Stocks recover in wake of strong NFPs
|The US continues to claw back lost jobs, adding 1.7 million in July, and helping stocks to edge higher as the week begins to wind down.
- Non-farms report banishes memories of Wednesday’s ADP miss
- Focus now on stalling consumer activity
- Rightmove sees remarkable recovery in traffic
US stocks are clawing back early losses while European indices are making some headway in the wake of a positive jobs report. The president’s ‘crystal ball’ proved to be correct, perhaps unsurprisingly, and the headline non-farms figure beat forecasts, knocking the ADP miss out of investors’ minds. Wages also rose, and the unemployment rate dropped. All this is welcome, but the US economy has much further to go before it makes a full recovery, and with other measures such as small business activity and credit card spending plateauing investors know that there is much more work to be done. At least things aren’t getting much worse however, and the focus on both sides of the Atlantic will remain on how to move back to a more normal mode of life, which is still the most important thing for financial markets.
For practically every firm, survival is the main focus at present. Rightmove is no exception, and while the decision to cut fees hit performance, it did ensure that only a small fraction of members were lost. A remarkable rebound in activity has also given investors reason for cheer, and they will be content to forgo their dividends for the time being. Of course, much remains uncertain, but Rightmove seems to be making all the right moves for the time being.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.