BetterTrades

This Week's Market Review

After five weeks of gains, the S&P 500 pulled back this week on profit taking. With earnings season nearly over, the focus now shifts to economic data and how much growth could be slowing. Early in the week Wal-Mart reported only a 0.5% October same store sales gain, raising concerns that consumer spending was slowing. Other data to be concerned about included the October ISM manufacturing index coming in at just 51.2, barely above the 50 level that represents growth. Third quarter productivity reported a zero percent growth while October factory orders were up a less than expected 2.1%. The October employment report released on Friday showed the unemployment rate dropping to a five-year low at 4.4% while non-farm payrolls were up only 92,000. Oil prices ended little changed for the week near $59 per barrel. The yield on the 10-year note rose slightly to 4.71% after dropping sharply earlier in the week. Going forward the risk of economic growth slowing significantly remains which would put a halt to the the positive numbers we have recently seen.

The DOW closed the week down, falling 71.72 points to close at 12018.54. The S&P fell 0.7%, losing 10.00 points, ending the week at 1367.34. The NASDAQ lost 0.7%, shedding 16.60 points, ending the week at 2334.02.