Major averages finished mixed at the lower end of their respective trading ranges yesterday on lower volume ahead of today's August payrolls data. Estimates range from 173,000 to 257,000, with the consensus at 223,000.
The pace of hiring in the United States slowed in August to 173,000, the smallest increase since March and the second smallest gain of the year. But the dropoff probably wasn’t weak enough to force the Federal Reserve to reconsider plans to raise interest rates this year as the unemployment rate fell to 5.1% from 5.3%, the lowest level since April 2008. Plus wages also picked up.
Futures fell on the news due to fears of a rate hike sometime this year. Indeed, CME futures predict a 27% change of a rate hike when the Fed meets September 17, a 39% when they meet October 28, and a 58% chance of a hike when they meet December 16.
Over in Europe, the ECB yesterday said they may accelerate their bond-buying program which initially pushed US markets higher in yesterday's trade.
Expect elevated levels of volatility to continue.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
