Home Stocks Dow Jones US Benchmarks Finished at Record Highs Again!

US Benchmarks Finished at Record Highs Again!

#stocks #economy #inflation #employment #interest


“Democrats dropped plans to push Mr. Biden’s shredding $1.75-T social-policy and climate-change bill through the House of Representatives Friday, as divisions again waylaid the ambitious package as unnecessary” — Paul Ebeling

DJIA +203.72 at 36327.95, NAS Comp +31.28 at 15971.58, S&P 500+17.47 at 4697.53

Each of the major US indices set intraday and closing record highs Friday, supported by a stronger-than-expected October employment report, pleasing earnings news, and another retreat in long-term interest rates. 

  • S&P 500 +25.1% YTD
  • NAS Comp +23.9% YTD
  • Russell 2000 +23.4% YTD
  • DJIA +18.7% YTD

Friday’s economic data proves that Mr. Biden’s ‘Build Back Better’ socialist spending plan is not necessary.

  • Nonfarm and nonfarm private payroll growth in October were much stronger than expected and there was a further boost in nice upward revisions for prior months. At the same time, though, this report brought additional wage inflation, as average hourly earnings increased 4.9% Y-Y Vs 4.6% in September.
    • October NFPs increased by 531,000. The 3-month average for total nonfarm payrolls decreased to 442,000 from 629,000 in September. September nonfarm payrolls revised to 312,000 from 194,000. August NFPs revised to 483,000 from 366,000.
    • October private sector payrolls increased by 604,000. September private sector payrolls revised to 365,000 from 317,000. August private sector payrolls revised to 504,000 from 332,000.
    • October unemployment rate was 4.6% Vs 4.8% in September. Persons unemployed for 27 weeks or more accounted for 31.6% of the unemployed Vs 34.5% in September. The U6 unemployment rate, which accounts for unemployed and underemployed workers, was 8.3%, Vs 8.5% in September.
    • October average hourly earnings increased 0.4% Vs a 0.6% increase in September. Over the last 12 months, average hourly earnings have risen 4.9%, Vs 4.6% for the 12 months ending in September.
    • The average workweek in October was 34.7 hours, Vs 34.8 hours in September. Manufacturing workweek dipped 0.1 hours to 40.3 hours. Factory overtime dipped 0.1 hours to 3.2 hours.
      • The Key takeaway from the employment report is the broad-based pickup in hiring activity across the private sector, and employers seeing a favorable demand backdrop.
  • Consumer credit increased by $29.9-B in September after increasing a revised $13.8-B (from $14.4-B) in August.
    • The Key takeaway from the report is that consumer credit expanded for the 8th month running, reflecting continued demand for goods and services.

Locking Ahead: There is no economic data of note scheduled Monday. 

Have a happy, healthy, prosperous weekend, Keep the Faith!!

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Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.