Stock index futures traded higher on Friday after the November jobs report came in stronger than bulls had expected.
S&P futures (Price SPX) -1.5%Nasdaq 100 Futures (NDX: IND) -2.2% and Dow futures (INDU) -1.2% It sank after hitting the numbers.
Nonfarm payment increased by 263K vs. 200K expected. One-hour interest rates rose 0.6%, double forecasts, prompting the Fed to remain vigilant about wage pressures and issues.
“While Friday’s jobs report is a dovish sign, the data is still important to determine future investment plans,” Robert Schein, CIO at Blanke Schein Wealth Management, said. “The Fed needs tangible evidence to back up their decisions, and employment data is one they can cite as justification.”
The market appears to be leaning towards a weak jobs report, prices are moving to attractive, and yields have recouped losses quickly. The 10-year Treasury yield (US10Y) rose 9 basis points to 3.62%. The 2-year yield (US2Y) rose 12 basis points to 4.38%.
The dollar index (DXY) rose in positive territory.
“There is no tree to be cut or to rest for you!” Schwab strategist Kathy Jones tweeted. “Two years brings an increase, to compensate for the decrease of Powell.”
“My natural response is to reduce the price movement because the value of this information relative to expectations or its form is not great,” said Janney’s Guy LeBas. “But we’ve been under attack for a few days now, which upsets the natural response.”
Ahead of the Fed today, Chicago Fed President Charles Evans and Richmond Fed President Tom Barkin will speak today before the quiet period begins.
Among active stocks, Rigel is rising after the FDA approved the leukemia drug.