Stocks rose immediately following the presidential election, with the Dow Jones seeing its best day in 2004 on November 4 and the S&P closed at its highest in almost two years. (The Denver Post, November 5, 2004).
The Labor Department announced that that 337,000 jobs were created nationwide in October. This was nearly double what was expected, the largest increase in seven months, and pushed the stock market up again. (The Rocky Mountain News, November 6, 2004).
The Commerce Department announced that the U.S. trade deficit went down to $51.6 billion in September as exports posted their best month on record. (The Denver Post, November 11, 2004).
The U.S. Labor Department announced that the productivity of U.S. workers rose in the third quarter of this year at its slowest pace in two years. This is seen by some as a signal that companies may begin adding workers to meet demand. (The Denver Post, November 5, 2004).
The Federal Reserve Board enacted an increase of one fourth of one percent to short term interest rates up to 2 percent. The board implied that it would continue to raise rates gradually over the next year. (The Denver Post, November 11, 2004).
Wholesale prices rose in October by the largest amount in almost 14 years. Energy and food costs were the major contributors to the increase. Economics were immediately worried about inflation and predicted that the Fed will increase interest rates again at their next meeting in December. (The Denver Post, November 17, 2004).
Oil prices dropped near the end of November, which served to push up the stock market. (The Denver Post, November 23, 2004).
In a new issue to worry about, the dollar slid to a new all-time low against the euro. Although the dollar has been in the doldrums overseas for quite a while, the new low brought about concerns regarding foreign investment and consumer spending. (The Denver Post, November 24, 2004). The dollar fell even further the next day, but there was no action by the national banks to intervene. (The Denver Post, November 25, 2004).
The Commerce Department announced that orders for durable goods dropped in October, reflecting the rockiness of the current economic recovery. (The Denver Post, November 25, 2004).
All three stock indexes closed out the month of November with their best gains of the year (The Denver Post, December 1, 2004).
