The
markets have been exceptionally quiet this week on account of the stock market
being closed for 2 days from the flooding in New York City. The market opened up on Wednesday and has
been somewhat quiet as most investors were awaiting the national unemployment
report being released Friday morning.
Well the report is out and…
National
unemployment increased .1% to 7.9%.
Despite the slight increase, the underlying data bodes well in
demonstrating that the jobs market is improving. In October there was a net increase of
171,000 jobs and there was also an upward adjustment for September to
148,000. Experts were anticipating an
increase of only 125,000 so this report far exceeded expectations. We still have a long way to go but things are
improving.
The
stock market in advance of opening Friday morning was indicating the potential
for a nice rally to finish the week based on the jobs report; however, hopes of
a market rally faded almost immediately after the opening bell. Despite that, the jobs numbers being better
than expected, investor focus immediately turned towards the most recent
statistics on economic growth which have been getting weaker month by month.
The
employment numbers are going to be a huge political talking point for both
sides before the election which is just a few days away. I thought about explaining in this newsletter
how each side will position the employment report, but I think you would be
better served by watching it on TV.
Actually you will be best served by not watching it at all because it
will probably make you confused and ill if you do.
There
was more good news relating to housing this week. The Case-Shiller Home Value Index showed an
increase in home prices in the 20 major cities measured .5% for August. Additionally, the report showed that home
prices are 2.0% higher from a year ago.
The positive housing news keeps coming.
It may be a slow rise but it certainly is a positive trend now.
Next
week there is very little economic news on the calendar, however that will not
matter as the market moving news will be the election. Expect Tuesday and Wednesday to be very
volatile days of trading. Tuesday will
be because investors will undoubtedly be trading on the reports of the election
exit polls. Wednesday the results will
be in and depending on who is our next President, as well as what happens in
the House of Representatives and the Senate, the market will be trading on that
news as well.
Next
week’s economic reports are very light:
- Wednesday November 7th
- MBA Applications
- Thursday November 8th
- First Time Jobless Claims
- Friday November 3rd –
Consumer Sentiment
Sincerely,
Cindy Tomlinson
Loan Officer
Loan Officer
USLending
Company
DRE
Lic # 01520422
NMLS # 214851
NMLS # 214851
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