Friday September 6th

6-09-2019

Stocks set to rise for a third day despite weaker-than-expected jobs report

U.S. stock index futures traded higher on Friday despite the release of weaker-than-expected jobs data. At 8:48 a.m. ET. Dow Jones Industrial Average futures were up by 94 points, implying a gain of 62 points at the open. S&P 500 and Nasdaq 100 futures also traded higher. Those gains put the major averages on pace for their third straight rise. The U.S. economy added 130,000 jobs in August, the Labor Department said. Economists polled by Dow Jones expected jobs to grow by 150,000 last month. Unemployment remained steady at a rate of 3.7% while wages grew more than expected. Wages expanded by 0.4% on a month-over-month basis and by 3.2% year over year. Treasury yields dipped from their session highs on the data. The 10-year Treasury yield slipped to 1.58% from around 1.6% earlier in the day. Friday’s data and moves come as investors look for clues about the Federal Reserve’s next monetary policy move later this month. Market expectations for a 25 basis-point rate cut are at 91.2%, according the CME Group’s FedWatch tool. Stocks were headed for solid weekly gains after the U.S. and China agreed to hold high-level talks in early October. The Dow and S&P 500 were up 1.2% and 1.6% for the week, respectively entering Friday’s session. The Nasdaq had gained 1.9% week to date. The news about the trade talks raised hopes that the world’s two largest economies could soon make substantial progress in de-escalating their protracted trade dispute. China’s Ministry of Commerce said Thursday that Liu He, the country’s top trade negotiator, spoke by phone with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. They agreed to meet in early October for another round of negotiations, according to the Chinese Commerce Ministry. China insiders have also hinted that the upcoming trade talks could lead to a “breakthrough.” Mainland Chinese stocks rose on the day, with the Shanghai composite gaining 0.46% to about 2,999.60 and the Shenzhen component adding 0.41% to 9,823.42. The Shenzhen composite advanced 0.355% to approximately 1,657.50. Hong Kong’s Hang Seng index also added 0.56%, as of its final hour of trading. In Japan, the Nikkei 225 closed 0.54% higher at 21,199.57, while the Topix index added 0.17% to finish the trading day at 1,537.10. South Korea’s Kospi ended 0.22% higher at 2,009.13. Oil prices fell on Friday as U.S.-China trade tensions continued to weigh on sentiment despite recent diplomatic progress. Brent crude was down $1.01, or 1.6%, at $59.96 a barrel. U.S. West Texas Intermediate (WTI) crude was down 81 cents, or 1.4%, at $55.49. Gold fell 1% on Friday, putting it on track for its second weekly fall, as robust economic data from the United States and the planned resumption of trade talks between Washington and Beijing boosted appetite for riskier assets. Spot gold was 0.9% lower at $1,504.86 per ounce, having shed as much as 1% earlier in the session, and retreating from an over six-year peak of $1,557 touched on Wednesday. It fell over 2% on Thursday and was down 0.9% so far this week. U.S. gold futures slid 0.8% to $1,513.30.