What is it? Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity.
When? At 8:30am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the CAD to rise.
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Tomorrow (Friday) the Non-Farm Payrolls will be announced. Here is what you need to know:
Non-Farm Payrolls (NFP) Employment Change is a vital economic data released shortly after the month ends. The combination of importance and earliness makes for hefty market impacts. Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity. Change in the number of employed people during the previous month, excluding the farming industry.
The Announcement is set to make big impact on trading markets, especially on USD/EURO in FOREX market, and Gold and Silver in the Commodities market.
This specific announcment is going to be even bigger for the U.S economy, if it goes well it will indicate that the U.S economy is getting stronger and healthier and will raise the chance for a rate hike by the U.S Federal Bank.
So be sure to speak with one of our agents to ask them how can you profit from tomorrow's crucial announcment.
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1. U.S. stocks indexes moved higher on Thursday morning, boosted by strong results from Facebook (O:FB) and as financial stocks rose on the possibility of a rate hike next month.
Facebook shares rose 5.3 percent to a record high of $109.44 after the company's quarterly results beat estimates. The stock gave the biggest boost to the S&P 500 and Nasdaq.
2. Oil prices extended losses from the prior session on Thursday, as the ongoing glut in global supplies continued to weigh on the commodity.
Crude oil for delivery in December on the New York Mercantile Exchange shed 29 cents, or 0.63%, to trade at $46.04 a barrel during U.S. morning hours.
3. New U.S. applications for unemployment benefits last week recorded their largest increase in eight months, but remained at levels consistent with a fairly healthy labor market.
Initial claims for state unemployment benefits rose 16,000 to a seasonally adjusted 276,000 for the week ended Oct. 24, the Labor Department said on Thursday. It was the largest weekly gain since late February.
4. The pound extended losses on Thursday, falling more than 1% against the dollar after a dovish Bank of England quarterly inflation report signaled that interest rates are likely to remain on hold for an extended period.
GBP/USD was last down 1.04% to 1.5225, the weakest since October 13 from around 1.5389 earlier.
5. U.S. nonfarm productivity unexpectedly rose in the third quarter as a decline in self-employed workers contributed to overall hours worked falling for the first time in six years, restraining labor-related production costs.
The Labor Department said on Thursday that productivity, which measures hourly output per worker, increased at a 1.6 percent annual rate after increasing at an upwardly revised 3.5 percent rate in the second quarter.
6. The U.S. dollar rose against its Canadian counterpart on Thursday, as expectations for a December rate hike in the U.S. continued to support despite the release of disappointing U.S. jobless claims data.
USD/CAD hit 1.3181 during early U.S. trade, the session high; the pair subsequently consolidated at 1.3175, adding 0.20%.
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Earnings continue to dominate the market agenda on Thursday.
U.S. stock futures set to positive open.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Stock market movers
Takata shares closed another 25% lower in Tokyo. Mitsubishi and Mazda (MZDAF) are reportedly considering severing their relationships with the airbag maker. The reports come a day after Honda said none of its new models under development would use Takata (TKTDY) airbag inflators.
Facebook (FB, Tech30) posted an attractive 11% earnings boost. It announced that most people are now using Facebook on their mobile phones, cementing its domination of the coveted mobile market. Its stock is up more than 4% in premarket trading.
Qualcomm (QCOM, Tech30) is suffering premarket with its shares down 6%. It posted better than expected results Wednesday, but investors were shaken after it announced a weak outlook for the current quarter and said it would no longer issue guidance about its annual earnings.
Whole Foods (WFM) reported its same-store sales were negative last quarter, sending its stock down 6% in premarket.
Adidas (ADDDF) shares are popping 5% in Germany. On Thursday it posted positive third quarter results, sales and earnings were up in almost all global markets and the sportswear company has raised its full year guidance.
2. Earnings
AstraZeneca (AZN), Crocs (CROX), Ralph Lauren (RL), Martha Stewart (MSO), Time (TIME) and tech firm Symantec (SYMC) are posting earnings before the bell. After the close, Dreamworks Animation (DWA DREAMWORKS), Walt Disney (DIS) , TripAdvisor (TRIP), Weight Watchers (WEIGHT WATCHERS WEIGHT WATCHERS), Kraft Heinz (KHC), and Shake Shack (SHAK) will report.
