Even if you are moving slow it’s better than not moving at all . .
The long-awaited American jobs report did nothing to break the tedium of U.S. markets.
The S&P 500 Index hasn’t seen a 1% move in either direction for 40 days, the longest such streak in more than two years. Things are not that much different in the currency and bond markets. Treasury 10-year yields have traded in a range of 1.45% to 1.63% since July, while a gauge of the dollar against its major peers is virtually unchanged from the average for that period.
– If I take it at face value, it looks like rates will rise this year, but it won’t be in September.
Traders are pricing in a 32 percent chance the central bank will raise borrowing costs at its September meeting. Financial markets were taken aback on Thursday by weak manufacturing numbers, after other reports pointed to a recovery on the heels of still-robust consumer spending. Health-care and consumer-discretionary companies, lagged. Meanwhile, utilities, energy, raw-materials and consumer-staples shares were the strongest among the main industries, rising at least 0.6 percent. Since the gauge reached a record in mid-August, it’s been stuck in neutral amid Fed rate-hike speculation and lackluster economic data.
“September is on – I don’t think it’s 100% on, if these types of jobs don’t do it, I’m not quite sure what does. It’s kind of a weak report across the board, so it doesn’t change the view we’ve had that September is very unlikely”. . – Gross, manager of the Janus Global Unconstrained Bond Fund, said in an interview with Bloomberg radio.
Oil snapped four days of declines as Vladimir Putin said he’d like Russia and OPEC to reach an oil output freeze apart from Iran. West Texas Intermediate for October delivery climbed 3% to settle at $44.44 a barrel on the New York Mercantile Exchange. The Russian president said in an interview that he may recommend completing the plan when he meets with Saudi Arabia’s Deputy Crown Prince Mohammed bin Salman at the Group of 20 summit in China next week. A freeze should exclude Iran until that country raises production to pre-sanctions levels, he said. OPEC’s crude output rose to a record in August, climbing by 120,000 barrels a day.
J. Mason ♦