Succinct Summations week ending October 25, 2013.
Positives:
1. The S&P 500 and Nasdaq composite both made new 52-week highs.
2. Jobless rate in U.S. drops to lowest level since November 2008.
3. August NFP revised upwards to 193k from 169k, subject to revisions, of course.
4. Durable goods orders rose 3.7% in September, the biggest gain in three months.
5. Investors threw $5B into European equity funds last week, the biggest weekly inflow ever.
6. Amazon investors still don’t care about profitability, congratulations bulls.
7. Kansas city fed manufacturing index rose to 6, up from 2 in September.
8. Rail traffic is at a 6-month high.
9. U.K. GDP grew 0.8%, the strongest since Q2 2010.
Negatives:
1. U.S. NFP came in at 148k, v expectations of 180k.
2. Existing home sales fell 1.9%, the first decline in 3 months.
3. Participation rate remains at 35 yr low (63.2%).
4. Weekly jobless claims fell to 350k (from 36k) v expectations of 340k.
5. October PMI index fell to 51.1 from 52.5, the lowest level in a year.
6. Stock market is near all time-highs and margin debt set a new record of $401B, valuations might not be crazy but speculation is heating up.
7. Core capex fell 1.1% v expectations of a 1% increase.
8. Durable goods excluding transprtations fell 0.1% v expectations of a 0.5% rise.
9. Consumer confidence fell to 73.2 v expectations of 75.
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