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Weakening Economic Indicators
On Tuesday, the U.S. manufacturing index fell to its lowest level since June of 2009. The poor numbers reflect a slowing economy and the trade war with China is making things worse. The decline raised investors
Goldilocks Jobs Report Saves the Day
After consecutive red days on Wall Street, the market got some relief from a “goldilocks” jobs report. Today the government reported that the economy added 136,000 new jobs in September. Less than the 150,000 forecasted from most economists. The slowing pace of job growth is not a good sign, especially if it continues. However, the unemployment rate hit a 50-year low. The report is also deemed “Goldilocks” because it’s not strong enough to stop the Federal Reserve from cutting rates and it’s not weak enough to cause serious concern about the labor market. The report sparked a nice relief rally and the Dow closed up 1.42%.
Markets Are Not Fazed by the Trump Impeachment Inquiry
Last week Nancy Pelosi announced that Democrats are launching an impeachment inquiry alleging president Trump asked Ukraine for help investigating Democratic presidential candidate Joe Biden. Since then a twitter storm has erupted and there’s been a lot of back and forth accusations. The market isn’t really pricing in the possibility of President Trump getting impeached or at least it hasn’t yet.
More Brokers Are Getting Rid of Commissions
On Tuesday Charles Schwab ($SCHW) announced that they’re scraping trading fees. The announcement caused all publicly traded brokers to decline. With TD Ameritrade dropping the most at 25%. Soon after Schwab’s announcement TD Ameritrade and E-Trade followed suit and dropped trading commissions. The popularity of free trading apps could be the blame for the newly adopted $0 commission policies.
Wall Street Weekly Performance
S&P 500 $SPY -0.57%.
NASDAQ $QQQ +0.81%
Emerging Markets $EEM +0.82%
Long Term Treasuries $TLT +2.21%
This Week’s Top Gainers
Broadvision Inc $BVSN +54.06%
Dova Pharmaceuticals $DOVA +39.87%
The Stars Group $TSG +38.98%
This Week’s Top Losers
Enlivex $ENLV -65.64%
Minerva Neuroscience $NERV -42.42%
United Nat Foods $UNFI -34.98%
MEME of the Week
What Else Is Happening
- WeWork went from a $47 billion valuation to nearly bankrupt in just 6 weeks.
- Computer and printer giant HP ($HPQ) announced a major restricting plan Thursday. The plan involves laying off 7,000 to 9,000 of its employees and a $10 billion
- General Motors ($GM) and the United Auto Workers strike continues for
- Facebook ($FB) will be forced to share user
‘s messages with British police.
- Johnson & Johnson ($JNJ) is paying $20.4M to settle opioid lawsuits by two Ohio Counties. Johnson and & Johnson will now be able to miss the upcoming federal
trailset for October 21st.
- Despite U.S. auto sales falling 1.4% through September, experts still expect the industry to finish the year with strong numbers.
- President Trump announced today that there is a “very good chance” of a trade deal being made with China. The talks are set to resume on October 10th.
- The retail apocalypse claimed another casualty with retailer Forever 21 filling for Chapter 11 Bankruptcy protection earlier this week. The company will close 178 of its 815 stores.
- The Department of Transportation has given the shipping company UPS ($UPS) the go-ahead to continue its drone airline. This will allow them to deliver healthcare supplies nationwide after successful tests of the program in Raleigh, North Carolina. After further development drones could start to supplement traditional delivery methods.