Market Commentary

The Dow Jones dropped 114 points; the S&P 500 decreased 0.30% - falling from a record high, along with the Nasdaq Composite. As contracts are drawn for the partial trade deal that has been negotiated between the US and China, China states that they will not budge on the bigger trade issues. The US and China have a scheduled telephone call tomorrow to continue negotiating before the partial trade deal is signed. Yesterday Federal Reserve Chairman Jerome Powell announced another rate cut, and advised that the central bank would not consider raising them until inflation “picks up”. Gold rose 0.80% to $1,507.23 an ounce, while West Texas Intermediate crude oil slipped 1.10% to $54.44 a barrel. The yield on 10-Year Treasuries declined four basis points to 1.73%. The yield on 2-Year Treasuries decreased two basis points to 1.58%. Germany’s 10-Year yield decreased five basis points to -0.40%. Britain’s 10-Year yield fell five basis points to 0.638%. Japan’s 10-Year yield decreased two basis points to -0.133%. The US Treasury will offer $55 billion and $40 billion in four-week bills and eight-week bills at its weekly auction, respectively.

The US Department of Labor released a report stating jobless claims rose by 5,000 to 218,000 for the week of October 26th. The insured jobless rate was reported at 1.20% the week prior. State claims showed increased claims in 13 states and territories, while 40 states and territories showed lower filings for unemployment benefits. Oregon and Ohio were reported the highest number of claims at 418 and 358, respectively. New York and Texas reported the largest decrease with filings down 2,931 and 1,284, respectively. The Department of Commerce reported consumer spending on goods and services increased by 0.20%, from the previous month. The personal savings rate rose to 8.30% in September, reaching its highest level since March. These updates followed Wednesday’s release of the third-quarter GDP, which showed an increase of 1.90% fueled by consumer spending.