The major averages failed to hold their early gains on better than expected economic data entering the final hour with large losses. Since Monday the Standard and Poors 500 Index is up 26 points or 1%, while the NASDAQ has gained 54 points or .74% to close another volatile week.
The trade deficit increased 1.3% to 54 billion in September, exports advanced 1.5% to 212.6 billion, imports gained 1.4% to 266.6 billion. A 4th consecutive gain and a 7-month high for the series.
The Bureau of Labor Statistics reported a better than expected 250,000 new jobs in October. Previous months revisions netted out. Average hourly earnings increased .2%. The average workweek increased .1 to 34.5 hours. Year ago wage gains reached a respectable 3.14%. The unemployment rate was unchanged at 3.7% after 711,000 folks rejoined the labor force pushing the participation rate up to 62.9% where it has bounced around for some time now. A solid report.
The Institute for Supply Management New York survey slipped 2.7 points to a still strong 69.8 in October. Employment jumped to 82.1 to reach a new all-time high.
Factory orders increased .7% in September. The proxy for business spending non-defense capital goods ex-aircraft fell for a second month down .1%.
After nearly 19 years of doing the midday financial report it’s time for me to move on to other projects. I will maintain my investment advisory practice in Scotts Valley. It’s been a great time doing the report over the years and it helped me to keep my therapists bill manageable through some difficult times. I would like to thank all of the loyal KPIG listeners who have tuned in over the years and wish you all the best.
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.