It’s amazing what moves stocks these days-both up and down. Today stocks rallied on word that whatever tariffs were going to be initiated next week on Mexican goods is being delayed for the moment. Stocks moving up and down on tariff rumors is the world we live in now, but my goodness it all seems amazingly goofy. Anyway, we trade the markets that we have, not the markets that we think we should have.
By the close, the Dow Jones Industrial was up 181 points to finish the day at 25,720. The S&P 500 was up 17 points to close at 2,843. Gold was up $4 to trade at $1,338 per ounce, while oil was up $1.36 to trade at $53.04 per barrel WTI.
The other thing buoying stocks these past few trading sessions is the hope that the Fed is about to come to the rescue with rate cuts. Tomorrow’s jobs report will either feed that narrative or put the brakes on it. Good news might be bad news if the number is too good (remember the expectations are the 185,000 new jobs were created in May). Of course, if the jobs number is as bad as the ADP number was this week, what does that mean? Yes, it fits the Fed rate cut narrative, but is weakening economic data what we really want? Let’s see how tomorrow’s jobs number plays.
Have a nice evening everyone.