Money Talk Podcast, Friday Dec. 13, 2024

weather vane

Advisors on This Week’s Show

(with Max Hoelzl, Joel Dresang, engineered by Jason Scuglik)

Week in Review (Dec. 9-13, 2024)

Significant Economic Indicators & Reports

Monday

No major announcements

Tuesday

The Bureau of Labor Statistics said worker productivity rose at an annual rate of 2.2% in the third quarter, unchanged from an earlier estimate. Measured year over year, productivity advanced 2% from the third quarter of 2023. That compares to an average 1.5% annual gain since the end of 2019, which is below the 2.1% average since 1947. The productivity report showed unit labor costs running at a 0.8% annual pace during the latest quarter, down from an initial estimate of 1.9%. Adjusted for inflation, labor costs rose 1.6% from the third quarter of 2023.

Wednesday

The broadest measure of inflation ticked up in November, increasing on a year-to-year rate to 2.7%. The Bureau of Labor Statistics reported that the Consumer Price Index accelerated for the second month in a row, still above the long-range Federal Reserve target of 2% but down from a four-decade high of 9.1% in June 2022. The CPI added 0.3% from October with shelter costs accounting for 40% of the gain. In the previous 12 months, shelter costs grew 4.7%, though that was the lowest increase in nearly three years. Excluding volatile costs for energy and food, the core CPI rose 3.3% from the year before for the third month in a row.

Landaas investments graphic showing Consumer Price Index versus shelter index in last 10 years, via Bureau of Labor Statistics data

Thursday

Inflation on the wholesale level rose in November, as the Producer Price Index gained 0.4% from October, its largest increase since June. The Bureau of Labor Statistics said the cost of goods accounted for 60% of the PPI gain, mostly because of higher food prices, led by eggs. Compared to the year before, the index rose 3%, the most since early 2023. Excluding food, energy and trade services, the core PPI rose 3.5% from the year before for the fourth time in five months.

The four-week moving average for initial unemployment claims rose for the second week in a row but remained 38% below its 57-year average. The Labor Department reported that total claims fell 3.6% from the week before to fewer than 1.7 million. That was nearly 10% lower than the year before, suggesting employers overall continue to be reluctant to let workers go.

Friday

No major announcements

Market Closings for the Week

  • Nasdaq – 19927, up 67points or 0.3%
  • Standard & Poor’s 500 – 6051, down 39 or 0.6%
  • Dow Jones Industrial – 43828, down 814 points or 1.8%
  • 10-year U.S. Treasury Note – 4.40%, up 0.25 point