Stocks finished the week mostly higher as midterm elections boosted them to recover part of what was lost during October’s sell-off. Interest rates were little changed with the 10-year treasury yield dropping 2 basis points to 3.19%. The spread between the 10-year treasury yield and the 2-year treasury yield also dropped by 2 basis points to 0.26% as short-term rates were unchanged. The price of gold dropped 1.92% to $1,210.30 as inflationary data came in stronger than expected. The price of oil also dropped but by a larger margin of 4.36% as over production/supply continues to weigh on sentiment. The U.S. dollar index rose from 96.48 to 96.90, also due to the stronger than expected inflation data.
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THIS WEEK’S ECONOMIC HIGHLIGHTS
- The number of U.S. job openings fell to 7 million in September after reaching its all-time high of 7.3 million in August. However, the number of job openings still exceeds the 6.1 million number of unemployed workers.
- Initial unemployment claims fell by a marginal 1,000 to 214,000 for the week ending November 3rd. Continuing unemployment claims fell by 8,000 to 1.62 million, setting a new all-time low.
- The Federal Reserve left interest rates unchanged, holding the benchmark target rate at the 2.0% to 2.25% range. However, the Fed indicated that they plan to continue to gradually raise rates in the months to come as the economy continues to grow at a strong rate.
- The Producer Price Index (PPI), a measure of wholesale inflation, rose a strong 0.6% for the month of October. The increase resulted in a year-over-year increase of 2.9%. Core PPI, which excludes the volatile food and energy components, rose 0.2% on the month for a year-over-year change of 2.8%.
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QUOTE OF THE WEEK
“Whoever said money can’t buy happiness simply didn’t know where to go shopping.”
– Bo Derek
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