November 2017 Market Recap

(For the month ended November 30, 2017.)

The fate of the Republicans’ massive tax cut plan remained uncertain as November ended. But the stock market surged to new highs even as the curtain rung down on trading for the month. The Dow Jones Industrial and S&P 500 indexes set new records on November 30, at 24,272.35 and 2,647.58 respectively. The NASDAQ Composite set its new record two days previously at 6,912.36. Strong stock index performance was paralleled by apparently strong company earnings performance. Three-fourths of companies reported third-quarter earnings that were ahead of expectations in November, according to FactSet Earnings Insight.

 

Through 
11/30/17*
S&P 500 Dow Jones Industrial Average NASDAQ Composite
November

2.8%

3.8%

2.2%

YTD

18.3%

22.8%

27.7%

1-Year Annualized

20.4%

26.9%

29.1%

3-Year Annualized

8.6%

10.8%

12.8%

5-Year Annualized

13.3%

13.3%

18.0%

Closing Value

2,647.58

24,272.35

6,873.97

Source: DST Systems, Inc. The S&P 500, Dow Jones Industrials, and NASDAQ Composite are unmanaged indexes. It is not possible to invest directly in an index. Index performance does not reflect the effects of investing costs and taxes. Actual results would vary from benchmarks and would likely have been lower. Past performance is no guarantee of future results. Not responsible for any errors or omissions.

*Price only. Does not include dividends.

Economy Watch The U.S. economy grew at a 3.3% annual rate in the third quarter after the figures were adjusted for inflation. The Commerce department said that a decline in imports and smaller reductions in local government spending were significant positive factors.

Consumer Indicators Inflation played a minimal role in the economy during the latest 12-month period, according to the Bureau of Labor Statistics’ Consumer Price Index. Prices for the typical urban consumer rose 2% for the year ended October 31, the latest month available. The nation’s overall unemployment rate edged downward to 4.1% and total employment rose by 261,000 jobs, the BLS said.

Interest Rate Summary Benchmark Treasury interest rates remained low during November, with market yields showing little concern that inflation trends might change. For example, at last report (the afternoon of November 30), the conventional 5-year Treasury yield was only about 1.7% higher than the inflation-protected 5-year yield. And the conventional 30-year yield was just a little less than 2% higher than the 30-year inflation-protected yield.