Welcome to Extreme Investor Network, where we provide unique insights and analysis on the stock market, trading, and all things Wall Street. Today, we are diving into expert views on the US labor market and the implications for the economy.
According to Wall Street Journal Chief Economics Correspondent Nick Timiraos, recent revisions by the US Bureau of Labor Statistics have shed light on the state of the economy. The revisions show that the economy added 818,000 fewer jobs than previously reported over the past 12 months, leading to a lower monthly payroll gain average. This revision to the employment level is the largest since 2009, signaling a shift in job growth trends.
Looking ahead, economists are closely watching the S&P Global Services PMI, expecting a decline from 55.0 in July to 54.0 in August. As the service sector contributes over 70% to GDP, any slowdown in activity could impact investor expectations of a September Fed rate cut. Keep an eye on employment and price subcomponents as well, as trends in job creation rates and input prices could influence future rate decisions.
In terms of the DAX and other market indicators, the near-term outlook will be influenced by US labor market data and private sector PMIs. Weaker figures may fuel bets on rate cuts from central banks like the ECB and Fed, driving demand for DAX-listed stocks. However, a sharp decline in Services PMIs and a rise in jobless claims could reignite recession fears, negatively affecting the DAX.
Technical indicators for the DAX show a bullish trend, with the index hovering above the 50-day and 200-day EMAs. A breakout above 18,500 could lead to a push towards 18,750 and potentially the all-time high of 18,893. On the flip side, a break below the 50-day EMA could signal a bearish trend towards the 18,000 handle and the 17,615 support level.
Stay informed with our latest news and analysis to effectively manage your risks in today’s volatile market environment. Keep an eye on Services PMIs, US labor market data, and central bank commentary to make informed trading decisions. Extreme Investor Network is your go-to source for expert insights and valuable analysis to stay ahead of the curve in the stock market.