(As of 7:05 am PST)
US
stocks opened to the downside Friday, as investors took in a surprisingly
disappointing jobs report. According to the Labor Department’s non-farm
payrolls report, the private sector added 142,000 jobs in September, well below
the consensus estimate of 200,000. Worse yet, downward revisions to jobs gains
in July and August suggest that labor market conditions weakened throughout the
summer. Today’s weak jobs report has reignited the debate as to when the Fed is
going to raise interest rates. Prior to today’s report, many were calling for
an October rate hike (including several Fed officials), however now it seems
questionable if 2015 is even a reasonable target for the Fed to hike rates.
Once again, a pattern of uncertainty is emerging. In overseas actions, most
Asian markets finished the day higher, with Hong Kong’s Hang Seng index leading
the way with a 3% gain on the day. European stocks traded in the green most of
the session but have turned lower after the US jobs report was released. Gold
is getting some safe haven support, rallying 2% on the day, while oil prices
are down slightly. Interest rates are plummeting this morning with the 10 yr.
treasury yield falling below 2% to 1.91% as investors sought the safety of the
US treasury. With what looks like another week of losses all but certain, let’s
hope that the unofficial start of Q3 earnings season next week will provide
some relief to this worn out market.
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