Wall Street enjoyed a solid week of gains following a rough start to the month. All the Major stock benchmark indexes advanced, with the exception of the Russell 2000, which is generally the most volatile of the aforementioned indexes. Eight of the 11 S&P 500 market sectors closed the week ahead, led by materials and utilities. Only health care, financials, and energy declined. The personal consumption expenditures (PCE) price index, the preferred inflation indicator of the Federal Reserve, inched up 0.1% in August and 2.2% over the last 12 months, nearing the Fed’s 2.0% target. Signs of cooling inflationary pressures likely fueled expectations that the Fed may cut interest rates again this year. Gold prices hit a record high earlier in the week, only to pull back later. Crude oil prices fell below $70.00 per barrel.
Last Week’s Economic News
- Gross domestic product (GDP) rose 3.0% in the second quarter, according to the third and final estimate from the Bureau of Economic Analysis.
- Personal income increased slightly in August, according to estimates released today by the U.S. Bureau of Economic Analysis.
- Sales of new single-family houses in August 2024 were 4.7% below the July rate.
- New orders for manufactured durable goods in August, up six of the last seven months, were unchanged from July.
- The international trade in goods deficit was $94.3 billion in August.
- The national average retail price for regular gasoline was $3.185 per gallon on September 23.
- For the week ended September 21, there were 218,000 new claims for unemployment insurance.
Eye on the Week Ahead
October kicks off with the release of the September employment figures. Job gains have slowed notably over the past few months, which contributed to the cut in interest rates by the Federal Reserve. It appears that the Fed is nearing its goals of maximum employment and 2.0% inflation.
Have a nice week!
Sincerely,
Robert G. Carpenter