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Stocks Creep Higher Ahead of the Big Jobs Report


Today's financial recap and tomorrow's financial outlook.


US markets opened down, but rallied throughout the shortened trading day to squeeze into positive territory. The S&P 500 (INDEXSP:.INX) closed up 0.1%. The Financial Select Sector SPDR (NYSEARCA:XLF) lagged the market today, finishing down 0.3%.

The ADP employment report came in better than expected this morning. Private payrolls climbed 188,000 vs. the 165,000 estimate. The trade deficit widened more than expected at -$45.0 billion against the -$40.8 billion consensus. Initial jobless claims fell for a second straight week to 343,000. This is slightly less than the expected 345,000.

The Bloomberg Consumer Comfort Index registered a 5-year high with a reading of -27.5. This topped the anticipated -28.3. The ISM non-manufacturing index came in below expectations with a reading of 52.2 that also represented a 3-year low. Crude inventories unexpectedly dropped by 10.3 million barrels. The drop in inventories and the crisis in Egypt pushed crude prices up 1.6% today to $101.2 a barrel.

European indices fell sharply across the board after the resignation of Portugal's Foreign Minister Paulo Portas. The ESTX 50 PR.EUR (INDEXSTOXX:SX5E) declined 1.5% on the day. Asian markets fell due to worse than expected Chinese PMI. The index reported a contractionary reading of 49.8 vs. the 50.9 that was expected. The Hang Seng Index (INDEXHANGSENG:HSI) fell 2.48% on the day.

Tomorrow's Financial Outlook

US markets are closed tomorrow in observance of Independence Day.

European Union GDP will be released at 5:00 a.m. EDT tomorrow. The Bank of England will be making an announcement regarding its monetary policy at 7:00 a.m. EDT. The ECB will make its monetary policy announcement at 7:45 a.m. EDT. The target interest rate of 0.5% is not expected to change.

On Friday, July 5, employment data will be released at 8:30 a.m. EDT. The unemployment rate is expected to come in at 7.5%, just below last month's 7.6%. Nonfarm payrolls are expected to see a month-over-month change of 161,000. Last month payrolls came in at 175,000.

Twitter: @Minyanville

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No positions in stocks mentioned.

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