The economic news today is mixed
with a potential slowdown in the labor market but better news for exports. A
report on private-sector employment from ADP showed that 182,000 job were
created last month, less than forecast, while September gains were revised
down. The U.S. trade deficit fell in September. The improvement in the deficit
in September was due to imports being $4.2 billion less than August imports and
exports increasing by $3 billion. Much of the import decline was because of
declining purchases of foreign oil, a low number not seen in years. Global news saw China’s stock market soar over
4% on a better than expected Services Report for October. The last of the
earnings reports are coming in mixed. Notable reports saw disappointing news
from US Steel, while Tesla and Time Warner both topped earnings expectations.
Investors will have their eyes on additional economic data throughout the day
and a large slate of Fed officials speaking today, highlighted by Fed Chair
Yellen, who will be at a House Financial Services Committee hearing at 10am ET
speaking on bank regulation and supervision. Gold is trading up today after
heavy losses in yesterday’s trading while oil is down modestly. US stock indexes are trading down today after
an initial positive boost. A strong ISM
services report is likely attract more buying as the day wears on setting the
stage for a continuation of the three day winning streak. The ISM services index is a strong indication
of domestic economic activity since services represent 75% of GDP.
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