“The US economy did not recover on its own!”– Paul Ebeling
Voters say the economy is the most important issue they are weighing during this Presidential election.
The data from the Commerce Department showed that the economy grew by an annualized rate of 33.1% in Q-3, beating expectations, but the economy 3.5% below where it was at the end of Y 2019.
President Trump and Vice President Mike Pence promised voters they would keep the growth going if given another term.
“GDP number just announced. Biggest and Best in the History of our Country, and not even close,” President Trump Tweeted “So glad this great GDP number came out before November 3rd.”
Americans’ incomes increased in September by more than expected, boosted by employment gains and helping to drive consumer spending North at the end of Q-3..
Personal incomes rose 0.9% from the prior month following a 2.5% decliner in August, a Commerce Department report showed Friday. That compared with estimates for a 0.4% gainer. Household outlays advanced 1.4%, also exceeding forecasts.
US labor costs increased in Q-3 suggesting inflation could stay muted for a while and allow the Fed to keep interest rates near Zero as the economy recovers from the COVID-19-induced instant recession.
The Employment Cost Index, the broadest measure of labor costs, rose 0.5% last Quarter after advancing by the same margin in Q-2. That lowered the Y-Y rate of increase to 2.4% from 2.7% in Q-2.
Friday, the benchmark US stock market indexes finished at: DJIA -157.51 at 26501.54, NAS Comp -274.00 at 10911.52, S&P 500 -40.15 at 3269.96
Volume: Trade on the NYSE came in heavy at 1.2-B/shares exchanged
HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bullish at the week and month ended 30 October 2020.
- NAS Comp +21.6% YTD
- S&P 500 +1.2% YTD
- DJIA -7.1% YTD
- Russell 2000 -7.8% YTD
Looking Ahead: Investors will receive the ISM Manufacturing Index for October, Construction Spending for September, and auto and truck sales for October Monday.
Have a healthy weekend, Keep the Faith!