Reply To: Traders Market Weekly: Avoid Whiplash, Fasten Your Seatbelts


Nonfarm payrolls increased a smaller-than-expected 175,000 (consensus 250,000), average hourly earnings were up a smaller-than-expected 0.2% (consensus 0.3%), the unemployment rate was up a higher-than-expected 3.9% (consensus 3.8%), and the average workweek was a smaller-than-expected 34.3 hours ( consensus 34.4).

The key takeaway is that this compilation is more than adequate to suggest the economy will remain in a growth mode, which is good for earnings, and plenty suitable to validate Fed Chair Powell’s belief that the next policy move by the Fed won’t be a rate hike.

Equity futures turned higher in response and market rates turned lower.

The 10-yr note yield is down eight basis points to 4.49% and the 2-yr note yield is down 11 basis points to 4.77%.