The broad markets rose again this week with the S+P gaining about 0.85% and the Dow gaining a bit over 1%. The 10 year treasury yield grew to 1.93%, the highest it has been since August.
Economically, we had a mixed bag, with factory orders disappointing, but nonmanufacturing and the trade deficit coming in better than expected. Third quarter productivity was below expectations and over the same period, unit labor costs rose more than expected. That could be concerning if it leads to inflation. We did get some good rumors on a possible China trade deal, with China supposedly backing off on their tariffs. Corporate earnings this week seemed more of a wash with some companies beating and some missing.
Most companies have reported earnings, so next week we are mostly focused on economic data and China. A couple of measures of October inflation come out next week and they will hopefully remain low, while retail sales grow.
~ Alex
