Generally positive but not overly significant data sent the major averages into the final hour with large gains as we reach the middle of another volatile week.
The Chicago Purchasing Managers Index or PMI slipped 2 points in October to 58.4, a 6-month low. A decent figure nonetheless despite missing expectations.
The Mortgage Bankers Association reports that its weekly index fell 2.5%, refi’s slipped 3.8%, purchase apps dropped 1.5%. The 30-year contract rate for a jumbo loan slipped back below 5% to 4.94%.
Personal and business bankruptcies fell again in the 3rd quarter on a year ago basis. Personal bankruptcies dropped 1.1% to mark a 6th consecutive decline. Business bankruptcies slipped 2.6% a 3rd consecutive decline.
Payrolls company ADP reported a better than expected 227,000 new private sector jobs in October. The official Bureau of Labor Statistics employment report is due Friday and has been somewhat soft of late.
Employment costs advanced .8% in the 3rd quarter and 2.8% from a year ago. Compensation increased .8%, benefits gained .4%. This series is slightly ahead of inflation and speaks to marginal wage gains.
This is Caleb Lawrence Registered Investment Adviser Scotts Valley Drive and Willis Road in the Scotts Valley Plaza, Suite 202 or call me toll free at 888-RICH PIG / 888-742-4744.
You can catch me on the radio at noon each business day as well on California’s central coast. KPIG 107.5 FM in the Monterey Bay or KPYG 94.9 FM in San Luis Obispo.
Rebroadcasts, additional writings, and other entries are also available on my Blog at www.clinvestments.com
Advisory services offered through Caleb Lawrence Registered Investment Adviser Inc.