Employment Numbers Mostly Stronger
STOCK INDEX FUTURES
Recent gains for U.S. stock index futures have been linked to strong earnings growth.
S&P 500 futures hit a new historical high today before a pullback and NASDAQ futures registered a new high yesterday.
The employment numbers were mostly stronger than expected.
Nonfarm payrolls increased 943,000 when an increase of 900,000 was anticipated.
Private payrolls were up 703,000 when a gain of 750,000 were predicted and manufacturing payrolls were up 27,000 when up of 26,000 was estimated.
The unemployment rate fell to 5.4% when 5.7% was expected.
The 9:00 central time June wholesale inventories report is anticipated to show an increase of 0.8%.
The fundamentals and technical aspects remain positive for stock index futures.
The U.S. dollar index firmed when the stronger than expected employment data were released.
The euro currency declined on news that German industrial production unexpectedly fell in June by 1.3%, which is the third consecutive month of contraction and compared with forecasts of 0.5% growth.
This industrial production data followed yesterday’s publication of manufacturing orders data for June, which showed a 4.1% month-over-month increase on an adjusted basis.
House prices in the U.K. increased 7.6% year-on-year in July of 2021, which is the least since March. On a monthly basis, prices were up 0.4%, rebounding from an upwardly revised 0.6% drop in June.
INTEREST RATE MARKET FUTURES
In recent weeks U.S. economic reports were as expected or on balance weaker than expected. However, that was not the case today with some portions of the employment report coming in better than expected, especially the headline nonfarm payrolls number.
Futures declined at the longer end of the curve when the employment data were released.
There are no major Federal Reserve speakers scheduled for today.
It is likely that the 30-year Treasury bond futures will at least partially recover this afternoon.
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