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Market Bounces Back From Post-NFP Woes

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Today's financial recap and tomorrow's financial outlook.

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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.

Twitter: @Minyanville

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No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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