Today in the Market (1/8/2024)

Good Morning! On Monday, U.S. equities surged with strong performance from key tech companies. However, the decline in Boeing (BA) shares hurt the Dow Jones.

It was a green day for the S&P 500 and the NASDAQ, with gains of 1.41% & 2.20%, respectively, while the Dow Jones had a rough start but pulled through with an increase of 0.58%.

A NEW RECORD! KINDA...

Rolls-Royce Motor Cars (BMWYY), a luxury carmaker, had record sales in 2023 despite factors like higher interest rates, geopolitical instability, and higher pricing. This success may be attributed to the ongoing purchases of customized cars by ultra-high-net-worth customers.

So how many did they sell? The firm said that it sold a record-breaking 6,032 automobiles, despite ongoing economic worries and market volatility. The record year only represents a marginal increase in car sales, selling just 11 more vehicles compared to the previous year

What markets are buying the cars? Rolls-Royce said the United States has regained its position as the company’s primary market, with China coming in second. Record-breaking sales were seen in Europe, the Middle East, and the Asia-Pacific regions. Rolls-Royce does not provide a regional breakdown of its results.; however, it has previously disclosed that the United States represents 35% of its total sales.

POSSIBLE TURN AROUND?

December saw a 0.5% decrease from November in the Manheim Used Vehicle Value Index (MUVVI), which seasonally adjusts used car prices paid at wholesale auctions in the U.S. It may seem like a small decline, but in 2023 prices of used vehicles decreased by 7.0%, marking a 21% decline compared to December 2021.

However, things may be changing! Mannheim reported that despite price decreases, the average daily sales conversion rate had a significant gain of 53.8%, showing an improvement in demand. Manheim analysts observed that in December, indicators of consumer confidence, like the Conference Board and University of Michigan consumer sentiment index, also showed improvements. This suggests that market conditions and the prospects for used vehicle buyers may be improving.

That is so 2023; what about 2024? Cox Automotive experts anticipate this year to have less price volatility compared to 2023. However, they emphasize the need to be prepared for unforeseen events in the wholesale market.

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