The Week In Review


The major averages rallied into the close following a strong jobs report that shows a resilient economy that may mean interest rates will remain higher for longer. The Dow Jones Industrial Average closed up 130 points or 0.36%. The S&P 500 rallied 18 points or 0.41% to close at a new high for the year while the Nasdaq Composite rose 63 points or 0.45%. All the major averages finished higher on the week. The broad market index jumped 0.2%, the Dow finished marginally higher with both indexes continuing a six-week winning streak, longest run since 2019. The Nasdaq advanced 0.7% on the week.

November's nonfarm payrolls report showed an unexpected drop in the unemployment rate. The jobless rate fell to 3.7% in November from 3.9% the prior month. It was expected to remain the same. The economy added 199,000 jobs, slightly ahead of the 190,000 estimate from Dow Jones and well ahead of the 150,000 jobs added in October.

Bond yields were modestly higher as the 10-year Treasury hovers around 4.23%. The averages initially sold off on the report due to concerns the economy is still running too hot for inflation to cool enough for the Fed to start retreating from its high-rates policy. However, the averages rebounded after the initial sell-off.

The Fed will deliver its latest policy decision next Wednesday.

On the corporate news front, Carrier Global jumped 4% after agreeing to sell off one of their divisions to Honeywell for $4.95 billion. Lululemon jumped 5% following earnings last night. Broadcom and DocuSign were modestly higher on earnings. Vail Resorts was up 4% on earnings as they head into the winter months. Retailer. RH dropped 14% on earnings, a missed sales number and lower guidance. Higher mortgage rates have not been kind to their business.  

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