Monthly Market Commentary for November 2014
The month of October was filled with heightened volatility as concerns of economic weakness in Europe, ebola, and ISIS led to equities markets correcting in the first half of the month. Heading into the second half of the month, markets recovered on the heels of strong 3rd quarter earnings reports and a decrease in global crisis headlines. Domestic jobs reports were stronger than anticipated resulting in the unemployment ticking down to 5.9%.
The S&P 500 closed out a historically volatile October at an all time high, rising 2.3% for the month. The Dow Jones Industrial Average also made history and rose 2% for the month. Since 1900, there has only 15 occasions that the Dow been down more than 6% intra-month and finished the month positive.
The yield on the 10-year Treasury fell 17 basis points from its September finish, closing at 2.34%. Yields fell to as low as 1.8% mid month before recovering. The Federal Reserve will end its bond-buying program on schedule; however, it confirmed it will keep interest rates near zero for “a considerable time.”
Preliminary estimates of GDP have the U.S. economy expanding at a healthy 3.5% annual rate. The seasonally adjusted annual rate capped the strongest six months in more than a 10 years.