Wall Street enjoyed a solid week of gains, rebounding from the prior week’s losses. All the major stock benchmark indexes climbed higher, led by the small caps of the Russell 2000, as traders moved from mega caps to cyclical stocks, which are influenced largely by the economy. Communication services were the only market sector to close in the red, while the remaining sectors moved higher, led by utilities, consumer staples, real estate, and materials. Crude oil prices gained nearly 6.5% last week, driven by increasing conflict between Russia and Ukraine. Considering the increasing geopolitical risks, the dollar and gold prices increased as investors sought safe-haven assets.
Last Week’s Economic News
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- According to the U.S. Census Bureau, October saw a downturn in new home construction and completions.
- Sales of existing homes rose in October, according to the National Association of REALTORS®, while total housing inventory sat at a 4.2-month supply at the current sales pace. The median existing-home price in October was $407,200.
- The national average retail price for regular gasoline was $3.046 per gallon on November 18.
- For the week ended November 16, there were 213,000 new claims for unemployment insurance.
Eye on the Week Ahead
There is plenty of potentially market-moving economic information released this week. Two reports will draw the most attention: the second estimate of third-quarter GDP and the report on personal income and outlays. The October release showed that GDP advanced 2.8%, while consumer spending rose 3.7%. Also, last month, personal income rose 0.3%, personal consumption expenditures increased 0.5%, and consumer prices rose 0.2%.
Have a nice week!
Sincerely,
Robert G. Carpenter