Markets: The tepid August payrolls report served to dampen rate hike fears, as the market turned positive on Friday. Small caps continued to lead. The market has gone 40 sessions now, without a move bigger than 1%.
Dividend Stocks Update: These high dividend stocks go ex-dividend this coming week: Global Net Lease (NYSE:GNL), New Senior Investment Group (NYSE:SNR), Fidus Investment Corp (NASDAQ:FDUS), Garrison Capital Inc (NASDAQ:GARS), Iron Mountain Incorporated (NYSE:IRM).
Volatility: The VIX fell 21% this week, finishing at $11.98, its lowest point in over a year.
Currency: The US dollar rose vs. most currencies, except the Canadian and New Zealand dollars.
Market Breadth: 21 of the Dow 30 stocks rose this week, vs. 7 last week. 71% of the S&P 500 rose this week, vs. 36% last week.
US Economic News: Total nonfarm payroll employment rose by 151,000 in August, compared with an average monthly gain of 204,000 over the prior 12 months, and was also below the 180K forecast. Employment continued to trend up in several service-providing industries, including professional and technical, financial, food service, social assistance, and health care. The unemployment rate held steady at 4.9%, and July’s report was revised upward by 20K, to 275K.
The lower employment figures most likely eliminated any chance that the Fed will raise rates at its September meeting.
The June Construction Spending report was revised upward, to .9%, vs. the initial -.6%
Week Ahead Highlights: The G20 summit continues…the ECB issues its interest rate decision…Apple (NASDAQ:AAPL) is expected to issue new versions of its iPhone and Watch. It’ll be a short week, with US markets closed for the Labor Day holiday on Monday.
Next Week’s US Economic Reports:
Sectors and Futures:
The Financial sector led this week; Energy and Healthcare lagged.
Crude Oil led over the past trading month, while Oats lagged:
