The U.S. stock market hit another all-time high last week -- its 26th of the year -- on continued optimism that the US and China are making progress toward a "Phase 1" trade deal. Fresh data also showed the economy remains on sound footing with a decrease in the number of people applying for first-time unemployment benefits and a rise in October personal spending, the eighth straight monthly increase, signaling consumers remain in fairly healthy shape heading into the holiday season.
Thanks for the Market That Keeps on Giving
Last week brought our holiday opportunity to focus on the things we're thankful for. The market has made a convincing case for its inclusion on our list. Stocks are having their best year in more than half a decade, and bonds are up by the most in 17 years. While we can certainly appreciate this year's performance, investors shouldn't take it for granted. We think conditions remain sufficiently nourishing for an extension to the bull market, but not without bouts of indigestion.
In addition to a time for giving thanks and exceeding a reasonable calorie intake, Thanksgiving marks a turn into the homestretch for the year and shifts the attention to the holiday shopping season. With that in mind, we've dished up some holiday perspectives on market performance and the role the consumer is likely to play.
Turkey-day track record
Consumers in control
A good recipe, but watching for a sugar high
Craig Fehr, CFA
Sources: 1. FactSet, S&P 500 index total return. 2. Federal Reserve Board
|Dow Jones Industrial Average||28,051||0.6%||20.3%|
|S&P 500 Index||3,141||1.0%||25.3%|
|10-yr Treasury Yield||1.78%||0.0%||-0.9%|
Source: Morningstar, 11/29/19. Bonds represented by the iShares Core U.S. Aggregate Bond ETF. Past performance does not guarantee future results.
The Week Ahead
The Weekly Market Update is published every Friday, after U.S. markets close.
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