11:04AMUtilities stocks surge as weak jobs data knocks down Treasury yields ( XLU SO PPL AES NRG EXC ) by Tomi Kilgore
The SPDR Utilities Select Sector ETF (XLU) surged 1.6% toward a record high in morning trade Friday, as the drop in Treasury yields in the wake of a weak May jobs report made the high-yielding sector tracker more attractive. Of the ETF's 29 components, 25 traded higher, and 12 hit fresh 52-week highs in intraday trade. Among the ETF's most-active components, shares of PPL Corp. (PPL) climbed 1.6%, of Southern Co. (SO) shot up 1.8%, of AES Corp. (AES) gained 0.6%, of Excelon Corp. (EXC) tacked on 0.9% and of NRG Energy Inc. (NRG) slipped 0.4%. The yield on the 10-year Treasury note fell 0.1 percentage points to a three-week low of 1.712%, after data showing only 38,000 new jobs were created in May, while 155,000 new jobs were expected. The ETF, which has dividend yield of 3.20%, according to FactSet, has run up 16% year to date, compared with a 2.4% gain in the S&P 500 (SPX) , as the yield on the 10-year Treasury note has dropped 0.557 percentage points.
09:00AMGold futures climb as jobs data put June rate hike in question ( GCQ6 ) by Carla Mozee
Gold futures pushed higher Friday after data showed the U.S. economy created a much lower-than-antipated number of jobs in May. Gold (GCQ6) for August delivery rose 2.1% to $1,237.60 an ounce. Silver futures (SIN6) also popped higher, up 2.1% at $16.36 an ounce. Just 38,000 nonfarm payroll jobs were created last month, the Labor Department said. Economists polled by MarketWatch had expected 155,000. The report put into question ?the possibility of an interest-rate increase by the Federal Reserve at its June meeting. A rate increase would put pressure on gold and silver as the commodities don't pay interest, sending investors looking for higher yields.
08:51AMFinancial stocks turns sharply lower after weak jobs report ( XLF JPM BAC WFC C GS ) by Tomi Kilgore
Financial stocks turned sharply lower ahead of Friday's open, after Treasury yields sank in the wake of a much weaker-than-expected May jobs report. The SPDR Financial Select Sector ETF (XLF) slumped 1.6% in premarket trade, after trading up 0.1% before the jobs report was released. Among the ETF's more heavily-weighted components, shares of J.P. Morgan Chase & Co. (JPM) shed 1.8%, of Bank of America Corp. (BAC) lost 2.8%, of Citigroup Inc. (C) slid 2.8%, of Wells Fargo & Co. (WFC) declined 1.7% and of Goldman Sachs Group Inc. (GS) gave up 1.9%. The yield on the 10-year Treasury note dropped 6.7 basis points to 1.744%, after the Labor Department said only 38,000 new jobs were created in May, below expectations of 155,000 jobs. Lower long-term yield can hurt bank earnings as they compress margins banks earn on loans.
08:43AMLong-term Treasury yields plunge to 2-month low after weak jobs report ( TMUBMUSD02Y TMUBMUSD10Y TMUBMUSD30Y ) by Ellie Ismailidou
Treasury prices soared Friday, pushing yields lower, following the release of May's official jobs report, which fell short of expectations, casting doubt on whether the Federal Reserve will raise interest rates later in June. The trend was most pronounced in short-term yields, which are most vulnerable to changes in rate-hike expectations. The U.S. created just 38,000 new jobs in May and hiring in the prior two months was weaker than originally reported. The number of new jobs was the smallest the economy has created since the fall of 2010. The yield on the 10-year note fell 7.3 basis points to 1.740%, the lowest level in three weeks, according to Tradeweb. A basis point is equal to a hundredth of a percent. The two-year yield tumbled 9.6 basis points to 0.795%, also a three-week low. The 30-year yield, also known as the long bond yield, was down 4.4 basis points to 2.543%, its lowest level since April.
08:42AMU.S. adds 38,000 jobs in May; unemployment falls to 4.7% by Jeffry Bartash
WASHINGTON (MarketWatch) - The U.S. created just 38,000 new jobs in May and hiring in the prior two months was weaker than originally reported, casting doubt on whether the Federal Reserve will raise interest rates later in June. The number of new jobs was the smallest the economy has created since the fall of 2010. Economists polled by MarketWatch had predicted an increase of 155,000 nonfarm jobs. The unemployment rate, in a surprising twist, fell to 4.7% from 5% to mark the lowest level since the month before the Great Recession began in December 2007. Yet the decline owed almost entirely to 458,000 people leaving the labor force. The labor-force participation fell for the second month in a row to 62.6%, the Labor Department said Friday. Average hourly wages climbed 0.2% to $25.59. Hourly pay rose 2.5% from May 2015 to May 2016. Employment gains for April and March, meanwhile, were reduced by a combined 59,000. The government said 123,000 new jobs were created in April instead of 160,000. March's gain was lowered to 186,000 from 208,000.
08:38AMDollar tumbles after surprisingly weak jobs report ( EURUSD USDJPY GBPUSD ) by Joseph Adinolfi
The dollar weakened Friday against its main rivals after official data showed jobs growth decelerated last month to its weakest level since late 2010. The euro (EURUSD) surged to $1.1348 after the data, its highest level in about two weeks, up from $1.1156 earlier. The dollar (USDJPY) fell to 107.87 yen -- its weakest level in nearly a month -- compared with 108.82 before the data. The pound (GBPUSD) climbed to $1.4523, compared with $1.4430 shortly beforehand.
11:04AMUtilities stocks surge as weak jobs data knocks down Treasury yields ( XLU SO PPL AES NRG EXC ) by Tomi Kilgore
The SPDR Utilities Select Sector ETF (XLU) surged 1.6% toward a record high in morning trade Friday, as the drop in Treasury yields in the wake of a weak May jobs report made the high-yielding sector tracker more attractive. Of the ETF's 29 components, 25 traded higher, and 12 hit fresh 52-week highs in intraday trade. Among the ETF's most-active components, shares of PPL Corp. (PPL) climbed 1.6%, of Southern Co. (SO) shot up 1.8%, of AES Corp. (AES) gained 0.6%, of Excelon Corp. (EXC) tacked on 0.9% and of NRG Energy Inc. (NRG) slipped 0.4%. The yield on the 10-year Treasury note fell 0.1 percentage points to a three-week low of 1.712%, after data showing only 38,000 new jobs were created in May, while 155,000 new jobs were expected. The ETF, which has dividend yield of 3.20%, according to FactSet, has run up 16% year to date, compared with a 2.4% gain in the S&P 500 (SPX) , as the yield on the 10-year Treasury note has dropped 0.557 percentage points. |
