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Stocks gain on positive jobs data, but close near lows
02-Jul-20 16:20 ET
Dow +92.39 at 25827.38, Nasdaq +53.00 at 10207.63, S&P +14.15 at 3129.88

https://www.briefing.com/stock-market-update

[BRIEFING.COM] The S&P 500 increased 0.5% on Thursday amid positive labor market data, although it was up as much as 1.6% in early action. The Nasdaq Composite (+0.5%), Dow Jones Industrial Average (+0.4%), and Russell 2000 (+0.3%) also finished near session lows, but the Nasdaq did notch another record close.

With the market closed on Friday in observation of Independence Day, investors received the Employment Situation Report one day early, and it came in better than expected for the second straight month. It also showed that there was still a lot more re-hiring activity needed to get to where things were before the pandemic.

Briefly, June nonfarm payrolls increased by 4.800 million (Briefing.com consensus 3.50 million), and the unemployment rate improved to 11.1% (Briefing.com consensus 12.6%) from 13.3% in May. Initial jobless claims for the week ending June 27 also decreased slightly to 1.427 million (Briefing.com consensus 1.355 million) for its 13th straight decline.

Every sector in the S&P 500 was on pace to close in positive territory following the data, but a late fade in the market took several sectors into the red. The cyclical materials (+1.9%), energy (+1.1%), and industrials (+0.8%) sectors set the performance pace, while the real estate (-0.3%) and communication services (-0.1%) sectors closed lower.

The late-day selling was likely due to some profit-taking activity in front of the holiday weekend. At today's intraday high, the S&P 500 was up 5.2% for the week.

Tesla (TSLA 1208.66, +89.03, +8.0%), however, showed no signs of slowing down after the company pleased investors with its Q2 delivery data. TSLA shares rose 26% this week, including today's 8% gain.

U.S. Treasuries finished little changed. The 2-yr yield declined one basis point to 0.15%, and the 10-yr yield was unchanged at 0.68%. The U.S. Dollar Index was also little changed at 97.22. WTI crude rose 1.7%, or $0.66, to $40.42/bbl.

Reviewing Thursday's economic data, which featured the Employment Situation Report for June:

June nonfarm payrolls increased by 4.800 million (Briefing.com consensus 3.50 million). June private sector payrolls increased by 4.767 million (Briefing.com consensus 3.00 million). June unemployment rate was 11.1% (Briefing.com consensus 12.6%), versus 13.3% in May. June average hourly earnings declined 1.2% (Briefing.com consensus -1.0%) versus a 1.0% decline in May.
The key takeaway from the report as far as the market is concerned is that it reflects an economy that is bouncing back from the depths of the COVID-19 shutdown period. There are still far too many people unemployed (17.750 million), yet the June numbers are moving in the right direction.
Initial jobless claims for the week ending June 27 decreased by 55,000 to 1.427 million (Briefing.com consensus 1.355 million).
The key takeaway from the report is that initial claims remain at an alarmingly high level and will continue to be a drag on economic activity.
The Trade Balance report for May showed a widening in the deficit to -$54.6 billion (Briefing.com consensus -$53.0 billion) from a downwardly revised $49.8 billion (from -$49.4 billion).
The key takeaway from the report is that exports (-$6.6 billion) and imports (-$1.8 billion) both declined in May, underscoring the adverse impact of the coronavirus on the global economy.
New orders for manufactured goods increased 8.0% m/m in May (Briefing.com consensus 7.2%) following a downwardly revised 13.5% decline (from -13.0%) in April.
The key takeaway from the report is that it reflects a recovery in new order activity following the depths of the COVID-19 shutdown period.

When the market reopens on Monday, investors will receive the ISM Non-Manufacturing Index for June.

Nasdaq Composite +13.8% YTD
S&P 500 -3.1% YTD
Dow Jones Industrial Average -9.5% YTD
Russell 2000 -14.2% YTD

Market Snapshot
Dow 25827.38 +92.39 (0.36%)
Nasdaq 10207.63 +53.00 (0.52%)
SP 500 3129.88 +14.15 (0.45%)
10-yr Note 0/32 0.673
NYSE Adv 1810 Dec 1099 Vol 897.2 mln
Nasdaq Adv 1894 Dec 1417 Vol 4.0 bln

Industry Watch
Strong: Energy, Materials, Industrials
Weak: Real Estate, Communication Services

Moving the Market

-- Stocks close higher but near session lows in front of the holiday weekend

-- Nonfarm payrolls increased by 4.800 million in June (Briefing.com consensus 3.50 million), unemployment rate improved to 11.1% (Briefing.com consensus 12.6%)

-- Late profit-taking activity

WTI crude closes above $40/bbl
02-Jul-20 15:25 ET
Dow +219.73 at 25954.72, Nasdaq +103.43 at 10258.06, S&P +29.26 at 3144.99

[BRIEFING.COM] The market's best levels were in the opening minutes of action, and it has drifting sideways since pulling back in the morning. Currently, the S&P 500 is up 0.9%.

One last look at the S&P 500 sectors shows green across the board. The materials (+1.8%), energy (+1.7%), and industrials (+1.2%) sectors maintain their leadership positions, while the real estate sector (+0.3%) lags with a 0.3% gain.

WTI crude futures settled the session higher by $0.66 (+1.7%) to $40.42/bbl.