Market Brief: Solid NFP Report Pumps Up Risk Appetite

See a summary of the top market themes and trends from today's US trading session!

View our guide on how to interpret the FX Dashboard.

  • The October Non-Farm Payrolls report printed at 128k, above economists’ expectations (especially accounting for the nearly +100k positive revision to previous readings). While wage data came in a tick soft, last month’s earnings figures were revised up by +0.4% m/m, suggesting that the US labor market remains generally strong. Separately, the ISM Manufacturing PMI report missed expectations and remained in contractionary territory for the third straight month.
  • FX: In a typical risk-on configuration, the growth-sensitive New Zealand dollar was the strongest major currency, with the safe haven Japanese yen bringing up the rear.
  • Commodities: Oil surged nearly 4% today to extend its recent streak of volatility; gold was essentially flat.
  • See the key data and market themes we’ll be watching in the coming week!
  • US indices closed roughly 1% higher across the board to hit new record highs, reassured by the solid NFP report and continued optimism about a potential US-China “Phase One” trade deal.
  • Energy (XLE) was the strongest sector, boosted by the big rally in oil prices. REITs (XLRE) were the weakest.
  • Stocks on the move:
    • Alibaba (BABA, -0%) reported strong adjusted earnings of RMB 13.10 per share, up more than 30% from last year. Despite beating both earnings and revenue estimates, the stock finished the day essentially flat.
    • Exxon Mobil (XOM) tacked on 3% despite a 50% drop in earnings as the company reported better-than-expected revenue amidst falling oil prices. Rival Chevron (CVX, -0%) was essentially unchanged on the day after missing analysts’ EPS and revenue estimates.
    • Pinterest (PINS) shed -17% today after yesterday’s disappointing revenue figures.
    • US Steel (X) reported a loss this quarter, but beat revenue expectations, leading the stock to rise 15% on the day.
    • Warren Buffett’s Berkshire Hathaway (BRK.B, +2%) reports earnings over the weekend.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.