• Milestone AMG Private

    Communication, Communication Design



    The Bureau of Labor Statistics released its monthly employment situation report Friday showing that Non-Farm Payrolls increased by 171,000 jobs in October and revisions added an additional 85,000 jobs, greater than estimates of an increase of 125,000 jobs on the headline number. The unemployment rate rose to 7.9 percent from 7.8 percent. S&P 500 futures were flat heading into the release but jumped higher by about five points after the release to 1,427.60. Also, the 10-year Treasury yield increased and the USD/JPY, the most susceptible currency pair to price swings due to economic releases, jumped from near 80.30 to 80.60 on the release. As yields increase in the U.S. and the economy improves, investors sell the yen against the dollar in search for higher yields and safer returns. Gold slipped below $1,700.00 per ounce on the COMEX as hopes of further QE from the Fed were dashed by the stronger than expected jobs growth. Manufacturing jobs were rather strong in October, adding jobs after consecutive months of job losses. The ISM Manufacturing Index and its employment sub-index hinted that this number could improve and it did. However, average hourly earnings and the average workweek remained flat, meaning employees are not seeing wage nor hours growth.

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