09:35 Take this work report and run it because
Dow Jones industrial average
seems to be doing just that after the US economy added more jobs than expected in October.
Right after opening, Dow was up 158.96 points, or 0.6%, while
had gained 17 points, or 0.6%. The
rose 0.5%. Dow futures were up by 34 points at 8:09 am prior to the release of the report.
The Labor Department reported that the United States added 128.00 jobs in October, beating forecasts for 89.5000. In September, the figure was revised up to 180,000 new jobs, up from 136,000. The October surveys were 3.6%. Average hourly wages rose 3% in October from a year ago, according to estimates.
"This employment report is far from what a material slowdown should look like," writes Deutsche Bank's Alan Ruskin who said the report "validates the Fed."
The job report was likely influenced by the UAW strike on
(ticker: GM), but not as much as expected. "While it was expected that some 46K car workers would disappear from payrolls this month because of the GM strike (along with some aid workers), production wages were only down 36K," writes Jefferies economist Thomas Simons .
If there is a potential disadvantage in the report, the reaction from the Treasury market is. "While I appreciate and celebrate the job growth on my head, it is a limiting indicator. The 10-year Treasury market is quite skeptical of the upside, as 10-year returns are up just 1.4 bps to 1.70 – 0.71% against 1.80% a week ago, "writes Bleakley Advisory Group's Peter Boockvar .
Wages are not the only economic movement report this morning. The ISM Manufacturing Index matures at 10am, although its effect is likely "The NFP data clearly shows that the economy's major services – services – are continuing to roll," he writes. material braking. In this sense, production weakness will look isolated and more easily attributed to international factors such as trade, where some of the uncertainty is addressed. In short, payroll data is far more important than ISM numbers. ”
Markets Now is a quick grasp of what happens to the Dow Jones Industrial Average and other major market indices. Don't forget to check out the rest of Barron's market coverage.
Write to Ben Levisohn at Ben.Levisohn@barrons.com