Investors will want to see if Oprah Winfrey's backing of Weight Watchers (WEIGHT WATCHERS) is paying off. The media mogul has already done well from the deal -- she gained around $72 million in the 36 hours after buying 10% of the company as its shares surged.
Ralph Lauren's earnings mark the end of an era. Founder Ralph Lauren announced in September that he would step down as CEO. Former Old Navy President, Stefan Larsson took over as CEO this month.
3. Economics
On Wednesday Federal Reserve Chair Janet Yellen suggested interest rates could go up in December but said they would likely rise slowly from then on.
Weekly U.S. unemployment data is out at 8:30 a.m., a day ahead of the government's monthly jobs report.
4. Markets overview and recap
European markets are down in early trading, while Asian markets ended mixed with the Nikkei and Shanghai Composite ending with strong gains. On Wednesday, the Dow Jones industrial average shed 0.3%, while the S&P 500 was down 0.4% and the Nasdaq dropped 0.1%.
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What is it? It provides valuable insight into the bank's view of economic conditions and inflation - the key factors that will shape the future of monetary policy and influence their interest rate decisions.
When? At 7:30pm Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the AUD to rise.
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What is it? Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy.
When? At 8:30am Eastern Time.
Trading Tip: If the actual number is lower than the forecast, you can expect the USD to rise.
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What is it? As head of the central bank, which controls short term interest rates, he has more influence over the nation's currency value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy.
When? At 7:45am Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the GBP to rise.
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What is it? Short term interest rates are the paramount factor in currency valuation - traders look at most other indicators merely to predict how rates will change in the future.
When? At 7:00am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the GBP to rise.
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What is it? It provides valuable insight into the bank's view of economic conditions and inflation - the key factors that will shape the future of monetary policy and influence their interest rate decisions.
When? At 7:00am Eastern Time.
Trading Tip: This announcement can greatly affect the GBP so make sure to follow it!
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Federal Reserve Chair Janet Yellen Said at todays’ testament that the U.S. economy is performing well, and told Congress that a rate hike at its meeting next month is a "live possibility."
Her remarks largely echoed the Fed's statement after a meeting last week that said the central bank will act if the economy and labor market continue to improve. The Fed has not raised its benchmark rate in nearly a decade and it has been near zero since the 2008 financial crisis.
Yellen told the House Financial Services Committee that if the economy advances as the Fed expects over the next six weeks, a rate increase at its December 15-16 meeting "will be a live possibility."
She added, however, "No decision at all has been made on that."
Job growth has slowed recently and the economy grew just 1.5% at an annual rate in the third quarter. But that largely was a result of weak exports due to the strong dollar, while consumer spending, which means more than two thirds of the economy has increased at a healthy rate.
"At this point, I see the US economy as performing well," Yellen told the committee during her semiannual testimony on financial regulation. "Domestic spending has been growing at a solid pace."
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1. Wall Street opened slightly higher on Wednesday after a report showed that the private sector added more jobs than expected in October.
The Dow Jones industrial average (DJI) was up 34.61 points, or 0.19 percent, to 17,952.76. The S&P 500 (SPX) gained 2.76 points, or 0.13 percent, to 2,112.55 and the Nasdaq Composite index (IXIC) added 11.08 points, or 0.22 percent, to 5,156.20.
2. The dollar pushed higher against the other major currencies on Wednesday, as the release of strong U.S. employment and trade balance data boosted optimism over the strength of the economy.
The dollar was higher against the yen, with USD/JPY up 0.26% at 121.38.
3. U.S. private employers added 182,000 jobs in October, a tick above economists' expectations, a report by a payrolls processor showed on Wednesday.
Economists surveyed by Reuters had forecast the ADP National Employment Report would show a gain of 180,000 jobs.
Private payroll gains in September were revised down to 190,000 from an originally reported 200,000 increase.
4. The U.S. trade deficit narrowed sharply in September to its lowest level in seven months as exports rebounded, a tentative sign that the worst of
the drag from a stronger dollar may be over.
