Today – Wednesday December 4th, 2013
- U.S. stocks declined today as a better-than-anticipated jobs report and a jump in October home purchases that triggered concerns that the Federal Reserve might stop it’s $85 Billion dollar stimulus as early December or beginning of next year.
- The ADP National Employment Report showed that private sector employers added 215,000 jobs in November, which beat the average economist estimate of 173,000 jobs, more than expected. Which shows that U.S. economy is expanding and can stand on it’s own two feet. Which is scaring investors because they highly depend on this stimulus because it brings confidence and certainty along with low interest rates into the market.
- Another factor that added to show the growth of the economy was housing. New U.S. home purchases jumped by the most in more than 33 years in October, up 25.4% to an annualized rate of 444,000. Which shows consumers are buying new homes and adapting to high mortgage rates thats being put on them, which shows the housing sector strengthening. This was the private sector’s job report, on Friday we will get the Federal job report.
- Thus to conclude; stronger economic reports means earlier the Fed will stop its stimulus program is the ongoing theme at the moment.
Categories: Capital Markets