Succinct Summations for the week ending January 5th, 2018
Positives:
1. Stocks are off to a great start this year – all major U.S. indices hit fresh all-time highs.
2. Average hourly earnings increased by 0.3% m/o/m, above the 0.1% expected change.
3. Construction spending rose 0.8%, above the 0.6% expected. Single-family homes rose a strong 1.9%.
4. Unemployment remains low, at 4.1%
5. December PMI services rose came in at 53.7, down from 54.5 previously but well above the 52.4 expected; PMI manufacturing rose from 53.9 to 55.1, slightly ahead of expectations .
6. ADP employment showed a gain of 250k private payrolls in December, well above the 188k expected.
7. Factory orders rose 1.3%, above the 1.1% expected.
Negatives:
1. Nonfarm payrolls fell grew only 148k, well below the 191k expected.
2. Jobless claims rose from 245k to 250k, the 4-week moving average rose from 238.25k to 241.75k.
3. MBA mortgage applications fell 2.8% w/o/w, being dragged down by refinancing (-7.8%).
4. ISM non-manufacturing fell from 57.4 to a still strong 55.9, below the 57.6 expected.
Thanks, Mike!
