HIRING REBOUNDS, INDUSTRIES EXPAND
According to the Department of Labor, October brought a net gain of 261,000 jobs. (Last month’s net loss of 33,000 was revised to a net gain of 18,000.) The headline unemployment rate ticked down to 4.1%, while the broader U-6 rate fell to 7.9% (down 1.3% in 12 months). Wages were up 2.4% year-over-year. The Institute for Supply Management’s purchasing manager indices alternately rose and fell in October. The readings were strong: 58.7 for the factory PMI (down 2.1 points), 60.1 for the service sector PMI (up 0.3 points).1,2
CONSUMER SPENDING, CONFIDENCE IMPRESS
Personal spending rose 1.0% in September, helped by households replacing vehicles and goods damaged in hurricanes and floods. This was the largest monthly advance in more than eight years. Personal wages improved 0.4%. The Conference Board’s consumer confidence index climbed 6.1 points to 125.9 in October; economists surveyed by MarketWatch expected a reading of 121.3.2,3
Jerome POWELL NOMINATED TO LEAD FED
If his nomination is approved, the Federal Reserve governor and former investment banker will become chairman when Janet Yellen’s term ends in February. He is expected to maintain the Fed’s current strategy for normalizing monetary policy. The central bank held interest rates steady at its November meeting. Bloomberg puts the odds of a December rate hike at 85%.4,5
another ADVANCE FOR STOCKS
All three major indices rose last week, with the gains paralleling those of the previous week. The respective improvements: S&P 500, 0.26% to 2,587.84; Nasdaq Composite, 0.94% to 6,764.44; Dow Jones Industrial Average, 0.45% to 23,539.19.6
THIS WEEK: On Monday, AMC Entertainment, Avis Budget Group, CVS Health, Etsy, GoDaddy, Michael Kors, Priceline, Sysco, TripAdvisor, and Weight Watchers announce earnings. Tuesday’s earnings roll call includes news from Container Store, Dean Foods, Extended Stay America, Green Dot, Invacare, Marcus & Millichap, Marriott International, Snap, Take-Two Interactive, Valeant Pharmaceuticals, and Zynga. AmeriGas, Hostess Brands, Humana, Square, Starwood Hotels & Resorts, Twenty-First Century Fox, Valvoline, and Wendy’s release earnings Wednesday. Thursday, earnings news streams in from AstraZeneca, D.R. Horton, Walt Disney Co., Hertz Global Holdings, Lionsgate, News Corp., and Time. November’s initial University of Michigan consumer sentiment index appears Friday, plus Q3 results from ArcelorMittal.
% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +19.11 +31.28 +15.96 +7.31
NASDAQ +25.66 +33.73 +25.37 +14.07
S&P 500 +15.59 +23.90 +16.60 +7.14
REAL YIELD 11/3 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.48% 0.14% -0.73% 1.92%
Sources: wsj.com, bigcharts.com, treasury.gov – 11/3/176,7,8,9
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
“All generalizations are dangerous, even this one.”
– Alexandre Dumas
WEEKLY TIP
While many company benefits plans offer short-term disability insurance, that coverage usually lasts just 90 days. Because of this, parents (especially single parents) really need to consider some form of long-term disability coverage.
WEEKLY RIDDLE
I am heartless and spineless and live mostly in the dark. When you encounter me, I may try to sting you. What am I?
Last week’s riddle:
Isabella’s mother has three children. The first child’s name is April. The second child’s name is May. What is the third child’s name?
Last week’s answer:
Isabella.
Citations.
1 – forbes.com/sites/maggiemcgrath/2017/11/03/payrolls-rebound-from-hurricane-losses-adding-261000-jobs-in-october/ [11/3/17]
2 – marketwatch.com/economy-politics/calendars/economic [11/3/17]
3 – bloomberg.com/news/articles/2017-10-30/u-s-consumer-spending-rises-most-since-2009-on-auto-purchases [10/30/17]
4 – csmonitor.com/USA/Politics/2017/1103/Trump-taps-Jerome-Powell-for-Federal-Reserve-chair [11/3/17]
5 – businessinsider.com/fed-statement-november-2017-11 [11/1/17]
6 – markets.wsj.com/us [11/3/17]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F3%2F16&x=0&y=0 [11/3/17]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F3%2F16&x=0&y=0 [11/3/17]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F3%2F16&x=0&y=0 [11/3/17]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F2%2F12&x=0&y=0 [11/3/17]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F2%2F12&x=0&y=0 [11/3/17]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F2%2F12&x=0&y=0 [11/3/17]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F2%2F07&x=0&y=0 [11/3/17]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F2%2F07&x=0&y=0 [11/3/17]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F2%2F07&x=0&y=0 [11/3/17]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/3/17]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/3/17]
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 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.
