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Stocks Creep Higher Ahead of the Big Jobs Report

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

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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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