Stocks closed out a strong week as the Dow gained 39 on light volume to close at 21,987. For the week the Dow is up about 0.8% or 88 points. The rally continues and market strength appears good.
The jobs report for August was released today and it was weak. The gurus had expected 180,000 new jobs but the reported figure came in at 156,000. The unemployment rate edged up from 4.3% to 4.4%. Hourly wages gained 0.1% for the month and are now up 2.5% year over year. All in all it was a weak report that contained enough anomalies so that stocks could shrug it off.
Manufacturing in the US hit a six year high as the ISM manufacturing index rose to 58.8 in August. The new orders portion of the index went above 60. To put these numbers in perspective, the average reading for the new orders index over the past twenty years is 54.9. Given the healthy growth in orders, expect production activity to remain strong in the coming months despite a temporary downdraft due to Hurricane Harvey.
In a stunning move by Amazon, Jeff Bezos has agreed to work with Vancouver, WA based pizza chain Papa Murphy’s Pizza to create a pizza delivery system whereby an edible drone pizza is delivered to your house just in time for dinner. You order online, the drone comes, you pop it in the oven at 425 degrees and then pull out the “pizza drone” and eat it. While this is a cool idea I wonder if it will be certified organic.
Markets will be closed on Labor Day and reopen for trading on Tuesday.