Delivering Gains! | November 5, 2021

AUTHOR: Jason J. Roque, MS, CFP®, APMA®, AWMA®
TITLE:       Investment Adviser Rep – CCO
TAGS:   S&P 500, NASDAQ, FRB, Earnings, ISM

Jobs, jobs, jobs… Markets are climbing as the job market is delivering! Will the gains hold?


Manufacturing PMI beat expectations to open the week. PMI came in at 60.8 when 60.5 was expected. The S&P 500 ended up rising 0.18% to open the week. The Small cap markets surged substantially on the day, however, gaining over 1%.


The S&P 500 gained 0.40% on the day and led the way for markets. In all, it was a strong day as all major US indices were up. This may have been an anticipatory trade as it led into the Federal Reserve meeting results on Wednesday.


Markets hovered slightly in the red most of the day, but in the closing hour, markets surged. This came as investors were pleasantly surprised with the taper program announced. The program was assumed to end in the 2nd quarter and now is projected to end in the 3rd quarter. The S&P 500 ended up gaining .64% on the day.


Initial jobless claims… fell to a post pandemic low! Sound familiar? It fell to 269K, inching closer to pre-pandemic norms. On-going claims fell as well, in a continuing trend as of late. The S&P 500 added 0.4% on the day.


Happy jobs Friday… No really… US employers added 531K jobs when 450K were expected. This dropped the unemployment rate to 4.6% from 4.8%. The one piece of disappointing news was the continued stagnation of the participation rate. We currently sit 1% lower than pre-pandemic levels, or roughly 1.6M workers.


The first week of every month is generally all about job data–this week is no different. In the coming weeks, expect the focus to shift from jobs to earnings, then ultimately, to the debt ceiling. This issue is unresolved and poses a concern for the end of November/start of December…

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