Key Takeaways
- U.S. house prices saw accelerated growth in November, with the S&P CoreLogic Case-Shiller 20-City Index rising 0.47% month-over-month and the FHFA House Price Index increasing 0.6%, both exceeding analyst expectations.
- UPS (UPS) plans to reduce its workforce by 30,000 jobs this year as part of an ongoing cost-cutting initiative.
- HSBC is advising investors to maintain an aggressively "risk-on" position, favoring equities, high-yield credit, emerging-market debt, and gold, while underweighting sovereign bonds, investment-grade credit, and oil.
- UPS (UPS) is also expanding its fleet, acquiring 18 Boeing 767 (BA) planes, with 15 expected for delivery this year.
The U.S. housing market demonstrated stronger-than-anticipated growth in November, with key indices indicating an acceleration in home price appreciation. The S&P CoreLogic Case-Shiller 20-City Index reported a 0.47% month-over-month increase, surpassing the estimated 0.22% and the previous month's revised 0.36% gain. Year-over-year, the 20-City Index rose 1.39%, also exceeding forecasts.
Similarly, the FHFA House Price Index for November showed a 0.6% month-over-month increase, significantly higher than the 0.3% estimate and the prior month's 0.4% rise. This suggests a resilient housing sector, with both major indices pointing to a robust end to the year for home values.
In corporate news, shipping giant UPS (UPS) announced a substantial workforce reduction, planning to cut 30,000 jobs this year. This move is part of the company's broader strategy to implement cost-cutting measures. Despite the job reductions, UPS (UPS) is simultaneously investing in its fleet, with plans to acquire 18 Boeing 767 (BA) planes, 15 of which are slated for delivery within the current year.
Meanwhile, HSBC has issued a strong recommendation for investors to adopt an aggressively "risk-on" stance. The bank advises being overweight in equities, high-yield credit, emerging-market debt, and gold, while suggesting an underweight position in sovereign bonds, investment-grade credit, and oil. HSBC's outlook suggests that markets are primarily being driven by U.S. economic factors.
In other developments, Japan's Finance Minister Katayama has been actively engaged in international discussions, including an online G7 Finance Ministers' meeting where critical minerals, support for Ukraine, and supply chains were discussed. Katayama also indicated Japan's commitment to coordinating with U.S. authorities on foreign exchange in line with a joint agreement. Political statements from former President Trump also made headlines, including remarks on Greenland and a "big armada" going to Iran. The Federal Open Market Committee (FOMC) will see new voters in 2026, though initial assessments suggest no significant shift in the dove/hawk balance. American Airlines (AAL) anticipates two more days of cancellations following a recent storm.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.