by Mariann Montagne, CFA
All data is for the week ended November 10, 2023
Stocks
Stocks were mixed last week, with technology and communications stocks leading the gains. The benchmark S&P 500 rose 1.35%, the Russell 2000 dropped 3.11% and the Nasdaq added 2.40%. Overseas, the developed markets index (MSCI EAFE) declined 0.90% while the emerging markets index (MSCI EEM) inched up 0.03%. With almost 90% of the S&P 500 market cap having reported, operating earnings are on track to finish the third quarter ended September with a 4.5% year-over-year gain.1
Fixed Income
The average 30-year fixed mortgage rate last week dropped 25 basis points to 7.61% from the prior week following the decline in 10-year treasury yields (since mortgage rates typically reflect changes in those government issues). Demand for new mortgages rose 2.5% from the week prior, but the purchase index is still more than 20% behind last year’s pace.2
Commodities
Oil prices dropped on concerns for demand from both the U.S. and China. As a result, WestTexas crude ended the week at $77.28 per barrel, down 4.15% from the previous week.3
Both corn and soybean prices fell following a government report that estimated 2023 yields were higher than expectations and a record for corn at 174.9 bushels per acre. December corn futures closed at $4.68 per bushel following Wednesday’s report, down 29.52% from a year earlier. November soybean futures closed at $13.43 per bushel following the report, down 7.50% from a year earlier.4
Economic Data
Continuing jobless claims – indicating those receiving unemployment benefits – rose to 1.83 million in the final week of October, the seventh consecutive week of gains and the highest since mid-April. On a weekly basis, jobless claims were in line with expectations, which indicates that new layoffs remain subdued, while those who are out of work are experiencing a harder time finding a new job.5
Company News6
Extra Space Storage Inc. (EXR), a Contrarian Choice, Core Select and G50 holding, reported earnings that exceeded consensus expectations and maintained revenue and earnings guidance. Management also reported strong execution on achieving synergy goals from their acquisition of Life Storage Inc.7 Shares rose 11.35% for the week.
Palo Alto Networks Inc. (PANW), a Core Select and G33 holding, shares rose 4.09% on concerns surrounding cyberattacks. The company also acquired a small firm, Talon Cyber Security, to address cybersecurity at the browser level. No terms were disclosed.8
Did you know…
Why is the number 13 commonly referred to as unlucky? There are two stories that appear to be the cause(s). In Norse mythology, the god Loki was 13th to arrive at a feast in Valhalla, where he tricked another attendee into killing the god Baldur. In Christianity, Judas — the apostle who betrayed Jesus — was the 13th guest at the Last Supper.
Mariann Montagne, CFA
Portfolio Manager
Sources:
1 JP Morgan Weekly Market Recap 11-13-23
2 Mortgage Bankers Association 11-8-23
5 US Department of Labor 11-9-23
6 All weekly changes in company stock prices: Yahoo Finance