{"id":3830,"date":"2019-11-04T09:36:50","date_gmt":"2019-11-04T14:36:50","guid":{"rendered":"https:\/\/scarletoakfs.webarc.dev\/?p=3830"},"modified":"2023-07-20T18:05:31","modified_gmt":"2023-07-20T22:05:31","slug":"stock-indices-again-set-records-atlanta","status":"publish","type":"post","link":"https:\/\/scarletoakfs.com\/stock-indices-again-set-records-atlanta\/","title":{"rendered":"Stock Indices again set Records, Atlanta"},"content":{"rendered":"

In this week\u2019s recap: stock indices again set records, the Fed makes its third rate cut of the year, October\u2019s employment report is a nice surprise, and U.S. and Chinese trade negotiators make some progress.<\/em><\/p>\n

Weekly Economic Update<\/strong><\/p>\n

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THE WEEK ON WALL STREET<\/strong><\/p>\n

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.<\/p>\n

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\u2019s EAFE benchmark, which measures developed stock market performance outside the U.S. and Canada, improved 0.58%.1,2,3<\/sup><\/p>\n

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Economy Adds 128,000 Jobs in October<\/strong><\/p>\n

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\u2019s General Motors strike impacted hiring in the manufacturing sector.<\/p>\n

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<\/sup><\/p>\n

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The Fed\u2019s Latest Interest Rate Decision<\/strong><\/p>\n

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%.<\/p>\n

Something was missing from the latest Fed policy statement. Since June, a passage had noted that the Fed was ready to \u201cact as appropriate to sustain the expansion.\u201d In the latest statement, that language disappeared. At a press conference Wednesday, Fed Chair Jerome Powell commented that Fed officials \u201csee the current stance of monetary policy as likely to remain appropriate.\u201d5<\/sup><\/p>\n

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Where Trade Talks with China Stand<\/strong><\/p>\n

There were further negotiations between U.S. and Chinese officials Friday, and China\u2019s commerce ministry announced that both sides had \u201creached consensus on principles\u201d 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 \u201cprogress in a variety of areas.\u201d6<\/sup><\/p>\n

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THE WEEK AHEAD: KEY ECONOMIC DATA<\/strong><\/p>\n