Today’s Spotlight Market
The private sector continues to add new jobs, but it appears that the rate is beginning to slow. This is according to data provided from payroll service provider ADP in its monthly employment report. According to ADP, private sector payrolls increased by 147,000 jobs in October, vs. 154,000 jobs in September. The services sector continues to account for the bulk of new jobs created, adding 151,000 according to ADP. In addition, construction jobs increased by 11,000 jobs last month, however the widely watched manufacturing sector continues to struggle, having shed 6,000 jobs in October.
Fundamentals
While traders here in Chicago are currently focused on the Cubs winning the World Series, elsewhere all eyes are on the monthly employment data, which will be the last major economic report prior to the U.S. Presidential election on Tuesday.? Economists are expecting in the neighborhood of between 170,000 and 180,000 jobs being created in October, which if accurate would be a modest improvement over the 156,000 jobs created in September. In addition to the ?headline? figures, many traders will be keenly analyzing the data for average hourly earnings (+0.3% expected vs. +0.2% in September) and average workweek (34.4 hours expected vs. 34.4 hours in September) to help gauge any signs of ?wage inflation?, which would be a particular concern for Federal Reserve officials. While the ?jobs? number is usually a highlight during the month for traders, it appears that this morning?s figures may be overshadowed by the U.S. elections on Tuesday, which has already affected financial markets, as participants with memories of the relatively recent ?Brexit? vote appear to be reducing their market exposure ahead of the U.S. vote.? ?
Technical Notes? -? View Today’s Chart
Looking at the weekly continuation chart for 10-year Note futures, we notice prices are in the middle of a downward correction from the 2016 highs and now are holding between the 20- and 200-day moving averages. The 14-day RSI has also turned lower, but is still reading a relatively neutral 45.69. There appears to be chart support near the 128-00 price level, which is currently just above the 200-day moving average. Chart resistance is found near the 131-24 price level.
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