The major US indices are set to open on lower after the stronger nonfarm payroll. There were some moderating data with average hourly earnings coming in lower and near expectations, but the unemployment rate is still scraping along low levels, job gains are still healthy, and that will keep the Fed on high alert. The Fed is in the corner and has to fight inflation, not employment. They would gladly like to see a softening in employment in return for a bigger softening in inflation. If that also includes a decline in the stock market and a decline in housing (higher rates).
A look at the stock futures, they are implying
- Dow industrial average -258 points after yesterdays 435.05 point gain
- S&P -45 points after yesterdays 75.57 point gain
- NASDAQ -194.64 points after yesterdays 322.4 point gain
For the week, the following levels were the closing levels from last Friday and will dictate a positive or negative week.
- Dow industrial average 33212.97
- S&P index 4158.23
- NASDAQ index 12131.13
- Russell 2000 1887.85