This week saw mixed markets with the S+P slightly up and the Dow slightly down by about 1/10 of a percent. Earlier this week, the China trade talks took the stage and pushed markets downward. At the end of the week, Holiday shopping and unemployment reports saved the week by pushing the market up slightly. The 10 year treasury edged lower with yields rising to 1.84%.
Economically, the US keeps on chugging along nicely. The trade deficit shrank somewhat which could be because of trade policy, or the GM strike. Nonfarm payrolls blew expectations out of the water, coming in at 266,000 as compared to last month’s 156,000. This lowered the already stellar unemployment rate to 3.5%. The all important Holiday sales numbers showed growth over last year, and for a first time Black Friday online sales were higher than in-store sales this year.
Next week, we have the CPI for November and the Fed announcement as well as the PPI (producer price index.) These numbers are my number one concern, as the market continues to be buoyed by the Fed’s easy money policy. Hopefully we won’t get any significant signs of inflation.
~ Alex Parrs