After multiple weeks of some fairly weighty material in our weekly update, I thought we’d offer a brief respite and give everyone a picture-based, light-on-the-words update. Enjoy!
- The Russell 2000 Small Cap Index recently made a new all-time high for the first time since November 2021.
- Nvidia recently replaced Intel in the Dow Jones Industrial Average after a five-year period that couldn’t be more different for the two companies.
- Warren Buffett’s Berkshire Hathaway is sitting on $325 billion in cash after trimming some of its most prominent positions.
- Interest payments on the U.S. national debt have risen to a record $1.1 trillion (yes, with a “t”) annual rate, up 120% over the last 4 years.
- Over the last 10 years, the U.S. federal government tax revenue has increased by 63%, while government spending has increased by 93%.
- Amazon Web Services (a division of Amazon) recorded $103 billion in revenue over the last 12 months, more than 468 companies in the S&P 500.
- Finally, lucky number seven, Amazon, Apple, Google, and Microsoft combined for $1.6 trillion in revenue over the last year, larger than the GDP of all but 15 countries.
Economy
- Markets moved lower this week, taking a breather after what has been a strong year so far. The S&P was down -2.1%, the Nasdaq was down -3.1%, and the small-cap Russell 2000 was down -4.0%.
- Core CPI rose by 0.3% MoM in October and aligned with market expectations to mark the third consecutive month of 0.3% increases in the core gauge.
- Annual CPI accelerated to 2.6% in October, up from 2.4% in September, which aligns with market expectations. It marks the first increase in inflation in seven months.
- Producer prices increased 0.2% MoM in October, following an upwardly revised 0.1% rise in September and matching expectations.
- Retail sales increased 0.4% MoM in October, following an upwardly revised 0.8% gain in September and above market forecasts of 0.3%.
Stocks
- U.S. equities were in negative territory. Healthcare and Technology led the decline, while Financials and Energy outperformed. Value stocks led growth stocks, and large caps beat small caps.
- International equities closed lower for the week. Developed markets fared better than emerging markets.
Bonds
- The 10-year Treasury bond yield increased 12 basis points to 4.43% during the week.
- U.S. bond markets were in negative territory this week, while International bond markets were positive.
- High-yield bonds led for the week, followed by government bonds and corporate bonds.
