US Stock Market ‘Yawned’ At The October Jobs Report

$DIA, $SPY, $QQQ, $OIl, $SLB

NFPs increased 271,000 in October, the largest rise since December 2014, the US Labor Department said Friday. And the average hourly earnings rose 9 pennies.

The employment and wage gains added to robust automobile sales for an upbeat picture of the economy at the beginning of Q-4.

The unemployment rate fell 0.01% to the lowest level since April 2008. The jobless rate is now at a level many Fed officials see as consistent with full employment.

Payrolls data for August and September were revised to show 12,000 more jobs created than previously reported.

Prices for US Treasurys fell sharply and US stock index futures edged lower after the data. The USD rose to a 6.5-month high Vs a basket of currencies. Futures are now implying a 72% chance of a Fed rate hike next month, up from 58% before the jobs report Friday morning.

 

Economists had forecast NFPs increasing 180,000 last month and the unemployment rate remaining at 5.1%.

Employment gains in October were broad-based, though manufacturing added no jobs and mining shed 4,000 positions.

Manufacturing has been hit by a strong USD, efforts by businesses to reduce inventory and spending cuts by energy companies cutting back on well drilling and exploration in response to lower Crude Oil prices.

Mining employment has declined by 109,000 since peaking in December 2014. Oilfield services provider Schlumberger (NYSE:SLB) last month announced further layoffs in addition to the 20,000 jobs it has already eliminated.

Construction payrolls increased 31,000 last month, the biggest gain since February.

The services sector added 241,000 jobs in October, with large gains in retail, health and leisure. Professional and business services added 78,000 jobs, the largest gainer since last November. Government payrolls increased 3,000 last month.

Friday, the US major market indexed finished at: DJIA +46.90 at 17910.33, NAS Comp +19.38 at 5147.12, S&P 500 -0.73 at 2099.20

Volume: Trade on the NYSE was above average at about 950-M shares changing hands.

  • NAS Comp +8.5% YTD
  • S&P 500 +1.8% YTD
  • DJIA +0.3% YTD
  • Russell 2000 -0.4% YTD

 

Have a terrific weekend.

Paul Ebeling

HeffX-LTN

 

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