Weak US Jobs Data Blows Fed’s Rate Hike Plans Out of the Water
$DIA, $SPY, $QQQ, $VXX, $GLD
Gold had the biggest gainer in a week after US employers added the fewest workers in 7 months, weakening the case for the US Fed to raise interest rates anytime soon.
The 160-K gain in NFPs in April followed a revised 208-K rise in March, a US Labor Department report showed Friday. The median forecast called for a 207-K April advance. The jobless rate, projected to ease, stayed at 5% of those in the labor market. Millions of Americans have opted out.
Gold futures have risen 22% this year in the best start since Y 2006, driven by speculation that the Fed will be slow to tighten monetary policy.
Low borrowing costs are a boon to Gold because it does not offer yields or dividends. Odds that the Fed will raise rates next month dropped to 6%, from 10% Thursday and 75% at the beginning of the year, based on Fed-fund futures data.
Gold futures for June delivery rose 1.7% to finish at 1,294 oz at 1:50p EDT on the COMEX in New York. The precious Yellow metal gained 0.3% on the week.
The Fed is data-dependent, and these data are not going to Wow them. In fact the prospect of QE-4 looms.
Friday, the US major stock market indexes finished at: DJIA +79.92 at 17740.63, NAS Comp +19.07 at 4736.16, S&P 500 +6.51 at 2057.14
Volume: Trade was above average with 945-M/shares exchanged on the NYSE
The S&P 500 gained 0.3%, paring its weekly loss to 0.4%. The DJIA (+0.5%) finished ahead of the Nasdaq Comp (+0.4%).
|HeffX-LTN Analysis for DIA:||Overall||Short||Intermediate||Long|
|Bullish (0.29)||Neutral (0.16)||Bullish (0.36)||Bullish (0.33)|
|HeffX-LTN Analysis for SPY:||Overall||Short||Intermediate||Long|
|Neutral (0.14)||Neutral (-0.14)||Neutral (0.16)||Bullish (0.39)|
|HeffX-LTN Analysis for QQQ:||Overall||Short||Intermediate||Long|
|Neutral (-0.07)||Neutral (-0.10)||Neutral (-0.24)||Neutral (0.14)|
|HeffX-LTN Analysis for VXX:||Overall||Short||Intermediate||Long|
|Bearish (-0.48)||Bearish (-0.40)||Very Bearish (-0.53)||Very Bearish (-0.50)|
|HeffX-LTN Analysis for GLD:||Overall||Short||Intermediate||Long|
|Bullish (0.32)||Bullish (0.42)||Bullish (0.25)||Bullish (0.29)|
Have a terrific weekend