Stock Index Futures And Bonds Explode On Labor Report
A tamer-than-expected report from the Labor Department produced significant rallies in stock indexes and T-bonds. The report showed job and wage growth slowing while the unemployment rate remained at a 29-year low of 4.2%.
Coming off the Pullback Off Highs List, NASDAQ 100 futures [NDU9>NDU9] took the prize today, adding 112.50 to close at a new high of 2512.50. Dow futures [DJU9>DJU9] rallied 290 to 11,135 and S&P futures [SPU9>SPU9] rocketed 42.30 to 1362.50. December T-bonds [USZ9>USZ9] gained 1 09/32 to 114 12/32.
The employment report and strong move in bond and stock index futures helped boost dollar index futures [DXU9>DXU9]. The September contract rose .48 to 99.73. The Japanese yen [JYU9>JYU9] fell back the most against the dollar, losing .0075 to .9099.
Energy futures also rallied. October crude oil [CLV9>CLV9] finished at its second highest level of the year, up .51 to 22.00. Unleaded gas [HUV9>HUV9] and
heating oil [HOV9>HOV9] gained more than 1.77% each and natural gas [NGV9>NGV9] reclaimed 3.64% of the 10% it lost yesterday.
Metals from the Pullback Off Lows List traded lower: December gold [GCZ9>GCZ9] lost 1.2 to 255.5 and silver [SIZ9>SIZ9] lost 8.2 to 517.3.
The grains finished slightly higher with the exception of December soybean oil [BOZ9>BOZ9] which fell .19 to 17.47. Soymeal [SMZ9>SMZ9], from the Momentum-5 List, played something of a leadership role, rising to a 20-day high, for a gain of 2.2 to 152.6.
In the meats, pork contracts fell hard. October lean hogs [LHV9>LHV9] dropped 1.200 to 45.850 and February pork bellies [PBG0>PBG0] lost 2.750 to 54.575.
In the softs, Dave Landry wrote in HREF=”/query/indicators/commentary/dlfutoutlook.cfm?link=dlfutoutlook”>Futures Trading Outlook that cocoa closed poorly and sugar was breaking out. October sugar [SBV9>SBV9] continued moving to new highs, gaining .12 to 6.90 and December cocoa [CCZ9>CCZ9] fell 38 to 919.