Stocks Mixed After Strong Non Farm Payrolls Report
This is a surprise as ADP Employment Change report showed that private businesses hired just 330,000 workers in July. However, it should be noted that Non Farm Payrolls and ADP Employment Change reports often paint different pictures.
Unemployment Rate declined from 5.9% in June to 5.4% in July.
S&P 500 futures are little changed after the release of strong job reports. It is not clear whether Non Farm Payrolls report will serve as an upside catalyst as traders may begin to worry that Fed will reduce support to markets in the upcoming months.
WTI Oil Gets Back To The $70 Level
Oil traders managed to shrug off virus worries, and WTI oil moved back to the $70 level. In case WTI oil manages to settle above this level, it will gain additional upside momentum which will be bullish for oil-related stocks.
The situation on the coronavirus front has not improved in recent days, but it looks that the oil market is confident that demand for oil will continue to increase. The negative impact of recent crude inventory reports was also short-lived.
The oil market remains in a bullish mode despite recent setbacks, and oil-related stocks will have a good chance to gain upside momentum during today’s trading session.
Treasury Yields Continue To Rebound
The yield of 10-year Treasuries is currently trying to settle above 1.27% as bond traders sell U.S. government bonds amid worries that Fed will cut its asset purchase program sooner than previously expected.
Rising yields may put some pressure on tech stocks, but it remains to be seen whether stock traders will react to higher yields as the stock market remains in a bullish mode.
For a look at all of today’s economic events, check out our economic calendar.