Weekly Market Recap:

This week, U.S. equities saw a decline across major indices, with the Dow dropping -0.70%, the S&P 500 falling -1.32%, the Nasdaq losing -2.24%, and the Russell 2000 down by -1.42%. The downturn extended this week’s selloff, following last week's strong gains. Big tech stocks underperformed, with Tesla rebounding after its sharp drop on Thursday. Other laggards included semiconductors (AMAT), software, tech hardware, trucking, and pharma stocks, particularly those linked to vaccines. On the other hand, sectors like industrial metals, money center banks, credit cards, logistics, and energy showed positive performance.

Treasuries were firmer, with the yield curve steepening, though overall yields were still weaker for the week. The dollar index rose by +0.1%, marking a 1.7% increase for the week. Gold dipped slightly by -0.1%, while Bitcoin futures surged by +4.3%. WTI crude settled down by -2.5%, with a loss of nearly 5% for the week.

Corporate Highlights:

• AMAT (-9.2%): Strong Q4 earnings, but weak Q1 revenue guidance disappointed investors.

• PLTR (+11.1%): Gained after announcing its move to the Nasdaq on November 26th.

• EVO (+6.7%): Rose on news of a 27.5% premium acquisition offer from HALO.

• HALO (-15.4%): Fell despite confirming its acquisition

The latest inflation data for October reveals a 2.6% annual increase in the Consumer Price Index (CPI), which aligns with expectations. While inflation has eased since its peak in mid-2022, it continues to present challenges for U.S. households. The 0.2% rise in the CPI last month signals a moderate uptick, with the core CPI, excluding volatile food and energy prices, increasing by 0.3%. Shelter costs remain a significant driver, accounting for more than half of the CPI increase, as rental prices surged by 4.9% year-over-year. Despite energy costs remaining flat and food prices rising modestly, inflation-adjusted hourly earnings for workers saw a slight improvement of 0.1% for the month. This signals that while wages are inching up, the cost of living continues to outpace earnings, which could strain consumer spending. The Federal Reserve’s response to these numbers will be critical. With inflation still above the Fed’s 2% target, policymakers may be inclined to cut interest rates in December. However, the economic landscape remains uncertain, especially with potential changes to fiscal policy under the incoming administration. As inflation continues to evolve, the Fed’s next steps will have long-term implications for both the economy and everyday Americans. The road ahead may be a balancing act between promoting growth and keeping inflation in check.

Next Week:

Notable Earnings:

• Monday (11/18)

  • Cellectar Biosciences ($CLRB)

  • Bit Digital ($BTBT)

• Tuesday (11/19)

  • Lowes ($LOW)

  • Walmart ($WMT)

• Wednesday (11/20)

  • Snowflake ($SNOW)

  • NVIDIA ($NVDA)

  • Target ($TGT)

• Thursday (11/21)

  • Gap ($GAP)

  • BJ's Wholesale ($BJ)

• Friday (11/22)

  • Buckle ($BKE)

Notable Ex-Dividend Dates:

• Monday (11/18)

  • Chevron ($CVX) 4.20%*

  • UPS ($UPS) 4.87%*

  • Hershey ($HSY) 3.10%*

• Tuesday (11/19)

  • Prudential Financial ($PRU) 4.33%

  • Warner Music Group ($WMG) 2.18%

• Wednesday (11/20)

  • Target ($TGT) 2.88%*

  • Valero Energy ($VLO) 3.35%

• Thursday (11/21)

  • Discover Financial Services ($DFS) 1.90%

  • Marriott International ($MAR) 0.91%

  • Microsoft ($MSFT) 0.70%

• Friday (11/22)

  • Hyatt Hotels ($H) 0.42%

  • Bath & Body Works ($BBWI) 2.67%

*Dividend Aristocrat