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.
Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.