Hello, this is James Mayer, Branch Manager, from the Huffman Mayer Wealth Management Group of Wells Fargo Advisors.  We hope all of you in Northeast Ohio are stay warm during this crazy snow storm. We appreciate you tuning in to Novembers edition of “The Market Recap”. Let’s see what Phil has to say.

Thanks James.

1.       According to FactSet, with 95% of 3Q24 results in, 75% of companies in the S&P 500 have reported a positive earnings surprise and 61% of them have reported a positive revenue surprise.

2.       According to FactSet while stock valuations are higher than normal (22x expected earnings per share vs. the 10-year average of 18.1x), analysts also expect double-digit EPS growth for all four quarters in 2025, with an average of 14.3% for the year.

3.       According to recent data from the Federal Reserve Bank, the average American household is roughly $104,000 in debt, including mortgage, credit cards, student loans, and auto loans. While debt is down slightly among Baby Boomers vs. two years ago, it grew 8% among Millennials and 15% among members of Gen Z since 2022. The average Ohio household owes $75,243, or about 28% less than the National average.

In Summary:

1.       3Q24 results are mostly in with 61% of companies outperforming top line expectations and 75% beating on earnings.

2.       Higher than normal stock valuations may be justified by higher earnings growth, which analysts currently expect to average 14.3% for 2025.

3.       Household debt continues to grow, with the average American household owing $104k. Indebtedness increase most among younger groups, and Ohioans owe 28% less than the average Nationally.

Now let’s see what James and Ryan have to say!

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As always stay happy, safe, and healthy and hopefully we will see you very soon.