Although most US-listed stocks rallied prior to Trump’s upcoming speech set to reveal more political policy plans of his administration, most markets shifted their focus on the upcoming US jobs data set to be released this week, which is expected to go up by 1,000 from the previous report of 244,000 to 245,000 while US Federal Service Chairwoman Janet Yellen is set to make another speech this Friday.
Increase In Jobless Claims
Although estimates for the upcoming jobless data have risen, the numbers remained low enough for the markets to raise their optimism as US stocks are expected to surge further on Friday.
Numbers rose more than expected for the citizens who continued to file for unemployment benefits last week, although the estimated total is currently at its lowest level since 1973, which can be accounted for by the improving labor market conditions.
According to the data released last week, this is the 103rd week in a row that the numbers have fallen below 300,000, which translates to some as a healthy labor market. Meanwhile, the unemployment rate is at 4.8%.
Currently, the four-week moving average for unemployment filings has fallen 4,000 last week, although the financial sector seemed unmoved by the information. Back in January, more than 200,000 jobs were reported to have been added by employers.
Aside from the employment data’s effect on US stocks, the markets are also awaiting more information or hints from the Federal Reserve to when the next interest rate hikes will be given and how a better labor condition in the country could speed up the next interest rate hike implementation.
Stocks Close Higher Prior To Trump Speech
US Stocks hit new highs on Monday despite the US dollar and US Treasuries retreated lower in the midst of President Donald Trump’s upcoming speech which might give clues to his administration’s next moves for the country.
Steel and other manufacturing material sector rose following Trump’s plans to increase infrastructure spending heavily as the Dow Jones Industrial Average hovered over its biggest and longest rally in the past three decades. For the first time in the past four days, 10-year treasury yields also rallied. Aside from Trump’s plan to focus on infrastructure spending, he also stated that tax details of the projects would not be made any clearer until the Affordable Care Act repealing costs are known.
Currently, US equities are seen to be the most sensitive to Trump’s actions and comments as the White House is also set to release its first budget prior to Tuesday’s speech.
Among the biggest performers on the Dow was Boeing (NYSE:BA), Caterpillar (NYSE:CAT) and UnitedHealth (NYSE:UNH) on Monday as the index recorded a record high streak similar to a 12-day run recorded back in 1987.