US Dollar Index reached a seven-month high
The US Dollar Index measures the strength of the US dollar against a basket of six currencies. It reached a seven-month high on November 6, 2015. The labor data for October exceeded all of the expectations. The US Dollar Index reached a high of 99.3 before closing the day at 99.2. It rose 1.3% for the day.
The week saw the US dollar strengthening. It was mainly due to the comments from Fed Chair Janet Yellen. It also rose due to labor data. The positive data strengthen the case for a liftoff in interest rates in the FOMC (Federal Open Market Committee) meeting scheduled in December. The US Dollar Index rose 2.3% for the week ending November 6, 2015.
Non-farm payroll reached the highest level since May
The U.S. Bureau of Labor Statistics published the labor data for October. It released the NFP (non-farm payroll) at 271,000. This was well above the forecasts of 180,000. The jobs mainly rose in sectors like business services, healthcare, and retail trade. The employment in the mining industry continued the downtrend. It shed another 5,000 jobs in October. Also, the unemployment rate came out at 5% in October—compared to 5.1% in September. The average earnings were also positive. The earnings rose by 0.4% in October.
Impact on the market
The SPDR S&P Metals and Mining ETF (XME) fell 0.93% on November 6, 2015, after the non-farm payroll numbers showed a negative outlook for the mining industry. The SPDR S&P Retail ETF (XRT), a retail sector fund, was also slightly weak. It fell 0.84% on November 6.
The better-than-expected unemployment numbers, except in the mining sector, meant that some other sectors like technology rose as well. Motorola Solutions (MSI) rose 0.91%. Energy-related stocks were on a negative bias. Murphy Oil (MUR) and Devon Energy (DVN) fell by 0.58% and 1.3%, respectively.