NFP and its effect on markets: at 15:30 today

After a fall in stock prices this morning, the futures of US indices pointed to a lower open. Yesterday the S&P500 fell to 2865, 14 points below the peak from February this year, but closed above 2877.9. This morning, however, the downward trend in the index continued, reflecting the massive sell-off in technology stocks since Tuesday.

An upward push for the index may come from positive non-farm payrolls (NFP) data that will show if the U.S. economy is strenthening. The data will show whether US unemployment still remains at historically low levels below 4%. Unemployment figures, in turn, are among the best indicators for the future trend of GDP, as declining unemployment in most cases points to investment in the economy and expansion of production.

As Jim Cramer points out, however, we are entering the stage of the economic cycle, where good news can very easily be interpreted as bad news by the market. We saw this effect in February. The positive news then was very low unemployment and higher paychecks for employees, a sign of strength in the economy. Markets, however, interpreted the positive data as a signal that the Federal Reserve would raise interest rates more quickly than expected.

NFP and unemployment data will be published at 15:30.

Non-farm payrolls

Expected: + 191K

Previous: + 157K

Unemployment rate from the United States

Expected: 3.8%

Previous: 3.9%

* In the case of economic news, investment banks, market makers and prime brokers may quote broader spreads, sharp moves, gaps, and possible execution at a price different from the bid (the first possible market price). In the first few seconds, performance may be delayed due to the accumulation of orders in excess of the ability of banks to process.

Image: pixabay.com

Source: The Wall Street Journal

Original post: Global Stocks Pause ahead of Jobs Report

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• China – Caixin manufacturing PMI below expectations 51.5 vs 51.8
• China – Manufacturing PMI above expectations 50.2 vs 50.1
• USA – Initial jobless claims better than expected
• UK – BoE interest rate decision as expected