Reinhart Week in Review by Madison Investments 10.25.2024


SLOW NEWS WEEK

It was a slow news week. The Fed’s Beige Book, purchasing managers' indices, durable goods, and consumer sentiment reports were all released but had very little market effect. 

Our Take: Next week should be considerably busier on the economic news front. Reports on GDP (3Q advance), inflation (PCE), and employment (nonfarm payrolls, unemployment rate) are all on next week’s release docket. All have the potential to move markets and shape Fed opinions.

 

MUNICIPALS

Moody’s Ratings downgraded San Francisco from Aaa to Aa1. Moody’s cited the city’s weakened economy and depressed commercial real estate as reasons for the downgrade. S&P Global Ratings revised its outlook on the city last spring from stable to negative but continues to rate the city AAA.

Our Take: Workers in San Francisco have been slow to return to the office. Fewer commuters have led to a reduction in economic activity. In addition, commercial real estate values in the city have dropped, leading to a lower tax base. These problems are not unique to San Francisco and place downward ratings pressure on many cities.
 

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