Stocks took an early hit due to a lousy jobs report and geopolitical tension, but rallied hard to finish the day in the green.
At 8:30 a.m. ET
, the widely anticipated August jobs data was reported. The economy added 169,000 nonfarm payrolls, which missed the 180,000 consensus. But that wasn't the only disappointment: July's figure was revised down to 104,000 from 162,000, and the labor force participation rate sank to 63.2%, a 35-year low.
The S&P 500 (INDEXSP:.INX)
rose modestly at the open, then immediately dropped 20 points to hit a low of 1640.62. Bond yields also rose as the weak jobs data drove demand for Treasuries.
However, the weakness didn't last long as the S&P rose steadily throughout the day to finish the day just barely up at 1655.
The disappointing jobs report makes it less likely that the Fed will taper its QE activities in the near future or reduce the size of any planned reduction. Additionally, any potential rate hikes are now almost certainly off the table.
Gold and oil were strong performers today as the dollar fell, and as President Obama remained outspoken about a military strike on Syria, continuing to push for a strike despite insufficient support from G20 nations (particularly Russia and China), the UN, and the US Congress.
Tomorrow's Financial Outlook
On Monday, we will see earnings reports from Hovnanian (NYSE:HOV), PVH Corp (NYSE:PVH), and Palo Alto Networks (NASDAQ:PANW).
July consumer credit will be reported at 3:00 p.m. ET.
Overseas, we'll see some economic data, the most important of which will be China's trade balance, new yuan loans, CPI, and PPI.
Additionally, traders will likely be watching for any news related to Syria.
No positions in stocks mentioned.
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