Markets in a Minute - Crosstown
By: Zac Martin
Author: Zac Martin, Investment Associate
Week Ending December 6th - Crosstown
Employment Update: ADP National Employment survey contracted by -32k. Out of the last six reports, four have been negative. However, according to a recent NFIB Survey this weakness in the job market may be a temporary soft patch. Over the last several months small business owners have increased their hiring plans over the next 3-6 months (see chart below). Regardless, this was the second to last report the Fed will receive about the labor market before their Rate Decision on Wednesday.
PMI & Sentiment Update: ISM PMIs largely remain on the multi-year trend, services remain in expansionary territory while manufacturing remains in contraction territory. This is anomalous – Manufacturing PMI has never been in contraction territory this long without a recession occurring.
Fed Update & Expectations: Final inflation report before the Fed’s meeting on Wednesday was the Personal Consumption Expenditures report for September. The rate of inflation remained relatively unchanged, growing 2.8% year over year. The largest contributors were housing and health care costs, these components have been the “stickiest” over the past couple of years. Despite inflation being above the Fed’s target rate, the market is anticipating a 25bps cut as the labor market remains weak.
The Week Ahead:
- JOLTS report (12/9)
- FOMC Meeting (12/10)
- ORCL & AVGO earnings (12/10 & 12/11)
HORAN Wealth, LLC is an SEC registered investment advisor. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results. Market conditions can vary widely over time and there is always the potential of losing money when investing in securities. HORAN Wealth and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction. For further information about HORAN Wealth, LLC, please see our Client Relationship Summary at adviserinfo.sec.gov/firm/summary/333974.
