Today's employment report has something for everyone. With the election just days away -- finally -- both Republicans and Democrats can find fodder for their positions on the economy. First, the unemployment rate ticked up slightly to 7.9 percent in October. The report does not include any impact from Superstorm Sandy, which hit at the end of the month. That will be included in the report released in early December. Second, payrolls rose by more than expected in October, up 171,000. In addition, the Department of Labor revised the August and September reports to show an increase of 84,000. However, the report noted the number of long-term unemployed people -- out of work for 27 weeks or longer -- moved back above 5 million. Both presidential campaigns are suggesting the report supports their position on the economy. Thank goodness we are about 100 hours away from the start of voting.
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Yesterday the stock market started off November with solid gains. The Dow Industrials rose 136 points and all the major indexes were up 1.0 percent or more. The markets are slightly lower in early trading today and commodities prices are falling. Gold has dropped more than $20 an ounce and is back below $1,700. Oil has moved back below $86 a barrel, down more than a buck.
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Some stocks are in rally mode following their earnings reports. Starbucks stock has jumped about 5 percent this morning to $51.50 after reported third quarter gains and announcing plans for expansion in 2013, adding 1,300 new stores worldwide including 600 in North America. LinkedIn shares are up about $1.50 to $108.50 this morning after announcing membership in the professional social network has increased to 187 million. It is interesting to note how well LinkedIn has done since its IPO in May 2011 at $45 a share. Most "experts" scoffed at the offering, saying the better strategy would be to wait for the Facebook IPO. It, of course, finally came at $38 and is trading this morning at $21.
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Restoration Hardware has returned to Wall Street. The company held its IPO at the NYSE this morning, trading under the symbol of RH. The offering was priced at $24 and the stock immediately moved to above $30 in early trading. Restoration operates 73 stores that are a cross between Williams-Sonoma and Home Depot. The two stores in San Diego -- Fashion Valley and UTC -- are great places to simply browse. The company got its start back in 1979 and went through rapid expansion but fell on hard times when the economy tanked in 2008. It was taken private and investors decided now was the time to cash in on their investment.
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Mortgage interest rates dipped slightly in the past week. The average rate on a 30-year, fixed-rate loan fell to 3.39 percent. It seems the mortgage market is locked in right now and probably won't be changing much in the foreseeable future.
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Speaking of real estate, the folks at Zillow have released a report estimating the value of the White House at $288 million. The property at 1600 Pennsylvania Ave. -- including the impressive residence -- is owned by the National Park Service and, of course, the people living there are renters, not owners. The value in 2006 had been right at $300 million but fell off sharply with the rest of the real estate market. However, it has been rebounding in the past few years.
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