Jobs creation on both sides of the border helping move markets higher

By Justin Turner CIM, DMS®, CFP®
Despite a report showing that US corporations hired fewer people than anticipated, the Dow Jones and S&P 500 continued their climb higher and made yet another all time high. Economists were looking for an increase of 235k jobs and the actual number came in at 214k. The unemployment rate edged down to 5.8% from 5.9%. The report marks the 56^th consecutive month of private sector job growth. Payrolls have now exceeded by 200k+ for the 9^th straight month.

The Canadian economy improved in October with 43,100 jobs being created vs est for a loss of 5,000. The unemployment rate came in at 6.5% vs estimates of 6.9%.  The Canadian dollar finished up on the day at 88.24 or 113.35 in reaction. The job numbers combined with the performance of Gold stocks helped the TSX finish the week on a very positive note, up 127 points.  

Japan surprises market with stimulus helping market end October on a high note

By Justin Turner CIM, DMS®, CFP®
After a surprise stimulus move by the Bank of Japan, global markets around the world enjoyed a nice rally to close out the month.

The Dow Jones was up 195 points, S&P 500 up 23, and the TSX closed up 154.  After being down as much as 10% on the S&P 500 on October 15 and 13% for the TSX markets have stormed back and have recovered most of the losses although US stocks have clearly outperformed.

Energy companies led today in US with Exxon Mobil and Chevron Corp both rising 2.4%. Very telling with the price of oil down all day.  Gold and Silver slid to the lowest level since 2010. Gold broke through the $1180 low to settle at $1171 meaning there could be more pain in store.

Markets on fire after short lived correction

By Justin Turner CIM, DMS®, CFP®
Markets around the world continue to comeback after a correction that caused investors to fear that the multi-year rally was finally over.  Things have turned around in a hurry though and just a short time later it seems like the correction never happened. We are just one day before the conclusion of the FOMC meeting and US stocks tracked higher all day. DJIA finishing 187, S&P up 23, Nasdaq up 78 and Russell 2000 up the most with nearly a 3% move higher.

Consumer confidence was the big driver as the Conference Board’s index climbed to 94.5, the highest level since October 2007. Americans more excited about the prospects for jobs and the fact that gas is much cheaper and they have more money to spend. The S&P is now only 1.7% away from the previous peak of 2019 on Sept 19. 

      The TSX finished the day up 155 and closed right on the roof on increasing volume. The next obstacle for the TSX will be the 200 day ma which comes in at 14,687.  The TSX was down 13% on October 16th but is currently down only 6.8%.