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12/4/23 Weekly Market Commentary

12/4/23 Weekly Market Commentary

December 04, 2023

What Happened Last Week…         

Stocks continued to rally as the three major indices extended their winning streaks to five consecutive weeks in the green. Meanwhile, the S&P 500 reached a new high for the year. Year-to-date, the indices have performed as follows: DJIA (9.35%), S&P 500 (19.67%), NASDAQ (36.67%).

 

The GDP growth rate (second estimate) for Q3 2023 beat expectations (5.0%) as it increased to 5.2% from the first estimate of 4.9%, which is the highest reading since Q4 2021.

 

The manufacturing PMI for November missed expectations (47.6) as it remained at 46.7, making it the 13th straight contractionary reading (below 50).

 

New home sales for October missed expectations (723,000) as it decreased to 679,000 from the downwardly revised 719,000 (from 759,000).

 

AbbVie (ABBV) announced its intent to purchase cancer drug developer ImmunoGen (IMGN) for $10.1 billion. The acquisition is expected to close in the middle of 2024.

 

According to FactSet, as of December 1, 98% of S&P 500 companies have reported earnings with 82% having a positive EPS surprise and 62% having a positive revenue surprise. The blendedearnings growth for the S&P 500 is 4.8%, which will be the first quarter of year-over-year growth since Q3 2022. The blended revenue for the index is 2.4%, which will be the 11th straight quarter of growth. For the stocks in the Rockline portfolios, as of December 1, 95% of companies have reported earnings with 89% having a positive EPS surprise and 62% having a positive revenue surprise.


Happening this week…

On Tuesday, the non-manufacturing PMI for November is expected to increase to 52.0 from 51.8, which was the tenth straight month of an expansionary reading.

 

On Wednesday, the ADP employment change may increase to 128,000 from 113,000. On Friday, the unemployment rate is expected to remain at 3.9%, nonfarm payrolls are forecasted to increase to 180,000 from 150,000, and average hourly earnings month-over-month are expected to increase to 0.3% from 0.2%.


Thanks for Reading!


- The Rockline Team