Stock Market Today
Lately, good news is good and bad news is good. In other words, when the news is good for the markets, stocks rise because of the good news. But when the news is bad, like if the news suggests that the economy is slowing, that’s also good because it will give the Fed more reason to cut rates.
Today, there was good news, and the market rallied.
Economy
The good news was the jobs report. Today, the Bureau of Labor Statistics released data on the Employment Situation for June. And the news was generally better than expected.
Nonfarm payrolls increased by 147,000, much higher than the 106,000 expected. This led to a U.S. unemployment rate of 4.10%, which was lower than the expected 4.3%. Labor force participation was also down, which could be skewing the numbers.
Jobs lost by the federal government were picked up by state governments. Health care saw gains, as well.
Here’s the thing. With employment strong, the Fed has less reason to cut rates, which is what has been pushing stocks higher. Was Powell right? The bond market thinks so.
Stocks and Markets
Initial reactions by traders saw stocks rip higher, the S&P adding nearly 20 points, and bonds crater. Since then. stocks have mostly given back their gains, though bonds remain sharply lower.
Here’s a look at futures:
What Else is Happening?
Baristas were busy in Washington D.C., keeping our elected representatives in Congress up all night as they work feverishly to pass Pres. Trump’s tax bill. Apparently, they are close to a resolution. We’ll keep you posted.