S&P 500 Fundamental Analysis – week of September 5, 2016

The S&P 500 reversed losses after the release of US jobs data to close the week at 2179.98 but looked like it was going to climb to a new high but traders started to sell off and book profits moving into the long holiday weekend in the US. The index will open with a strong buy signal after a gain of just 0.50% for the week but the index is up 6.66% ytd. The Dow Jones rose 72.66 points, or 0.39 percent, to 18,491.96, the S&P 500 gained 9.12 points, or 0.42 percent, to 2,179.98 and the Nasdaq added 22.69 points, or 0.43 percent, to 5,249.90.

U.S. stocks advanced on Friday as a weaker-than-expected payrolls report tamped down expectations for a September rate hike from the U.S. Federal Reserve, although hawkish comments from another Fed official kept expectations for one this year intact.

U.S. nonfarm payrolls rose by 151,000 jobs in August after an upwardly revised 275,000 increase in July, with job cuts in manufacturing and construction, the Labor Department said. Economists polled by Reuters had forecast payrolls rising by 180,000 last months.

Traders trimmed the probability of a Fed rate hike this month to 21 percent from the 24-percent chance on Thursday, according to CME Group’s FedWatch program. However, the odds for a December rate increase edged up to 54.2 percent from 53.6 percent the previous day.

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This Week’s Economic Events That You Should Be Monitoring:

 Government Bond Auctions

Date Time       Country           Auction

Sep 06 11:00 Austria Holds bond auction

Sep 06 11:30 UK 1.5% 2026 Gilt

Sep 06 11:30 Germany Holds I/L bond auction

Sep 07 10:30 Denmark Holds bond auction

Sep 07 11:03 Sweden Holds bond auction

Sep 07 11:30 Germany Eur 5bn 0% Aug 2026 Bund

Sep 08 11:00 Ireland Holds bond auction

Sep 08 17:20 Italy Announces details of bond auction