We always like to wait until the jobs data on the first Friday of the month comes out before we write our quarterly outlook, and glad we did because today’s job data was a pleasant surprise (by the way you should receive the quarterly piece early next week). As mentioned, the non-farm payroll number was much better than expected with 287,000 new jobs created in June vs. the estimate of about 180,000. Unfortunately that awful May number was revised even lower with only 11,000 new jobs created vs. the previously reported 38,000. When you average the two months it really comes out about right.
Nevertheless the markets saw this as good news and stocks rallied. How about that, good news was actually good news today. By the close, the Dow Jones Industrial Average was up 250 points to finish the day at 18,146. The S&P 500 was up 31 points to close at 2129. Gold was up $4 to trade at $1,366 per ounce, while oil was up $.09 to trade at $45.23 per barrel WTI.
Since the Brexit situation, it appears that traders have been caught on the wrong side of the trade and the path of least resistance has been to the upside. We’ll see if the bulls can break resistance and march to new highs this summer. At this point the bears have to feel like they’ve had everything lined up just right but can’t break this market. I have to head to St. Louis next week for my son’s wedding, but we’ll keep you informed as the week unfolds.
Have a great weekend everyone. We’ll keep the brave officers in Dallas in our thoughts and prayers.