Lackluster Jobs Data Crushes Stocks, Crude

Posted by Kelly Burke on Sep 4, 2015 12:19:25 PM

Stock market numbers on a digital display board

CRUDE, ULSD, and RBOB are all trending downwards today in tandem with the Stock Market, after a less-than-robust Jobs Report out this morning. The report showed that the US added 173,000 jobs in August, a relatively far cry from the 220,000 anticipated (hoped for?) by the markets and economists.

According to some analysts, since the official unemployment rate fell to 5.1%,  the report is seen as potentially strong enough to push the Fed into following through with a September rate hike which accelerated sell offs. According to others, lackluster global economic signals are pushing the selling. I find the second assertion is more likely, but either way, the market looks poised to drop 3% on the week.

The past few weeks have seen wild volatility on Crude as well as the Stock Market. As the Wall Street Journal pointed out today - the close Tuesday marked 4 straight days of commodities trading with swings of at least 6% up or down in a row. For example, Monday for October closed up +.1101 on ULSD, and +.1020 on RBOB, then Tuesday more than erased those gains, closing out -.1233 on ULSD and -.1035 on gas. 

With the production level battles still ongoing with OPEC between the so-called "Fragile Five" and the Saudi's which so far hasn't had any curbing impact on output, and a lack of any real bright spots in the global economy, it's more probable than not that we will continue to see serious volatility for the time being. 

Stay tuned!

 

Read More

Topics: Weak Jobs Report, CRUDE, OPEC, stock market, Jobs Report

Dollar Surges, Nymex and DOW plummet

Posted by Mark Pszeniczny on Aug 4, 2011 5:17:00 PM

The trend is definitely your friend!  As bearish tones continue to make tsunami like waves throughout the market, commodities took a beating along with the entire equity complex today.  The DOW fell a massive 3% on continued fears of a weaker than expected US economic picture.  The dollar soared higher today against the foreign basket as the European Central Bank bought bonds in an attempt to ward of a debt crisis taking over the region.  A weaker jobs outlook also played heavily into the mentality of traders today that had most running to book profits as quick a they could.  As fears of the dreaded double dip recession continue to make their way to the front page, Markets across all lines have taken huge hits.  I must say, from an end user perspective, this is OK.  The major hurdle for the Country to leap over  and to finally overcome the recession has been higher fuel prices.  Without a less expensive way for Americans to go from place to place, ship goods,  heat their homes, etc. etc. ,it is impossible to even think to believe we are in a better place.  It all starts with lower fuel pricing.  The key now is for these levels to maintain for a reasonable amount of time, if not fall further.  Demand will be a central player in the equation "where do we go from here" .  At the close, Crude fell $5.30 to $86.63, HEAT dropped .1250 to $2.8939 and RBOB lost a staggering .1941 to $2.7372.  Expect to see a buy back on Friday with Monday's action setting the tone for the remainder of the summer.

heat chart

RBOB CLOSE
                 CLOSE       CHANGE 
  
SEP    27372       -.1941
OCT    26288      -.1763
NOV    26120      -.1659
DEC   26049       -.1605
JAN    26100       -.1593
FEB    26239      -.1587
HEAT CLOSE
          CLOSE    CHANGE
SEP    28939     -.1250
OCT   29048      -.1270
NOV    29169      -.1293
DEC   29293      -.1308
JAN   29416       -.1319
FEB   29424       -.1324
Read More

Topics: Weak Jobs Report, Double Dip Recession, Dow falls 3%, S&P Downgrade, Dollar Strengthens

Weak Jobs push Markets south, destroy extended rally

Posted by Mark Pszeniczny on Jun 4, 2010 9:24:00 PM

The sideways action continues as a healthy correction has once again seen buyers run for the hills. On the heels of healthy construction spending and new home sales, and some bullish inventory numbers, the Jobs data that was released today wiped away any chance of an extended rally. Most were expecting healthy increases in jobs but once the census workers were removed from the data, jobs actually were flat, setting off a firestorm of selling in all markets. The Dow was down over 300pts and the Euro continues to get hammered against the greenback. Short term, the prompt HEAT contract in the $1.85 to $1.95 range looks still to be defining the 5 to 7 o’clock hour on the clock. Anywhere in this range appears to bring out the buyers. Longer out is going to heavily depend on demand and when OPEC feels the need to jump in. At the Close, HEAT fell .0814 to $1.9577, RBOB lost .0859 to $1.9953 and Crude lost $3.10 to $71.51. The prevention of the magical third up day has most assuming the sideways action or range bound trading will continue.

Read More

Topics: Weak Jobs Report, HEAT, The Market, OPEC

Recent Posts

Posts by Topic

see all