|
No images? Click here  
By Alex Eule | Friday, June 6 Good Enough. As the payrolls report landed at 8:30 this morning, investors were on edge. The private jobs report from ADP earlier this week had shown surprising weakness. If today's report showed cracks, the recession narrative was likely to gain steam. But it didn't. Instead, the U.S. economy added 139,000 jobs in May. Not a booming report -- it was down from a newly revised 147,000 in April -- but solid enough and better than the expected 130,000. The unemployment rate was steady at 4.2%. Stocks jumped at the open and help their gains throughout the trading day. The Dow Jones Industrial Average gained 443 points, or 1%. The S&P 500 was also up 1%, while the Nasdaq Composite rose 1.2%. The solid day brings stocks that much closer to their February peak. The S&P 500 is now off just 2.3% from its Feb. 19 record -- and it's up 20.4% since the April 8 tariff-induced bottom. The White House also said there were would be more trade talks next week with China, soothing the market's other big worry. The U.S. will send Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer to meet with China's negotiators in London. One thing the market didn't get today: the hope of imminent rate cuts. The solid jobs report is likely to keep the Federal Reserve in its wait-and-see approach to monetary policy, despite more insistence from President Donald Trump that the time has come for cuts. Yesterday, traders were pricing in a 95% chance of at least one rate cut by September. As of tonight, those chances have fallen to 68%. The solid economy combined with fewer expected cuts pushed bond yields higher. The yield on the 10-year Treasury note gained a considerable 11.5 basis points, or 0.115 percentage point, to 4.507%. For much more on today's jobs report, read Barron's coverage here. Watch our TV show on Fox Business Saturdays and Sundays at 9:30 a.m. and 10:30 a.m. ET. This week, Eurasia Group's Ian Bremmer on what comes next in the U.S.-China trade standoff and what to make of the Trump-Musk feud. 
DJIA: +1.05% to 42,762.87 The Hot Stock: Palantir Technologies +6.5% Best Sector: Energy +1.9% 
This Weekend's Magazine
The CalendarNext week kicks off with Apple’s Worldwide Developers Conference. The Apple faithful are hoping for good news that can jumpstart the shares of the iPhone maker. The stock is down 19% this year and has lost its crown as the most valuable company in the world, trailing both Microsoft and Nvidia. The consumer price index, released by the U.S. Bureau of Labor Statistics on Wednesday, will garner plenty of attention, one week before the Federal Open Market committee announces its monetary-policy decision. With the labor market resilient and the core CPI above the FOMC’s 2% target, the central bank looks likely to stand pat on interest rates. Other economic data released next week include the Small Business Optimism Index released by the National Federation of Independent Business on Tuesday. The BLS also releases the producer price index on Thursday and the University of Michigan releases its Consumer Sentiment index on Friday. GameStop announces quarterly results on Tuesday, Chewy and Oracle on Wednesday, and Adobe on Thursday. --Dan Lam 
What We're Reading Today
Join Barron's Live on Monday. Barron's Lauren Rublin and Ben Levisohn speak with Michael Reid, senior U.S. economist at RBC Capital Markets, about the outlook for financial markets, industry sectors, and individual stocks. Barron's Live features timely and actionable insights for investors. We give you behind-the-scenes conversations with the newsroom, connecting you with our editors and reporters covering the markets, the economy, and more. Sign up here.
You are currently subscribed as NPkvdejmf6@niepodam.pl     |
