Market Brief: Dow Unable to Hold 29K After NFP Miss

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 US Non-Farm Payrolls report was today’s marquee release, with the jobs report showing a disappointing 145k jobs were created in December (vs. 162k eyed) and weak wage growth of just 0.1% m/m (vs. 0.3% eyed – though November’s reading was revised a tick higher to 0.3% itself).
  • In any event, one soft jobs report alone is unlikely to change the Fed’s neutral outlook, so the market impact of the release was relatively small.
  • FX: The Australia dollar was the strongest major currency on the day, boosted by a strong retail sales report Down Under. The British pound and Canadian dollar were the weakest major currencies, despite the release of a solid Canadian jobs report this morning.
  • Commodities: Oil dropped nearly 1% on the day (see our oil market week ahead report for key releases and themes to watch next week, while gold ticked higher in quiet trade.
 
  • US indices closed slightly lower on the day after the DJIA peeked above 29,000 for the first time ever this morning. European equities closed essentially flat on the day.
  • REITs (XLRE) were the strongest sector on the day, and along with Utilities (XLU), one of the two sectors to trade higher today. Financials (XLF) and Industrials (XLI) were the two weakest sectors.
  • See our full week ahead report for a preview of the key data, themes and trends to watch in the coming week!

Related Articles

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.