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Weekly Market Update – October 7, 2016

The Dow was down 28 points on Friday following a weaker-than-expected jobs report. For the week the Dow was down 0.4%. Year-to-date the Dow was up 4.7%.

The U.S. economy added 156,000 jobs in September vs. a 170,000 consensus expectation. The unemployment rate increased to 5%. Initial jobless claims came in at 249,000, a decrease of 5,000 from last week. The slow jobs growth could decrease the possibility for the Federal Reserve to increase interest rates at its December meeting. There are two more jobs reports for the U.S. central bank to consider before they make a final decision. For other economic data, the ISM manufacturing index returned to expansion in September, coming in at a level of 51.5 against consensus for 50.5 and August’s contractionary 49.4 reading. September’s non-manufacturing ISM came in at 57.1, well ahead of consensus for 53.0 and hitting its highest level since October 2015, suggesting strong business activities. September auto sales are tracking to come in at a 17,620,000, ahead of the 17,500,000 consensus forecast. For the week, the U.S. Preferred Stock Index was down 0.8%.

The price of crude oil fell on Friday after the Russian energy minister damped the hopes that an agreement on production cuts would be struck at a meeting with key members of the Organization of the Petroleum Exporting Countries in Istanbul next week. Crude was up 2.7% for the week.

Next week’s economic calendar highlights include Crude Inventory (Oct. 12), Initial Jobless Claims (Oct. 13), and Producer Price Index (Oct. 14). Q3 earning reports will start at the end of next week.

Have a great weekend,
Yansong Pang

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Ulland Investment Advisors

4550 IDS Center · Eighty South Eighth Street · Minneapolis MN 55402 · Telephone: 612-312-1400 · Facsimile: 612-204-3464