Weekly Economic Update for October 31, 2016
Main Street Financial Presents:
“Really, there is no normal. There’s only change and resistance to it and then more change.”
- Meryl Streep
If you are newly married and don’t have a will, why not create one? It is a thoughtful and very responsible move.
There is one question that nobody can possibly answer “yes” to with 100% honesty. What is that question?
Last week’s riddle:
Ray pulls out of his driveway and immediately drives at 55 miles per hour, but he is not cited even though a police car sees him. Why?
Last week’s answer:
He lives on a major road, and the speed limit on that road is at least 55mph.
October 31, 2016
ECONOMY EXPANDS 2.9% in THIRD QUARTER
After just 1.4% growth in Q2, this was welcome news. Surging exports and greater inventory investment and federal spending made Q3 the best quarter for the economy in two years, according to the Department of Commerce. The federal government’s core PCE price index was up 1.7% for the quarter versus 1.8% in Q2.1
CONSUMER CONFIDENCE INDICES DESCEND
Last week, the Conference Board’s gauge of household confidence came in at 98.6 for October, down from 103.5 in September. The University of Michigan’s final October consumer sentiment index slipped to 87.2 from its prior mark of 87.9.2
PENDING HOME SALES ReBOUND
The National Association of Realtors noted a 1.5% gain in housing contract activity in September, following a 2.5% downturn in August. The August S&P/Case-Shiller home price index revealed a 5.3% annual rise in U.S. home values.2
BLUE CHIPS FARE BEST DURING A MIXED WEEK
Across five trading days, the Dow Jones Industrial Average rose 0.09% to settle at 18,161.19 Friday. Weekly losses struck the S&P 500 (0.69% to 2,126.41) and Nasdaq Composite (1.28% to 5,190.10).3
THIS WEEK: September consumer spending figures are out on Monday, along with earnings from Aegion, Anadarko Petroleum, Loews, Nautilus, and Tesoro. Tuesday, ISM releases its October factory PMI and Archer Daniels Midland, Coach, Cummins, Electronic Arts, Gilead Sciences, Kellogg, Molson Coors, Mosaic, Noble Energy, Occidental Petroleum, Papa John’s, Pfizer, Square, U.S. Steel, Western Union, and Wingstop announce earnings. Wednesday, the Federal Reserve makes its latest policy statement, ISM’s service sector PMI appears, ADP issues its September payrolls report, and earnings news arrives from Allergan, Allstate, AIG, Anthem, Avis Budget, Clorox, Estee Lauder, Facebook, GoDaddy, iHeartMedia, Marathon Oil, MetLife, Office Depot, Prudential, Red Robin, Sunoco, Take-Two Interactive, Time Warner, Transocean, Whole Foods, Yelp, and Zynga. The October Challenger job-cut report and the latest initial claims figures come out Thursday, and Alamo Group, AMC Networks, Avon, Chesapeake Energy, Cigna, Fluor, GoPro, Hyatt Hotels, Icahn Enterprises, Kemper, Kraft Heinz, Lions Gate, Monster Beverage, Noble Corp., Starbucks, and TiVo all join the earnings parade. Friday, the Department of Labor provides its October jobs report, and Duke Energy, Humana, Jamba, and Revlon present earnings.
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1 - investors.com/news/economy/economy-grew-2-9-in-q3-faster-than-expected/ [10/28/16]
2 - marketwatch.com/economy-politics/calendars/economic [10/28/16]
3 - markets.wsj.com/us [10/28/16]
4 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F28%2F15&x=0&y=0 [10/28/16]
4 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F28%2F15&x=0&y=0 [10/28/16]
4 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F28%2F15&x=0&y=0 [10/28/16]
4 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F28%2F11&x=0&y=0 [10/28/16]
4 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F28%2F11&x=0&y=0 [10/28/16]
4 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F28%2F11&x=0&y=0 [10/28/16]
4 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F27%2F06&x=0&y=0 [10/28/16]
4 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F27%2F06&x=0&y=0 [10/28/16]
4 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F27%2F06&x=0&y=0 [10/28/16]
5 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [10/28/16]
6 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [10/28/16]