The Commerce Department said on Wednesday the trade gap fell 15 percent to $40.8 billion, the smallest deficit since February. Lower crude oil prices also helped to curb the import bill.
5. Euro zone private business growth remained tepid last month but activity in China's services industry expanded at its fastest pace in three months, easing concerns about persistent weakness in its economy, surveys showed on Wednesday.
There was little sign the European Central Bank's massive stimulus program was boosting economic activity or price pressures in the bloc, and the survey showed firms returned to price-cutting last month to drum up trade.
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At 8:15 a.m. ET, ADP Research Institute will release its report on America's employment situation during October.
Economists forecast that the report will show the US economy added 180,000 private payrolls last month according to Bloomberg, down from 200,000 in September.
Some economists have warned against using this report as a preview or forward indicator of the official jobs report, which the Bureau of Labor Statistics will publish on Friday.
There are just two more jobs reports to go before the Fed's meeting in December, and the Fed is looking for labor market improvement before it possibly raises rates next month. So the October and November jobs reports will be quite crucial.
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Car-related topics are being watched today, from scandal fallout through luxury brands to the price of oil.
U.S. stock futures are edging higher, and global markets are firm.
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Volkswagen crashing
Volkswagen (VLKAY) shares are plunging again, this time after the company said it had understated CO2 emissions and fuel usage for about 800,000 vehicles. It said most, but not all, of the cars affected have diesel engines. That news broke the day after VW disputed a claim by U.S. regulators that the diesel emissions scandal had spread to some Porsche Cayenne models.
Takata (TKTDY) shares closed down over 13% after Honda (HMC) announced it was dumping its longtime supplier over its deadly airbags. Takata is also facing fines of as much as $200 million in the U.S. over the exploding airbags.
Bucking the trend, Hyundai (HYMTF) closed higher in Korea after the car maker announced it is launching a global luxury brand called Genesis.
2. More market movers
Japan Post Holdings surged 26% after its mega IPO, which also saw its banking and insurance subsidiaries go public. It helped Japan's Nikkei index rise over 1%.
In London, Burberry (BBRYF) shares are up after it announced it is combining its brands under a single Burberry label. It also announced it's investing $77 million in a new factory for its trademark trench coats.
Tesla (TSLA) shares shot up more than 11% in after-hours trading. The electric car company reported revenue below expectations but said there is "growing demand" for energy-storing batteries and its vehicles. CEO Elon Musk said the company is poised for a banner year in 2016.
3. Earnings
Allergan (AGN), 21st Century Fox (FOX), Sodastream (SODA), Wendy's (WEN) and CNN's parent company, Time Warner (TWX), report before the bell.
After the close Facebook (FB, Tech30), King Digital (KING), BlackRock (BLK), Qualcomm (QCOM, Tech30), Whole Foods (WFM) and cyber security firms AVG Tech (AVG) and FireEye (FEYE) will post their earnings.
4. Economics
Markets will be keeping a close eye on oil prices as U.S. crude inventory data will be published at 10.30 a.m. Last week inventories increased more than analysts predicted.
The ADP will post its non-farm private employment report for October.
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What is it? As head of the central bank, which controls short term interest rates, she has more influence over the nation's currency value than any other person. Traders scrutinize her public engagements as they are often used to drop subtle clues regarding future monetary policy.
When? At 10:00am Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the USD to rise.
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What is it? It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.
When? At 10:00am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the USD to rise.
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What is it? As head of the central bank, which controls short term interest rates, he has more influence over the nation's currency value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy.
When? At 5:25pm Eastern Time.
Trading Tip: If the announcement will hint towards higher interest rates, you can expect the AUD to rise.
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What is it? Export demand and currency demand are directly linked because foreigners must buy the domestic currency to pay for the nation's exports. Export demand also impacts production and prices at domestic manufacturers.
When? At 8:30am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the USD to rise.
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What is it? Export demand and currency demand are directly linked because foreigners must buy the domestic currency to pay for the nation's exports. Export demand also impacts production and prices at domestic manufacturers.
When? At 8:30am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the CAD to rise.
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