Friday, October 2, 2015

Bad news is bad news

Before the payroll report S&P futures were at 1927.  Upon the release futures fell off a cliff.  The report was a disaster.  118,000 new private sector jobs.  A drop in the participation ratio.  Zero gain in wages.  A reduced work week.  Those not in the work force increased a lot.  The previous report was revised a lot lower.

Since when was bad news bad news?  Since recently.  Just about the time of the last Fed meeting. Interest rate futures implied a reduced chance that the Fed would increase interest rates.  That used to be accompanied with rising futures.

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