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Risk-Off Returns for the Stock Market

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

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MINYANVILLE ORIGINAL The monthly nonfarm payrolls were much better than expected and the prior month's figures were revised higher. However, the market rejected this good data and sold off sharply after a quick pop pre-market. US equity indices finished the day more than 1% lower, notably lower for the economically sensitive Russell 2000. Later in the morning, the monthly factory orders rose 4.8% from last month's decline of -5.1%, but this increase was expected as durable goods orders report earlier this week showed a similar increase.

Notable underperformance came from the commodities sector. Gold struggled on partial expectations of decreased monetary stimulus and lack of inflation. This was also effected by the stronger dollar, due to a strengthening US economy.

This morning in earnings, Chevron (NYSE:CVX) missed both earnings-per-share and revenue estimates, noting the adverse effect of global currency conditions. McGraw-Hill (NYSE:MHP) also beat earnings and guided higher on future earnings, after noting an increased demand for credit ratings.

Tomorrow's Financial Outlook

Over the weekend, G-20 finance ministers will meet in Mexico City to discuss the European debt crisis and plans for a banking union and Spain taking advantage of the European bailout fund, the ESM.

Monday in US economic data, the ISM will release its non-manufacturing composite index. Because the US is largely a services-based economy, this index is more important than some of the manufacturing data we receive. Economists estimate that the index will fall to 54.5 from last month's 55.1. Globally, Australia will release retail sales and the UK will release their services PMI index.

Earnings wise, Time Warner Cable (NYSE:TWC), Tesla Motors (NASDAQ:TSLA), Express Scripts (NASDAQ:ESRX), CF Industries (NYSE:CF), Zillow (NYSE:Z), and Walter Energy (NYSE:WLT) will report.

In a non-financial related note, US clocks will fall back an hour as Daylight Savings Time ends on Sunday.

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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