Global stocks rebounded over the week on strong earnings and positive trade news with China. The S&P 500 and Dow gained 2.4% for the week. Internationally, Japan surged 5.0% and Europe jumped 3.3% for the week. The yield on the 10-Year Treasury rose to 3.21% to end the week on wage gains. Its highest level since early October.
The October Jobs reports well surpassed expectations with 250,000 new hires. The unemployment rate remained at 3.7%, but the labor force participation rate increased. Wages also rose by 3.1% from a year earlier, their largest gain in nearly a decade.
The Fed’s preferred inflation measure, the personal consumption expenditures price index rose 0.1% in September from August. As a result, annual inflation still remains tame and below the Fed’s 2% target.
Eurozone growth eased to 0.2% in the third quarter, its lowest level in over four years, with Italy weighing down the region.
A reading of Chinese manufacturing fell to a 2 year low in October.
Annual home price gains rose by less than 6% for the first in a year in August.
Consumer confidence hit an 18 year high in October.
With 350 companies in the S&P 500 reporting to date, earnings are up 24% from a year earlier topping estimates.
Apple posted record earnings and sales, but offered weak guidance for the holiday quarter.
IBM announced it is buying software and services company Red Hat for $33 billion.