Market Week in Review

Will a weak U.S. jobs report delay Fed moves?

In this week’s market update:

  • Effect of weak U.S. jobs numbers and wage growth on U.S. Federal Reserve (the Fed) plans
  • Impact of indecision over Iran’s nuclear program on the markets
  • What is the future impact of a strong dollar on earnings?

On Market Week in Review, Chief Investment Strategist Erik Ristuben discusses the disappointing U.S. jobs report this morning, coming in far below expectations. He points out that the weak jobs numbers in conjunction with continued weak wage growth may push the Fed rate hike to occur more likely in September 2015 rather than June (as our global team of investment strategists have projected since 2010 – see our latest Q2 update here).

Ristuben also discusses the continued indecision over Iran’s nuclear program, pointing out that the geopolitical sense of the deal might not have a huge impact on the markets, yet rather could make oil supply more consistent; therefore putting some modestly downward pressure on oil prices.

Ristuben concludes this week’s episode on the recent rock-star performance of the U.S. dollar (relative to other developed- market currencies). He says while USD strength signals headwinds in the U.S., given exports are more expensive, the impact and potential future impact of a strong dollar affects the stock market as companies announce earnings. Communications and Social Media Manager Alexandra Davis hosts.

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