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Stock futures fall slightly, Treasuries sink in reaction to strong jobs report

Yahoo Finance Live’s Jared Blikre breaks down how stock futures are reacting to the January jobs report.

Video Transcript


JULIE HYMAN: Yeah, on that front, I think we got-- usually we spend a little more time talking about this, but given the shocking number that we just got, Jared, I think we got to take it over to you and see what we're seeing in the markets here in reaction to that blowout number.

JARED BLIKRE: Sure thing, I'm watching the S&P 500 futures sell off a little bit but not as much as I might have thought, given the strength of that number. I have a three-day chart on here because I wanted to see the reaction to Powell and the FOMC. The Fed on Wednesday-- we know that the Fed doesn't necessarily like high stock prices and easy financial conditions going into its report.

And there was a lot of talk about and consternation about the fact that Powell didn't really push back against the risk on narrative that was prevailing. He said that a soft landing is not even his base case, it's kind of an outlier event. Nevertheless, markets decided to run with it.

So we'll see what's happening-- we see what's happening in the S&P futures. Let's take a look at NASDAQ. That's off just a little bit right here. And then let's get to the futures in the Treasury market, as well. So here's where we're seeing an outsized reaction, big, big move to the downside. Again, this is a three-day chart.

So here's where we began on FOMC day and we came back down and tested that. That's gonna be my reference point throughout the day. This is a 10-year, let's take a look at the 2-year where the action is. We can see that came down just about to the FOMC announcement time, as well. So we got a reference point for the two year. And this is what I'm gonna be tracking most of the day.

Here are gold futures. Gold off just a little bit. Here's copper. Copper down a little bit. But really, it looks like the market is expressing itself, its shock in the bond market and not necessarily equities here, at least equity futures.

JULIE HYMAN: Yeah, definitely that's what we're seeing, especially considering that round trip we have taken--

JARED BLIKRE: Yes, It didn't take long.

JULIE HYMAN: --from the Fed earlier in the week. Yeah, no it did not. Jared, thank you very much for that.