Mon, Nov 29, 2021 @ 10:54 GMT
HomeContributorsFundamental AnalysisUS Open: Wall Street Mixed after Huge Miss on NFP

US Open: Wall Street Mixed after Huge Miss on NFP

US labour market report revealed just 194k new jobs were added in September, well short of the 500k forecast.

US futures

  • Dow futures -0.1% at 34720
  • S&P futures +0.05% at 4400
  • Nasdaq futures +0.4% at 14955

In Europe

  • FTSE -0.04% at 7082
  • Dax -0.09% at 15232
  • Euro Stoxx 00.19% at 4090

Just 194k jobs added

US stocks are set to open mixed following another huge miss from the US non-farm payrolls.

The closely watched US labour department’s job report revealed that just 194k jobs were added in September meanwhile August’s number was upwardly revised to 366k from 248k. The September number was well below the 500k that was forecast, which could still be Delta covid related.

The unemployment rate ticked lower to 4.8%, down from 5.2% and comfortably below the 5.1% forecast. Average hourly earnings were also well above estimates of 0.4%, at 0.6%. Rather than bringing answers, this reports keeps raising more questions.

The big question is whether the report was weak enough for the Fed to hold back on tapering bond purchases next month. There will not be another NFP before the November Fed meeting. And I don’t think that has been the case. This is a disappointing report but not sufficiently so to knock the Fed off course.

Whilst the USD has come off slightly, US futures are trading mixed with the tech sector set to lead gains whilst cyclicals are edging lower.

Where next for the S&P500?

The S&P continues to trade between the 50 & 200 sma. The RSI is also neutral. Buyers could wait for a move above the 50 sma at 4445 to bring 4500 back into the frame. Sellers might look for a move below 4300 for a deeper sell off.

FX – USD eases post NFP

The US Dollar has dropped lower following the release of the US NFP. The number is a huge miss and raises plenty of questions over the health of the labour market.

GBPUSD is set for weekly gains despite Brexit issues and concerns remaining. Inflation expectations continue rising as energy prices remain elevated.

  • GBP/USD +0.26% at 1.3650
  • EUR/USD +0.22% at 1.1578

Oil set for 7th straight week of gains

Oil prices are on the rise on Friday and are set to book weekly gains over 3.7% marking the 7th straight week of gains as several catalysts keep the oil price buoyant. Rising demand as economic activity rebounds and surging gas prices have under pinned oil prices. As gas prices rise expectations are for an accelerated switch from gas to oil to generate power this winter.

On the supply side, earlier this week OPEC stuck to its plan of raising output by just 400k bpd from November.

With few catalysts set to change in the near term, the upward trajectory for oil looks set to continue.

  • WTI crude trades +0.62% at $78.57
  • Brent trades +0.52% at $82.17

Looking ahead

  • 18:00 Baker Hughes Rig Count
DISCLAIMER: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Featured Analysis

Learn Forex Trading