DPR Action: No Changes, nothing to do
The market closed flat on Friday as investors parsed through a mixed employment report, a U.S. airstrike in Syria and comments from a top Federal Reserve official.
Talking at the Princeton Club of New York, New York Fed President William Dudley said the U.S. should consider small adjustments to the Dodd-Frank law, which toughened oversight for financial institutions.
On the data front, the U.S. economy added 98,000 jobs last month, well below the expected gain of 180,000. The unemployment rate fell to 4.5 percent from 4.7 percent. Wage growth was not as strong either, with average hourly earnings up by 2.7 percent on an annualized basis.
Other data released Friday included wholesale inventories, which rose 0.4 percent. The Atlanta Fed also slashed its first-quarter GDP forecast to 0.6 percent from 1.2 percent, citing weak car sales, among other factors.
Groundhog Day in the end as the QLD closed within 1 cent of Thursdays close, but that doesn’t tell the whole story. I was at the movies on Thursday and when I checked the futures as I left the theatre everything was normal, 20 mins later the S&P 500 had fallen off a cliff because of the air strikes in Syria carried out by the Trump administration. It certainly caused some panic, but with calming rhetoric coming from the white house, that this was a one-off retaliation attack in response to the Syrian president using chemical weapons last week, it simply climbed all the way back up.
There was nervousness in the market throughout the day with Russia officials condemning the attack, however, the market once again calmed as it was reported that all diplomatic channels where still open with the US.
Then in the morning there was the attack in Stockholm. Another nut murdering innocent people in a stolen truck. From a market perspective, it started selling heavily for a short time when news wires said there was a separate gun incident in another part of Stockholm. Lone wolf terrorism is horrible and despicable, but organised muti-attack terrorism will cause panic in the financial markets. However, it was reported that these events were not linked and it was just one lone wolf attack, so once again the market ground back to were it re-reached the closing levels of the previous day.
Not much more to say, essentially we are consolidating just below the all time highs, so it can go either way in the short term. I will update the DPR on a daily basis, however, if there are no changes to the system signals, I may only post a blog every couple of days. Right now, we are in and in positive territory, so nothing to do.
Have a great weekend all!