We hope everyone enjoyed a wonderful Thanksgiving yesterday; we know we did. Given the short week, we will keep this brief with some interesting facts we’ve seen over the last month. Enjoy!
Stocks Down, Scripts Up.
A recent study published in the Financial Review found that large short-term drops in the stock market led to an increase in prescriptions for antidepressants and psychotherapy visits, particularly among the 46 to 55 age group compared to both younger and older age cohorts. (Source: WSJ)
Gift Cards FTD (For the Drawer).
After cash, the number one requested holiday gift of U.S. consumers is gift cards. However, a recent study found that 43% of Americans have at least one unused gift card, and the average total balance across all their cards is $244. (Source: Statista, Bankrate)
Price-Less Feast.
The cost of Thanksgiving dinner is down 5% year-over-year but remains up 19% versus five years ago, according to the American Farm Bureau Federation’s annual survey. Turkey, sweet potatoes, and pie crusts are some items that are down in price, while dinner rolls, cranberries, and stuffing are up. (Source: AFBF)
Office Awful.
Office property loans in the commercial mortgage-backed securities market saw 30-day delinquency rates rise to 1.9% of loans by balance in November, the highest since at least 2007. The share of loans at least 90 days delinquent rose to 4.5%, the highest on record. (Source: Bespoke, Bloomberg)
Auto Loan Worries.
The rolling four-quarter sum of newly delinquent auto loans rose to 8.1% of total balances in Q3. That’s the highest since Q4 of 2010. 90+ day auto loan delinquencies are now 4.6% of total balances, the highest since Q4 of 2011. (Source: New York Federal Reserve)
Economy
- Market movements were muted during the shortened holiday week. The S&P was up 1.1%, the Nasdaq was up 1.1%, and the small-cap Russell 2000 was up 1.2%.
- The Core PCE price index, the Federal Reserve’s preferred gauge to measure underlying inflation, rose by 0.3% MoM in October, the same pace as in September and matching market forecasts.
- Year-on-year, Core PCE prices rose by 2.8% in October, the most in six months, but in line with market estimates.
- PCE prices in the U.S. rose by 2.3% YoY in October, up from a three-year low of 2.1% in September, aligning with expectations.
Stocks
- U.S. equities were in positive territory. Real Estate and Healthcare were the top performers, while Energy and Technology lagged. Value stocks led growth stocks, and small caps beat large caps.
- International equities closed higher for the week. Developed markets fared better than emerging markets.
Bonds
- The 10-year Treasury bond yield decreased 22 basis points to 4.19% during the week.
- Global bond markets were in positive territory this week.
- Corporate bonds led for the week, followed by government bonds and high-yield bonds.
