#stocks #economy #inflation #employment #interest
$SPY $QQQ $RUT $DIA
“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!!
