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Financials sold off on Wall Street, Amazon rallies

Friday, 6 Jan 2017 06:01:10 | Rebecca Hyam

Goldman Sachs lost 2.2 per cent while JP Morgan and Well Fargo also fell. (Reuters)

Financial stocks were sold off on Wall Street overnight, but a rally by online retailing giant Amazon has sent the Nasdaq to a record closing high.

Markets at 8:15am (AEDT):

  • ASX SPI 200 futures +0.2pc 5,725
  • AUD: 73.41 US cents, 59.12 British pence, 84.77 Japanese yen, 69.24 eurocents, $NZ1.0453
  • US: S&P 500 -0.07pc to 2,269, Dow Jones -0.21pc to 19,899, Nasdaq +0.2pc to 5,487
  • Europe: Euro Stoxx +0.02pc to 353.75, FTSE +0.08pc to 7,195 DAX +0.01 to 11,584.94
  • Commodities: Gold +1.42pc to $US1,179.96/ounce, Brent crude oil +0.71pc $US56.86

Banking shares have gained more than 17 per cent since President-elect Donald Trump's victory in the November election, thanks largely to his campaign promise to scale back regulations in the industry.

But overnight, investment banking giant Goldman Sachs fell 2.2 per cent, while JP Morgan, Wells Fargo and Bank of America also suffered losses.

Amazon shares jumped 3.1 per cent to $US780.45, which was a level it had not achieved since late October, when the company missed earnings estimates and offered some cautious guidance on revenue.

In economic news, a closely-watched employment survey revealed that fewer than expected jobs were added to the private sector during December.

The ADP National Employment Report showed 153,000 jobs were created in the private sector last month.

That fell short of the 170,000 jobs that economists had been betting on.

All of the gains were in the services sector, with 169,000 jobs added in that industry, compared with a loss of 16,000 for goods producers.

US manufacturing lost 9,000 jobs in the month.

For the calendar year, the US private sector generated an average of 174,000 jobs per month.

That was down from an average of 209,000 jobs per month in 2015.

Market analysts use the ADP report to get a sense of how the official US payrolls report (released overnight) might play out.

Westpac senior market strategist Imre Speizer published an economic note this morning, suggesting the weaker-than-expected result in private sector employment could foreshadow a poor result in the US Labor Department's jobs data.

"The consensus expectation is for a 175,000 gain in December," he wrote.

"Four of the last five December payroll out-turns have been stronger than expected but last night's ADP data hints that if anything, the risks may be the other way."

It was a fairly flat finish on European markets, with a rally in mining and house-building stocks helping the British market eke out modest gains.

The local market is on track for a positive start, with the ASX SPI 200 up 0.2 per cent to 5,725.

The Australian dollar strengthened overnight and at 8:15am AEDT, it was buying 73.41 US cents.

West Texas Crude oil was higher at $US53.72 a barrel, the price of a barrel of Tapis was also higher at $US56.98 and spot gold had jumped 1.42 per cent to $US1,179.96 an ounce.

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