Markets on the rise, Gold hits a million, and your next car? That depends on where you live!

“Kevin’s Weekly Pulse”

Weekly pulse of the markets and economy

Aug 19th – Aug 23rd

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1.?Retail Sales to the Rescue

Higher than expected retail sales and a softer inflation report have helped jittery investor sentiment this week. The S&P 500 and Nasdaq Composite posted their eight straight positive sessions on Aug. 19. The CBOE Volatility Index fell to around 15 after hitting above 65 back on August 5. This week investors are awaiting the Fed’s annual Jackson Hole Economic Symposium, as well as looking forward to viewing language from the minutes of July’s policy meeting mid-week.[i]

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2.?Pricing in 100% Chance of Rate Cut

Fed fund futures are pricing in a 100% probability that the central bank will lower borrowing costs at its September meeting. The 10-year Treasury and 2-year Treasury were held in a tight range awaiting more Fed speak from Jackson Hole. Although analysts don’t expect firm guidance from any of Powell’s comments, they will look to his latest thinking to see whether that cut will be 25 or 50 basis points, after annualized inflation hit 2.9% in July.[ii]

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3.?Canadian Rail Disruption Could Mean US Agricultural Woes

While still hoping for a last-minute agreement to avoid a shut down, the Canadian National Railway and Canadian Pacific Kansas City plan to shutter nearly all freight rail services in Canada for the first time at midnight Thursday. Such a stoppage will halt shipments of US spring wheat from Minnesota and the Dakotas to the Pacific Northwest, and Canadian meat producers warn of millions of dollars in losses and waste. The Teamsters are demanding better wages, benefits and crew scheduling.[iii]

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4. Good to Be Golden

What does $1 million buy you these days? Apparently, a single gold bar. A single gold bar consists of 400 troy ounces, which for the first time ever, hit $2,500 per troy ounce equating to $1 million per bar.[iv]

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5. Electric Vehicle Vs. Gas? Depends Where You Live

Which is cheaper depends on your geography and other factors, according to Consumer Reports and J.D. Power. The relative financial benefits of an EV depends heavily on a case-by-case basis, such as driver’s geographic location. Cities that are particularly friendly to EVs have things in common like the low cost of electricity, high gasoline prices, and moderate climates, whereas in Texas it’s hard to compete with the low cost of gas. However, small and low-range EVs had a less expensive cost of total ownership across all cities in the studies.[v]

Disclosures:

[Falcon Wealth Advisors] is a group comprised of investment professionals registered with Hightower Advisors, LLC, an SEC registered investment advisor. Some investment professionals may also be registered with Hightower Securities, LLC, member FINRA and SIPC. Advisory services are offered through Hightower Advisors, LLC. Securities are offered through Hightower Securities, LLC. All information referenced herein is from sources believed to be reliable. [Falcon Wealth Advisors] and Hightower Advisors, LLC have not independently verified the accuracy or completeness of the information contained in this document. [Falcon Wealth Advisors] and Hightower Advisors, LLC or any of its affiliates make no representations or warranties, express or implied, as to the accuracy or completeness of the information or for statements or errors or omissions, or results obtained from the use of this information. [Falcon Wealth Advisors] and Hightower Advisors, LLC or any of its affiliates assume no liability for any action made or taken in reliance on or relating in any way to the information. This document and the materials contained herein were created for informational purposes only; the opinions expressed are solely those of the author(s), and do not represent those of Hightower Advisors, LLC or any of its affiliates. [Falcon Wealth Advisors] and Hightower Advisors, LLC or any of its affiliates do not provide tax or legal advice. This material was not intended or written to be used or presented to any entity as tax or legal advice. Clients are urged to consult their tax and/or legal advisor for related questions.

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[i] Harring, Alex and Kim, Hakyung, “S&P 500 tracks for first losing day in 9 as comeback rally takes a breather: Live updates,” CNBC, August 20, 2024, https://www.cnbc.com/2024/08/19/stock-market-today-live-updates.html. Accessed August 20, 2024.

[ii] Harring, Alex, “Treasury yields hover as investors await Fed updates,” CNBC, August 20, 2024, https://www.cnbc.com/2024/08/20/treasury-yields-hover-as-investor-await-fed-updates.html. Accessed August 20, 2024.

[iii] Polansek, Tom and Mukherjee, Promit, “Canda rail stoppage poised to disrupt North American agriculture,” Yahoo!Finance, August 20, 2024, https://finance.yahoo.com/news/canada-rail-stoppage-poised-disrupt-164809154.html. Accessed August 20, 2024.

[iv] Murphy, Aislinn, “Value of gold bar hits $1 million for the first time ever,” FOXBusiness, August 20, 2024, https://www.foxbusiness.com/markets/value-gold-bar-hits-1-million-first-time-ever. Accessed August 20, 2024.

[v] Iacurci, Greg, “How EVs and gasoline care compare on total cost – where you live can make a huge difference,” CNBC, August 20, 2024, https://www.cnbc.com/2024/08/20/how-evs-and-gasoline-cars-compare-on-total-cost.html. Accessed August 20, 2024.