U.S. Indices Push Higher: Employment In Focus

Posted Thursday, October 5, 2017 by
Shain Vernier • 3 min read

Today’s U.S. cash open has brought even more strength to the U.S. equities indices. It is getting to be redundant, but all-time highs are becoming an everyday occurrence. The DJIA and S&P 500 have opened up moderately, but the U.S. equities futures markets are showing robust participation to the bull.

E-mini S&P FuturesThe E-Mini S&P Futures Are Looking To Post A Seventh Consecutive Positive Session.

Both the December E-mini Dow and the E-mini S&P 500 have made fresh all-time highs earlier in the session. It is undeniable that the young month of October has certainly been good to equities investors. Let’s take a look at today’s metrics and try to find out what is fueling the fire.


Economic Data

This morning has brought several reports facing the U.S. employment, production, and trade:

Event                                                            Previous                 Projected            Actual 

Challenger Job Cuts (YoY, Sept.)                  33.825K                     NA                    32.346K    

Continuing Jobless Claims (Sept. 22)            1.936M                    1.950M                1.938M

Initial Jobless Claims (Sept. 22)                        272K                        265K                  260K

Trade Balance (August)                                  $-43.6B                   $-42.7B               $-42.4B

Factory Orders (MoM, August)                          -3.3%                        1.0%                  1.2%

At a glance, the jobs numbers are moderately positive. With both continuing and initial jobless claims coming in under projections, there is moderate improvement in the area.

The key numbers here are the reduction in the trade balance and increase in factory orders for August. These metrics are undoubtedly welcomed news from the Trump administration. With a battle over tax reform on the horizon, positive numbers will be cited as progress and potential reasons to adopt a new policy.

Overview: It is going to take a fundamental change in market sentiment to hamper the U.S. equities indices. Right now, we are seeing a definitive risk-on approach from investors.

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