11/01/10 – theGrio & CNBC Market Update

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There were several reports for investors to digest last week. The advanced third quarter GDP report tracks goods and services produced— showed the economy grew by two percent in September. On the housing front, existing home sales increased ten percent in September, more than expected while new home sales grew by nearly seven percent, and new claims for unemployment benefits fell by 21,000 reaching their lowest level in three months. Besides the midterm election this week, investors await news on jobs, interest rates and consumer credit.

We’ll get read on the economy the October jobs report. In September, the national unemployment rate was unchanged at 9.6 percent as the private sector added 64,000 jobs. African American unemployment dipped slightly to 16.1 percent, but black teen unemployment jumped five points to 49 percent, the highest of any group.

The Federal Reserve will meet to discuss the economy and interest rates. The fed funds rate— which affects mortgage, credit card, and student loan rates—has been in the zero to quarter percent range since December 2008.

Are consumers cutting debt? We’ll find out with the September consumer credit report— which tracks credit card, auto and student loan debt. In August consumer credit declined by $3.3 billion and marked seven months of decline, but Americans still carry more than $2.4 trillion of debt.