- Today's Scoop:
Hey friend - here’s what you need to know today…
Homes keep getting more expensive.
Retailers enjoyed a successful Cyber Monday.
Consumers gained a little more optimism about the economy this month.
The Market: ⬆️ +0.1%
S&P 500: 4,554.89
1Mo: +9% | 1Yr: +15% | 5Yr: +65%
The market jumped a bit, then resettled today after policymakers hinted that we may be nearing peak borrowing costs.
Home prices reached a new record high in September. According to data from S&P CoreLogic Case-Shiller, home prices rose 0.7% from August to September to the highest level on record going back to 1987. Homes now cost 3.9% more than they did the year before. Climbing mortgage rates have deterred buyers, but the lack of homes on the market has kept prices from falling. Homeowners have avoided selling to hang on to their cheaper mortgages.
Americans continue to shop and spend at a record rate this holiday season. According to Adobe Digital Insights, spending on Cyber Monday rose to a record $12B this year, up nearly 10% over last year. While many Americans face record-high borrowing costs and dented savings, retailers lured shoppers in with average discounts of 20-30% across categories. Spending in November rose 7% from last year, with most of the shopping directed toward electronics, apparel, and furniture.
Americans gained a little optimism this month. The Conference Board's Consumer Confidence Index rose this month after three consecutive months of decline. People feel better about job opportunities, expect lower inflation, and enjoy seeing mortgage rates fall from their peak. Unfortunately, two-thirds of consumers expect a recession in the next twelve months.
How are you feeling about the economy?
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Inside Scoop 🤓
What is a Santa Rally?
You might hear CNBC talking about a Santa Rally this month. According to the Stock Trader's Almanac, the stock market has had a positive return in the week leading up to Christmas more than 75% of the time.
Despite seeming like it has a mind of its own, the stock market is powered by people. It's very emotionally driven and responds to the people making the trades. If there’s enough momentum behind buying behavior, it can push stock prices higher.