Weekly Economic Summary - 10/9/2107Submitted by Miller Financial Group, LLC on October 9th, 2017
Happy Columbus Day! U.S. stock markets are open today but the bond markets are closed for the holiday. The result will probably be a lighter than usual trading day for U.S. stocks.
In the early going, all three of the major U.S. indices are relatively flat. Friday’s session closed with modest losses following news of a less than stellar monthly jobs report that was skewed by hurricanes Irma and Harvey. There was a loss of 33,000 jobs in September which was the first decline since 2010. However, the decline was linked to the widespread workplace disruptions caused by the two recent hurricanes. Conversely, the unemployment rate fell to 4.2% from 4.4% and hit the lowest level since 2000.
The weekend brought little news for investors to react to, a welcomed changed from the past couple of weeks. The fact North Korea didn’t conduct a long-range missile test, as had been rumored, is being viewed as a positive for the markets this morning.
This week marks the kick-off of third quarter earnings season. S&P500 earnings are expected to increase at a modest 2.8% which is down from the estimated growth rate of 7.5% on June 30th, according to research firm FactSet. Earnings reports along with some key economic data toward the end of the week will keep investors busy.
Enjoy this beautiful fall weather we are having here in the Northwest and give us a call to schedule a review as we head into the final quarter of 2017.