Last week’s economic data and news were positively received. A cooler Producer Price Index (PPI), a dovish pivot by the Federal Open Market Committee (FOMC), and strong retail sales propelled stocks and bonds higher. The S&P 500 gained 2.53%, while bonds saw a 2.16% increase. November’s Core Consumer Price Index (CPI) was slightly higher at 0.3%, compared to 0.2% in October, excluding volatile food and energy prices. Shelter costs were the primary contributors to Core CPI’s rise. Notably, gasoline prices decreased by 6.0%, a welcome drop during the busy Thanksgiving travel season. Last week, mortgage rates fell below 7%, and there is potential for them to drop below 6% in 2024.
This week, the Personal Consumption Expenditures (PCE) report will provide the final inflation update for 2023. We anticipate Friday’s release of November’s Core PCE will remain steady at 0.2%, mirroring the previous month. As consumers rush to complete their holiday shopping, we expect another robust month for retail sales. We wish you a peaceful holiday season and thank you for trusting us with your financial needs.
Have a great week!
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