Week In Review

Jason Newcomer CFP®, EA, AIF®

December 07, 2024

Economy

The US economy added 227,000 jobs last month, according to Friday's nonfarm payrolls report from the Labor Department. That number was more than the consensus expectation of 215,000, and suggests continued strength in the labor market. The original number of jobs created in October (12,000) was revised up to 36,000. The October number clearly shows the impacts of hurricanes Helene and Milton, but the fact that it was revised upwards is a good sign. The labor market continues to be a bright spot in our economy. The solid number of jobs created last month, paired with a low unemployment rate (4.2%) and a relatively modest level of weekly jobless claims seems to be in a good balance right now to afford the Fed the ability to continue to cut rates later this month.

Next week we'll get the November inflation data from the BLS. Inflation in October rose to 2.6%, and the Cleveland Fed's forecast is calling for another tick up to 2.7%.

Markets

The S&P 500 closed out the week adding 1% and making new all-time highs four out of five days. The market responded positively to Friday's jobs data as it reinforced Wall Street's expectations for a 0.25% rate cut on the 18th of this month. Friday's closing marks the 57th new all-time high for the S&P this year, which means we're seeing an average of more than one per week. We've had just 2 drawdowns of 5% this year, with the steepest hitting just over 8% back in August. The bull market that began in October 2022 is just over two years old, and Ryan Detrick of the Carson Group points out that over the past 50 years, if a bull market made it past its second birthday, they've had plenty more juice left in the tank.

What We're Reading

Charting Markets: A Look at 2024 - Novel Investor
Never Before Have So Many Sailors Been Abandoned at Sea - WSJ

Have a great weekend.

Dogwood Wealth Management