Top Three Market Headlines
U.S. Economic Sectors Remain Mixed: Economic conditions in the U.S. remained mixed in October, according to the closely-watched monthly surveys of business executives conducted by The Institute for Supply Management (ISM). Business activity in the manufacturing sector continued to soften, as the ISM Manufacturing index registered 48.1, its fourth straight sub-50 reading (greater than 50 indicates expansion, while less than 50 indicates contraction). At the same time, the services sector remained in expansion mode, with the ISM Non-Manufacturing index registering 53.9, its 118th consecutive month north of 50.
U.S. Labor Market Sees Robust Jobs Growth In November: The Labor Department reported last Friday that U.S. employers added 266,000 jobs in November, the largest monthly increase since January of this year. In addition, gains in the prior month of October were revised upward by 28,000 to a total of 156,000. This brought the trailing three-month average to a stout 205,000. While the November total was aided by the end of the General Motors worker strike, hiring was strongest in the health care, hospitality, and professional services industries. Meanwhile, the unemployment rate dipped to 3.5%, the lowest mark since 1969, while average hourly earnings advanced 3.1% from a year earlier.
OPEC Nations Agree to Further Curtail Oil Production: The Organization of the Petroleum Exporting Countries (OPEC) and a group of other oil producing nations, including Russia, reached an agreement late last week to expand the group’s on-going production cut by an additional 500,000 barrels per day, bringing the total daily cutback to 1.7 million barrels. The deal was made in an effort to stabilize volatile oil prices by draining growing global supplies. Prices rallied as the agreement came together during the week, with West Texas Intermediate oil futures prices jumping more than 6% by week’s end. Investors, however, remain wary over whether the cartel's move will result in real output reductions, with countries like Iraq and Nigeria needing to comply in order for the cut to have a meaningful effect.
Data Points
- The ISM Manufacturing index remained in contraction mode, at 48.1
- U.S. employers added 266,000 jobs in November
- OPEC nations agreed to cut oil production by an additional 500,000 barrels a day
|
As of December 6, 2019 |
Week |
Quarter-To-Date |
Year-To-Date |
One-Year |
|
MSCI All Country World |
0.29% |
5.55% |
22.64% |
16.75% |
|
S&P 500 |
0.21% |
6.09% |
27.90% |
19.08% |
|
Russell 2000 |
0.59% |
7.49% |
22.73% |
12.22% |
|
MSCI EAFE |
0.37% |
5.15% |
18.62% |
16.13% |
|
MSCI Emerging Markets |
0.88% |
4.99% |
11.17% |
9.96% |
|
FTSE NAREIT |
-0.38% |
-0.54% |
26.28% |
14.06% |
|
Bloomberg Commodity |
1.49% |
0.90% |
4.05% |
-2.81% |
|
Barclays Aggregate |
-0.22% |
0.03% |
8.55% |
9.82% |
ISM 12/4/2019 Marketwatch 12/4/2019; The Conference Board 11/22/19. Bloomberg 12/6/19, Marketwatch 12/6/19; Dow Jones Newswire 12/5/19; Data from Morningstar Direct. Returns for periods greater than one year are annualized. Investment advisory, named and independent fiduciary services are offered through Gallagher Fiduciary Advisors, LLC, an SEC Registered Investment Adviser. Gallagher Fiduciary Advisors, LLC does not express an investment opinion regarding any specific commodity, sector or individual security. Unless otherwise expressly noted, the contents of this communication do not constitute securities or investment advice, nor should this communication be construed as an opinion regarding the appropriateness of any investment. Gallagher Fiduciary Advisors, LLC is a single-member, limited-liability company, with Gallagher Benefit Services, Inc. as its single member. Neither Arthur J. Gallagher & Co., Gallagher Fiduciary Advisors, LLC nor their affiliates provide accounting, legal or tax advice. The information provided cannot take into account all the various factors that may affect your particular situation, therefore you should consult your Gallagher Fiduciary Advisors consultant before acting upon any information or recommendation contained herein to discuss the suitability of the information/recommendation for your specific situation.