David Weston, Gupta, Bloomberg discussed on Balance of Power


This is ballots power on Bloomberg television and radio. I'm David Weston, we got those jobs numbers and at least the way I look at it, I'm not sure the equity markets like them very much. So we're going to turn to creating Gupta now to tell us what the reaction has been to these numbers. Yeah, so 263,000 new jobs added in September, the estimate was 255,000. It's only difference about 8000. That isn't to me at least on the surface level going to be a gigantic beat. Nevertheless, it was enough to send the stock market tumbling to the tune of drum roll please. 2.3% declines here in the NASDAQ about 3.3% as well. And the idea here is quite simple. I'm going to use terminology going back to some of the phrasing we used in 2020. Good news is now bad news for the stock market. So the idea here simply being it shows that there is still a lot of job momentum a lot of strength in the labor market that the Federal Reserve is going to have a very hard time kind of putting some slack into and that's something that the stock market is pricing in right now and the bond market might I add A380 five on the ten year yield only have about three basis points. It's been paired a little bit of the spike you saw off the data, but still nothing to scoff at. But the dollar necessarily goes up. It does. It follows the yields picture, but it's kind of come full circle. So now you're looking at a Bloomberg dollar index that's only up about two tenths of 1%, and you would think when you see that kind of volatility in the dollar space, you would have the ripple effects into the commodity market. And right now, it's kind of a split picture because you're having a literal inverse movement to copper into gold, but not into crude, which is where you see the biggest move, Brent crude at a 98 handle, and almost 5% move on the day for nymex crude. Okay, in the meantime, one of the big stories here in the United States are chips. We've been talking about not having enough chips for the longest time. Now maybe we have too many. Yeah, well we were just talking about commodities. That was the macro trade du jour, but so was the chips trade essentially in 2021. If you were worried about inflation, the supply chain crunch, all you had to do was buy a basket of commodities, buy some chip stocks and you were set and even now you can see that in some of the winning hedge fund strategies that's been the strategy they've used. But overnight, David, we've got some not so great numbers coming out of Samsung and operating margin that's dropped by get this 32% Advanced Micro Devices talking about a $1 billion sales miss. The idea here simply being that there is going to be weakness in a market that's very cyclical and also dealing with a lot of geopolitical tensions as the Biden administration looks to restrict the export capacity. It's an important point more in the demand side than the supply side. Well, I think it's a mix of not going to need as many. Microchips. Thank you so much to Gupta. You can catch pretty again at 1 p.m. Eastern Time, which will be anchoring Bloomberg markets. Coming up deputy treasury secretary Wally

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