Finance & Market Update: Tuesday, November 12, 2024

Market Update: Tuesday, November 12, 2024

Real Estate Insights:

• U.S. Housing Market: The National Association of Realtors reported a 2% decline in existing-home sales for October, marking the third consecutive monthly decrease. High mortgage rates, averaging 7.2%, continue to deter potential buyers. (NAR)

• Commercial Real Estate: Major real estate families in New York City are selling iconic office properties due to rising vacancies and the shift toward remote work. This trend indicates a significant transformation in the commercial real estate landscape. (The Wall Street Journal)

• Climate Impact on Housing: Analysts from J.P. Morgan have observed that home prices in areas prone to climate risks are beginning to decline. Increased insurance premiums and rebuilding costs are contributing to this trend, signaling a growing awareness of climate change’s impact on real estate values. (MarketWatch)

Stock Market Overview:

• U.S. Markets: The Dow Jones Industrial Average fell by 0.6%, closing at 43,988.99. The S&P 500 decreased by 0.1% to 5,995.54, while the Nasdaq Composite remained relatively flat at 19,286.78. Investors are exercising caution ahead of upcoming inflation data releases. (Associated Press)

• Cryptocurrencies: Bitcoin reached a new record high of $89,000 before retreating to $87,000. This surge is attributed to increased investor interest following the recent presidential election. (The Wall Street Journal)

Corporate Earnings:

• Home Depot: The company reported better-than-expected quarterly earnings and raised its annual revenue outlook, leading to a 1.5% increase in premarket shares. (Investopedia)

• Tyson Foods: Tyson Foods exceeded profit forecasts and announced a dividend increase, reflecting strong performance in its meat processing operations. (Associated Press)

Economic Indicators:

• Inflation Data: The Consumer Price Index (CPI) for October is scheduled for release tomorrow. Economists anticipate a slight increase, which could influence Federal Reserve policy decisions. (Associated Press)

• Bond Yields: Treasury yields have risen, with the 10-year yield reaching 4.44%. This increase reflects investor expectations of sustained economic growth and potential adjustments in monetary policy. (Investors)

Global Markets:

• Asia: Hong Kong’s Hang Seng Index dropped by 2.8%, influenced by concerns over China’s economic outlook and regulatory measures affecting technology companies. (Associated Press)

• Europe: European markets experienced modest declines, with the Stoxx Europe 600 down by 0.3%. Investors are monitoring geopolitical developments and energy prices. (Associated Press)

Investor Outlook:

Market participants are closely watching upcoming economic data releases, particularly inflation figures, for insights into future Federal Reserve actions. The recent surge in cryptocurrency values and fluctuations in bond yields underscore the current market volatility. In the real estate sector, shifts in commercial property ownership and the impact of climate change on housing prices are emerging trends to monitor.

Stay informed and have a great day!

Solomon Capital