This was another good week for markets, as both the Dow and the S+P gained just under 1.5%. Bond prices also rose as the 10 year treasury yield dropped to 1.73% from 1.8%. The Fed lowered interest rates by 0.25% as was widely expected, again signaling that they are here to support our economy.
Economically, most of the data we got was good with GDP growing about 0.3% higher than the median forecast and a big surprise on nonfarm payrolls growing by about 50,000 higher than expected for October. Additionally, both August’s and September’s numbers were revised upward by about 50,000 more jobs created than originally thought. Earnings were generally positive, with some negative notes from oil and gas companies as lower gas prices hurt profits.
Next week we are again looking at over 1,000 companies reporting earnings as well as Factory orders, productivity and unit labor costs.
