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Market Snapshot: Week of November 22

November 22, 2016
Anouka Maria Perkins
Realtor Associate

Knowledge is power. And your time is money. So, naturally, we want you to have more of each. In our new weekly series, the Cervera Newsroom team organizes everything the modern real estate professional needs to know this week: from global economies and foreign affairs to local trends and expert real estate insight backed by 47-years of experience in South Florida. We've got it here for you.  

U.S. ECONOMY

  Market Snapshot: Week of November 14 – November 18

  • Dow Jones: 18,867.93 (+.108% )
  • S&P 500: 2,181.90 (+.806%)
  • Nasdaq: 5,321.51 (+1.61%)

  Market Behavior Throughout Election Announcements

  • Markets: U.S. equity markets experienced another positive week with the Dow Jones and Nasdaq both reaching intra-day all time highs.  The Russell 2000 has risen 10% since the election.
  • US Dollar: The US Dollar continued to rise over the week, closing at $101.34, an increase of 2.3% from last week. This puts the Dollar index is at its highest since 2003.

  Stock Market Winners:

  • Target shares skyrocketed 6.4% on Wednesday after the discount retailer reported earning results that were better than anticipated.
  • Nvidia Corp., the makers of 3D graphics processors and related software for the gaming market also reported earnings results that exceeded forecasts. The stock soared 6.31%, from $67.77 to $87.97.

  Stock Market Losers:

  • Gap shares plunged over 15% on Friday after reporting declining sales for the seventh straight quarter. The clothing retailer also announced plans to close more stores than originally anticipated.
  • Shares of drug maker Mallinckrodt tanked 12.02% upon claims that CEO, Mark Trudeau, commits securities fraud. Accusations also included alleged lies about the firm’s dependence on the Medicare system.
  • H&R Block shares dipped 7% after Jim Cramer gave his take on a few caller favorite stocks. Negative comments about the company’s misconceived “valuable worth” led to a rapid sell off of the shares. Cramer’s advice? Invest in Intuit instead, as the company is “taking the world by storm”.

  Other Market News:

  • Fed Chair Janet Yellen spoke to Congress Thursday, indicating an interest rate hike of 0.25% is imminent, likely during the upcoming December meeting.
  • The 10-year US Treasury yield continued its significant rise, closing at 2.34%, its largest two-week increase since November 2001.
  • Inflation saw a slight increase, in part as a reaction to President-elect Trump’s economic plans and possible infrastructure initiative
  • Oil prices for WTI crude rose to $45.58, an increase of $2.17 over last week. 

LOCAL

  • The Real Deal and EWM International Realty CEO, Ron Shuffield, warn readers about Miami’s biggest October slowdown for luxe home sales since 2011. Shuffield urges luxury sellers to drop prices, as, “roughly 37% of sellers have taken the hint, reducing prices by an average of 14%”.
  • On the other hand, The Miami Herald projects positive news for South Florida’s economy, due to the fact that industrial Real Estate is thriving as new companies continue to enter our regional market. According to a new construction update published by JLL research, “Our inventory of industrial space has grown by 9 million square feet in the past three years”. These figures offer a more comprehensive measure of our local economy’s well being, in comparison to the residential sales activity indicators.

WORLD

  • President-elect Trump named several Cabinet posts, including Senator Jeff Sessions as US Attorney General; Lt.General (retired) Michael Flynn as Security Advisor and Representative Mike Pompeo as CIA Director.  All three accepted the posts.

TRENDING

QUOTE OF THE WEEK

“Never give up on a dream because of the time it will take to accomplish. The time will pass anyway.” – Earl Nightingale

 

Anouka Maria is a real estate professional  with Cervera Real Estate.

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All the opinions expressed by Ms. Perkins in this newsletter are solely her opinions. You should not treat any opinion expressed by her as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of her opinion.

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