There are still signs the housing market is improving!!

Before I get down to business I want to send my hopes and prayers to anyone and everyone dealing with the devastation in the Northeast, especially in New York and New Jersey.  No words can describe what is happening and I wish you a speedy recovery and rebuilding process.

The markets have been exceptionally quiet this week on account of the stock market being closed for 2 days from the flooding in New York City.  The market opened up on Wednesday and has been somewhat quiet as most investors were awaiting the national unemployment report being released Friday morning.  Well the report is out and…

National unemployment increased .1% to 7.9%.  Despite the slight increase, the underlying data bodes well in demonstrating that the jobs market is improving.  In October there was a net increase of 171,000 jobs and there was also an upward adjustment for September to 148,000.  Experts were anticipating an increase of only 125,000 so this report far exceeded expectations.  We still have a long way to go but things are improving.

The stock market in advance of opening Friday morning was indicating the potential for a nice rally to finish the week based on the jobs report however hopes of a market rally faded almost immediately after the opening bell.  Despite that the jobs numbers being better than expected, investor focus immediately turned towards the most recent statistics on economic growth which have been getting weaker month by month.

The employment numbers are going to be a huge political talking point for both sides before the election which is just a few days away.  I thought about explaining in this newsletter how each side will position the employment report, but I think you would be better served by watching it on TV.  Actually you will be best served by not watching it at all because it will probably make you confused and ill if you do.

There was more good news relating to housing this week.  The Case-Shiller Home Value Index showed an increase in home prices in the 20 major cities measured of .5% for August.  Additionally, the report showed that home prices are 2.0% higher from a year ago.  The positive housing news keeps coming.  It may be a slow rise but it certainly is a positive trend now.

Next week there is very little economic news on the calendar, however that will not matter as the market moving news will be the election.  Expect Tuesday and Wednesday to be very volatile days of trading.  Tuesday will be because investors will undoubtedly be trading on the reports of the election exit polls.  Wednesday the results will be in and depending on who is our next President, as well as what happens in the House of Representatives and the Senate, the market will be trading on that news as well.

JJ Mack