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Markets Float Higher As Jobs Report A Non Event

The markets are floating to the positive side today after the Non Farm Payrolls and Unemployment Report turned out to be a non event. The Non Farm Payrolls number came in at -95,000.  The market had expected a flat number. While at first glance, this number seems very negative, the key number inside the Non Farm Payrolls was the Private Sector Employment which gained 64,000.  Initially the markets flushed lower, then recovered quickly to move back to the flat line.  This number had an initial negative reaction, but was pacified by the Private Sector Employment gain.

The SPDR S&P 500 ETF (NYSE:SPY) are trading at the highs of the day at $116.22, +0.33 (+0.28%). This move higher over the mid morning session is mainly due to the weakness in the U.S. Dollar.  The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $22.42, -0.06 (-0.27%).

The currency wars continue.  Each major power trying to weaken their respective currency. While it has not reached a boiling point yet, the rhetoric between China and the rest of the world is increasing. Japan has already stepped in to weaken their currency in a major way.  As an individual investor, one must be concerned about this weakening of currencies getting out of control and an ultimate collapse occurring.  If each country is trying to drop their currency more than the next.  It is a vicious circle and long term very concerning.

The leading stocks today are clear and bell weathers.  Exxon Mobil Corporation (NYSE:XOM) is strong on the back of the Dollars weakness and the rise in oil.  Apple Inc. (NASDAQ:AAPL) is leading the tech sector as it is trading higher at $293.12, +3.90 (1.35%) while Goldman Sachs Group, Inc. (NYSE:GS) was the weakest market leader weeks ago but has now turned into the strongest, leading the financial companies once again.  Goldman Sachs is trading higher at $152.76, +1.65 (1.09%). 

Gareth Soloway
Chief Market Strategist