US Economy and Credit Markets Ended Nov. 4, 2016
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Treasury yields fell last week as investors cut their risk exposure to preserve capital due to uncertainties about the upcoming election. On Monday, personal income and spending continued to produce gains in September, with consumer spending reaching a record high. Tuesday's ISM Manufacturing report beat expectations showing major measures of activity in October. Nonfarm productivity increased at a 3.1% annual rate in the third quarter, much faster than the consensus expected gain of 2.1%. Wednesday's ADP Employment Change report showed companies added the fewest workers in five months due to a limited pool of skilled workers. Initial jobless claims unexpectedly rose last week but remain at the lowest level in several decades. Jobless claims have now stayed below 300k for eighty-seven consecutive weeks, which is the longest streak since 1970. Nonfarm payrolls increased 161,000 in October and were revised up 44,000 for prior months, bringing the net gain to 205,000, although most of the revisions were for government jobs. Major economic reports (and related consensus forecasts) for the upcoming week include: Tuesday: October NFIB Small Business Optimism (94.0); Wednesday: November 4th MBA Mortgage Applications, September Wholesale Inventories (0.2% MoM); Thursday: November 5th Initial Jobless Claims (260k), October 29th Continuing Claims (2020k), October Monthly Budget Statement (-$81.9b), November 6th Bloomberg Consumer Comfort; Friday: November University of Michigan Sentiment (87.5).
Posted on Monday, November 7, 2016 @ 8:56 AM

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.