U.S. jobs data was in the spotlight this morning, but in contrast to yesterday’s report, nonfarm payrolls painted a rather grim picture of the sluggish labor market. The news only exacerbated the growing list of concerns investors have of the already unsteady global economy. The combination of blaring red flags and poor economic indicators put major pressure on U.S. stocks this morning, sending them rather deep into red territory. As markets continue to be bombarded with less than cheery data, investors will likely keep a close and cautious eye on a number of economic reports slated to come out next week [see also 101 ETF Lessons Every Financial Advisor Should Learn].
This morning’s jobs report showed nonfarm payrolls growth improvement of 80,000 in the month of June, significantly lower than economists’ expectations of a 100,000 increase. Despite the unexpected change, the unemployment rate remained unchanged at 8.2% [see also July Edition Of ETF Edge Now Available].
Below we outline one ETF that has been impacted by today’s major headlines:
Invesco PowerShares DB USD Index Bullish ETF (UUP)
Poor U.S. jobs data pushed investors to seek their favorite safe haven investments today, including the greenback. Continuing its rally from Thursday, the dollar extended its gains and as such this ETF gapped significantly higher at open, only to surge higher throughout the morning. Currently UUP is up 0.7% (as of 11:55 July 6, 2012) [see our King Dollar ETFdb Portfolio].
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Disclosure: No positions at time of writing