Weak US Jobs Data Blows Fed’s Rate Hike Plans Out of the Water

Weak US Jobs Data Blows Fed’s Rate Hike Plans Out of the Water

Weak US Jobs Data Blows Fed’s Rate Hike Plans Out of the Water


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

Paul Ebeling

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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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