Friends
As suspected this morning’s jobs number came in very light. Only 12,000 new jobs were created in October. Hurricanes and company strikes certainly affected the number, but the longer- term trend has been softer for employment for a while. Yes, there has been a month or two of exceptions, but the trend has been softer, nevertheless. The unemployment rate remained at 4.1% which is still very good and average hourly wages were up a little better than expected. What does this all mean with regards to the Fed and their FOMC meeting next week? Well combined with yesterday’s inflation data it would appear that the Fed has enough cover to lower the Fed Funds rate again next week. We’ll see if they take the opportunity to do so.
Stocks moved nicely higher on the data, but as the trading session wore on some gains were surrendered. By the close the Dow Jones Industrial Average was up 288 points to finish the day at 42,052. The S&P 500 was up 23 points to close at 5,728. The Nasdaq Composite Index was up 144 points to close at 18,239. Gold was down $4 to trade at $2,745 per ounce, while oil was up $.25 to trade at $69.51 per barrel WTI.
Well, next week we have a national election and the following day the Fed will reveal any change to interest rate policy. It should be an interesting week. Stay tuned.
Have a great weekend everyone.
Jim
