THE WEEK ON WALL STREET
Stocks ended mixed after a nail-biting week for investors, who grew anxious over megacap tech valuations and interest rates as the government shutdown came to an end.
The S&P 500 Index edged up 0.08 percent, while the Nasdaq Composite Index slipped 0.45 percent. The Dow Jones Industrial Average rose 0.34 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, advanced 1.63 percent.
FACT OF THE WEEK
On November 16, 2012, Hostess Brands announces its shutdown, sparking a national wave of snack cake hoarding. Within a week, retailer Amazon sees a 31,000% jump in Twinkie sales.
FACT OF THE WEEK
Rotating into Value
The week began with stocks rising, fueled by hopes that the longest-ever government shutdown could soon end as a federal funding bill moved closer to Congressional approval. Building on these early gains, the Nasdaq advanced more than 2 percent and the S&P 500 added 1½ percent.
Stocks rose at the opening bell on Tuesday following news that the Senate had passed a bill to end the shutdown, but sentiment quickly turned as tech stocks pulled down the Nasdaq and S&P. Meanwhile, the Dow rose modestly. However, by midday, sentiment shifted positively, and the Dow and S&P 500 closed in the green.
Midweek, growing conviction that the government would reopen continued to push the Dow Industrials higher. As a result, the Dow achieved its first record close above 48,000, with the S&P remaining flat and the Nasdaq slipping. Once the government reopened Thursday morning, attention quickly turned to tech valuations and an earnings miss from a large entertainment conglomerate. This shift also prompted investors to worry whether the Fed would adjust interest rates next month. Despite a brief dip as the week concluded, markets stabilized, with the Nasdaq and S&P recovering near the flatline, while the Dow lagged slightly.
Restarting the Data Engine
It takes time to get a tanker ship up and running again after a full stop. That’s what the Bureau of Labor Statistics (BLS) is doing now, as the government stats engine resumes.
Using the last government shutdown (in 2013) as a baseline, about half of the BLS reports that have not yet been published could be ready by the Federal Reserve’s next meeting on December 9-10. The remainder of the backlogged reports (including October reports) are estimated to be published on a rolling basis through mid-January.
FINANCIAL STRATEGY OF THE WEEK
As a reminder, the 2025 Open Enrollment Period for the Affordable Care Act (ACA) Health Insurance Marketplace is November 1 through January 15, 2025. Anyone looking to enroll, re-enroll, or opt out of private health, vision, and dental insurance plans for 2025 must do so during this time period. After the period closes, changes can only be made by those who experience a qualifying life event such as marriage, birth of a child, or job loss.
What is the marketplace? The Affordable Care Act of 2010 mandated that all Americans be enrolled in health insurance. The marketplace platform was created to allow individuals, families, and small businesses to acquire affordable health insurance. Until 2019, anyone without coverage was forced to pay an Individual Shared Responsibility Payment. This fee has since been abolished, allowing Americans to opt out of health insurance without being penalized.
Eligibility - Many get health insurance through an employer’s group health insurance plan, Medicare or Medicaid. If you don’t qualify for insurance through these three methods, you can buy private insurance through the marketplace. Anyone who has recently retired, turned 26, become unemployed or self-employed, started working part-time, or started a business with employees is more likely to want or need private coverage.
Re-enrollment - If you’re enrolled in private insurance through the marketplace and take no action, you’ll be automatically re-enrolled into your current plan. Be aware that some of the coverage options provided and their costs vary year-to-year. Be sure to examine the types of coverage available for 2025 to choose one that offers the features you need at the best price.
Opting Out - Though the Affordable Care Act no longer requires Americans to have health insurance coverage, consider the potential cost-savings an insurance plan can have before opting out. Medical bills from illness and accidents can be catastrophic to finances. Also, you can take advantage of routine preventative care, which helps to uncover problems early before they get more expensive. These are important to consider if you weigh the pros and cons of going without coverage.
You can find answers to questions about the process, eligibility, special life event enrollment periods, and how to update your application for coverage at healthcare.gov. If you need help determining how choosing coverage or foregoing it will impact your long-term retirement plan, let’s find some time to talk. If you know anyone needing to secure individual health insurance, please feel free to send this along to them!