Friends
Estimates were that the U. S. would have added 671,000 new jobs in May. Today’s actual number came in shy of that as instead 559,000 new jobs were added. Now, we have mentioned many times that sometimes good news is bad news and bad news is actually good for the markets. Today’s job number is another example of that. If the number had blown away the estimate on the upside then market participants might have become more concerned that the Federal Reserve might be forced to confirm that the economy has heated to the extent that a change in monetary policy might be warranted. But, because the number disappointed, the narrative is that the Fed can continue to remain accommodative. Stocks rallied and bond yields fell just a bit.
By the close, the Dow Jones Industrial Average was up 180 points to finish the day at 34,757. The S&P 500 was up 37 points to close at 4,229. The Nasdaq Composite Index was up 199 points to close at 13,814. Gold was up $20 to trade at $ 1,893 per ounce, while oil was up $.70 to trade at $69.51 per barrel WTI.
Despite stumbles along the way, the bulls have been firmly in charge of the situation for more than a year now. We enter the summer season with an economy that continues to improve, but apparently not at too quick a pace as to spook the Fed. That continues to be a pretty good setup for stocks.
Have a great weekend everyone.
