded in November, at a quicker pace and for the 11th month in a row, according to the Institute for Supply Management. The ISM service index suggested supplier deliveries are at their most efficient level since the end of the Great Recession. Supply bottlenecks were blamed for contributing to the highest inflation in 40 years amid the pandemic. The ISM said purchasing managers surveyed are most concerned about inflation, interest rates, geopolitical tensions and employment costs.

Employers’ appetite for new workers slumped in October to the lowest number of job openings since March 2021. The Bureau of Labor Statistics reported that employers posted 8.7 million openings, down from 9.4 million in September, though still 15% higher than the pre-pandemic peak. The balance between demand and the supply of unemployed job seekers reached its narrowest gap since July 2021. The rate of workers quitting their jobs – a sign of worker confidence – remained unchanged since July, the lowest in nearly three years.

Wednesday

The U.S. trade gap widened 5% to $64.7 billion in October. The value of exports shrank from September by 1%, led by automotive products. At the same time, imports rose 0.2%, led by computers. The Bureau of Economic Analysis said the trade deficit, which detracts from measures of economic output, grew 20% through the first 10 months of this year compared to the same period in 2022. In that time, exports grew 1.1% and imports declined 4%.

The Bureau of Labor Statistics said worker productivity rose at an annual rate of 5.2% in the third quarter, up from an earlier estimate of 4.7% and the fastest pace in three years. The annual growth rate for output rose 6.1% in the quarter while the pace of hours worked rose 0.9%. Measuring year over year, productivity advanced 2.4%. That compares to an average 1.5% year-to-year gain since the end of 2019, which is below the 2.1% average since 1947. The productivity report showed unit labor costs declining at a 1.2% annual pace during the quarter. Adjusted for inflation, labor costs rose at a 0.3% rate.

Thursday

The four-week moving average of initial unemployment claims rose for the first time in three weeks and the third time in five weeks. Still, the numbers continued to suggest an overall reluctance to let workers go. Data from the Labor Department showed the moving average for jobless applications is 40% below its 56-year average. Just under 1.9 million Americans claimed unemployment benefits in the latest week, up 0.3% from the week before, compared to 1.5 million the year before. According to the report, Wisconsin led the nation in new jobless claims in the week that ended Nov. 25. That often happens because of traditional employment accommodations certain Wisconsin businesses make around Thanksgiving and the deer hunting season.

The Federal Reserve Board reported a fourth consecutive rise in consumer credit card debt outstanding in October. It was the 30th time in 31 months the so-called revolving credit number advanced, though it was the slimmest of those increases, rising at an annual rate of 4.1%. Total consumer debt, including vehicle financing and student loans, rose at a 1.2% annual rate from September.

Friday

Employers continued to add jobs at a brisk pace in November, and the unemployment rate ticked down. The latest employment report, from the Bureau of Labor Statistics, showed 199,000 more jobs in November, below the 12-month average of 240,000, but  the 35th consecutive gain. The average hourly wage rose 4% from November 2022, the smallest increase since June 2021. The seasonally adjusted unemployment rate fell to 3.7%, staying within a narrow band for nearly two years and hovering near the lowest levels since the 1960s.

Consumer sentiment has strengthened with broad expectations for lower inflation, the University of Michigan reported. A preliminary look at survey data for December showed the university’s sentiment index had risen 39% from its all-time low in June 2022, though it remained below its pre-pandemic level. Inflation expectations reached their lowest levels since 2021.

MARKET CLOSINGS FOR THE WEEK

Nasdaq – 14404, up 99 points or 0.7%

Standard & Poor’s 500 – 4604, up 10 points or 0.2%

Dow Jones Industrial – 36248, up 2 points or 0.0%

10-year U.S. Treasury Note – 4.25%, up 0.02 point

Not a Landaas & Company client yet? Click here to learn more.

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Landaas & Company newsletter  December edition now available.

