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Will the Boost from Jobs Data Help Financial ETFs this Week?



Markets turned bullish last week

Bulls dominated US markets last week, and 2016 losses have been nearly erased. Recent economic data have eased fear of a recession in the United States (SPY). Payroll data released last week further alleviated fear of a recession. For the month of February, non-farm payrolls rose by 242,000, which was significantly higher than the increase of 172,000 in January. The unemployment rate remained unchanged at 4.9%. Average hourly earnings fell 0.1% month-over-month and 2.2% year-over-year in February. A better-than-expected jobs report also raised concerns of a rate hike in 2016. The Fed is scheduled to meet on March 16–17.

Earnings season for the fourth quarter is over now, and investors are looking forward to 1Q16 earnings next month.

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The week ahead

Here’s a rundown on the major upcoming events in the financial sector this week.

March 8:

  • Raymond James (RJF) Institutional Investors Conference
  • Deutsche Bank (DB) Media, Internet, and Telecom Conference
  • RBC Capital Markets Financial Institutions Conference
  • Sandler O’Neill & Partners West Coast Financial Services Conference

March 9:

  • RBC Capital Markets Financial Institutions Conference

March 10:

  • American Express (AXP) Investor Day

March 11:

  • SunTrust Robinson Humphrey Conference: Healthcare IT

Impact on the financial sector

Investors look forward to events in the US financial sector to determine the trajectory of economic growth. Low oil prices and tension in China have hurt trading revenues. Further, tighter regulations continue to remain a challenge for US banks (XLF) as they struggle to remain profitable.

Read on for a recap of how financial ETFs performed last week.


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