US stocks rose over the week as investors took signs of weakness from the economy that the Fed would delay any interest rate increases. The S&P 500 and Dow rose 1.0% for the week. Internationally, Europe fell 0.4% and Japan dropped 0.8% for the week. The yield on the 10 year Treasury fell below 2% to finish the week at 1.99%; the lowest level since April.
US firms added 142,000 jobs in September well below estimates of over 200,000. In addition hiring in July and August was revised down by 59,000 positions. The unemployment rate remained at 5.1%, but more people stopped actively looking for work. Wages eased as well.
While the Fed has made comments they expect to raise interest rates this year, investors are skeptical with current estimates putting a rate increase at less than a 50% chance.
The S&P Case Shiller home price index rose 4.7% in the year ending in July.
US exports are on pace to decline for the year for the first time since the financial crisis. As of July exports are down 3.5% compared to 2014. Weak global growth and the strong dollar have weighed heavily.
US auto sales rose 16% in September compared to a year ago and reached its fastest pace since 2005.
Alcoa announced it is splitting into two companies one focused on raw aluminum and the other on aluminum parts making.
Shell is giving up on its $7 billion Arctic oil exploration after only drilling one well.
Analysts are projecting a 4.9% decline in third quarter earnings for S&P 500 firms and a 3.4% drop in revenue.
Reposted from the Raffa Wealth Management Blog.
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