🚀 Stocks Keep Climbing

With the U.S. election in the rearview, markets have surged in a record-breaking post-election jump as investors anticipate favorable economic shifts.

• Market Rally — Stocks saw an unprecedented post-election rally, supported by the Republican sweep of the Presidency, Senate, and likely the House. Tax cuts and deregulation could fuel economic growth and corporate profits, so no complaints from Wall Street here.

• Fed Policy Adjustment — The Fed’s latest quarter percent rate cut signals a cautious approach. Strong growth and likely looser fiscal policy may slow further rate cuts originally planned for later this year. 

• S&P’s Continued Momentum — The S&P 500 has hit 50 record highs this year, including three since the election. Earnings growth is projected to accelerate from 9% this year to 14% in 2025.

With Republicans holding the political trifecta, and likely a unified Congress, economic optimism is on the rise with a historically strong track record for GOP-led governments.

• Higher Returns Historically — A unified GOP government has historically averaged 14.5% annual returns for the S&P 500, nearly double the 7.3% returns under a divided government with a Republican president.

• Last GOP Unified Government — Under Trump’s first term, the S&P 500 posted a 19% gain in 2017, though it saw a 6% drop in 2018, showing that even unified control has its ups and downs.

• Investor Implications — With a unified GOP likely pursuing pro-business policies, the market could benefit, but seasoned investors know to approach with caution, as past performance doesn’t guarantee future results.

New-vehicle prices in the U.S. saw modest gains in October, with an average transaction price of $48,623, up 1.7% from last year. Rising incentives and market competition are adding pressure as automakers close out 2024.

• Incentive Surge — October incentives climbed to 7.7% of ATP, up from 7.2% in September and over 60% higher than a year ago, as automakers intensify efforts to attract buyers. Ram led the pack with some of the highest incentives, while Porsche, Toyota, Land Rover, and Cadillac had the lowest.

• Segment Trends — ATPs diverged across key segments, with full-size pickup truck prices down 1.3% year-over-year to $65,389. Compact SUVs, averaging $36,769, held steady, while midsize SUV prices reached $48,977, within 1% of the industry average.

• EV Pricing — Electric vehicle ATPs stood at $56,902, 0.9% higher year-over-year, with incentives reaching 13.7% of ATP in October, more than double last year’s 5.6%. Tesla’s ATP dropped to $56,705, driven by Cybertruck prices slipping below $100,000 for the first time.

• End-of-Year Push — With sales incentives rising, automakers are setting the stage for a competitive year-end, aiming to attract buyers with a mix of discounts and seasonal promotions.

Car buyers are still feeling the pinch from auto loan rates that sit stubbornly at near-record highs. J.D. Power’s 2024 U.S. Consumer Financing Satisfaction Study shows a growing number of financially vulnerable customers, adding urgency for lenders to provide more flexible options.

• Rising Financial Vulnerability — Among mass market loan customers, 11% more are now classified as financially vulnerable since 2021, while the financially healthy group has dropped by 13%. Only 1% of the vulnerable segment can cover six months of expenses.

• Top-Ranked Lenders — Ford Credit ranks highest among mass market lenders at 669, while Lincoln Automotive Financial Services leads premium lenders with a satisfaction score of 722.

📬 For more data and stats like this delivered right to your inbox, subscribe to our daily email. 👇