Last Week's Close

E-mini S&P 500 (June): Settled at 4225.25, up 31.00 on Friday and 51.75 on the week

E-mini Nasdaq-100 (June): Settled at 13,709.75, up 112 on Friday and down 140.25 on the week

Friday’s jobs report, or lack thereof, was a surprise to everyone. Many could’ve predicted a bad number, but not by nearly 900,000 jobs. Yes, when you combine April’s whiff and March’s revision, Friday’s Nonfarm Payroll report was the largest miss in history, by 858,000 jobs. 

What does it mean? It certainly signals that there’s more work to be done in this recovery than was thought a week ago; it also overshadows hopes of a larger stimulus that deters individuals from needing to work. More than anything, for now, it certainly suppresses the taper talk. 

Although Treasuries struggled to hold gains and the 30-Year Bond actually finished in the red due to the expectations of risk-on, the U.S. Dollar Index plunged by 0.75%. With the prospects of a Fed taper now on hold, U.S. Dollar weakness remains one of the most relevant themes. For the last 12 months we’ve coined the U.S. Dollar as the sacrificial lamb to the global economic rebound. Is this the start of a fresh leg lower for the U.S. Dollar? The next couple days will help bring answers and we’re eager to hear how the Fed is digesting Friday’s report.

Chicago Fed President Charles Evans, a 2021 voter, is scheduled to speak at 1:00 p.m. CT. We may hear chirps from others off of the schedule today, but tomorrow brings a longer list of scheduled speeches. This includes NY Fed President John Williams and Fed Governor Lael Brainard, as well as other 2021 voters.

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