The jobs report had a little something for everyone today. The non-farm payroll number was much better than expected (128,000 new jobs in October vs. 75,000 expected). In addition, the prior two month’s numbers both saw sizable adjustments with the August number revised upward an additional 51,000 jobs, and the September number revised upward 44,000 jobs. The unemployment rate came in at 3.6% (as expected), while average hourly wages were up .2 of a percent which was a little light and thus not inflationary. We also got the ISM manufacturing number which was not robust, but not quite as bad as expected.
The bulls seemed to like all of it as stocks rallied nicely, erasing yesterday’s losses, and pushing to new highs. By the close, the Dow Jones Industrial Average was up 301 points to finish the day at 27,347. The S&P 500 was up 29 points to close at 3,066. Gold was up a fraction to trade at $1,515 per ounce, while oil was up $1.96 per barrel WTI.
It was a very busy week for market participants, and in the end, a pretty good one. Earnings are coming in slightly better than expected, the economy, while not robust, is doing fine, and the Federal Reserve appears to be firmly in the corner of the bulls. Let’s catch our breath and enjoy the new highs.
Have a great week everyone.