U.S. Stocks Rise After Jobs Report, Before Powell: Markets Wrap
Comment of the Day

September 06 2019

Commentary by Eoin Treacy

U.S. Stocks Rise After Jobs Report, Before Powell: Markets Wrap

This article by Randall Jensen and Vildana Hajric for Bloomberg may be of interest to subscribers. Here is a section:

U.S. stocks edged higher, and Treasuries inched lower after a mixed jobs report fueled bets the Federal Reserve will cut rates in two weeks. The dollar declined.

The S&P 500 headed for its second weekly gain as investors keyed on underlying strength in the report that signaled a solid labor market that isn’t too strong to deter further central bank easing. Megacap technology stocks weighed on benchmarks after New York opened an antitrust probe into Facebook Inc.

The 10-year Treasury yield erased most of its earlier gains, while the dollar headed for its fourth straight fall following the payroll numbers. Chairman Jerome Powell is set to make public remarks Friday. Crude sank toward $55 a barrel in New York.

Eoin Treacy's view

The bond market has already priced in at least a 25-basis point cut so the soft jobs report confirms the need for additional easier policy. China also cut its bank reserve requirements today in an effort to extend credit. The ECB is expected to announce some form of easing when it meets next week and the region’s bond markets have been busy pricing in a negative short-term interest rate. All of these measures contribute to stimulative measures.

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