The Market Bull – December 7, 2018
A brutal week for stocks saw the major averages break through significant support levels. Should they fail to regain them early next week, the selling could get ugly. Since Monday the Standard and Poors 500 Index has lost 158 points or 5.7%, while the NASDAQ fell 517 points or 6.9%.
The official Bureau of Labor Statistics or BLS employment report for November missed significantly with just 155,000 new jobs. October and September were revised lower by a combined 29,000.
The official unemployment rate was unchanged at a very low 3.7%. Average weekly hours slipped fractionally to 34.4. Average earnings increased .2%. the labor force participation rate was unchanged at 62.9%, more or less where it has been for some time now. Lost in all the hoopla about rising wages and a very low 3.7% unemployment rate is that fact that the participation rate isn’t increasing and remains far below its pre-bust high. This suggests that people just flat out don’t want a steady job, or that they have found other means to support themselves.
Wholesale trade fell .2% in October. Inventories continued their relentless march higher for a 4th consecutive month with a .8% gain.
On another jump in durable goods inventories as companies continue to attempt to stay ahead of the looming jump in tariffs to 25%. While this has been put on hold for 90-days with the latest trade war truce, I don’t expect it to last.
Standard and Poors 500 Index closed at: 2,633.08 down 62.87
NASDAQ finished at: 6969.25 down 219.01
Gold ended trading at: $1,253.90 up 10.30
This is Caleb Lawrence Registered Investment Adviser I can be reached directly 831-334-5318 or stop by my office 5321 Scotts Valley Drive in the Scotts Valley Plaza, Suite 202, Scotts Valley, Ca, 95066.
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