Matt The Asian markets were up, HK +0.14%, Shanghai +1.19% and Japan +0.81%. BABA was down sharply today. Its earnings data was disappointing after saying its sales did not decline the previous day.
European markets were sluggish, Euro STOXX -0.78% and DAX -0.65%. The U S Employment Report made things complicated for the ECB.
In the U S, Employment Report was way above forecasts, 528,000 from a consensus 260,000. I wrote a separate report on this in the morning.
June Consumer Credit was reported late in the day. It increased $40.2 billion from $22.4 billion, a very high level.
S&P 500 -6.75, -0.16% to 4,145.19. The market gapped down to 4,120 on the opening. It rebounded sharply to 4,150. Another decline went below 4,120. Starting late morning a two phase rally almost got back to even.
The Employment Report dominated the market action today. The jobs number, over twice as much as expected was the source of most discussions, discussing the ramifications. The immediate reaction was all markets down. It filtered down to growth being the weakest area on higher interest rates expectations. Energy and Banks did well. All interest rates rose. By the end of the day the the energy and bank weightings put the DJIA in positive territory. The DJIA ended 0.23% higher. The NASDAQ fell 0.50% and the QQQ 9,82%. The IWM was a big winner, +0.81%. The IWM is loaded with small banks and small oil companies.
WTI tried to rally, but could not get follow through. It closed up 0,2% at $89. The XOP rose 3.1% and the XLE 2.0%.
The 10 yr T Bond rate shot up 15.4 bps to 2.845%. The futures market priced in a 0.75% rate increase in September from 0.50% before. The KBWB added 1.2%. The XLU declined 0.4%.
The VIX dropped 1.4% to 21.15, a bullish divergence. The NYSE saw declines lead 1.1 to 1.The NASDAQ had advances lead, 1.3 to 1. Volume was below average on the NYSE. It was just above average on the NASDAQ. Today was a major surprise. It will be discussed in the Weekend report.
Jerry