Monday, July 02, 2007
Where Next?
Friday was again another wildly volatile day finishing up almost flat again. The Dow lost 13.66 points to close at 13,408.62. The SPX gave up 2.36 points to end on 1,503.35. We are in the green and looking ok.
Friday saw a wide range of market moving news including a rise in oil prices, positive economic news and mixed earnings reports. The end of the quarter also added to volatility, which saw the Dow both up and down triple digits during the session. For the week, the major market indices all saw minor gains, but the month of June was not pretty...which was good for us.
Looking ahead to this week we obvioulsy have a market close on the 4th July for US independence day. Economic news wise there is not much going on this week to move markets. Today we see the Institute for Supply Management with its report on US manufacturing conditions. This report will need to be very good to send the market up.
On Friday we see the release of the June jobs data and this will be the anticipated highlight of the week. Traders will be looking for job growth of 120K to 130K and a drop from last month’s surprise jump of 157K in nonfarm payrolls. An increase of 0.3% in hourly earnings will also be a highlight. For analysts, the task at hand is to establish how tight labour conditions are and its possible impact on Fed policy going forward.
However if you are hoping for a quiet week then all the usual bogeys are out there which can cause these markets to move; oil, the middle east, terrorism, bond yields, subprime debt, collapsing hedge funds, hurricane season and mergers and acquisitons!
Lets see what the week brings.
Until next time.
Friday saw a wide range of market moving news including a rise in oil prices, positive economic news and mixed earnings reports. The end of the quarter also added to volatility, which saw the Dow both up and down triple digits during the session. For the week, the major market indices all saw minor gains, but the month of June was not pretty...which was good for us.
Looking ahead to this week we obvioulsy have a market close on the 4th July for US independence day. Economic news wise there is not much going on this week to move markets. Today we see the Institute for Supply Management with its report on US manufacturing conditions. This report will need to be very good to send the market up.
On Friday we see the release of the June jobs data and this will be the anticipated highlight of the week. Traders will be looking for job growth of 120K to 130K and a drop from last month’s surprise jump of 157K in nonfarm payrolls. An increase of 0.3% in hourly earnings will also be a highlight. For analysts, the task at hand is to establish how tight labour conditions are and its possible impact on Fed policy going forward.
However if you are hoping for a quiet week then all the usual bogeys are out there which can cause these markets to move; oil, the middle east, terrorism, bond yields, subprime debt, collapsing hedge funds, hurricane season and mergers and acquisitons!
Lets see what the week brings.
Until next time.
# posted by Paul @ 5:30 AM 
