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Major averages moved lower on Friday morning after investors received the latest official June payrolls figures which came in softer than anticipated.
The S&P 500 (SP500) was -0.2%, the Dow (DJI) was -0.3%, and Nasdaq Composite (COMP.IND) was -0.1%.
The June nonfarm payrolls report came in at 209K compared to the consensus figure of 225K and the jobless rate was 3.6% compared to the forecasted 3.7%.
“It’s a good solid straight down the middle, this little engine just keeps on chugging along payrolls report,” economist Justin Wolfers tweeted. “Payrolls grew +209k, a bit below expectations, but well above ‘normal’ rates. Unemployment is at 3.6%, a tick above its recent fifty-year low.”
“Big downward revision of 110K to the last two months paints a picture of a softer labor market than previously believed,” Schwab’s Kathy Jones said.
“Bonds have been steadily selling off of late, but this went into overdrive after a stunningly strong ADP which isn’t usually the most reliable monthly print, but it was a question of sell first ask questions later after the release,” Deutsche Bank’s Jim Reid said.
The 10-year Treasury yield (US10Y) was up 2 basis points to 4.05%. The 2-year yield (US2Y) fell 1 basis point to 4.94%.
“The American economy is fighting back, despite what the Fed has been up to,” ING said. ” The 10yr is now at over 4%. We think it will stay above 4% over the coming weeks and potentially months. And the 2yr will hold on to a 5% handle, with a 100bp curve inversion being sustained.”
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