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Market Wrap: Stocks, Bonds, Commodities
On Friday, U.S. stocks came under pressure as a much-stronger-than-expected jobs report stirred up worries that the Federal Reserve would keep hiking interest rates. The Nasdaq 100 slid 229 points (-1.79%) to 12,573, the S&P 500 fell 43 points (-1.04%) to 4,136, and the Dow Jones Industrial Average declined 127 points (-0.38%) to 33,926.
Still, the Nasdaq 100 marked its fifth weekly gain.
The U.S. Labor Department reported that the economy added 517,000 nonfarm payrolls in January, well above the 190,000 market estimate, while the jobless rate dropped to 3.4%, the lowest level since 1969. Average hourly earnings increased 0.3% on month (as expected).
Also, the Institute for Supply Management (ISM) services purchasing managers index jumped to 55.2 in January (vs 50.6 expected).
The U.S. 10-year Treasury yield jumped 13.2 basis points to 3.525%.
Retailing (-5.03%), media (-2.35%), and utilities (-2.07%) sectors lost the most.
Apple (AAPL) shares ended up 2.44% despite quarterly earnings missing expectations.
On the other hand, Alphabet (GOOGL) fell 2.75%, and Amazon.com (AMZN) slumped 8.43%.
Ford Motor (F) slid 7.61% after the car-maker posted a full-year loss of $2 billion and gave a lower-than-expected earnings guidance.
Starbucks (SBUX) dropped 4.44%, as the global coffee chain reported declining comparable sales due to weak performance in China,
Meanwhile, Nordstrom (JWN) surged 24.79% after the Wall Street Journal reported that activist investor Ryan Cohen is building a large stake in the fashion retailer,
European stocks closed mixed. The DAX 40 fell 0.21%, while the CAC 40 rose 0.94%, and the FTSE 100 was up 1.04%.
Commodity prices were pressured by a stronger U.S. dollar, which was boosted by the extraordinarily-strong January jobs report. U.S. WTI crude futures dropped $2.70 (-3.56%) to $73.20 a barrel.
Gold price slumped $47 (-2.46%) to $1,865 an ounce.
Market Wrap: Forex
The U.S. dollar index gained over 1% to 102.96.
EUR/USD dropped 111 pips to 1.0799. Data showed that the Eurozone's producer prices jumped 24.6% on year in December (vs +22.5% expected). France's industrial production grew 1.1% on month in December (vs +0.6% expected).
USD/JPY jumped 251 pips (+1.95%) to 131.19.
GBP/USD fell 170 pips to 1.2055.
AUD/USD declined 154 pips (-2.18%) to 0.6923.
USD/CHF climbed 126 pips to 0.9258, and USD/CAD was up 88 pips to 1.3404.
Over the weekend, Bitcoin dropped below the $23,000 level.
Morning Trading
In Asian trading hours, EUR/USD and GBP/USD both remained subdued at 1.0795 and 1.2055 respectively.
Meanwhile, USD/JPY extended its rally to 131.88.
Gold rebounded to $1,875.
Bitcoin was down to $22,900.
Expected Today
The eurozone's December retail sales are anticipated to drop 2.3% on month.
Germany's December factory orders are expected to grow 1.9% on month.
U.K. January S&P Global construction purchasing managers index is estimated at 46.5. | | |
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