The KUIK Morning Market Report for Thursday, November 16:
Markets are up.
Index
Direction
Change
Units
Index
Time
Change
Dow Jones Industrial Average
Up
148
points
23,417
7:18 AM
S&P500
Up
0.6%
percent
2,579
F
Nasdaq Composite
Up
0.9%
percent
6,767
F
30 Year Treasury
Unchanged
–
Basis Points
2.78
Annual Yield
The Labor Department reports initial claims for unemployment benefits rose by 10,000 to 249,000 the week ended November 11. That was a six-week high and more than the 235,000 expected by economists. Continuing claims fell by 44,000 to 1.86 million and that’s the lowest number since December 1973.
Freddie Mac reports the 30-year fixed-rate mortgage averaged 3.95% this week up from last week’s 3.90%. A year ago it was 3.94%. The 15-year fixed averaged 3.31% up from 3.24%. A year ago it was 3.14%.
Demographic change in the U.S. will result in a slower-growing and older population and the Federal Reserve must be alert to the impact of this transition on economic growth and interest rates, said Cleveland Fed President Loretta Meste. In a speech to the Cato Institute in Washington, Mester said it was still not clear whether the coming demographic change would put upward or downward pressure on interest rates. People want to reduce their exposure to risk as they age so there would be downward pressure on low risk or risk-free rates. But there would also be upward pressure on interest rates as people draw down their savings and sell assets to fund their retirement, and as the government boosts spending on retiree benefits.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
