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T3's Take 3: Stocks Drop and Pop Big on Lousy NFP Report


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

Today on T3 Live

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US Econ Data

Today saw the release of the much anticipated nonfarm payrolls jobs report.

Nearly all the data came in lower than expected. 

The US economy created 142,000 jobs in September, which was well below the 201,000 expected by economists. July and August's numbers were also revised down by a total of 59,000.

The unemployment rate remained at 5.1%.

Average hourly earnings grew 2.2% year-over-year, missing the 2.4% consensus.

The disappointing data called into the question the possibility of a rate hike this year, and US Treasury yields and the US dollar fell.

Fed officials including FOMC Chair Yellen have repeatedly stated they are likely to hike this year. However, Fed Funds futures imply that traders see just a 33% probability of one happening.

Stocks opened sharply lower off the NFP numbers, with the S&P 500 going as low as 1893.70.

However, stocks recovered throughout the day, and the S&P 500 closed at 1951.35, up 1.4%.

Mining, energy, bitoechnology, and social media stocks were the day's top performing sectors.

Bank stocks underperfomed as they would benefit from higher interest rates.

World Equity Markets

The Nikkei finished flat. Export-oriented stocks saw slight gains over the yen exchange rate. Tech companies dipped as Toshiba announced that it may lay off staff in its home appliances, TV, and PC businesses. 

In Hong Kong, the Hang Seng jumped 3.2% on a rally in property developers as the government announced it will cut the minimum down-payment level for first-time home buyers in several cities. Australia's ASX fell 1.2%, and the Korean Kopsi dipped 0.5%. Chinese markets were closed due to holidays

European markets inched up. The German DAX gained 0.5%, while the French CAC.

Volkswagen (VW) saw its shares tank 3.7% after Credit Suisse lowered its price target.

Glencore shares, which dropped 29% on Monday, continued to recover, gaining 4.4%. 

Oil Rally

Crude oil prices jumped nearly 2% today on the NFP-induced weakness in the dollar.

Also, the US Baker Hughes rig count fell by 29 rigs, the fifth weekly drop in a row and the biggest one-week decline since April.

The decline prompted questions over falling production, which is in sharp contrast to recent worries about oversupply conditions in the face of an economic slowdown in China.

Monday's Financial Outlook

US economic news for Monday will include Markit US PMI, ISM non-manufacturing composite, and labor market conditions index change. 

Overseas economic data will feature Japan's Nikkei PMI on Sunday, On Monday, the euro-zone investor confidence, Markit UK PMI, Australian trade balance and the reserve bank of australia rate decision.

The Container Store (TCS) will report after the close.
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