STOCKS CLIMB ON JOBS DATA: Here’s what you need to know

Sasha Digiulian climbs at the Shawangunks in New Paltz, NY on June 20, 2016.
Sasha Digiulian climbs at the Shawangunks in New Paltz, NY on June 20, 2016. Greg Mionske / Red Bull Content Pool

Stocks gained on Friday as US payrolls beat estimates, improving sentiment in an equity market that just one day prior suffered its biggest loss in six weeks.

The S&P 500 rose 0.7%, while the Dow added 0.5% and the Nasdaq surged 1.1%. The Nasdaq, heavily weighted toward mega-cap tech stocks, has been a lightning rod for volatility in recent weeks, and Friday’s trading was another example of that.

First up, the scoreboard:

  • Dow: 21,419.12, +99.08, (+0.47%)
  • S&P 500: 2,426.27, +16.74, (+0.70%)
  • Nasdaq: 6,157.53, +68.03, (+1.12%)
  • US 10-year yield: 2.39%, +0.02
  • WTI crude oil: $US44.22, -1.30, -2.86%

1. Jobs report beats big, unemployment rate climbs. The US economy gained 222,000 jobs in June, many more than expected. Meanwhile, the labour-force participation rate indeed increased to 62.8% from 62.7%.

2. Markets are overreacting to ‘huffing and puffing’ central bankers. Investor anxiety is creeping higher amid tightening monetary conditions, and Bank of America Merrill Lynch doesn’t necessarily agree with that reaction.

3. Bitcoin and Ethereum are ‘cannibalising’ gold. So says Tom Lee of Fundstrat, who thinks thinks that the growing preference for the cryptocurrencies over gold is actually helping contribute to the torrid gains in the fledgling products.

4. Everyone’s scared of the wrong thing when it comes to the Fed’s plan for its $US4.5 trillion balance sheet, according to David Rosenberg. He says that when the inevitable unwind happens, it could catch traders in both the bond and stock markets off guard

5. Blue Apron is trading at half what it hoped to get in its IPO — a week after its debut. The most cited is the fact that, while Blue Apron was trying to drum up interest in its offering, Amazon struck a deal to buy Whole Foods.


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