ANOTHER MONTH OF SOLID HIRING
According to the Department of Labor, the U.S. workforce gained 228,000 more jobs than it lost during November. Annualized wage growth improved from 2.5% to 2.7%. The headline jobless rate held at 4.1% last month, while the U-6 rate, that includes the underemployed, ticked up a tenth of a percent to 8.0%. Even though October’s net job gain was revised down to 244,000, October-November 2017 represents the best two-month hiring period in more than a year.1,2
ISM INDEX MISSES EXPECTATIONS
The Institute for Supply Management’s gauge of service sector activity fell 2.7 points to a still-impressive reading of 57.4 in November. Economists polled by Briefing.com expected a retreat, albeit a lesser one: they projected a reading of 59.3.2
A SMALL DECLINE FOR CONSUMER SENTIMENT
There was just a bit less optimism in households in early December, at least by the measure of the University of Michigan’s twice-monthly Surveys of Consumers. The preliminary December edition of the university’s consumer sentiment index fell 1.7 points from its final November reading to a mark of 96.8.2
TWO OF THREE MAJOR INDICES RISE
Once again, the Nasdaq Composite gave up ground across five trading sessions while the S&P 500 and Dow Jones Industrial Average advanced. The tech benchmark lost only 0.11% last week on its way to a 6,840.08 Friday close. The same stretch brought gains of 0.40% for the Dow and 0.35% for the S&P; their respective Friday settlements were 24,329.16 and 2,651.50. Dropping 16.19% last week, the CBOE VIX volatility gauge went back under 10, closing Friday at 9.58. Settling at 1,521.72 Friday, the small-cap Russell 2000 lost 1.00% for the week.3
THIS WEEK: Casey’s General Stores announces Q3 earnings Monday. Tuesday, the November Producer Price Index comes out, and Verifone presents Q3 results. The Federal Reserve is widely expected to raise the benchmark interest rate Wednesday; the November Consumer Price Index also appears for Wall Street’s consideration. Thursday brings federal government reports on initial jobless claims and November retail sales, plus earnings from Costco and Jabil Circuit. A Federal Reserve report on November industrial output arrives Friday.
% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +23.11 +24.03 +16.99 +7.86
NASDAQ +27.07 +26.26 +25.94 +15.28
S&P 500 +18.43 +18.04 +17.40 +7.62
REAL YIELD 12/8 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.50% 0.45% -0.86% 1.86%
Sources: wsj.com, bigcharts.com, treasury.gov – 12/8/173,4,5,6
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.
WEEKLY QUOTE
“One’s dignity may be assaulted, vandalized and cruelly mocked, but it can never be taken away unless it is surrendered.”
– Michael J. Fox
WEEKLY TIP
Consider buying used capital equipment in good condition for your company rather than new equipment. Sometimes, lenders will auction off assets from foreclosed businesses. Through such auctions, you could, potentially, realize big savings.
WEEKLY RIDDLE
What flies without any wings?
Last week’s riddle:
What round, white container hides a tasty delight within it, and requires no keys to open?
Last week’s answer:
An egg.
Citations.
1 – fortune.com/2017/12/08/november-job-report-unemployment-rate/ [12/8/17]
2 – briefing.com/investor/calendars/economic/ [12/8/17]
3 – markets.wsj.com/us [12/8/17]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F8%2F16&x=0&y=0 [12/8/17]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F8%2F16&x=0&y=0 [12/8/17]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F8%2F16&x=0&y=0 [12/8/17]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F7%2F12&x=0&y=0 [12/8/17]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F7%2F12&x=0&y=0 [12/8/17]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F7%2F12&x=0&y=0 [12/8/17]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=12%2F7%2F07&x=0&y=0 [12/8/17]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=12%2F7%2F07&x=0&y=0 [12/8/17]
4 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=12%2F7%2F07&x=0&y=0 [12/8/17]
5 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [12/8/17]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [12/8/17]
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. 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. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. 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. This material was prepared by MarketingLibrary.Net Inc., for Mark Lund, Mark is known as a Wealth Advisor, The 401k Advisor, Investor Coach, The Financial Advisor, The Financial Planner and author of The Effective Investor. Mark offers investment advisory services through Stonecreek Wealth Advisors, Inc. an independent, fee-only, Registered Investment Advisor firm providing investment and retirement planning for individuals and 401k consulting for small businesses. Stonecreek is located in Park City, Salt Lake City, Murray City, West Jordan City, Sandy City, Draper City, South Jordan City, Provo City, Orem City, Lehi City, Highland City, Alpine City, and American Fork City in Utah.
