Rover's Weekly Market Brief — 12/8/2017

Printer Friendly Printer Friendly December 8, 2017

Indices

DJIA: 24,329.20 (+0.40%)

NASDAQ: 6,840.00 (-0.11%)

S&P 500: 2,652.00 (+0.37%)

Commodities

Gold: 1,249.90 (-2.53%)

Copper: 294.75 (-4.13%)

Crude Oil: 57.36 (-1.71%)

Economy

Last week’s initial trade goods deficit estimate of $68.3 billion was revised to $69.1 billion in October’s U.S. International Trade in Goods and Services report. Service exports increased +$0.3 billion, but were matched by a +0.3 billion increase in service imports keeping the service surplus at $20.3 billion and bringing the overall trade deficit down to $48.7 billion. In services, the bulk of the service import increase was due to a +$0.28 billion increase in transportation, and exports increased for financial services (+$0.12 billion) and other business services (+$0.1 billion), which include research and development, management and technical services. Compared to the same period in 2016, the goods and services deficit has widened by 11.9%, with a 5.3% increase in exports (+$97.5 billion) falling behind a 6.5% increase in imports (+$146.6 billion).

A -4.2% (-$3.4 billion) drop in transportation orders brought overall factory new orders to a -0.1% drop in October. However, new orders excluding transportation were up +0.8% (+3.1 billion), with gains for nondurable goods (+0.7%, +$1.6 billion), primary metals (+1.4%, +$0.28 billion), computers and electronics (+0.7%, +$0.18 billion), material handling equipment (+5.6%, +$0.16 billion), and industrial machinery (+1.9%, $0.12 billion). In the transportation sector there were significant drops for nondefense aircraft (-18.5%, -$2.4 billion), defense aircraft (-7.6%, -$0.27 billion), and boats (-32.8%, -$1.4 billion), with only new motor vehicle orders increasing (+1.3 %, +$0.37 billion). Year to date orders are up +5.6% compared to the same period last year, with orders excluding transportation up +6.0%.

The unemployment rate remained at 4.1% as the total number of jobs increased by 228,000 in November. The number of jobs created in October was revised downward by -17,000 to 244,000, and September’s jobs were revised upward by +20,000 to 38,000, with the average monthly gain for 2017 at 174,000 jobs/month compared to 187,000 jobs/month for 2016. Jobs were added for professional and business services (+46,000), manufacturing (+31,000), health care (+30,000), and construction (+23,000). The average workweek increased +0.1 hours to 34.5 hours, and average hourly earnings increased +$0.05, with production and non-supervisory employees earning $22.24/hour vs the overall average of $26.55/hour. Over the last year, hourly wages have increased +2.5%, or +$0.64/hour. The alternate U-6 unemployment rate, which includes discouraged and marginally attached workers, was a seasonally adjusted 8.0% for November, up from 7.9% in October, but down from 9.3% in November 2016.

Upcoming Economic Reports:

Wednesday December 13 – Federal Open Market Committee (FOMC) Meeting Announcement

Thursday December 14 – Retail Sales

Earnings Calendar:

 

Monday Tuesday Wednesday Thursday Friday
KB Financial
Group
(KB)
Altaba
(AABA)
Industria
De Diseno
(IDEXY)
China
Construction
Bank
(CICHY)
UDG Healthcare
(UDHCF)
Esai Co
(ESALY)
SMC
(SMCAY)
OMV
(OMVJF)
Oracle
(ORCL)
Ingles
Markets
(IMKTA)




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