Friends
There were 213,000 new jobs created in June, which was a bit higher than expected. The unemployment rate ticked back up to 4%, but that can be attributed to more folks coming in off the sidelines to actively seek a job. So, job creation continues to be stellar. Wages, on the other hand continue to only creep higher. That’s not necessarily good for wage earners, but it’s actually ok for the stock market as it once again helps defuse the worries over wage inflation rearing its ugly head. That, of course, leads to the narrative that the Fed can ease off a little on the pace of raising interest rates.
Though stocks were down slightly at the open given the China trade war has begun, market participants decided that the jobs report was just about right. Not too hot and not too cold. Stocks rallied, and by the close the Dow Jones Industrial Average was up 99 points to finish the day at 24,456. The S&P 500 was up 23 points to close at 2,759. Gold was down $2 to trade at $1,256 per ounce, while oil was up $.88 to trade at $73.82 per barrel WTI.
Despite the goldilocks scenario with regards to recent economic data, it will be interesting to see how market participants deal with the developing trade situation. I’m guessing that markets still have some work to do figuring out the winners and losers if trade wars escalate.
Have a great weekend everyone.
