Market Update: Thursday, June 9, 2016


  • Equities and oil lower; global growth back in focus. The three-day win streak for the S&P 500 is in jeopardy as investors weigh a surprise rate cut from the Bank of Korea and the jobless claims report. WTI crude oil and equities are moving lower in tandem this morning. This comes on the heels of a record high close for the year in both the S&P 500 (+0.3% to 2119.12) and crude oil. Investors seeking safety overnight boosted the yen; Japan’s Nikkei Index slipped 1% and the Shanghai Composite finished with a more modest loss. Weakness is also present in Europe with many exchanges down around 1% in afternoon trade. Elsewhere, COMEX gold sits unchanged after yesterday’s rally and the yield on the 10-year note has fallen to 1.67%.


  • JOLTS provides more upbeat picture of labor markets. The Job Openings and Labor Market Turnover Survey (JOLTS) for April signaled the potential for continued labor market strength, although the one-month lag in the report’s release means that the survey took place before the period covered by last week’s weak May jobs report. Job openings (5.8 million) and wage growth both accelerated to post-recession higher, while quits as a percent of separations remained near highs. The report increases the likelihood that the Federal Reserve Bank’s (Fed) “dot plots” projection at next week’s policy meeting will remain at a forecast of two rate hikes in 2016.
  • Jobless claims signal still healthy labor market. New jobless claims for the period ending June 3 provided additional evidence of a potentially healthy labor despite the unusually weak May jobs report. Claims fell 4,000 to 264,000, below expectations (270,000) and a six-week low. Continuing claims, which are lagged a week, fell sharply and are now at the lowest level since October 2000. While the Fed watches a broad range of labor market indicators, claims data will help alleviate concerns about a deteriorating labor market and will likely keep the Fed on track for two rate hikes in 2016.
  • Over the last month, the LPL Financial Current Conditions Index (CCI) rose 8 points to 184. The CCI remains near the low end of its range for the current expansion, indicating the economy may still be experiencing below-trend growth. A rebound in shipping traffic and a declining VIX (a measure of market volatility) were the primary drivers of the increase, while a rise in jobless claims was the main detractor. View the CCI.



  • Flow of Funds (Q1)
  • ECB’s Draghi Speaks in Brussels
  • China: Money Supply and New Loan Growth (May)

Click Here for our detailed Weekly Economic Calendar

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