CURRENCY MARKET WRAP
As of Mon Aug 5th, Singapore Time zone UTC+8
Dollar Index -0.30%, 98.07
USDJPY, -0.78%, $106.59
EURUSD, +0.27%, $1.1109
GBPUSD, +0.25%, $1.2155
USDCAD, -0.03%, $1.3206
AUDUSD, -0.01%, $0.6800
NZDUSD, -0.16%, $0.6542
U.S. July’s Employment Situation Report didn’t produce much interest. The data came mostly in-line with expectations, and some speculated whether the trade uncertainty would slow down the pace of U.S. hiring activity or wage growth. Non-Farm payrolls increased 164,000 (consensus 160,000), which coincided with decent wage growth and an unemployment rate that stayed near a 50-year low. It was a good report in aggregate, which means it didn’t offer enough bad news to convince the Fed that it needs to cut the fed funds rate again in September.
The final July reading for the University of Michigan Index of Consumer Sentiment checked in at 98.4 (consensus 98.6) versus the preliminary reading of 98.2 and the final June reading of 98.2. The economic uncertainty and trade uncertainty that has bothered the Fed has yet to bother the consumer in a noticeably adverse way.
U.S. Treasuries continued to see increased demand, which pushed yields lower in a curve-flattening trade. The 2-yr yield declined one basis point to 1.71%, and the 10-yr yield declined four basis points to 1.86%. The U.S. Dollar Index declined 0.3% to 98.07.
STOCK MARKET WRAP
S&P500, -0.73%, 2,932.05
Nasdaq, -1.32%, 8,004.07
Nikkei Futures, -2.28%, 21,010.0
Most of Friday’s decline took place in the first 90 minutes of action. Each of the major averages fell below their 50-day moving averages, which appeared to welcome a buy-the-dip mentality that abated the early selling pressure. The Russell 2000 was the only major U.S. index that closed below the key technical level.
The S&P 500 information technology (-1.7%) and energy (-1.3%) sectors led today’s decline, with the latter unable to benefit from the rebound in oil ($55.74/bbl, +$1.75, +3.2%). The defensive-oriented real estate (+0.8%), consumer staples (+0.1%), and utilities (+0.1%) sectors were the lone sectors that finished higher.
In earnings news, Dow components Chevron (CVX 120.73, -0.01, unch)and Exxon Mobil (XOM 71.75, -0.71, -1.0%)provided mixed results. Square (SQ 69.60, -11.38, -14.1%)and NetApp (NTAP 46.04, -11.67, -20.2%)issued disappointing guidance. Newell Brands (NWL 15.34, +1.91, +14.2%)and Pinterest (PINS 33.57, +5.27, +18.6% )provided upbeat results and guidance.