Price Return Last Week
S&P 500 +0.8% S&P Mid Cap +2.6% Russell 2000 +3.1%
MSCI EAFE +0.4% MSCI EM +0.2%
10 Yr US Treasury Rate – dropped from 4.48% to 4.22%
Source: Refinitiv Eikon
Economic Data
Core PCE Price Index – October: 0.2% (Reuters Poll est. 0.2%), September: 0.3%
Year-over-year change falls from 3.7% to 3.5%. Furthermore, if you annualize the data from the last six months, the Core PCE has increased at a rate of just 2.5%.
Source: Refinitiv Eikon
ISM Manufacturing PMI – November: 46.7 (Reuters Poll est. 47.6), October: 46.7
This is the 13th consecutive month that the report has been in contraction territory (below 50) and the longest such stretch since the Great Financial Crisis.
Source: Refinitiv Eikon, Reuters
New EV Subsidy Rules – Biden administration announces requirements for which electric vehicles will be eligible for a $7,500 tax credit. Subsidy will not be allowed for any vehicle that contains battery materials produced by a “foreign entity of concern.” The most notable update is that U.S. companies that have licensing agreements with Chinese companies will still be eligible for the credit.
Source: The Wall Street Journal
November Performance – The S&P 500 returned 9% during the month of November. The fourth-best month of the last decade and the second-best November in the last 40 years. The Bloomberg U.S. Aggregate Bond Index was up 5% during the month, marking its best monthly gain since 1985.
Source: Forbes, Barrons
Charles Thomas Munger – Charlie Munger passed away on November 28 at the age of 99. Charlie was a giant in the investment arena and is regarded as one of the most successful investors of our time. One hundred dollars invested in Berkshire Hathaway from the year Charlie joined until today would be worth nearly $400,000. In the words of Charlie, “Spend each day trying to be a little wiser than you were when you woke up. Day by day, and at the end of the day, if you live long enough, like most people, you will get out of life what you deserve.”
Source: Refinitiv Eikon, Barrons
Upcoming Events
12/7 – Notable Earnings Reports: Broadcom Inc, Lululemon Athletica Inc
12/8 – Jobs Report
Source: Refinitiv Eikon