• The U.S. defense budget has grown by approximately 20% over the past five years. The recent conflict in Israel may lead to even larger increases. This has sent the stocks of the four largest defense contractors (tickers: LMT, NOC, GD, LHX) up an average of 12% since the Hamas attacks. 1
• US office vacancy rates reached a 20+ year high of 13.3% this year, with San Francisco and Chicago having the highest rates at 20.1% and 16.3%. Miami saw a decrease to 8.8%, the lowest since the second quarter of 2020. 2
• This year’s stock market recovery has not benefited as many stocks as past recoveries have. Only two-thirds of stocks in the S&P 500 rose in value over the past 12 months, compared to 88%-97% of stocks in the past four bull markets. *3
• About 80% of 65-year-olds will require some form of long-term care in their lifetime. The most recent Genworth Cost of Care Survey shows the median cost of an in-home aide is around $5,100/month compared to $4,500/month for assisted living. The median cost of one year in a nursing home is around $100K. 4

1. Barrons - "Defense Stocks Rise After Biden Asks Congress for Aid to Israel, Ukraine"
2. MFS - "Beyond the News"
3. WSJ- "There’s a Reason This Bull Market Feels So Weird"
4. Barrons - "Most Seniors Will Need Long-Term Care. Here’s How to Save for It."

*Past performance is not indicative of future performance

Economic Calendar

Monday:

None scheduled

Tuesday:

S&P Case-Shiller home price index (20 cities) (Aug), S&P flash U.S. services PMI (Oct), S&P flash U.S. manufacturing PMI (Oct)

Wednesday:

New home sales (Sep)

Thursday:

GDP (Q3), Initial jobless claims (Oct), Durable-goods orders (Sep), Durable-goods minus transportation (Sep), Advanced U.S. trade balance in goods (Sep), Advanced retail inventories (Sep), Advanced wholesale inventories (Sep), Pending home sales

Friday:

Personal income (nominal) (Sep), Personal spending (nominal) (Sep), PCE index (Sep), Core PCE index (Sep), PCE (year-over-year), Core PCE (year-over-year), Consumer sentiment (final) (Oct)

Upcoming Earnings Calls

Monday - CDNS, PKX, BRO, WRB, ARE

Tuesday - MSFT, GOOGL, HSBC, V, KO

Wednesday - META, TMO, TMUS, IBM, NOW

Thursday- AMZN, SHEL, MA, MRK, LIN

Friday - XOM, CVX, ABBV, SNY, EQNR

Client Focused Trading® for large institutions, pensions, hedge funds, wealthy families, and private equity for over 30 years.

Glen Eagle Wealth, LLC is a member FINRA and SIPC

This desk commentary is for informational purposes only

Carol Ann Fernandez

Rob Michel

Grier Vacek

Glen Eagle Wealth, LLC

4422C Route 27

PO Box 399

Kingston, NJ 08528

(609) 631-8231