Weekly Economic Update

Summit Brokerage Services Weekly Economic UpdateUNEMPLOYMENT DOWN TO 5.8%

America’s jobless rate dipped 0.1% in October as companies hired 214,000 new workers. Analysts polled by the Wall Street Journal had expected no improvement. In another nice development, the U-6 rate measuring underemployment plus unemployment fell 0.3% last month to 11.5%, 2.2% lower than a year before. Additionally, the Labor Department revised August and September hiring figures; firms added 31,000 more jobs during those months than previously estimated.1

 

ONE SECTOR HEATS UP, ANOTHER COOLS DOWN

October factory and service sector PMIs from the Institute for Supply Management were a mixed bag. The service sector PMI slipped to 57.1 (which was still 2.0 points above where it was a year prior). ISM’s manufacturing PMI, on the other hand, rose 2.4 points for October to 59.0.2,3

 

GOLD BREAKS 7-DAY LOSING STREAK; OIL UNDER $80

The yellow metal settled at $1,169.80 an ounce on the COMEX Friday. Its 2.4% Friday advance – representing its first winning market day since October 28 – couldn’t offset a 1.5% weekly retreat. West Texas Intermediate crude finished up the week at a mere $78.65 a barrel on the NYMEX.4

 

FUTURES MOVE HIGHER FOR THE WEEK

Friday found the Dow closing at a record high once more: 17,573.93. It rose 1.04% across five days. The Nasdaq and S&P 500 respectively gained 0.04% and 0.69% last week on their way to respective Friday settlements of 4,632.53 and 2,031.92.5

 

THIS WEEK: Monday, Wall Street examines the latest inflation reading from China and quarterly results from Dean Foods. On Tuesday (Veterans Day), the stock market is open with D.R. Horton reporting Q3 results. Wednesday, the Street looks at earnings from Abercrombie & Fitch, Macy’s and J. C. Penney along with reports on euro area factory output and U.S. business inventories. Thursday, Janet Yellen speaks at an economic forum at the Federal Reserve, a new initial claims report appears and investors look at new retail sales and manufacturing data from China in addition to earnings from Wal-Mart, Kohl’s, Nordstrom, RE/MAX Holdings and Viacom. Friday, the market reacts to data on October retail sales and September business stockpiles, November’s initial University of Michigan consumer sentiment index, and the latest measures of euro area inflation and GDP.

 

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +6.02 +12.70 +15.07 +6.91
NASDAQ +10.92 +20.10 +23.86 +12.72
S&P 500 +9.93 +16.30 +18.00 +7.44
REAL YIELD 11/7 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.38% 0.46% 1.37% 1.72%

Sources: online.wsj.com, bigcharts.com, treasury.gov – 11/7/146,7,8,9

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.

These returns do not include dividends.

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This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Past performance is no guarantee of future results.  Investments will fluctuate and when redeemed may be worth more or less than when originally invested. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

 

Citations.

1 – blogs.wsj.com/briefly/2014/11/07/october-jobs-report-the-numbers/ [11/7/14]

2 – haver.com/comment/comment.html?c=141105C.html [11/5/14]

3 – ism.ws/ismreport/mfgrob.cfm [11/4/14]

4 – proactiveinvestors.com/companies/news/57991/gold-snaps-7-day-retreat-wti-up-at-7865-57991.html [11/7/14]

5 – fxstreet.com/news/forex-news/article.aspx?storyid=cc595c22-222c-41ea-8e15-6a0297ccf803 [11/7/14]

6 – markets.wsj.com/us [11/7/14]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F7%2F13&x=0&y=0 [11/7/14]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F7%2F13&x=0&y=0 [11/7/14]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F7%2F13&x=0&y=0 [11/7/14]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F6%2F09&x=0&y=0 [11/7/14]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F6%2F09&x=0&y=0 [11/7/14]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F6%2F09&x=0&y=0 [11/7/14]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F8%2F04&x=0&y=0 [11/7/14]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F8%2F04&x=0&y=0 [11/7/14]

7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F8%2F04&x=0&y=0 [11/7/14]

8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/7/14]

9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/7/14]

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