Monday's Market Minute: The Dust Settles From the Better-Than-Expected Jobs Report

The focus this Monday is still on the Non-Farm Payrolls from Friday—at 517K almost double what was expected, and unemployment hitting a 69-year low at levels not seen since 1950’s – and how it will impact the Fed’s upcoming rate hikes. We saw stocks close lower, with rates and the U.S. dollar higher. This morning we also have U.S./China geopolitical tensions around the suspected surveillance balloon shot down over the weekend – this all has markets a bit on edge to begin the week.

We’ve heard from roughly half of the S&P 500 companies reporting quarterly results, but this week there are a few names that could move markets to keep an eye on; Activision Blizzard ATVI, Pinterest PINS, Take Two Interactive TTWO, Chegg CHGG, BP BP, Dupont DD, Chipotle CMG, Uber UBER, CVS CVS, Disney DIS, PayPal PYPL, Lyft LYFT, and many others. So far, earnings have been mixed to somewhat disappointing, but investors have managed to focus on the positive. The real question is, will they be able to continue to do so if labor conditions send rates higher, and we encounter geopolitical headwinds from China relations.

Not much as far as economic data, but we do have Fed Chair Jerome Powell speaking this week in addition to a couple regional Fed speakers. Wednesday, the weekly Jobless data will be closely watched. Friday, we have the Consumer Sentiment.

Keep an eye on the U.S. dollar last week, which briefly dipped below 101 to levels not seen since April 2022, but is higher to begin the week as it’s often times the recipient of the “safe haven” trade. As of recent, the U.S. Dollar has benefited from stocks selling off, rates inching up, expectations the Fed will have to keep rates higher for longer, and geopolitical tensions like we’re seeing to begin the week.

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