Tuesday's Market Minute: Job Openings Report Sends Stocks Lower & Yields Higher

Another strong U.S. jobs report sent the 10-year to near 4.8% and has investors as bit on edge ahead of the non-farm payrolls data due out Friday. The JOLTS report today showing 9.61 million job openings, as well as a revision higher to last month’s data to 8.920M from 8.827M, sent the Dow back below 33K intraday. According to the U.S. Bureau of Labor Statistics in August, the number of hires and total separations changed little at 5.9 million and 5.7 million, respectively. Within separations, quits (3.6 million) and layoffs and discharges (1.7 million) changed little. Stronger than expected labor conditions, as well as above average growth could lead to further rate hikes down the line. This all combined with a hawkish tone from a handful of Fed speakers to begin the week has the SPX inching back to near the 200-day moving average just below current levels, down around 4200. 

It’s not just stocks and bonds on the move in reaction to the stronger than expected data: check out the U.S. Dollar this week, back above 107 and to levels not seen since last November. The move up in the greenback is not only tied to the spike in yields and the possibility of further hikes from the Fed, but weakness in the Japanese Yen ahead of a key announcement this week from the Bank of Japan — the BOJ is expected announce an extra bond buying program tomorrow.

Tomorrow, we’ll get a look at the ADP employment report and there are a handful of Fed speakers to keep an eye on. Thursday, we have the Challenger Job-Cut Report, weekly Jobless Claims, and on Friday the focus will be squarely on the monthly employment report at 8:30AM ET.

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