Weekly Market Commentary October 14th to October 18th 2024

Despite a recent pullback in consumer sentiment measures, U.S. Household spending remained resilient. Retail Sales in the U.S. advanced 0.4% in September, modestly ahead of forecast and the prior month’s reading. The measure excluding autos and gasoline increased by 0.7%. Retailers, apparel and grocery led the results, while gasoline station sales declined (as a function of lower prices rather than sales volume) along with furniture, electronics and appliances.

Housing Starts were lower by 0.5% in the month to a seasonally adjusted annual rate of 1.35 million units. The reading missed consensus expectations with the majority of the pullback coming from multi-unit homes while single family homes advanced modestly following a tick down in average 30-year fixed mortgage rates from 6.44% to 6.18%. Building Permits, an indicator of upcoming demand, were lower by 2.9%.

U.S. equities continued to reach new all-time record highs. The S&P 500 advanced by 0.9% on the week to 5,864, while the Nasdaq Composite was higher by 0.8%. The yield on the 10-Year U.S. Treasury was little changed, closing at 4.08%.

Key economic releases next week include Existing and New Home Sales, Durable Goods and Consumer Sentiment.