stocks

Was yesterday’s strength the next step in the playbook, a rebound that sets course for new record highs? Or was the selling too orderly, leaving unfinished business?
Despite inflation running persistently hotter than the Federal Reserve’s target, Fed Chair Powell has insisted it’s transitory and has remained ever-patient.
Japan’s index is closing in on February’s high, the highest level since the 1990 crash. China’s Shanghai Composite is also at its highest since February, now up nearly 5% on the month and 12% since the July low.
In the U.S., we look to more news on the jobs front with JOLTs Job Openings for July due at 9:00 a.m. CT. Expectations are for the read to recede from June’s record of 10.07 million vacancies to 10.0 million.
The Nonfarm Payroll report certainly gave a lot to unpack: although August can be a wonky month, the impact from the rise of Covid-19 cases due to the Delta variant was clear.
It’s important to note the ongoing differences between the ADP private payrolls survey and the official Nonfarm Payroll report due this Friday. Over the last 3 months, CNBC noted an average difference of 337,000 jobs between the reports.
Although there’s been a clear deviation from the ADP Payrolls read and the official Nonfarm data, markets will certainly be paying attention.
Treasuries have traded lower on the news of House Democrats' massive budget and in anticipation of the added supply via today’s $61 billion in 5-Year Notes being auctioned. In our opinion, this could just be a start.
Goldman Sachs has pushed out their expectation for a Fed taper announcement to November or December due to Delta variant uncertainties.
Expectations have mounted for Fed Chair Jerome Powell to more clearly, if not officially, communicate a timeline to begin tapering the Federal Reserve’s monthly asset purchases at his Jackson Hole speech on Friday.