U.S. Stocks ended the holiday shortened week mostly higher, with emerging markets ending down. Despite China’s protest over the Hong Kong resolution, they made positive comments about reaching a phase 1 trade deal and this helped boost stocks. Also, ratification of the USMCA trade deal appears to be making progress through Congress as tweaks to the enforcement mechanisms have been added to win labor and hence Democratic support. The UAW And Fiat Chrysler reached an agreement, the last of the Detroit three to do so. Economic data was positive with an upward revision in 3rd quarter gross domestic product and good consumer spending.
The 10-year Treasury yield fell to 1.75%. Crude oil fell to $55.42 a barrel. The U.S. dollar fell slightly against a basket of currencies and gold prices rose to $1470.40 an ounce.
In economic numbers this week:
- S&P CoreLogic Case-Shiller U.S. National Home Price Index was up 3.2% in September from the previous year, up from 3.1% in August.
- The Commerce Department reported:
- Revised 3rd quarter gross domestic product from 1.9% to 2.1%. The revision was due to higher business investment than initially estimated.
- Consumer spending rose 0.3% in October. The increase was due mainly due to electricity and gasoline as consumer spending on long lasting goods fell .07%.
- Wages and salaries grew at a seasonally adjusted annual rate of 0.4% in October up from 0.1% in September.
- The personal savings rate fell from 8.1% in September to 7.8% in October.
- Overall durable goods order rose 0.6% in October after falling 1.4% in September. The increase was due mainly to an increase of 18.2% in military aircraft orders. Autos and parts were down 1.9% mainly due to the GM strike.
- The Labor Department reported first time claims for unemployment fell 15,000 to a seasonally adjusted 213,000. The four week moving average of claims fell to 219,750.
- The EIA weekly oil report is here wpsrsummary (4). Also, the EIA reported in the past week:
- Field production of crude oil rose from 12.8MM barrels per day. To 12.9MM barrels per day.
- Natural gas storage fell by 28BN cubic feet and is and is at the five year average at this time of year.
- Baker Hughes reported the number of active oil rigs fell 3 to 668 and the number of active gas rigs rose 2 to 129.Please call us if you have any questions.
Loren C. Rex, CFP®, AIF®, MA Erik A Smith
President Managing Partner
Generations Financial Planning & Wealth Management 269-441-4143
77 E. Michigan Ave, Suite 140
Battle Creek, MI 49017
Carrie Fuce, Assistant 269-441-4091
Toll Free: 800-513-8180
Visit our Website: www.genfinplan.com
Registered Representative of and securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and Generations Financial Planning & Wealth Management are separate companies and are not affiliated.
These are the opinions of Loren Rex and Erik Smith and are not necessarily those of Cambridge, are for informational purposes only, and should not be construed or acted upon as individualized investment advice. The Indices mentioned are unmanaged and cannot be invested into directly.