Major market averages are back up in the green after dipping lower after weaker manufacturing data and a stable jobs report.
The Nasdaq Composite (COMP.IND) gained 0.4%, the S&P 500 (SP500) rose by 0.1%, and the blue chip Dow (DJI) is higher by 0.3%.
Rates fell after unexpectedly low inflation out of France. The 10-year Treasury yield (US10Y) fell 9 basis points 3.70% and the 2-year yield (US2Y) dropped 4 basis points to 4.36%.
Recent tame inflation numbers from Germany and Spain and now France “clearly bodes well for the full Euro Area release on Friday, even if that +9.6% is still way above levels consistent with the ECB’s 2% target,” Deutsche Bank’s Jim Reid said.
On the U.S. economic calendar, the latest Job Openings and Labor Turnover Survey, or JOLTS, came in at 10.458M versus the 10.1M forecasted level. arrives shortly.
“This is one that Fed officials focus on, and has continued to point to an incredibly tight labor market by pre-pandemic standards,” Reid said.
The December ISM index declined to 48.4, below the consensus figure of 48.5 and 49 level November experienced.
This afternoon the minutes of the latest FOMC minutes are out.
“Chair Powell is increasingly understood to be one of the most hawkish members of the Federal Open Market Committee (OTCPK:FOMC) but after two subsequent slower inflation prints in October and November, markets chose not to heed his hawkish warning after the last meeting,” ING said. “The minutes will be an opportunity to test that assumption.”
“In short, we think markets go into the release with dovish expectations, which means a hawkish surprise is more likely to move rates. Mind you, if the December meeting is any guide, market reaction should not be dramatic.”
Among active stocks, Salesforce rose after it announced it was cutting about 10% of its workforce.