In Markets "In a Nutshell"

Markets “In a Nutshell” for October 7, 2024

Investment Week at a Glance

Stocks finished higher for the week. The Dow Jones Industrial Average rose 0.1%, the S&P 500 was up 0.2%, and the NASDAQ rose 0.1%. Foreign stocks (MSCI EAFE) were down, falling 3.5%. Bond prices were down for the week, with the 10-year U.S. Treasury ending the week at 3.97%.  (Data source: Wall Street Journal)

Jobs Report Better Than Expected

The September jobs report was released last week and surprised to the upside, helping ease recession worries. Expectations for new jobs created were 150,000, the actual number came in at 254,000 and unemployment ticked lower from 4.2% to 4.1%. August’s jobs number was also revised higher by 17,000 which was good news as the past few months we had seen weakening jobs data. This better-than-expected jobs data points to the Fed cutting rates by 0.25% in their next meeting and most likely taking away the possibility of a 0.50% rate cut. Currently, the market has two more 0.25% rate cuts this year, one in each of the remaining two meetings. A trend that could lead to higher unemployment is the number of job openings continues to decline while at the same time, more people are entering the workforce. This will be something to watch as the Fed begins to cut rates and the economy adjusts.

East Coast Port Strikers Reach Tentative Deal

The International Longshoremen’s Association (ILA), which has 47,000 members, went on strike and caused some worry last week but suspended their strike for 100 days as they look to have an increase in wages. The expected daily damage to the U.S. economy of these strikes was estimated to be $1 billion – $5 billion a day. Hence, the resolution is good news for the economy. If the strike had lasted longer, it may have had a lasting impact on the economy and been inflationary. The workers are looking for a 62% pay increase from $39 to $63 an hour over the next 6 years. Although these higher wages will lead to higher costs, it will be cheaper than a prolonged shutdown of the East Coast ports. Between the strike and Hurricane Helene, the economy could see some short-term impacts on employment but nothing substantial in the long term.

Quiz:

How much did oil prices increase last week? (Scroll Down for Answer)

  1.     2%
  2.     4%
  3.     6%
  4.     9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Answer below.

 

 

Have a Great Week!

 

 

 

 

 

 

 

 

 

 

 

Answer:

4.    9%. Oil prices spiked last week as we saw tensions rise once again in the Middle East as Iran launched a missile attack on Israel.

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