Most of the markets ended the week with a slight gain except for the NASDAQ. Poor earnings news on Friday from a few blue chip companies derailed last week’s gains that lasted through Thursday. GE, Microsoft and McDonalds all missed estimates for third quarter earnings. GE trimmed sales targets for the remainder of the year.
Retail sales jumped 1.1% in September. The increase was broad based across all sectors raising hopes for a successful holiday selling season. There was an exceptional jump in sales at electronics stores due to the introduction of the iphone 5.
Rising energy prices were reflected in an increase for the Consumer Price Index. After a large 8.6 increase in August gasoline prices, another increase of 6.7% was posted in September. Core prices rose a much more modest 0.1%.
Output at mines, factories and utilities rose 0.4% in September after a 1.4% decline in August. The results were higher than most analysts expected and helps allay concerns about a broader global recession.
Housing starts jumped at a double-digit pace to 872,000 last month (a four-year high). The gains, which were far above estimates, were seen in both single family and multi-family units. Even more encouraging was the increase in housing permits. This gives encouragement that the housing recovery will last.
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