Friends
Stocks took a breather today on the heels of the distorted non-farm payroll number. Because of the effect from the storms the economy lost 33,000 jobs in September, many in the service sector including restaurant workers. The unemployment rate did actually drop though to 4.2%. The most interesting number was average hourly earnings which was up .5% and now 2.9% year over year. Finally, we are starting to see some measurable wage inflation.
As for stocks, by the close the Dow Jones Industrial Average was down 2 points to close at 22,773. The S&P 500 was down 2 points to finish the day at 2,549. Gold was up $3 to trade at $1,276 per ounce, while oil was down $1.49 to trade at $49.30 per barrel WTI.
Earnings season will be interesting over the next several weeks if Costco is any indication. The superstore had really good numbers, beating on both the top and bottom lines, but margins were pressured slightly and just the mention of the word “Amazon” sends shivers down the spine of all retailers. Costco’s shares had a difficult day and may be a signal of what lies ahead this earnings season. If shares of your company have risen this year, your earnings probably need to be good this quarter. We might see volatility pick up, at least for individual issues, over the next few weeks. Stay tuned.
Have a great weekend everyone.
Stay Strong Houston
Go Astros
