Weekly market update – 06 february 2017 bmo


After enjoying a solid 1.0% gain two weeks ago, the stock market returned to its range-bound ways. Silver chart kitco The S&P 500 spent the week inside a 31-point range, ending the week higher by 0.1%.

The past week was rife with earnings, economic data, and commentary from two major central banks, but the market shrugged off the busy event calendar, remaining near record levels.

Most notably, the Federal Open Market Committee concluded its latest two-day meeting on Wednesday. Dollar exchange rate history The central bank maintained its policy stance and gave little indication that a rate hike could be announced at the next policy meeting in May.

Wednesday’s FOMC announcement followed the release of a stronger than expected ADP Employment Report for January (246,000; consensus 165,000).

Gold price chart Friday’s release of the Employment Situation report also showed above-consensus headline growth (227,000; consensus 170,000), but average hourly earnings increased just 0.1% (consensus 0.3%) and last month’s growth was revised down to 0.2% from 0.4%. Convert cny to usd As a result, the year-over-year average hourly earnings growth rate slowed to 2.5% from 2.8% in December.

The combination of solid job growth and lackluster wage growth was welcomed by the stock market, considering it did not foreshadow an inflationary spike that would prompt a hawkish response from the Fed.

Rate hike expectations saw a moderate downtick. Futures market cnbc On Friday afternoon, the fed funds futures market pointed to a 63.5% implied likelihood of a June hike, down from last week’s 69.2%. Friday’s economic data gave investors the confidence to finally break the week’s sideways trend and push the stock market higher. Binary search tree visualization The major averages hit their session highs within an hour of the opening bell and maintained said levels into the close.

On the earnings front, investors received a set of results from heavyweights like Amazon (AMZN), Apple (AAPL), Facebook (FB), Visa (V), UPS (UPS), and others. Gender identity issues Amazon and UPS missed estimates while Apple, Facebook, and Visa surpassed expectations. Uk to us currency However, it is worth noting that while Apple reported above-consensus results, the company faced reduced competition during the quarter after the recall of Samsung’s Note 7 in early October.

• January nonfarm payrolls came in at 227,000 while the Briefing.com consensus expected a reading of 170,000. 1 usd to ngn The prior month’s reading was revised to 157,000 from 156,000. Joy newsome Nonfarm private payrolls added 237,000 while the Briefing.com consensus expected an increase of 175,000. Exchange rate usd euro The unemployment rate increased to 4.8% (consensus 4.7%).

• Average hourly earnings increased 0.1% (Briefing.com consensus +0.3%), while the previous month’s reading was revised to 0.2% (from 0.4%). Msn news usa english The average workweek was reported at 34.4 while the Briefing.com consensus expected a reading of 34.3. Djia futures marketwatch The previous month’s reading was revised to 34.4 (from 34.3).

• The key takeaway is that this is one of those so-called “Goldilocks” reports since it is strong enough to keep participants thinking good things about the economy, but not strong enough to convince the market to think it means the Fed is now going to be in a hurry to raise the fed funds rate. Usd gbp rate The tempered growth in average hourly earnings, which dialed back year-over-year growth to 2.5% from 2.8% in December, is the focal point as it relates to the market’s perspective on the Fed.

Bonds saw a run into shorter maturities while the longer maturities sold off to significantly steepen the curve this past week. Currency converter cny to usd This could be suggesting a return to risk in the coming weeks.

The Bank of Japan announced last September that it would continue doing asset purchases but that it would pursue a policy dubbed “yield curve control” in which it would target the 10-year JGB yield around 0.00%. Stock ticker for oil futures That yield has not been negative since November, so traders began to question the symmetry of the BoJ’s target this week and pushed the 10-year yield as high as 0.155%.

Since last September, government debt yields in both the U.S. Yen usd exchange rate and Europe have marched higher and rising yields, if unchecked, were bound to test the Bank of Japan eventually.

The Bank of Japan responding during Japan’s Friday trade by increasing its Fixed Rate Operation to JPY450 bln from JPY410 in the prior operation. Gender definition That measure did not convince the market for long and the BoJ eventually offered to buy an unlimited quantity of five and 10-year JGBs (the latter at a yield of 0.11%) and that pushed the 10-year JGB yield back below 0.10%.

Former Fed Chair Ben Bernanke warned at the outset of the yield curve control policy that the BoJ gave up control over the size of its balance sheet, particularly if the BoJ’s target is not seen as credible. Gold price 2016 forecast A perhaps more urgent problem for the Bank of Japan is that it will eventually run out of securities to buy, which is why BoJ Kuroda has pledged to limit annual purchases to JPY80 tln. Stock connection Setting both a price and a quantity at the same time is hard to do.

The 2017 Stock Trader’s Almanac’s averages for the DOW are bullish on Monday, Tuesday, Thursday and Friday at around 57% and flat-to- bearish on Wednesday at 53%. Usa today high school football rankings S&P500 is bullish on Monday, Tuesday, Wednesday and Friday at around 60% and flat-to- bearish on Thursday at 53%.


Let’s see if things are truly back to “normal” in the market in the coming week. Zloty usd If, like the stats suggest, the week is bullish, we should be able to scrape a profit off the table by being long for the week. Usps shipping With no major economic news to pose a serious threat, I reckon we should ease past the week with little stress.

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