SFM Observer - August 2024

Glenn Sweeney |

Issued: September 5, 2024

 

The Dow closed the month of July at 41,563 for a monthly gain of 720 points or 1.8%. The month started with a big drop and then steadily recovered over the last three weeks of the month.   The statistics from the job market took a turn for the worse in July and investors reacted.  The unemployment rate rose to 4.3% which is not historically high but high compared to the last couple of years.  The inflation news continued to be good and supports a lowering of interest rates.

 

Some interesting events from the month just past:

 

  • The long awaited cut in interest rates is about to occur on September 18.  This is the date of the next meeting of the Federal Reserve and Jerome Powell has strongly indicated cuts will happen.  The market is guessing whether it will be a ¼ or ½ point but once the rate cuts start, they normally continue for a period of time.
  • Home Depot expects big orders to be slim until the end of year when consumers will take advantage of lower interest rates to take on big home projects.
  • Deals might be coming on Ram 1500 pickup trucks.  Stellantis (parent of Dodge) is laying off 2,450 employees at the plant in Michigan that makes a large percentage of the Ram trucks.  The inventory levels are building on dealer lots and they need to reduce supply.  The UAW is protesting after their big contract win last year and threatening to retaliate if Stellantis does the layoff.
  • Disney hit a home run with their summer movie “Deadpool and Wolverine”.  The film is doing well with over $500 million in ticket sales.
  • The new rules on real estate commissions went into effect this month.  You no longer have to pay the flat 5 or 6% that has been customary for so long.  Negotiation is now the name of the game and realtors will now compete against each other.

 

Thank you for reading this issue of the SFM OBSERVER.  

 

Until next month,

 

Glenn Sweeney CFA