Growth Report – Monday, November 5, 2018

HIRING SURGED LAST MONTH
The Department of Labor’s latest employment report painted a picture of a thriving economy. Payrolls expanded with 250,000 net new hires in October, with wages improving 3.1% year-over-year (that was the best 12-month wage increase in nine years). Unemployment remained remarkably low at 3.7%; underemployment, as measured by the U-6 rate, ticked down 0.1% to 7.4%. October marked the labor market’s 97th straight month of expansion; the main jobless rate has been under 5% for two years. Last month, there were 7.1 million job openings and 6.1 million unemployed Americans.1,2

HOUSEHOLD SPENDING, CONFIDENCE REMAIN STRONG
The Department of Commerce reported an advance of 0.4% for personal spending in September, though personal incomes improved by only half that. The Conference Board’s consumer confidence index displayed an excellent 137.9 reading for October.2,3

ISM’s FACTORY SECTOR PMI DECLINES
Slipping to 57.7 for October, the Institute for Supply Management’s purchasing manager index of manufacturing activity remained far above the 50 mark that serves as the index’s line between sector expansion and contraction. In September, this PMI reached 59.8.3

RED TURNS TO GREEN ON WALL STREET
Last week saw all three major U.S. equity benchmarks add value. A 2.36% weekly gain left the Dow Jones Industrial Average at 25,270.83 when Friday’s trading day concluded. The Nasdaq Composite rose even more, improving 2.65% in five days to wrap up the week at 7,356.99. Not to be outdone, the S&P 500 advanced 2.42%. At Friday’s closing bell, it stood at 2,723.06. Thanks to these performances, the big three turned positive again for the year.4

T I P O F T H E W E E K

The cost of traveling can surprise you over the holidays. It can be less of a surprise if that cost is factored into your household’s monthly budget.

THIS WEEK
The Institute for Supply Management releases its monthly non-manufacturing PMI on Monday; investors will consider its latest reading and earnings from Avis Budget Group, Brighthouse Financial, CNA, Invacare, Kemper, Loews, Marriott International, Mosaic, Rent-A-Center, Sysco, and Valvoline. | Earnings appear Tuesday from Archer Daniels Midland, Bausch Health, Boise Cascade, CVS Health, Eli Lilly, Etsy, Frontier Communications, GoDaddy, Martin Marietta, Papa John’s, Planet Fitness, Ralph Lauren, and Wendy’s. | Wednesday, earnings news emerges from Coty, Dean Foods, Dish Network, Green Dot, Groupon, Horizon Pharma, Hostess Brands, Humana, Keurig Dr. Pepper, Marathon Oil, Michael Kors, Monster Beverage, News Corp., Office Depot, Prudential Financial, Qualcomm, Rockwell Automation, Roku, Sempra Energy, Square, Sunoco, Take-Two Interactive, TiVo, TripAdvisor, and Twenty-First Century Fox. | The Federal Reserve makes an interest rate decision on Thursday, when Activision Blizzard, AMC Entertainment, AstraZeneca, D.R. Horton, Discovery, Dropbox, Hertz Global Holdings, Icahn Enterprises, Lions Gate Entertainment, Redfin, Unisys, Walt Disney Co., and Yelp all present earnings. | The University of Michigan releases its initial consumer sentiment index for November on Friday, complementing the latest wholesale inflation data from the federal government and earnings news from GNC Holdings and Starwood Properties.

Q U O T E O F T H E W E E K

“Creativity can solve almost any problem. The creative act, the defeat of habit by originality, overcomes everything.”
George Lois

% CHANGE

Y-T-D

1-YR CHG

5-YR AVG

10-YR AVG

DJIA

2.23

7.46

12.37

17.12

NASDAQ

6.57

9.56

17.52

32.62

S&P 500

1.85

5.55

10.92

18.18

REAL YIELD

11/2 RATE

1 YR AGO

5 YRS AGO

10 YRS AGO

10 YR TIPS

1.16

0.48

0.50

3.09

Sources: wsj.com, bigcharts.com, treasury.gov – 11/2/184,5,6,7
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

T H E W E E K L Y R I D D L E

It floats when born, lies down when alive, and runs as it dies. What is it?

LAST WEEK’S RIDDLE: In a thousand years, you will never find it. In a minute, you will notice it once. In a moment, you will see it twice. What is it?
ANSWER: The moon.

CITATIONS:
1 – tinyurl.com/y72kqpoj [11/2/18]
2 – investing.com/economic-calendar/ [10/24/18]
3 – briefing.com/investor/calendars/economic/2018/10/29-02 [11/2/18]
4 – markets.wsj.com/us [11/2/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F2%2F17&x=0&y=0 [11/2/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F2%2F17&x=0&y=0 [11/2/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F2%2F17&x=0&y=0 [11/2/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F1%2F13&x=0&y=0 [11/2/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F1%2F13&x=0&y=0 [11/2/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F1%2F13&x=0&y=0 [11/2/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F3%2F08&x=0&y=0 [11/2/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F3%2F08&x=0&y=0 [11/2/18]
5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F3%2F08&x=0&y=0 [11/2/18]
6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/2/18]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/2/18]

This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This material was prepared by MarketingLibrary.Net Inc., for Mark Lund, Mark is known as a Wealth Advisor, The 401k Advisor, Investor Coach, The Financial Advisor, The Financial Planner and author of The Effective Investor. Mark offers investment advisory services through Stonecreek Wealth Advisors, Inc. a fiduciary, independent, fee-only, Registered Investment Advisor firm providing investment and retirement planning for individuals and 401k consulting for small businesses. Cities served but not limited to are: Park City, Salt Lake City, Murray City, West Jordan City, Sandy City, Draper City, South Jordan City, Provo City, Orem City, Lehi City, Highland City, Alpine City, and American Fork City in Utah.

Category: Blog, The Mark Lund Growth Report's

About the Author ()

Mark K. Lund is the author of The Effective Investor, a #1 Best Seller, and founder of Stonecreek Wealth Advisors, Inc. an independent, fee-only, Registered Investment Advisory firm. He has provided articles for or been quoted in: The Wall Street Journal, The Salt Lake Tribune, The Enterprise Newspaper, The Utah Business Connect Magazine, US News & World Report, and Newsmax.com, just to name a few.  Mark publishes two newsletters called, “The Mark Lund Growth Report” and “Mark Lund on Money.”  Mark provides CPE (continuing professional education) courses for CPAs.  You may also have seen him on KUTV Channel 2, or as a guest speaker at a local association or business. Mark provides investment and retirement planning services for individuals and 401(k) consulting for small businesses. In his book, The Effective Investor, Mark exposes the false narrative magazines, media, big Wall Street firms, and most advisors want you to believe. The good news is that Mark will show you that you don’t need their speculative ways of investing in order to be a successful investor. Get a free copy when you schedule your initial consultation.

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