Market Brief: As-Expected NFP Dwarfed by Tariff Hangover


  • Non-Farm Payrolls showed the US economy added 164k jobs in July, exactly as expected by economists. Previous job growth was revised slightly lower, though the wage component of the report beat expectations at +0.3% m/m. The unemployment rate ticked up to 3.7% due to higher participation in the labor market (a so-called “good” rise in unemployment).
  • Confirming many traders’ suspicions from yesterday, CNBC reported that President Trump was “open to delaying or halting new tariffs” if China takes positive action. Meanwhile, Chinese media stated that Beijing “won’t give an inch” to Trump.
  • FX: The safe haven Swiss franc and Japanese yen were the strongest major currencies on the day, while the China-linked Australian and New Zealand dollars brought up the rear.
  • Commodities: Gold tacked on another 1.5% today, while oil recovered nearly 3% after yesterday’s shellacking. Copper is testing a 2-year low on global trade tensions.

 

  • US indices recovered off their midday, but still closed lower on the day.
  • REITS (XLRE) were the strongest sector while Technology (XLK) brought up the rear.
  • See the key economic reports and trends we'll be watching in the week to come!
  • Stocks on the Move:
    • Oil giants Exxon (XOM, -1%) and Chevron (CVX, +0%) saw lackluster reactions to earnings reports.
    • Apple (AAPL, -2%) and Goldman Sachs (GS, -1%) were the biggest contributors to the Dow’s weakness today.
    • Value stalwarts Berkshire Hathaway (BRK.B, +1%) and Johnson and Johnson (JNJ) were able to buck the weak trend of the broader indices.

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.