Equity Markets Gained Ground in Short Week

Thanksgiving week proved to be a positive one for stocks. Each of the major benchmark indexes closed higher, led by the Dow and the Russell 2000. Financials, consumer staples and industrials led the market sectors, with only energy and communication services declining. Yields on 10-year Treasuries fell for the second consecutive week. Crude oil prices declined despite an apparent ceasefire between Israel and Hezbollah. The dollar lost about 1.7% for the week, while gold prices declined 2.0%.

Personal Income and PCE Data Released for October

Personal income increased 0.6% in October, while disposable personal income, personal income less personal current taxes, increased 0.7%. Personal consumption expenditures (PCE) increased 0.4%. The PCE Price Index increased 0.2% in October, and 0.3% excluding food and energy. Since October 2023, the PCE Price Index rose 2.3%, while the PCE Price Index less food and energy increased 2.8% for the year.

Eye on the Week Ahead

One of the most closely watched of all economic indicators is the employment situation report, which is released this week for November. October saw the labor force increase by a scant 12,000. However, Hurricane Milton may have impacted the surveys that support the employment data. It would not be surprising to see October’s figures increase as more data is made available. However, the consensus for November, at about 125,000, is well below the monthly average for the year.