Weekly Market Update for December 13, 2024
by Jared Plotz, Director of Research
We have been overwhelmed by the heartfelt replies to the Jim Ulland tribute we sent out last Friday. The immense amount of support and kind words shown for the Ulland family and UIA’s staff has been remarkable. The memories, the stories, and the ways that Jim touched various people’s lives are such a pleasure to hear. Jim will always hold a dear place in our hearts and minds, and he will be deeply missed.
The major stock indices moved a bit sideways this week. The S&P 500 fell -0.64%, while the Nasdaq rose +0.34%. Sectors that outperformed the broader move included communication services and consumer discretionary, while laggards included materials, utilities, and real estate. The 10-Year Treasury, a rate indicator, closed the week at 4.40%, up +35 bps from last week. The 6-Month US Treasury, a favorite of our US Treasury strategy, ended down -3 bps at 4.32%.
On the economic front, two readings of November inflation were published ahead of the Federal Reserve’s meeting next week. The consumer reading (CPI) showed prices rising 2.7% versus a year ago, while the producer reading (PPI) registered a rise of 3.0%. Both rates of price growth were a bit faster than previous readings, with used automobiles one of the larger culprits of the uptick. The third inflation reading, personal consumption expenditures (PCE), will not be released until after the Fed’s rate-setting group convenes.
The Federal Reserve’s decision next Wednesday headlines what should be a busy week of economic news. It is widely expected that the benchmark Fed Funds Rate will be cut by 25 bps, before the group likely skips any rate adjustment in January. Along with the decision, the Federal Open Market Committee will update their economic projections for the coming years. On Tuesday, retail sales for November will be reported, in addition to industrial and manufacturing production. Also on Wednesday, we will get housing starts and building permits for November. Finally on Friday comes the PCE reading.
We wish you all well this week!
The information contained in this commentary is not investment advice for any person. It is presented only for informational purposes to assist in explaining factors that may have had an impact in the past or may have an impact in the future on client portfolios or composites. All expressions of opinion reflect the judgment of the firm on this date and are subject to change. Included information has been obtained from sources considered reliable, but we do not guarantee that the foregoing materials are accurate or complete. Investors should contact Ulland Investment Advisors for individualized information prior to deciding to participate in any portfolio or making any investment decision. Ulland Investment Advisors does not provide tax advice. All investors are strongly urged to consult with their tax advisors regarding any potential investment.
Performance quoted is past performance. Past performance is not indicative of future performance. There is always a possibility of loss. Current performance may be lower or higher than performance shown. Differences in performance versus the indices/funds may be attributable, in part, to differences in the asset make-up of the strategy vs. the indices/funds. Performance calculations are based on the reinvestment of dividends and gains unless these amounts were paid out to the client. Performance is subject to revision. See www.ullandinvestment.com for important strategy disclosures.
This does not constitute a recommendation of any investment strategy or product for a particular investor. Investing involves risk; principal loss is possible. Investors should consider the investment objectives, risk, charges, and expenses of the strategy carefully before investing. This and other important information can be obtained by contacting Ulland Investment Advisors.
