Market Recap 1st Oct 2015 – Was THIS the calm before the storm?

By Markus Heitkoetter

With tomorrow’s Jobs Report release and a big day yesterday, you’d think that markets would be pretty quiet. And if you look solely at the end of day stats, you’d think this was the case.

But don’t let today’s end of day numbers mislead you…it was a WILD ride today!

In overnight trading, the E-Mini S&P was up 1.2%. But it was all downhill from there. The E-Mini S&P actually lost 2.0% before finding support in the afternoon. It then took another 1%+ rally to get back to breakeven for the day, before finally ending the session slightly higher.

The S&P finished with a 0.2% gain. Adding 4 points, the S&P ended the day at 1923.82. After making session lows during the lunch hour, the S&P found support at 1900 before an afternoon advance.

The DOW ended the day with a 0.1% drop. Losing 13 points, the DOW finished at 16272.01.

The NASDAQ was higher with a 0.2% increase. Up 7 points, the NASDAQ closed at 4627.08.

Weekly Unemployment Claims did little to stir the market. The report showed that claims increased to 277,000 from 267,000. But the increase was essentially in line with expectations based on a forecast of 273k claims.

Meanwhile, ISM Manufacturing PMI came in lower than expected with a reading of 50.2. Although lower than forecast, readings above 50 are considered to be industry expansion. The initial reaction to the report was negative. But after the report the indices traded in a range until a sell-off that made session lows during lunch.

Tomorrow brings us the closely watched Jobs Report at 8:30am ET. The report includes Average Hourly Earnings, Non-Farm Employment Change, and the Unemployment Rate.

The monthly employment report is always a big event. But since unemployment is one of the key metrics the Fed is using to time a rate increase, tomorrow’s report will probably attract even more attention.

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