Sept 10. One week until FOMC announcement
–JOLTS data was higher than expected, showing impressive job openings of 5.75m, however, the ratio of hires to openings continues to make new lows. There was a lot of press coverage on Chipotle’s plan to hire 4000 workers in a day, but colleague Tim Dibadj noted that Lockheed Martin is cutting 500 information service jobs. I wonder which ones are higher paying.
–Brazil cut to junk by S&P. New Zealand cut rates, joining Canada and others on rate increase reversals. Japan’s Nikkei fell 2.5%, reversing some of Wednesday’s explosive 7.7% rally. Amazing that with Japan’s surge, US stocks couldn’t manage to hold on to early gains with SPX closing down 1.4%. Some are blaming AAPL’s underwhelming product presentation as a reason for late selling.
–A good ten year auction sparked a spirited rally from new lows in treasuries, though those gains are being trimmed this morning. New lows in some one-year ED calendars, first two reds to first two greens; EDU16/EDU17 -2.5 bps to just 60.5. Thirty year auction today wraps up this week’s refunding.
–Today’s news includes Jobless Claims expected 275k. Also Import and Export prices, expected -0.4% and -1.6%. Sept midcurve option expiration in eurodollars tomorrow. Red, green, blue and gold Sept atm straddles all settled 7.0 to 7.5 bps.
