The stock market ended mixed on Wednesday as post-election rally fizzled. S&P 500 was flat at 5,985, while NASDAQ declined 0.3% to 19,231.
Nevertheless, October consumer prices data was in line with expectations after rising 0.2% for the fourth straight month and 2.6% on an annual basis. This supports the possibility of another Fed rate cut on December.
Tweet of the Day
People keep saying Palantir stock is expensive. What I see is HUGE growth in new orders, which should eventually turn into revenue.
This one is five years $920 million. https://t.co/drjS9BXS0O
— David Sharek (@GrowthStockGuy) November 7, 2024
Chart of the Day
Here is the ten-year chart of S&P Global (SPGI) as of October 30, 2024, when the stock was at $486.
Ratings revenue jumped 36% due to a 83% jump in transaction revenue, on account of high demand for investment-grade and high-yield bonds. In the debt market, billed issuance shot up 76% compared to last year, fueled by high-yield and bank loan activity related to mergers, acquisitions, and dividend recapitalizations. Refinancing is still going strong, with some refinancing plans moved up from 2025 and 2026.
With stable interest rates and narrow credit spreads, overall issuance is looking pretty good looking ahead. S&P Global expects strong demand for public debt as yields are expected to moderate with rate cuts anticipated in the next 12 to 18 months.
SPGI is part of our Conservative Growth Portfolio.
