Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
Blog Home
Bob Carey
Chief Market Strategist
Click for Bio

Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube

  US Economy and Credit Markets Ended November 6, 2020
Posted Under: Weekly Market Commentary
Supporting Image for Blog Post

Treasury yields were broadly lower, and prices up, last week as the market digested election results indicating a divided government. A Republican senate is expected to reduce the odds of a large fiscal stimulus spend which kept Treasury prices up. Growth equities and government bonds performed well with markets expecting monetary policy will be forced to carry the stimulus load. A continuation of the duration trade resulted. Last Monday the ISM Manufacturing Index indicated a strengthening manufacturing sector as it recorded a reading of 59.3 which was well ahead of consensus expectations. Wednesday's Non-Manufacturing ISM disappointed, however, as it declined to 56.6, below expectations, but still above 50 – indicating expansion. On Thursday, Nonfarm Productivity was recorded increasing at a 4.9% annualized rate for the third quarter but lagging expectations. Interestingly, real (inflation-adjusted) compensation per hour in the nonfarm sector declined at a 9.1% annual rate in Q3 but was still up 5.3% versus a year ago. Also on Thursday, Jerome Powell discussed the risk that the pandemic still poses to the economy and indicated that it was most concerned about rising infection rates and resulting shutdowns as well as declining savings as the previous fiscal stimulus has come off. Friday's nonfarm payroll data indicated a rise well ahead of expectations. The unemployment rate was down a full percent versus the prior month. Major economic reports (related consensus forecasts, prior data) for the upcoming week include Wednesday: November 6 MBA Mortgage Applications (n/a, 3.8%); Thursday: October CPI (0.2%, unch.) and November 7 initial jobless claims (730K, 751K); Friday: October PPI Final Demand (0.2%, 0.4%) and November preliminary University of Michigan Consumer Sentiment Index (82.0, 81.80).
Posted on Monday, November 9, 2020 @ 9:02 AM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
Market Commentary and Analysis
Market Commentary Video
Weekly Market Commentary
Weekly Market Watch
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email

Sector Performance Via Market Capitalization (Since Trump Was Elected)
Passive vs. Active Fund Flows
US Stock Markets Ended Oct. 30, 2020
US Economy and Credit Markets Ended Oct. 30, 2020
The Real Rate of Return on the 10-Year Treasury Note is Negative
A Snapshot of Growth vs. Value Investing
US Stock Markets Ended Oct. 23, 2020
US Economy and Credit Markets Ended Oct. 23, 2020
S&P 500 Index Dividend Payout Profile
How Stocks Have Fared Since Donald J. Trump Was Elected President
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2023 All rights reserved.