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COCHRAN MICKELS RETIREMENT SPECIALISTS MODELS

Market Recap

Week of Nov. 11 through Nov. 15, 2024

The S&P 500 index fell 2.1% this week as stronger-than-expected retail sales and comments by Federal Reserve Chair Jerome Powell led to reduced expectations for a December rate cut.

The market benchmark ended Friday's session at 5,870.62. Despite the weekly loss, the index is still up 2.9% for the month to date thanks to a rally last week in reaction to the US presidential election and a Fed rate cut of 25 basis points. It is now up 23% for 2024.

Data on Friday showed US retail sales increased more than expected in October, aided by a jump in auto purchases, while the September reading saw an upward revision. The report contributed to lower expectations for a Fed rate cut, especially as it came a day after Fed Chair Powell said "the economy is not sending any signals that we need to be in a hurry to lower rates."


Health care stocks led the broad decline, falling 5.5%, followed by a 3.3% drop in materials and a 3.2% loss in technology. Industrials, real estate and communication services also shed at least 2% each.

The health care sector was weighed down by concerns about President-elect Donald Trump's nominee for health and human services secretary, Robert F. Kennedy Jr., given that Kennedy is a vaccine skeptic. Vaccine maker Moderna (MRNA) had the largest percentage drop in the sector, tumbling 21% from a week ago.


In the materials sector, shares of Celanese (CE) fell 13% as analysts at BMO Capital and UBS downgraded their investment ratings on the stock following the company's report last week of weaker-than-expected Q3 results and Q4 guidance.

In technology, Super Micro Computer (SMCI) shares shed 24%. The company said it can't file its quarterly report for the period ending Sept. 30 on time due to the need for more time to complete financial statements and disclosures. The delay comes amid an internal review.

Just two sectors managed to eke out gains for the week: Financials rose 1.4% and energy edged up 0.6%.

Gainers in the financial sector included shares of Charles Schwab (SCHW), which rose 9.1% on the week as the company reported its total client assets reached $9.85 trillion in October, up 29% year-over-year and down 1% sequentially. Following the report, the stock received price target increases from analysts at Wolfe Research, Citigroup, Deutsche Bank and UBS.

The week ahead will feature multiple housing reports, with November home builder confidence data due on Monday, October housing starts and building permits on Tuesday, and October existing home sales on Thursday. A final reading on November consumer sentiment is expected on Friday.

Provided by MT Newswires.

Mike Mickels is the President and Chief Compliance Officer of CochranMickels Retirement Specialists, LLC and an avid sporting clay competitor. CochranMickels Retirement Specialists provides personalized planning and investment services to individuals approaching and in retirement. CochranMickels Retirement Specialists, LLC is a registered investment adviser. This platform is solely for informational purposes. Advisory services are only offered to clients or prospective clients where CochranMickels Retirement Specialists, LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. As a registered investment advisory firm, we are restricted from posting, publishing or otherwise disclosing any form of testimonial which is related to our investment advisory services. Links to websites and other resources operated by third parties are provided as information only, and there can be no assurance as to its accuracy, suitability or completeness. CochranMickels Retirement Specialists, LLC does not endorse, authorize or sponsor the content or its respective sponsors and is in no way responsible for third party content, services, products or information, or for the collection or use of information regarding the web site’s users and/or members.