“The world’s stock markets liked what they heard from Fed Chairman Powell, as the major indices rallied following his presser establishing new record closing highs then and again today“– Paul Ebeling
DJIA -33.35 to 36124.23, NAS 100 +128.72 at 15940.30, S&P 500 +19.49 at 4680.06
The S&P 500 gained 0.4% Thursday, setting intraday and closing record highs, as strength in the large growth stocks outweighed weakness in the value stocks.
The NAS 100, which is heavily exposed to mega-cap growth, rallied 1.3% to outdo the record-setting advance in the NAS Comp (+0.8%).
The DJIA (-0.1%) and Russell 2000 (-0.1%) closed a bit lower, the Russell 1000 Value Index fell 0.4%.
- S&P 500 +24.6% YTD
- NAS Comp +23.7% YTD
- Russell 2000 +21.7% YTD
- DJIA +18.0% YTD
Thursday’s economic data:
- Initial jobless claims for the wk ending 30 October decreased by 14,000 to 269,000. Continuing claims for the wk ending 23 October decreased by 134,000 to 2.105-M.
- The Key takeaway from the report is that the declining level of initial claims fits the script of a labor market that is high with job openings.
- Q-3 productivity decreased 5.0% after increasing an upwardly revised 2.4% (from 2.1%) in Q-2. Unit labor costs surged at an annual rate of 8.3% after increasing a downwardly revised 1.1% (from 1.3%) in Q-2
- The Key takeaway from the report is that it was the lowest level of productivity since Q-2 of Y 1981 and reflects the labor cost pressures that are building with the weak productivity.
- The September trade deficit was worse than expected, hitting a record high $80.9-B after an upwardly revised $72.8-B deficit (from $73.3 billion) in August.
- The Key takeaway from the report is the connection that supply chain issues, transportation bottlenecks, and virus chaos prevention measures detracted from global trading activity.
Looking Ahead: Investors will receive the Employment Situation Report for October and Consumer Credit for September Friday.
Have a prosperous day, Keep the Faith!