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  • Scott Poore, AIF, AWMA, APMA

Dovish Minutes Push Markets Higher During Thanksgiving Week


Every equity sector was higher last week as the market responded to dovish comments in the November FOMC minutes.

There are seven different Fed speakers this week, which will add further depth to the release of last week’s Fed Minutes from November. Personal Income and Personal Spending will give us another look at how consumers are faring as we officially enter the holiday season. As we pointed out last week, Redbook Sales have been strong during the month of November, compared to previous time periods. The early returns on Black Friday show a record $9.1 billion in online sales, which exceeded expectations. However, in-store traffic was slower than usual. Cyber Monday is expected to be the biggest online shopping day of the year and should exceed last year’s results.


The Housing Market is showing some tiny green shoots as Weekly Mortgage Applications rose for two consecutive weeks, which has not happened since June of this year.

In addition, New Home Sales have improved since bottoming in August. Initial Jobless Claims have risen of late, but are still below the highs seen earlier this Summer. Durable Goods Orders and Consumer Sentiment rose last week more than expected and that could point to a resilient U.S. Consumer. A strong jobs report this week will have two effects—first, it could set markets back a little as investors could take that as a sign the Fed can continue raising rates, and second, it would mean that consumers have plenty of money to spend through the holiday season.


 

Disclosures


The information contained herein is for informational purposes only and is developed from sources believed to be providing accurate information. The opinions expressed are those of the author, are for general information, and should not be considered a solicitation for the purchase or sale of any security. The decision to review or consider the purchase or sell of any security should not be undertaken without consideration of your personal financial information, investment objectives and risk tolerance with your financial professional.


Forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.


Any market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.


Past Performance does not guarantee future results.



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