SFM Observer - October 2024

Glenn Sweeney |

Issued: November 5, 2024 

 

The Dow closed the month of October at 41,763 for a monthly loss of -567 points or -1.3%. This week is the meeting of the Federal Reserve where we will find out if more interest rate cuts are coming.  We got some mixed reports during the month but the latest GDP report shows the economy is still growing at a steady clip.

Some interesting events from the month just past:

  • The competition for viewers on cable, streaming and network TV has taken a big toll on the profits of these firms and the accountants are going after the big compensation paid to the stars.  The stars on the View, George Stephanopoulos, Robin Roberts and Mike Strahan might be facing a pay cut when their $25 million a year contracts come up for renewal.  ESPN is also looking at pay cuts for its sports broadcasters.  
  • Boeing is laying off 17,000 employees as the company continues to deal with one problem after another.  It is hard to imagine how this once well-respected company continues to generate crisis after crisis with quality control, missed delivery schedules, failing safety systems and now a critical labor strike.  The new CEO, Kelly Ortberg has a very difficult job ahead of him.
  • Kairos Power is a new company trying to build seven new small nuclear reactors in the United States.  The location has not been determined but Google has entered into a power purchase agreement to buy the power generated by Kairos to run Google’s new data centers.  The company hopes to have the new plants built by 2035.
  • Sales of existing homes are declining this year for the second year in a row.  Lack of inventory and high mortgage rates are to blame.  Forecasters thought 2024 would be a good year on the hope of lower mortgage rates, but the lower rates only lasted a short period of time. Rising insurance costs is hurting affordability for some buyers.

An Important Project in Manchester

Mark Stebbins was the CEO of  ProCon Construction, a large construction company in Hooksett, NH.  I got to know Mark in a prior career and I was always impressed that he actively engaged with important charities that supported disadvantaged people in New Hampshire.  Tragically, he passed away suddenly at a young age from a heart issue.  His family, his friends and other supporters decided to build a community center in his honor to support disadvantaged Moms, children and impoverished people on the west side of Manchester.  This is our neighborhood where SFM has resided for 25 years and we are happy to help support this venture.  The new center will contain a food bank, a medical facility and a mental health center as well as community meeting space.  If you are inclined to support this type of charity, please do so.  Here is the link to their website for more info https://markstebbinscommunitycenter.org/ .  Thank you for your consideration.

Thank you for reading this issue of the SFM OBSERVER.  If you have any comments or questions, please send us a reply.  If you have a friend or associate that might be interested in the SFM OBSERVER, feel free to forward this email. 

Until next month,

Glenn Sweeney CFA