Commodities Retreat as Traders Digest Disappointing Job Data

US index futures have started to tumble in the wake of disappointing data out of the US but currently remain flat to slightly in the green, with NASDAQ futures up 0.2%. Overseas markets have been stronger with the DAX up 0.8%, the FTSE up 0.3%, and the Nikkei up 1.5%. China stocks struggled, however, with Hong Kong falling 1.1% and Shanghai losing 1.2%.

Reflecting concerns about a slowing global economy, commodities are falling today with Crude Oil down 1.0% and Copper down 1.5%. Gold is down 0.7% in what appears to be a normal pullback after hitting a new all-time high yesterday.

Employment data dominates the calendar for the rest of the week. So far numbers have been disappointing. US ADP Payrolls this morning (54K vs Street 65K and previous 104K and US JOLTS job openings announced yesterday (7.18M vs Street 7.40M), came in below expectations. Meanwhile Challenger layoffs have accelerated (85.9K vs previous 62.0K), both signs of a weakening job market.

Tomorrow morning brings US nonfarm payrolls (street 75K), and Canada jobs (street 7.5K vs previous -40.8K). US ISM Services PMI (street 51.0) is due at 10:00 am EDT today.

Disappointing numbers are also weighing on selected stocks today. Design software producer Figma, a recent IPO, is down 15.3% premarket after its first sales report fell short of expectations. Salesforce.com is down 6.4% despite positive earnings due to soft sales guidance. Broadcom* reports results after the close today.

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

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