Positive Employment Reports Boost Stocks

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US index futures are trading flat to up 0.3% this morning, consolidating yesterday’s US index gains, which included rallies of 1.5% for the NASDAQ and 1.0% for the S&P 500. European markets are mixed heading toward the weekend with the Dax flat and the FTSE down 0.4%.

US Nonfarm Payrolls were mixed as headline jobs beat the street but last month’s report was revised down sharply (275K K vs street 200K, previous revised down to 229K from 353K), Canada jobs (40K vs street 20K and previous 37K) came in strong for a second month in a row. Wage inflation pressures in the US (3.9% vs street 4.4% and previous 4.5%), and Canada (4.3% vs previous 5.3%) eased significantly this month.  

Yesterday was another rough day for retailers after earnings reports. Hugo Boss lost 12.9%, and, American Eagle staged a bearish reversal soaring 13% in premarket but then giving it all back over the course of the trading day to finish down 1.9%. European prepared meal provider HelloFresh has plunged 43.1% this morning after posting disappointing guidance.

The response to last night’s earnings reports have been mixed. Headliners include Broadcom* ($10.99 vs street $10.40, down 0.9% premarket), Costco ($3.71 vs street $3.62, down 3.4% premarket), Gap ($0.49 vs street $0.23, upn8.9% premarket).

Metals action is mixed today with Gold up 0.6% and Copper down 0.5%. Bitcoin is holding steady, consolidating recent gains. Energy trading finds US Crude Oil steady and Natural Gas down 1.0%.

*Shares of Broadcom are held in some portfolios managed by SIA Wealth Management.

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