THE WEEK ON WALL STREET
Stocks posted a slight gain last week as mixed jobs data triggered some selling pressure before a cooling inflation report helped stocks recover.
The S&P 500 Index inched ahead 0.10 percent, while the Nasdaq Composite Index advanced 0.48 percent. The Dow Jones Industrial Average slipped 0.67 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, rose 0.21 percent.
FACT OF THE WEEK
On December 23, 1975, US President Gerald Ford signs the Metric Conversion Act, declaring the metric system “the preferred system of weights and measures” in the country. Fifty years later, the US is still miles away from widely adopting metric measures.
MARKET MINUTE
Round Trip for Stocks
A mixed jobs report on Tuesday created some concerns about the economy, leading the S&P 500 and Dow Industrials to modest declines. However, the tech-heavy Nasdaq posted a modest gain.
Stocks continued their retreat on Wednesday with a handful of AI-related names leading the decline.
Markets then staged a rebound as a fresh inflation report came in cooler than expected for November, raising investor hopes that interest rates may trend lower. The S&P 500 and Dow Industrials broke four-day losing streaks, while the Nasdaq rebounded 1.4 percent on Thursday alone.
Megacap tech stocks rebounded on the last trading day of the week, lifting the broader market. Investors appeared to look past a disappointing report on consumer sentiment.
The Push & Pull of Jobs & Inflation
The Bureau of Labor Statistics combined its October and November employment data into one report. However, the October report only contained partial data due to the shutdown, while the November numbers reflected full data.
While November saw an unexpected increase (+64,000 versus economist expectations of +45,000), the October report showed employers cut 105,000 jobs. The unemployment rate ticked up to 4.6 percent.
The Consumer Price Index’s (CPI) 2.7 percent year-over-year pace for November was slower than the 3.1 percent economists expected, and slower than September’s 3.0 percent pace. Market gains were tempered, however, as economists cautioned that shutdown-related gaps may have influenced some of the data.
FINANCIAL STRATEGY OF THE WEEK
As we approach the end of the year, it’s an opportune time to review and optimize your financial and tax strategies. Here are some key considerations:
1. Tax-Advantaged Accounts: Contribute fully to retirement accounts, including any plans offered by your employer. If you’re self-employed, there are options for you, too.
2. Gifting: Take advantage of the $19,000 annual gift tax exclusion per individual and consider the pros and cons of educational gifting.
3. Charitable Contributions: A large chunk of charitable giving occurs in December. Do you have a charitable giving strategy?
4. Estate Management: Explore strategies that can put you in better control of your estate.
5. Investments: Review your money decisions to see if your investments are working hard for you.
6. Income Timing: Don’t forget to evaluate the timing of income, such as bonuses
These strategies may help as you review your financial position. For more insights, please reach out with specific concerns.