Friends
Wow, the jobs report was quite an eye opener. First of all, 266,000 new jobs were created in November, which was much better than expected. There were also upward revisions to both the September and October numbers adding another 41,000 jobs to earlier gains. The unemployment rate ticked down to 3.5% and average hourly earnings moved up another .2%. Year over year, we are seeing wages rise at a 3% clip, so not only are folks employed but they are also seeing the wages rise modestly. The good news for inflation hawks is that the rise in wages, while helpful, is still not at a pace that would cause inflation to spike.
Needless to say, the report was a hit with market participants. For the day, the Dow Jones Industrial Average was up 337 points to close at 28,015. The S&P 500 was up 28 points to finish the day at 3,145. Gold was down $18 to trade at $1,464 per ounce, while oil was up $.64 to trade at $59.07 per barrel WTI.
We had some volatility this week, but when all was said and done the S&P 500 is just a stone’s throw from all-time highs. In addition to the ongoing impeachment theater, we have a trade deal deadline approaching on the 15th of the month and a FOMC meeting Tuesday and Wednesday next week. It’s likely this week’s type of action will continue into year end. Stay tuned, we’ll let you know how it all plays out.
Have a great weekend everyone.
