Tuesday's Scoop: Hope☀️

Hey friends - welcome back to your daily scoops.

Here’s what you need to know today to inform your work, spending, and investments:

1. The number of job openings keeps shrinking.

2. Americans got a surge of optimism in October.

3. Home prices keep climbing.

Unemployment Rate: 4.1%
^{Relatively normal, low}

Job openings in the US have dropped to their lowest level in over three years. According to the Labor Department's latest Job Openings and Labor Turnover Survey (JOLTS) report, available positions fell by 418,000 to 7.443 million in September, mainly because Hurricanes Helene and Milton affected the South. Economists think the dip in job openings is temporary and not a sign of a weak economy, especially since hiring actually rose last month. So, finding a new role is getting more challenging, but there are still more openings than before the pandemic crisis.

Inflation Rate: +2.4% (YoY), +0.2% (MoM)
^{Policymakers aim for 2% YoY inflation (September CPI)}

Americans got a shot of optimism in October despite the uncertainty around the election. According to the Conference Board, consumer confidence in the economy surged 11% in October, the biggest jump since March 2021, to the highest level in nine months. The surge of optimism surprised economists because election uncertainty often weighs on people’s confidence. One thing driving the optimism is the strength of the jobs market, where hiring has stayed relatively consistent, and wages have kept growing. More survey respondents plan to buy a new car than at any time since 2020, and the appetite for spending extended across several big-ticket items and appliances. Consumer spending powers two-thirds of the economy, so positive vibes can translate to real growth.

30yr Mortgage Rate: 6.5%
^{That’s down from 7.7% a year ago. (MBA)}
Median Existing Home Price: $404,500
^{That’s up from $393K a year ago. (NAR)}

US home prices are still on the rise, making it harder for buyers to find affordable options. The Federal Housing Finance Agency reported that single-family home prices increased by 0.3% in August, following a 0.2% increase in July. Over the past year, prices have climbed 4.2%. Most existing homeowners locked in cheaper mortgage payments when rates were low and are reluctant to sell and take on higher costs, keeping the number of homes on the market low and prices high. This tight supply means if you're house hunting, you might face steeper prices and fewer choices than you'd like.

The Market:⬆️ +0.2%
S&P 500: 5,832.92
1Mo: +1% | 1Yr: +40% | 5Yr: +90%

The market drifted higher on Tuesday as investors grew excited about the stream of financial updates coming this week from Big Tech. The mix of rising consumer confidence, slower hiring, and decent corporate profits has improved optimism that policymakers will keep lowering borrowing costs next week.