AE Wealth Management: Weekly Market Insights | 11/19/23 – 11/25/23

November 27, 2023
11.27.23-stocks-rise

Weekly Market Commentary

THE WEEK IN REVIEW: Nov. 19-25, 2023

Stocks move higher in a quiet trading week

Last week was a fairly quiet one, with many people off for the Thanksgiving holiday. However, a couple of notable pieces of data dropped. On Wednesday, the Commerce Department reported that durable goods orders decreased 5.4% in October, the second-biggest decline since April 2020. But on Friday, S&P Global released its estimates of growth in business activity during November. The report showed that the services sector had a big pick-up over the past few weeks, compensating for a bigger-than-expected slowdown in manufacturing. So kind of a big mixed bag as far as data goes.

Slowing growth signals and dwindling inflation fears drove up demand for the $16 billion auction of 20-year U.S. Treasury bonds early last week. The auction drove down the yield on the benchmark 10-year Treasury note to an intraday low of 4.37% by Wednesday — its lowest level in two months. It didn’t stay that way for long, however; the 10-year yield popped back up by Friday.

Speaking of Friday: Shoppers were out in full force for Black Friday, spending a record $9.8 billion. (That’s an increase of 7.5% from 2022.) It’s a great start to the holiday season for retailers.

Things are tough for home sellers

Home sales fell in October to a 13-year low, pummeled by high home prices and interest rates. Sales of existing homes — which make up a big chunk of the housing market — decreased 4.1%, the lowest since August 2010, according to the National Association of Realtors®. But we could be rounding the bend; mortgage rates have started to pull back somewhat and spurred a small burst of applications from buyers in early November.

Coming this week

  • A flurry of speeches from Fed officials is scheduled for this week, especially on Tuesday. Their comments will provide some insight into what the Fed may do at its next meeting on Dec. 12.
  • This week’s data will include the second reading of third-quarter gross domestic product (GDP), which is forecasted to remain unchanged from its initial reading of 4.9%. The latest personal consumer expenditures (PCE) numbers on Thursday will also give us a look at how the consumer is doing.
  • Other data this week includes new home sales (Monday), Case-Shiller home price index (Tuesday), pending home sales (Thursday) and construction spending (Friday).

AE Wealth Management, LLC (“AEWM”) is an SEC Registered Investment Adviser (RIA) located in Topeka, Kansas. Registration does not denote any level of skill or qualification. The advisory firm providing you this report is an independent financial services firm and is not an affiliate company of AE Wealth Management, LLC. AEWM works with a variety of independent advisors. Some of the advisors are Investment Adviser Representatives (IAR) who provide investment advisory services through AEWM. Some of the advisors are Registered Investment Advisers providing investment advisory services that incorporate some of the products available through AEWM.

Information regarding the RIA offering the investment advisory services can be found at https://brokercheck.finra.org/.

Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The information and opinions contained herein, provided by third parties, have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by AE Wealth Management.

This information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. None of the information contained herein shall constitute an offer to sell or solicit any offer to buy a security or insurance product.

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