The Markets
The Dow industrials and the S&P 500 continued to set all-time records with an eighth consecutive week of gains for both. And though the Nasdaq remained far from its all-time high, it finally managed to surpass the 4,000 threshold last seen more than 13 years ago. Meanwhile, the benchmark 10-year Treasury yield remained stable.
Last Week's Headlines
- Building permits rose 6.2% in October, according to the Commerce Department, and were almost 14% higher than in October 2012. Data on September and October housing starts, which was delayed by the federal government shutdown, will be available along with November figures on December 18.
- Home prices were up 3.2% in Q3 in the 20 cities measured by the S&P/Case-Shiller 20-City Composite Index. September's 0.7% gain represented a 13.3% increase from a year earlier, the highest annual growth since February 2006.
- Durable goods orders fell 2% in October. The decline was fueled in part by a nearly 16% drop in new orders for aircraft and parts, the same factor responsible for the previous two months' worth of increases. However, orders for computers and capital goods also fell, leaving nontransportation orders down 0.1% for the month.
Eye on the Week Ahead
Friday's unemployment rate--the last before the Fed's monetary policy committee's last meeting of the year--and preliminary sales results from the expanded Black Friday retail holiday weekend will likely dominate the week. However, reports from a range of economic sectors, including housing, manufacturing, services, and consumer spending, also will suggest the state of the economy.
Key dates and data releases: U.S. manufacturing, construction spending (12/2); auto sales (12/3); new home sales, balance of trade, Fed "beige book" report, U.S. services sector (12/4); revised Q3 GDP estimate, factory orders (12/5); unemployment/payrolls, personal income/outlays (12/6).
Data sources: All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. News items are based on reports from multiple commonly available international news sources (i.e., wire services) and are independently verified when necessary with secondary sources such as government agencies, corporate press releases, or trade organizations. Market data: U.S. Treasury (Treasury yields); WSJ Market Data Center (equities); Federal Reserve Board (Fed Funds target rate); U.S. Energy Information Administration/Bloomberg.com Market Data (oil spot price, WTI Cushing, OK); www.goldprice.org (spot gold, NY close); Oanda/FX Street (currency exchange rates). Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Past performance is no guarantee of future results.
The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. Market indexes listed are unmanaged and are not available for direct investment.
