Initially led by tech stocks, US stock index futures advanced sharply with the dollar and extended its rally after the blowout jobs report. Treasuries, however, slid as a risk-on sentiment spread among investors from the strong labor market. On the trade front, vice-ministerial level officials from the US are traveling to Beijing to hold another negotiation over trade in early next week. In Washington, the House passed legislation that would end a partial government shutdown last night without including funding for border wall which left the shutdown showing no signs of tangible resolution. For the remainder of the day, a joint interview with Fed Chair Powell and his predecessors Yellen and Bernanke at the American Economic Association meeting will draw investors’ attention.
Last year’s final nonfarm payroll took everyone by a surprise; despite of recent market volatility and disappointing economic data putting a damper on the outlook, it surged to 312k vs. 184k consensus, indicating the labor market is still strong and growing. This robust gain in payrolls can be traced back to the rebound in service sector due to holiday shopping. Unemployment rate, however, slightly rose to 3.90% vs. 3.70% consensus and prior but with Labor Force Participation Rate increasing to 63.10% from 62.90% prior, the rise in unemployment was overshadowed by other encouraging data. Finally, both Markit US Composite PMI and Markit US Services PMI printed 54.40 vs. 53.60 and 53.40 prior, respectively.
This information is provided solely for informational use and is not intended as trading or investment advice in any manner whatsoever. Sun West Mortgage Company, Inc. is not a licensed or registered broker or dealer and cannot provide investment strategies or recommendations. This information is provided to licensed brokers/lenders only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice
Initially led by tech stocks, US stock index futures advanced sharply with the dollar and extended its rally after the blowout jobs report. Treasuries, however, slid as a risk-on sentiment spread among investors from the strong labor market. On the trade front, vice-ministerial level officials from the US are traveling to Beijing to hold another negotiation over trade in early next week. In Washington, the House passed legislation that would end a partial government shutdown last night without including funding for border wall which left the shutdown showing no signs of tangible resolution. For the remainder of the day, a joint interview with Fed Chair Powell and his predecessors Yellen and Bernanke at the American Economic Association meeting will draw investors’ attention.
Last year’s final nonfarm payroll took everyone by a surprise; despite of recent market volatility and disappointing economic data putting a damper on the outlook, it surged to 312k vs. 184k consensus, indicating the labor market is still strong and growing. This robust gain in payrolls can be traced back to the rebound in service sector due to holiday shopping. Unemployment rate, however, slightly rose to 3.90% vs. 3.70% consensus and prior but with Labor Force Participation Rate increasing to 63.10% from 62.90% prior, the rise in unemployment was overshadowed by other encouraging data. Finally, both Markit US Composite PMI and Markit US Services PMI printed 54.40 vs. 53.60 and 53.40 prior, respectively.
The curve has bear-flattened with UST 10-Year yield up 8.23 bps.
Have A Nice Weekend!