Advisors on This Week’s Show

Kyle Tetting

Dave Sandstrom

Tom Pappenfus

(with Max Hoelzl, Joel Dresang, engineered by Jason Scuglik)

Week in Review (Nov. 27-Dec. 1, 2023)

Significant Economic Indicators & Reports

Monday

New home sales declined in October, and prices fell as inventory increased slightly. The Department of Commerce said the annual sales rate dipped to 679,000, down nearly 6% from September’s pace and nearly 18% ahead of the same time last year. The pace for new houses was down 12% from when the Federal Reserve started raising interest rates in early 2022; the rate was 3% behind its level just before the pandemic. The number of new houses for sale rose from September but was below October 2022. The median sales price dropped to $409,300, down 18% from year before.

Tuesday

While higher mortgage rates continued to suppress housing sales, relatively low inventories kept pushing prices higher in September, according to the S&P CoreLogic Case-Shiller index. The September index, unadjusted for seasonal fluctuations, rose to a record high for the third month in a row, up 3.9% from September 2022. The index was nearly 7% higher than in January, which marked a turnaround in momentum following months of declines tied to higher mortgage rates. A spokesman for S&P said the breadth and strength in the “rally” in prices supports optimism toward continued gains.

The Conference Board said consumer confidence rose in November for the first time in three months. Opinions on current conditions inched down while expectations rose, though they remained low enough to suggest near-term economic recession. The business research group repeated its prediction of a short, shallow recession in 2024, but consumer expectations were the lowest so far this year. Among the concerns expressed by consumers were rising prices generally as well as war and interest rates.

Wednesday

The U.S. economy grew faster than previously estimated in the third quarter, rising at an annual pace of 5.2.%, the Bureau of Economic Analysis reported. Stronger business investments and increased spending from state and local governments helped offset slower consumer spending since an earlier estimate of 4.9% growth in the gross domestic product. The 5.2% pace was the highest since the end of 2021 and compares with a 2.1% rate in the second quarter of this year. Without annualizing the figures, inflation-adjusted GDP climbed 3.4% from the third quarter of 2022. The Federal Reserve’s favorite measure of inflation, the personal consumption expenditure index, rose 3.4% from the year before, the slightest increase since the beginning of 2021.

Thursday

A key driver of the U.S. economy, consumer spending, rose in October at its slowest pace since March. The Bureau of Economic Analysis said personal spending and personal income both rose by 0.2% from September. Personal saving rose slightly but was about 40% lower than just before the pandemic. The same report showed the Personal Consumption Expenditures index rose 3% from October 2022, the lowest inflation rate since March 2021. That was down from a 41-year high of 7.1% in June 2022.

The four-week moving average for initial unemployment claims fell for the second week in a row, remaining around 40% below its 56-year average. The Labor Department also reported that total claims rose more than 4% from the week before to just under 1.7 million. That was up 23% from the same time last year.

The National Association of Realtors said its pending home sales index sank 1.5% in October, reaching the lowest point since it was created in 2001. The index of contract signings was down 8.5% from the year before. The trade group blamed higher interest rates for the record low and said that recent drops in rates won’t be enough to offset a chronic shortage of houses for sale.

Friday

Manufacturing contracted in November for the 13th month in a row, according to the Institute for Supply Management. The trade group’s survey of manufacturing managers showed companies experiencing continued soft demand while they tried to manage costs, including “more aggressively” tackling employment expenses. The trade group said, based on past history, its index suggests the U.S. economy is receding at an annual rate of 0.7%.

The Commerce Department said the annual pace of construction spending rose 0.6% in October. Residential spending, which accounts for more than 40% of the total, rose 1.2% from September, all because of increased expenditures on single-family housing. Compared to October 2022, total construction spending rose nearly 11%, including a 0.9% increase in residential spending and a 71% gain in manufacturing spending.

 MARKET CLOSINGS FOR THE WEEK

Nasdaq – 14305, up 39 points or 0.3%

Standard & Poor’s 500 – 4595, up 35 points or 0.8%

Dow Jones Industrial – 36245, up 855 points or 2.4%

10-year U.S. Treasury Note – 4.23%, down 0.24 point

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Landaas & Company newsletter  November edition now available. Advisors on This Week’s Show KYLE TETTING ART ROTHSCHILD STEVE GILES (with Max Hoelzl and Joel Dresang engineered by Jason Scuglik) In a special Thanksgiving Money Talk Podcast, Kyle Tetting, Art Rothschild and Steve Giles discuss wise ways investors can plan to charitably share their wealth. Among the topics: Gifting appreciated securities […]