Markets Absorb FOMC and Unemployment

May 4, 2018 10:39AM CDT

NonFarm PayrollAs of Friday morning, markets are finishing a week which included both the results of the last Federal Open Market Committee and the April US employment report.  The week also included a number of other numbers from the Eurozone and earnings from S&P 500 companies.

Today’s employment report showed a payroll number in range with consensus estimates with a rate of 3.9%, the lowest level in two decades.  The FOMC announcement also had the expected decision to hold rates at the 1.5-1.75% range, with Fed Funds futures, the Fed dot plot and Fed speak still eyeing another rate hike at the next meeting.

While a healthier and more flexible rate environment and decades low unemployment would have thought to be positives, the markets seem to have already factored in the news and may be looking ahead or elsewhere at a number of other factors.

Certainly inflation, geopolitical and international trade concerns as well as a number of other factors are front and center amid such positive reports.

For instance, the late January highs in equity indices have yet to be tested as the interest rates and oil prices trade near multi-year highs.

RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that RJO Futures believes to be reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgement at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.

Distribution in some jurisdictions may be prohibited or restricted by law. Persons in possession of this communication indirectly should inform themselves about and observe any such prohibition or restrictions. To the extent that you have received this communication indirectly and solicitations are prohibited in your jurisdiction with registration, the market commentary in this communication should not be considered a solicitation.