The Market Bull – June 7, 2019
Dreams of new rate cuts as the economy slows further following today’s huge employment miss. Helped the major averages to close with large gains. Since Monday the Standard and Poors 500 Index is up a respectable 121.74 points or 4.42%, while the NASDAQ advanced 300.89 points or 4.04%.
Like the ADP Employment report earlier. The official BLS or Bureau of Labor Statistics employment report missed substantially in May with just 75,000 new jobs, a figure less than half expectations. The unemployment rate was unchanged at 3.6% same for the participation rate at 62.8%. April and March were revised down by a combined 75,000. The average workweek was unchanged at 34.4 hours. Average earnings gained .2% for the month and 3.1% from a year ago. Also of note the number of full time jobs fell for a 3rd month down 83,000. This report is decidedly weak and reduces the monthly average job gains in 2019 to an anemic 164,000.
Wholesale Inventories jumped .8% in April on durable goods stockpiling as wholesalers attempted to get ahead of surging tariffs. Sales slipped .4% pushing the inventory to sales ratio up slightly to 1.34.
Consumer Credit handily beat expectations in April with a 17.5 billion Dollar gain. Credit Cards or revolving debt had its best month in 5 with a 7 billion Dollar advance.
Standard and Poors 500 Index closed at: 2,873.34 up 29.85
NASDAQ finished the day: 7,742.10 up 126.55
Gold ended trading at: $1,345.40 up $2.70