Driven by the Federal Reserve’s dovish stance, US markets concluded the week with their longest weekly winning run since 2017, and the Dow closed the week at a new high.
After rising by around 0.2%, or 60 points, the Dow Jones Industrial Average (^DJI) achieved yet another record finish for the blue-chip index. The tech-heavy Nasdaq Composite (^IXIC) rose almost 0.4%, while the S&P 500 (\GSPC) remained essentially steady.
The Federal Reserve’s change in stance this week, which indicated more rate reduction in 2024 than formerly anticipated and recognised its anti-inflation drive is getting traction, sent markets into a frenzy. Due in part to this, US equities saw a new high on the Dow and a seventh consecutive week of gains for the main indexes.
As for the Fed’s objectives, some analysts worry that the markets may be getting ahead of themselves. New York Fed President John Williams told CNBC on Friday that discussing rate reduction is “premature.”
Disregarding the stock market’s movements on Friday, oil saw a little increase, marking its first weekly victory since October. While Brent crude futures (BZ=F) traded at about $77 per barrel, West Texas Intermediate (CL=F) futures finished slightly lower at $72. As the dollar declined in the preceding two sessions, the price of oil increased by over 4%.
Gold hit a record early in the week, and it ended the week valued at more than $2,000 per ounce.
Investors are still feeling a sense of comfort following the Fed’s dovish and optimistic assessment of its tightening campaign, despite uncertainties about the pace and scope of rate decreases.
Next week will also see the arrival of new inflation figures. This Friday’s release of the PCE price index, the Fed’s favoured gauge, will assist determine whether or not the central bank’s efforts to reduce price pressures are having the desired effect.
Regarding corporate results, General Mills (GIS), FedEx (FDX), and Nike (NKE) will provide information about the status of the economy and the performance of American consumers through 2024.
With small advances, crude ended a seven-week losing skid on Friday during a tumultuous trading day. With a weekly gain of 0.28%, West Texas Intermediate (CL=F) finished at $71.43 per barrel. Futures for Brent (BZ=F) closed the week 0.94% higher, with a settlement price of $76.55 a barrel.
Throughout Friday’s session, futures fluctuated between positive and negative territory. Due to market forecasts that the Federal Reserve would lower interest rates in 2019 and 2020, crude saw a 4% increase in value over the previous two days. US dollars are used on oil invoices.
Over the past two months, the price of crude has been declining even though OPEC+—a group of oil producers led by Saudi Arabia—has reduced its supply.
Several well-known companies, including Dick’s Sporting Goods (DKS), Home Depot (HD), and Target (TGT), used their earnings calls to draw attention to the issue of “shrink,” the industry catch-all word for goods that disappear without being paid for. Target even declared it will close nine locations as a result of retail theft.
However, it turns out that a central tenet of the retail crime narrative was untrue.
A well-known advocacy organisation, the National Retail Federation, has refuted a widely circulated estimate that claimed that “organized retail crime” was responsible for “nearly half” of the $94.5 billion in product that was stolen in 2021.
The incorrect comment, according to the NRF, was an incorrect inference. Since then, the organisation has revised the research; nevertheless, its most recent conclusions do not provide an estimated loss figure that is exclusive to organised retail crime.
However, it’s uncomfortable to think about the implications of all the official pronouncements and media coverage that were, at the very least, partially based on a massive exaggeration in light of the retracted assertion.
In response to better-than-expected earnings news, shares increased 4% on Friday afternoon. Wall Street had anticipated $3.41 in adjusted earnings per share, but Costco announced $3.58. According to Bloomberg statistics, revenue was $57.8 billion, up 6% on an annual basis, against estimates of $57.71 billion.
CrowdStrike (CRWD): The cybersecurity startup saw a rise of more than 2% following the announcement on December 18 that new security guidelines for corporate America will be implemented. According to the Securities and Exchange Commission’s new regulations, businesses must notify the public of a breach four days after deciding that a hack would materially affect their operations.
The Dow and the S&P crossed the flat line on Friday afternoon, with Wall Street enthusiasm being buoyed by expectations of further and faster interest rate decreases. All three main indices were up.
Following the blue-chip index’s Thursday closing at a new all-time high, the Dow Jones Industrial Average (^DJI) increased by nearly 0.1%, or about 30 points. The very tech-heavy Nasdaq Composite (^IXIC) rose 0.4%, while the S&P 500 (\GSPC) remained almost flat.
While streamers entice viewers and highlight the quality of their libraries by promoting their own films and series, licenced content accounts for a large share of viewer interaction time.
In 2023, licenced titles accounted for 45% of Netflix viewing between January and June, as per the company’s inaugural biannual viewing report, “What We Watched: A Netflix Engagement Report.”
A perception of the streaming wars, in which competitors hoarded material to support their own development, is complicated by the comeback of licenced content. It also emphasises how good Netflix is at finding viewers for content that isn’t their own.
Certain shows, like “Suits,” have had a resurgence on the platform due to the popularity of the dramatic series, which was originally intended for television but is now prospering on streaming.
Even while sharing material with competitors was previously seen as arming a rival, the most recent data shows how licencing is still an essential component of the streaming business model. However, a large portion of what keeps streaming users captivated on the platform are the comforts of well-known series and the extensive library of classic material. In addition to providing audiences with background or ambient viewing for when they’re relaxing at home, finishing up errands, or settling down at the end of the day, licenced material keeps viewers interested in between big releases.
“What’s interesting is that we were able to unlock this enormous, enormous global audience for a show like ‘Suits,’ which has been played on USA for a long time, has been available on Peacock and had been available on Amazon for a couple of years before it hit Netflix,” said Ted Sarandos, co-CEO of Netflix, in response to a question about the company’s licencing strategy posed by Alexandra Canal of Yahoo Finance.
“That’s the combination of our large subscriber base and our recommendation system that knew to put ‘Suits’ in front of people who were going love it the most.”
In November, the market’s median rent dropped to $4,000, down 2.3% from a year ago and 4.6% from October, according to a study this week from real estate appraiser Miller Samuel and brokerage company Douglas Elliman. This marked the first year-over-year decline in the monthly median rent in 27 months.
While they were down almost 29% from October, new lease signings were up 9.7% year over year. In the meantime, November’s vacancy rate increased to 2.9% from 2.8% in October and 2.4% in the previous year. Being one of the biggest rental markets in the nation and providing a window into the demand from affluent tenants, the Manhattan market is of interest to investors nationwide.