US Stocks Opens Higher on Jobs Week

Wall Street was set to open slightly higher on the first trading day of the month on Monday as investors await manufacturing data to further assess the health of the world’s largest economy.

Investors have been keeping a sharp eye on data after the U.S. Federal Reserve held monetary policy steady last week, and gave no signals that it was in a hurry to tighten further.

Economists polled by Reuters expect two increases this year but futures prices show traders do not expect rates to rise until late 2016, according to CME Group’s FedWatch.

Wall Street closed lower on Friday, with U.S. stocks marking their largest weekly drop in more than two months as corporate earnings continued to disappoint.

“I suspect for some stability to come in after the selloff in the last couple of days,” said Andre Bakhos, managing director at Louisville, Kentucky-based Janlyn Capital.

“Everyone is looking for doom and gloom, and we may get it at some point, but for the moment, it appears that there is a predisposition to buying.”

Oil prices retreated from the year’s highs as rising production in the Middle East outweighed a decline the United States.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza