Blog

Blog


Weekly Economic Update - Last week in review

Pipe

(October 28th to November 1st, 2019)

~ Presented by Blanke Schein Wealth Management ~

Life Insurance Products with Long-Term Care Riders

RECAP: stock indices again set records, the Fed makes its third rate cut of the year, October’s employment report is a nice surprise, and U.S. and Chinese trade negotiators make some progress.

THE WEEK ON WALL STREET

A better-than-forecast jobs report prompted a stock market rally Friday, two days after traders witnessed another interest rate cut by the Federal Reserve.

Both the S&P 500 and Nasdaq Composite ended the week at historic peaks, while the Dow Jones Industrial Average settled less than 12 points under its all-time record close. The Nasdaq rose 1.74% for the week; the S&P gained 1.47%. The Dow added 1.44%. MSCI’s EAFE benchmark, which measures developed stock market performance outside the U.S. and Canada, improved 0.58%. 1,2,3

ECONOMY ADDS 128,000 JOBS IN OCTOBER

This net increase far surpassed the gain of 85,000 projected by a Bloomberg poll of economists. These job gains occurred even as last month’s General Motors strike impacted hiring in the manufacturing sector.

Unemployment rose slightly to 3.6% in October, an effect of more people entering the job market. Likewise, the U-6 rate, counting both unemployed and underemployed Americans, ticked up to 7.0%.4

THE FED’S LATEST INTEREST RATE DECISION

Last week, the central bank made its third quarter-point rate cut since July, leaving the target range for the federal funds rate at 1.50-1.75%.

Something was missing from the latest Fed policy statement. Since June, a passage had noted that the Fed was ready to “act as appropriate to sustain the expansion.” In the latest statement, that language disappeared. At a press conference Wednesday, Fed Chair Jerome Powell commented that Fed officials “see the current stance of monetary policy as likely to remain appropriate.”5

WHERE TRADE TALKS WITH CHINA STAND

There were further negotiations between U.S. and Chinese officials Friday, and China’s commerce ministry announced that both sides had “reached consensus on principles” integral to the first phase of a new trade pact. U.S. Trade Representative Robert Lighthizer noted only that the latest round of conversation had brought “progress in a variety of areas.”6

Life Insurance Products with Long-Term Care RidersTIP OF THE WEEK

A thorough business plan should also identify your target audience: who wants your service or product, why they are interested in it, and the problem your solution solves. Interviews, research, and surveys can come in handy here.

Life Insurance Products with Long-Term Care Riders

THE WEEK AHEAD: KEY ECONOMIC DATA

Tuesday: The Institute for Supply Management presents its latest Purchasing Managers Index for the U.S. service sector, gauging business activity and new orders.
Friday: The University of Michigan’s preliminary November Consumer Sentiment Index appears, measuring consumer confidence levels.

Source: Econoday / MarketWatch Calendar, November 11, 2019
The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision. The release of data may be delayed without notice for a variety of reasons.

THE WEEK AHEAD: COMPANIES REPORTING EARNINGS

Monday: Marriott International (MAR), Sysco (SYY), Uber (UBER)
Tuesday: Allergan (AGN), Toyota (TM)
Wednesday: CVS Health (CVS), Qualcomm (QCOM)
Thursday: Booking Holdings (BKNG), Walt Disney Co. (DIS)
Friday: Duke Energy (DUK), Enbridge (ENB), Honda (HMC)

Source: Zacks, November 1, 2019
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Any investment should be consistent with your objectives, time frame, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
Life Insurance Products with Long-Term Care Riders
Life Insurance Products with Long-Term Care Riders

QUOTE OF THE WEEK

“We cannot fail to win unless we fail to try.”

TOM CLANCY

Life Insurance Products with Long-Term Care Riders

Citations.

1 – – reuters.com/article/us-usa-stocks/sp-500-nasdaq-set-records-on-jobs-data-trade-headway-idUSKBN1XB3ZD [11/1/19]
2 – wsj.com/market-data [11/1/19]
3 – quotes.wsj.com/index/XX/990300/historical-prices [11/1/19]
4 – time.com/5716189/us-adds-128000-jobs-october-2019/ [11/1/19]
5 – cnbc.com/2019/10/30/fed-decision-interest-rates-cut.html [10/30/19]
6 – foxbusiness.com/markets/us-china-trade-talks-reach-consensus-on-principles?cmpid=prn_investors [11/1/19]
 

CHART CITATIONS:
wsj.com/market-data [11/1/19]
quotes.wsj.com/index/XX/990300/historical-prices [11/1/19]
quotes.wsj.com/index/SPX/historical-prices [11/1/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldYear&year=2019 [11/1/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldAll [11/1/19]

Tags:

Blanke Schein Wealth Management is registered with Hightower Securities, LLC, member FINRA and SIPC, and with Hightower Advisors, LLC, a registered investment advisor with the SEC. Securities are offered through Hightower Securities, LLC; advisory services are offered through Hightower Advisors, LLC.

This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment opportunities referenced herein may not be suitable for all investors.

All data and information reference herein are from sources believed to be reliable. Any opinions, news, research, analyses, prices, or other information contained in this research is provided as general market commentary, it does not constitute investment advice. The team and Hightower shall not in any way be liable for claims, and make no expressed or implied representations or warranties as to the accuracy or completeness of the data and other information, or for statements or errors contained in or omissions from the obtained data and information referenced herein. The data and information are provided as of the date referenced. Such data and information are subject to change without notice.

This document was created for informational purposes only; the opinions expressed are solely those of the team and do not represent those of Hightower Advisors, LLC, or any of its affiliates.