The sentiment in the US stock market was soured after better-than-expected ADP jobs data and stronger initial jobless/continuing claims, has traders nervous about the BLS employment report tomorrow. The expectations are for 200K nonfarm payroll jobs vs 263K last month with the unemployment rate steady at 3.7%.
The comments from Fed officials has also been disheartening to traders looking for a quicker turnaround in rates in 2023. Feds George (she is retiring) said that she does not see rates moving down until "well into 2024".
The data and comments have led to a lower opening in the US stock markets. A snapshot seven minutes into the opening is a showing:
- Dow Industrial Average down to 287.96.0 or -0.87% at 32981.82
- S&P index -31.94 points or -0.83% at 3821.04
- NASDAQ index -107.6 points or -1.03% at 10351.16
- Russell 2000-17.91 points or -1.01% at 1754.6299
In the US the debt market, yields are sharply higher:
- two year 4.478% +12.3 basis points
- five year 3.953% +10.9 basis points
- 10 year 3.765% +7.9 basis points
- 30 year 3.854% +5.3 basis points
A look around other markets shows:
- spot gold is down $-18.41 or -0.99% at $1835.60 on the back of the higher dollar/higher rates
- spot silver is down $0.44 or -1.83% at $23.30
- WTI crude oil has reversed earlier gains and is trading lower on the day. The price is currently at $72.78 that is down around -$0.06 on the day.
- Bitcoin is a trading fairly steady at $16,783
Looking at the dollar index (DXY) on the hourly chart below, the price is looking to break above recent up-and-down price action going back to December 13 (see yellow area in the chart below). The high of that area comes in at 104.93. The price is trading just above that level. Get and stay above that level with momentum will be more bullish. There is room to roam.
