US Rates Rise, US Stocks Fall

US Rates Rise, US Stocks Fall

US Rates Rise, US Stocks Fall

$DIA, $SPY, $QQQ, $RUTX, $VXX

The stock market fell Friday as bond yields continued to climb following the release of the Employment Situation report for September.

The S&P 500 and the DJIA lost 0.6% and 0.7%, respectively; the tech-heavy NAS Comp dropped 1.2%.

At its session low, the S&P 500 was down 1.1%, falling below its 50-Day MA for the 1st time since July. The market bounce from that Key mark, closing near the middle of the day’s trading range.

The Employment Situation report for September was mixed from a headline standpoint, as NFPs showed a below-consensus increase of 134,000 (consensus 184-K), but the August increase was revised upward to 270,000 (from 201-K). Average hourly earnings rose 0.3%, as expected, and the unemployment rate fell to from 3.9% to 3.7%, marking its lowest mark since Y 1969.

US Treasuries extended their weekly losses following the release of the jobs report, pushing yields higher across the curve. The 2-yr yield advanced one basis point to 2.88%, and the benchmark 10-yr yield jumped 3 bpts to 3.23%, extending its weekly gainer to 16 bpts and marking its highest close since Y 2011.

Corporate News

General Electric (GE) replaced CEO John Flannery with former Danaher CEO Larry Culp; Tesla’s (TSLA) CEO, Elon Musk, agreed to settle charges with the SEC, in which Mr. Musk and Tesla are to pay $20 million each, and Mr. Musk is to step down as chairman for three years; Amazon (AMZN) announced that it will be raising its minimum wage to $15 an hour for all U.S. employees, pressuring other retailers to do the same; and General Motors (GM) announced that it will be partnering with Honda Motor (HMC) to build autonomous vehicles.

Friday, the US major stock market indexes finished at: DJIA-180.43 at 26447.05, NAS Comp -91.06 at 7788.44, S&P 500 -16.04 at 2885.41

Volume: Trade on the NYSE came in at 842-M/shares exchanged

HeffX-LTN’s overall technical outlook for the US major stock market indexes for the week ended 5 October is Bullish

Have a terrific weekend.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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