Last Week:

  • U.S. equities finished positive for the week: The Dow Jones Industrial Average (DJIA) closed 369 points higher, or rose 1.65%, to 22,774. The Standard & Poor’s 500 (S&P 500) index gained 30 points, or rose 1.19%, to 2,549. The Nasdaq closed last week 1.45% higher at 6,590.
  • September Jobs Report: Last week, the Bureau of Labor Statistics reported that the U.S. economy lost 33,000 jobs in September, the first monthly decline in seven years. However, the weak jobs report was anticipated by economists and reflects the impact of Hurricane Irma and Harvey, as workers in affected areas were unable to report to work. In particular, “food services and drinking places” showed a decline of 105,000 jobs for the month, an anomaly compared to the 24,000 added jobs per month over the prior 12 months. The unemployment rate was 4.2% (-0.2%) in September, while the U-6 (measure of underemployment) fell to 8.3%, the lowest since 2007. Wages continue to rise, increasing 2.9% year over year in September, above the 2.6% average growth over the last two years.

Nonfarm Payroll Employment, Seasonally Adjusted (Last 24 Months)

Haverford Trust Bar Graph

Look Ahead:

  • Key reports/items for the upcoming week include, minutes for the last Fed meeting (Wed), Consumer Price Index (Sept), Retail Sales (Aug), Germany trade and Industrial Production (Aug), China Imports/Exports (Sept) and a series of Fed speak (Robert Kaplan, Neel Kashkari, Charles Evans, and Eric Rosengren). On Tuesday, Procter & Gamble shareholders will decide on whether or not to add Activist Investor, Nelson Peltz to the board. Third quarter earnings season begins with JP Morgan and Citigroup kicking off bank earnings on Thursday.