Daily market snapshot

Published December 5, 2024
 Woman on couch looking at laptop

Thursday, 12/5/2024 p.m.

  • Stocks close modestly lower: Equity markets finished modestly lower Thursday, on a quiet day from an economic perspective. From a leadership standpoint, consumer discretionary and energy were among the top-performing sectors of the S&P 500, with the latter aided by an announcement that OPEC+ will push back a planned oil-production increase in January 2025 by three months.* After a recent run of outperformance, small-cap stocks underperformed today, with the Russell 2000 Index lower by roughly 1%.* Overseas, European markets traded mostly higher following eurozone retail-sales data for October that met expectations, while Asian markets were mixed overnight. Bond yields were little changed, with the 10-year Treasury yield closing around the 4.17% mark.* In the commodity space, oil prices finished the day roughly flat, while gold was lower by roughly 0.8%.*
  • Jobs data remains in focus: A busy week of labor-market data continued today with the release of initial jobless claims. Today's report showed initial jobless claims were 224,000 for last week, slightly above expectations for 214,000 and above the prior reading of 215,000.* Despite the upside surprise, jobless claims remain well below the 30-year median of 326,000.* Today's jobless claims data follows yesterday's ADP employment survey, which showed private employers added 146,000 jobs in November, modestly below expectations for a gain of 158,000 and below last month's downwardly revised reading of 184,000.* Additionally, Tuesday brought a better-than-expected JOLTS job openings report, which showed job openings increased to 7.7 million in October, 372,000 higher than the prior month and the biggest monthly increase in more than a year.* We'd view this week's data as evidence that labor-market conditions continue to normalize from historically tight levels but remain healthy overall. Perhaps this week's most anticipated release will be the November nonfarm-payrolls report on Friday. Market expectations are for nonfarm payrolls to rise by 208,000, well above the prior month's reading of 12,000, which was negatively impacted by the Boeing machinist strike and hurricanes Helene and Milton.* The unemployment rate is expected to remain unchanged at 4.1%.*
  • Performance check-in: As we enter the homestretch of 2024, the S&P 500 is on pace to post a gain of more than 20% for the second year in a row.* Including dividends, the index is higher by just over 29% year to date, following a gain of 26.3% in 2023.** If the current gains hold, this would be the first time since the mid-'90s that the S&P 500 has posted back-to-back years of 20% or better gains. Looking into the drivers of this year's gains shows that participation has been broad-based, with every sector aside from health care higher by 10% or more.** Mega-cap tech continues to perform well, with the information technology and communication services sectors each higher by nearly 40%, while consumer discretionary is up by about 30%.** However, financials and utilities have both risen by 30% as well, while industrials and consumer staples are each higher by 20% or better.** We expect the broadening of leadership to continue to play out in the year ahead, with cyclical and value-style investments performing well alongside growth-style stocks, strengthening the case for portfolio diversification.

Brock Weimer, CFA
Investment Strategy

Source: *FactSet **FactSet, total return. Return through 12/4/2024.

Investment Policy Committee

The Investment Policy Committee (IPC) defines and upholds Edward Jones investment philosophy, which is grounded in the principles of quality, diversification and a long-term focus.

The IPC meets regularly to talk about the markets, the economy and the current environment, propose new policies and review existing guidance — all with your financial needs at the center.

The IPC members — experts in economics, market strategy, asset allocation and financial solutions — each bring a unique perspective to developing recommendations that can help you achieve your financial goals.

Learn More

Important information:

This is for informational purposes only and should not be interpreted as specific investment advice. Investors should make investment decisions based on their unique investment objectives and financial situation. While the information is believed to be accurate, it is not guaranteed and is subject to change without notice.

Investors should understand the risks involved in owning investments, including interest rate risk, credit risk and market risk. The value of investments fluctuates and investors can lose some or all of their principal.

Past performance does not guarantee future results.

Market indexes are unmanaged and cannot be invested into directly and are not meant to depict an actual investment.

Diversification does not guarantee a profit or protect against loss.

Systematic investing does not guarantee a profit or protect against loss. Investors should consider their willingness to keep investing when share prices are declining.

Dividends may be increased, decreased or eliminated at any time without notice.

Special risks are inherent in international investing, including those related to currency fluctuations and foreign political and economic events.