Friends
After yesterday’s ridiculously hot ADP private payroll number, all eyes were on today’s non-farm payroll release. Expectations were that about 240,000 new jobs were created in June, but the number came in a little light of that and actually 209,000 new jobs were created. That’s a miss but the market actually preferred it over yesterday’s rip-roaring ADP number. The unemployment rate fell to 3.6%, but more importantly average hourly wages were a little hotter than expected. Year over year wages have increased 4.4% which likely concerns the Fed a bit (I know people making more money should be a good thing but, well you know), and feeds the narrative that later in July the Fed is going to hike a quarter point.
Stocks were modestly higher during most of the trading session, but by the close the Dow Jones Industrial Average was down 187 points to finish the day at 33,734. The S&P 500 was down 12 points to close at 4,398. The Nasdaq Composite Index was down 18 points to close at 13,660. Gold was up $16 to trade at $1,931 per ounce, while oil was up $1.87 to trade at $73.67 per barrel WTI.
The bulls appear to be a bit weary at the moment given earnings season is about to be upon us and economic data is giving the Fed a path to continue to increase the Fed Funds rate, at least another quarter point or two. The next few weeks are likely to be choppy at the least. We’ll keep you informed as corporate America shows us its report card in the coming weeks. Stay tuned.
Have a great weekend everyone.
