Stocks higher on poor US average earnings

• Stellar NFP but poor average hourly earnings.
• S&P500 double top at 2782.75.

The S&P500 is trading at around 2783 up 1.62% on the day, the Dow Jones at 25322 up 1.78% and the tech-heavy Nasdaq at 7095.00 up also 1.78% so far on Friday. 

Today the main event is the NFP report. Headline numbers came in at 313k vs 200k expected. However, the average hourly earnings disappointed the market. It means that that that more Americans have jobs but they are not earning more USD per hour. It doesn’t bode well for inflation and therefore the market might be thinking that four rates hike this year is maybe a little far-fetched according to analysts. 

However, stocks saw the news as positive because a weak US Dollar is generally good for most US companies. 

S&P 500 daily chart

The index made a double top at 2782.75. Next resistance is seen at 2850 which is the next psychological level before the all-time high. Support is seen at 2750 psychological level and 61.8 Fibonacci retracement. Further down, the next support is seen at the 2650 level close to the 38.2% Fibonacci retracement.