Neutral Market Reaction to an In-Line Nonfarm Payrolls Report
Today's financial recap and tomorrow's financial outlook.
Since Thursday's ADP report was much better than expected, the market reaction was neutral with the S&P 500 drifting higher all day. The US dollar opened the day much higher, but sold off after the news, giving gold and energy a kick to the upside. Gold, which reached an intraday low of 1627, recovered to close at 1658. The weekly natural gas inventories report from the EIA showed a draw of 136 billion cubic feet (BCF), positive for natural gas as the expectations were for a draw of 130 BCF. Natural gas finished the day up to $3.282/BTU.
The other economic data out of the US was the ISM's non-manufacturing index and US factory orders. The ISM's non-manufacturing index jumped to 56.1 from last month's 54.7, ahead of economist expectations of 54.7. The biggest jump was in the employment sub-index, which jumped to 56.3 from 50.3. Factory orders declined to 0.0% from last month's 0.8%, worse than the 0.4% consensus estimate.
After the economic data was out, the rest of the day was mostly quiet. Bonds made a late-day charge after heavy selling over the past two days, but across the curve were only able to get back to flat in most cases.
Tomorrow's Financial Outlook
The docket for Monday is quiet with no US economic data and the eurozone's producer price index. On Sunday, the central bank committee for the Bank of International Settlements will meet in Switzerland to discuss how to strike a compromise for the capital and liquidity ratios for banks that will be necessary under the Basel III rules.
For all the football fans, NFL wildcard games will start on Saturday.
Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
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.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter