On the surface a mostly positive surprise, Friday’s employment report for October was actually a disappointment. How so? In the sense that it contained a lot of “noise” and so failed to clarify the state of the U.S. economy and the likelihood for reduced bond buying by the Fed. Click the following link for our report and the weekly market tables: Last Week In Markets 11.08.13
The October FOMC meeting came and went with few surprises, save for a slightly upbeat economic appraisal. Economic reports during the week were mixed, as auto sales slumped and the ADP jobs report fell short of expectations, but the ISM factory survey and the Chicage Fed PMI were more robust. This week brings the first cut at Q3 GDP and Friday’s employment report for October. Data is still being distorted by the government shutdown, and that may continue for another month. Click the link below for our review of last week’s market action.
The government shutdown and debt ceiling impasse were no doubt factors in October’s decline in consumer confidence and may have been a factor in the shortfall in durable goods orders during September. Still, stock prices advanced for a third week in a row last week, with the S&P 500 hitting an all-time high on Friday. Follow the link below for a review of last week’s stock, bond, FX and commodities markets.