Stocks Move Higher After Disappointing Non Farm Payrolls Report
Unemployment Rate Declined To 4.2%
Non Farm Payrolls report indicated that U.S. economy added just 210,000 jobs compared to analyst consensus of 550,000. Unemployment Rate declined from 4.6% in October to 4.2% in November.
S&P 500 futures gained upside momentum after the release of the disappointing Non Farm Payrolls report. While declining Unemployment Rate is a good sign, everybody is focused on the number of jobs created, and it looks that traders believe that Fed will have to remain cautious when cutting its asset purchase program.
Today, traders will also have a chance to take a look at the final reading of Services PMI report for November. Analysts expect that Services PMI declined from 58.7 in October to 57 in November.
WTI Oil Tries To Settle Above $68.50
WTI oil is currently trying to settle above $68.50 as traders remain optimistic after the recent OPEC+ decision to increase production by 400,000 barrels per day (bpd) in January.
OPEC+ noted that it may change its plans in case Omicron dealt material damage to oil demand. The market interpreted this move as bullish so WTI oil gained upside momentum after touching lows at $62.50.
In addition, it looks that many speculative traders were waiting for any bullish sign to justify buying WTI oil after it declined from $85 to $65 without any material rebound. Not surprisingly, oil-related stocks are gaining ground in premarket trading.
Gold Attempts To Get Back Above $1775
Gold is trying to settle back above the $1775 level as U.S. dollar is moving lower after the release of job market reports.
Traders bet that Fed will not be very hawkish as Non Farm Payrolls report was disappointing. This is bearish for the American currency and bullish for gold.
However, it remains to be seen whether gold is ready for an upside move as traders will likely remain worried about inflation, so short-term Treasury yields may move to new highs and put pressure on gold.
For a look at all of today’s economic events, check out our economic calendar.