FYI: The jobs report was soft, with weaker wage growth and fewer jobs created in October than economists expected. Worried that the report signaled a sluggish economy, bond investors knocked yields down to late-October levels. Stocks moved sideways.
For investors, however, the report was more positive than negative. It showed that wage gains still aren’t big enough to push inflation higher. Instead, the investing backdrop continues to be one of low inflation, moderate economic growth and low interest rates, all good for financial markets. It means the Federal Reserve can take its time raising rates next year.
Regards,
Ted
http://blogs.wsj.com/moneybeat/2014/11/09/for-investors-fridays-jobs-report-means-investing-backdrop-continues/tab/print/
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CHICAGO, November 10, 2014 – In the November issue of Themes on the Economy®, Mesirow Financial Chief Economist Diane Swonk offers details from her annual holiday retail outlook. She says consumers have more money in their pockets to spend because of an improving labor market and falling gas prices. “We expect total retail sales to rise 4.6% from a year ago; that represents a sharp acceleration from the weather suppressed 3.7% gains of 2013... Online spending is driving those gains with an annual increase of more than 9.0%.”
While consumers may relax over a rosier holiday outlook, retailers are just managing to hold onto profits with razor-thin margins. Swonk predicts that “discounts and promotions will continue to determine where and when most consumers shop. A record number of stores are expected to be open on Thanksgiving Day for those seeking a deal instead of a meal.”
http://www.mesirowfinancial.com/economics/swonk/themes/themes_1114.pdf