We had a real dose of good news is bad news for stocks this morning as the non-farm payroll number came in hotter than expected. 224,000 new jobs were created in June, which was more than expected, while the unemployment rate held mainly steady at 3.7%. Wages have increased 3.1% year over year, which is fine but not necessarily inflationary. Fearing that the Fed might be influenced by this better than expected jobs number not to cut rates at the end of the month, stocks sold off in early trading to the tune of 232 Dow points. But by the close, most of those losses were erased
For the day, the Dow Jones Industrial Average was down 43 points to close at 26,922. The S&P 500 was down 5 points to finish the day at 2,990. Gold was down $17 to trade at $1,403 per ounce, while oil was up $.21 to trade at $57.55 per barrel WTI.
That’s enough for this week. When we return on Monday, market participants will turn their attention to the upcoming corporate earnings season. Of course, China trade talks and whether the Fed will cut rates later in the month will continue to be part of the narrative for the next several weeks. Stay tuned, we’ll help you navigate the waters.
Have a great weekend everyone.