Jobs Report Causes Equity Advance in the Weekly Market Update by Valeo Financial Advisors (December 7, 2019)
December 7, 2019    Disclosures    POSTED IN  InvestmentsEconomyMarkets

The holiday season continues to be off to a strong start as Cyber Monday sales show an increase in spending of 17% from last year. The U.S. economy received some additional welcome news on Friday during the jobs report after the ISM manufacturing number caused fear of a possible slowdown. The U.S. added 266,000 jobs in November, and the unemployment rate fell to 3.5% nationally. The latest jobs report likely reinforces the expected Federal Reserve move to hold interest rates steady at their final meeting of 2019. Conflicting trade news remains a spotlight for investors, as a fresh round of tariff hikes is slated to go into effect on December 15th; however, it was reported that China’s State Council began the process of exempting some agriculture products from punitive tariffs in a probable attempt to get December’s hikes curbed.

After a rocky start, a robust jobs report helped propel domestic equities out of a slump for a weekly gain, and both international and emerging market stocks similarly advanced – despite some disappointing data coming out of the heavy manufacturing economy of Germany. Germany has narrowly avoided a recession in the third quarter. The risk-on sentiment from the jobs report caused a slight rise in Treasury yields and a decline in other haven assets. The Aramco IPO was priced to receive a total valuation of $1.7 trillion making it the world’s largest public company and largest-ever IPO – shares will begin trading next week. An OPEC meeting led to deeper production cuts and pushed oil prices higher, helping move the broader commodity index.

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