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The major market averages opened Monday trading to the top following the strong rally that ended last week.
Early on and the Dow (DJI) picked up 0.4%S&P 500 (SP500) increases higher by 0.8%and Nasdaq Composite (COMP.IND) increase by 1.5%.
“Friday’s US jobs report will be revised, but the evidence could be a signal of some economic weakness to come,” wrote UBS’s Paul Donovan. “The US has experienced very negative real wage growth – even ignoring fictional prices such as owner-equivalent rent. Consumers have supported living standards using credit. use and save.”
“If savings and credit sources disappear, in the absence of bargaining power, consumers may have to work harder to stabilize their living standards,” Donovan added. “That breaking point may have been reached. Employment participation rates have increased, especially in lower-income areas (this is one of the reasons why average hourly earnings are slowing)” The proportion of people with multiple jobs has surpassed pre-pandemic levels. Higher prices may be changing behaviour.”
The ratio is mixed. The yield on the 10-year Treasury note (US10Y) increased by 1 basis point to 3.58%. 2 year yield (US2Y) 2 basis points lower to 4.24%.
The economic and earnings calendar is fairly easy to start the week but picks up pace after that with December CPI reports due on Thursday and major banks results on Friday.
Among positive stocks, Alibaba rises later Jack Ma cedes control of Ant Group.
