It was a mixed picture in the U.S. stock market in the wake of some encouraging jobs data. Interest rates rallied, which means bonds tumbled.
First, the scoreboard:
- Dow: 16,462.7 (-68.2, -0.4%)
- S&P 500: 1,837.4 (-0.3, -0.0%)
- Nasdaq: 4,165.6 (+12.4, +0.3%)
And now the top stories:
- According to ADP, U.S. companies added 238,000 private payrolls in December. This was much stronger than the 200,000 expected by economists. The services and construction industries led gains. This caused economists across Wall Street to raise their odds that this Friday’s jobs report will exceed their expectations. Deutsche Bank’s Joe LaVorgna has already raised his forecast for Friday’s report to +250,000 from +200,000.
- Encouraging economic data appears to have people thinking that less-easy and tighter monetary policy is coming sooner than later. The bond market sell-off sent the 10-year Treasury note yield from 2.94% to 3.01% before it came back down to 2.99%. The 5-year yield surged from 1.68% to 1.77%.
- At 2:00 p.m. ET, the Federal Reserve published the minutes from its December Federal Open Market Committee meeting, which was when the Fed announced it would be tapering its stimulative large-scale bond-buying program. From the minutes: “In their discussion of monetary policy in the period ahead, most members agreed that the cumulative improvement in labor market conditions and the likelihood that the improvement would be sustained indicated that the Committee could appropriately begin to slow the pace of its asset purchases at this meeting.”
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Read more: http://www.businessinsider.com/closing-bell-december-8-2014-2014-1#ixzz2pqRF1TfI
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