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Market Recap
WEEK OF NOV. 13 THROUGH NOV. 17, 2023
The S&P 500 index rose 2.2% last week, extending the market benchmark's winning streak to a third week, as investors were encouraged by cooler-than-expected October inflation data and stronger-than-expected quarterly results from some retailers. The S&P 500 ended the week at 4,514.02, up from last Friday's closing level of 4,415.24. The index is now up 8.7% for the month of November, putting the S&P 500 on track for its largest monthly gain this year if it can sustain the climb through the end of the month. It is up almost 18% for the year to date.
The advance came as economic data showed consumer prices as well as producer prices were tamer than expected last month, helping ease investors' worries about inflation and interest rate increases.
The data showed US seasonally adjusted consumer price index, a closely followed measure of inflation, slowed to a flat reading in October, missing expectations for a 0.1% gain. Core CPI, which excludes food and energy prices, rose by 0.2%, smaller than the consensus estimate for a 0.3% increase.
The US producer price index, meanwhile, fell 0.5% sequentially last month on a seasonally adjusted basis when a 0.1% increase was expected. Excluding food and energy, monthly PPI was flat month over month after rising 0.2% in September and was below the 0.3% gain analysts had modeled.
Investors were also encouraged by stronger-than-expected quarterly reports from companies including Target (TGT) and Home Depot (HD) even as the retailers' sales declined year over year.
All of the S&P 500's sectors rose during theweek, led by a 4.5% jump in real estate, a 3.7% climb in materials and a 3.4% rise in consumer discretionary.
The real estate sector's gainers included Extra Space Storage (EXR), which declared a Q4 dividend of $1.62 per share, maintaining its quarterly rate. Shares of the self-storage real estate investment trust rose 7.7% on the week.
In the materials sector, shares of Mosaic (MOS) climbed 7.5% as Barclays upgraded its investment rating on the fertilizer maker's stock to overweight from underweight and increased its price target on the shares to $142 each from $140.
The top percentage gainers in the consumer discretionary sector included cruise operators Carnival (CCL) and Norwegian Cruise Line Holdings (NCL), up 16% and 13%, respectively.
This week is expected to be a lighter week due to the Thanksgiving Day holiday on Thursday. The US stock market will be closed all day and will close early on Friday.
Economic reports anticipated ahead of the holiday-related closures include October US leading economic indicators on Monday, October existing home sales on Tuesday and October durable goods orders on Wednesday. Also, minutes from the latest Federal Open Market Committee meeting will be released on Tuesday.
