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Market Snapshot: Week of November 28

November 28, 2016 · The Cervera Blog
Anouka Maria Perkins
Realtor Associate

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 21 – November 25

  • Dow Jones: 19,152.14 (+1.506%)
  • S&P 500:  2,213.35(+1.44%)
  • Nasdaq:  4,870.02 (+1.289%)

Stock Market Winners:

  • Deere & Company, a company that provides equipment operations and financial services, stock price soared 11% due to a fourth-quarter earnings beat.
  • Shares of Chinese travel site Ctrip.com surged over 9% on Friday after announcing strong quarterly reports, stating transportation ticketing revenue grew 101% year-over-year. The company also experienced an analyst upgrade and acquisition news.

Stock Market Losers:

  • Eli Lilly’s announced on Wednesday that the company’s promising Alzheimer’s treatment has failed in a late stage clinical trial. As a result, Lilly’s stock plummeted approximately 12% in morning trade. This setback is also a blow to the pharmaceutical companies at large as companies developing similar drugs have also experienced negative impact.
  • Shares of retailer, Urban Outfitters, also dropped 12% on Wednesday after disappointing sales results from all but one of its apparel brands caused a recent run-up in its stock. Two of the company’s chains, Anthropolgie and Free People, reported a 2.7% and 1.5% decrease in sales, respectively.

Other Market News:

  • The Dow Jones, S&P 500, Nasdaq, and Russell 2000 all hit all time highs this week. The Russell 2000 experienced its fifteenth consecutive winning session Friday, the highest consecutive winning steak since early 1996.  
  • The US Trade balance as reported on November 25 showed an October deficit of $62 Billion, $3 Billion more than expected. This deficit represents the fifth largest deficit of 2016.
  • The US Dollar index at the opening of the trading day on November 25 stood at $101.47, an increase of $0.13 as compared to the close the previous Friday.
  • The 10-year US Treasury note yield at the opening of the trading day on November 25 was 2.373%, an increase of 1.41% as compared to Friday of last week.
  • Oil prices for WTI crude dropped to $1.63 per barrel, a decrease of over 4% as compared to Thursday’s closing price.

LOCAL

  • Mid-Market sales for Miami single-family homes continued their steady rise in October according to the MIAMI Association of REALTORS. This trend follows an increase in prices for all resale properties of the same price range. This October, “Sales for mid-market Miami single-family homes, or properties listed from $300,000 to $600,000, increased 18.9 percent in October, from 317 to 377”.
  • Due to our high percentage of international homebuyers, cash buyers in Miami represent a total of about twice the national average. Although the percentage of cash buyers in Miami is decreasing, transactions of the kind comprised 43.3% of October closed sales. The national average rings in almost half as much, at 22%.
  • Cervera Real Estate announced this week an exciting partnership with Stribling, who is based in New York. This strategic alliance allows Cervera and Stribling to increase their market presence and service to the South Florida and New York marketplaces.

FOREIGN AFFAIRS

  • On the residential front, interest rates spiked to approximately 4% for the first time in several years, impacting residential sales transaction volume. While transaction volume decreased, prices continue to increase.  
  • This week France held its presidential primary elections. The projected front-runner, Sarkozy, finished a surprising third, and is now out of the presidential race. Le Pen and Fillon will have a two-person run-off for the office.
  • President-elect Donald Trump named South Carolina governor Nikki Haley as the US representative to the United Nations.

TRENDING

QUOTE OF THE WEEK

“Courage is resistance to fear, mastery of fear, not absence of fear.”

- Mark Twain

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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