The Week In Review


The major averages rose once again capping off their best week of the year thanks to a soft jobs report that drove bond yields lower on the week. The Dow Jones Industrial Average gained 222 points, or 0.66% to 34,061. The S&P 500 climbed 40 points or 0.94% to 4,358.34 and notched its first five-day advance since June. The Nasdaq Composite jumped 184 points or 1.38% to 13,478.

Besides a soft jobs report on Friday, the Fed left rates unchanged on Wednesday as investors hope that the Federal Reserve's rate-hikes are done. The Dow rose 5.07% for the best week since October 2022. The S&P 500 was up 5.85% while the Nasdaq gained 6.61%. It was the best week for both indexes since November 2022.

The October jobs report on Friday came in weaker than expectations, showing the Fed's attempt to cool the economy and stifle inflation could be working. The U.S. economy last month added 150,000 jobs, below the 170,000 payrolls increase consensus estimate from Dow Jones, and lower than September's blowout of 297,000 jobs added. The unemployment rate rose to 3.9%, compared to expectations that it would hold steady at 3.8%.

Bond yields, which have weighed on the stock market the last three months, tumbled Friday in the wake of the softer-than-expected payrolls figures and lighter average hourly earnings increase. The 10-year Treasury yield lost more than 9 basis points to 4.57%, down from the 5% high it hit last month. The 2-year Treasury yield lost 13 basis points to 4.8%.

The rebound this week came as the S&P 500 closed out a dismal period of three months straight with losses. The rally this week was sparked by the Fed's decision to hold rates steady for a second straight time, along with the Department of Treasury's borrowing plans that were less burdensome than feared.

All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.