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.

 

Index Started Week Ended Week Change Change % YTD %
DJIA 25,270.83 25,989.30 718.47 2.84% 5.14%
Nasdaq 7,356.99 7,406.90 49.91 0.68% 7.29%
S&P 500 2,723.06 2,781.01 57.95 2.13% 4.02%
Russell 2000 1,547.98 1,549.49 1.51 0.10% 0.91%

 

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%.

 

TIDBIT

 

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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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