The US nonfarm payroll rose by a greater than expected 261K vs 200K estimate. The prior month was revised up to 315K vs 263K. The US stocks which were higher dip little in the premarket trade but then rotated back to the upside. The major indices open higher. The Dow is up over 350 points. The NASDAQ was up over 200 points, but the NASDAQ is a since come off its highs, while the Dow keeps its gains. Nike, Dow, Caterpillar are leading the Dow stocks to the upside.
Manufacturing jobs increase by 32K. Manufacturing – as result of infrastructure build – is the new tech sector.
A snapshot of the market 11 minutes into the open is showing:
- Dow industrial average is up 317.82 points or 0.99% at 32319.08
- S&P index is up 35.95 points or 0.97% at 3755.83
- NASDAQ is up 80.96 points or 0.78% 10423.91
- Russell 2000 is up 15.21 points or 0.85% at 1794.94
looking at the US debt market since the start of the New York session (pre- nonfarm payroll)
- 2 year currently trades at 4.736% after opening at 4.744%
- 5 year is trading at 4.376% after opening at 4.375%
- 10 year 4.168% after opening at 4.152%
- 30 year 4.231% after opening at 4.192%
The US dollar initially move higher and reversed and moved sharply lower.
- EURUSD. The EURUSD moved back above its 50% midpoint at 0.9814 and ran up to 0.9881. The move took the price above its 100 hour moving average at 0.9846. That is a close support level but anything is possible today
- USDJPY. The USDJPY has move back below its 100 hour moving average at 147.88 and 200 hour moving average at 147.54 below its way to a low of 146.915. That is between a swing area between 146.818 and 146.985. The price has since bounced back up to 147.33. The swing area below down to 146.818 and the 200 hour MA above at 147.542 are the support and resistance levels.
- USDCAD: The Canada jobs data was stronger than the US jobs data and moved down to retest (again), the swing area between 1.3499 and 1.3510. The low reached 1.3511 and is now trading at 1.3569. See post here.