(As of 7:25 am PST)
Equity markets are marching higher this morning on the heels of a positive jobs report. The Labor Dept. reported early this morning that the private sector added 195,000 jobs in June, better than the 155,000 expected. The unemployment rate was unchanged at 7.6%. Analysts views on the report are mixed. Some say the steady unemployment rate bodes well for the Fed to extend its bond purchase program, while others expect tapering to begin as early as September. Market reaction to the report is difficult to read today, with volumes light as many traders are off for the holiday weekend. However, if the movement in the bond market and gold prices are any indication, it appears the market believes the Fed will move earlier rather than later. Treasury prices dropped sending yields higher, while gold is down 3%. Gold has had a record run since the start of central bank stimulus programs. A QE wind down is not good for the precious metal (at least in the short term). International markets are mixed with Asia finishing higher and Europe down after a choppy trade. Expect a quiet day with activity picking up Monday as traders return to the desk and earnings season kicks off.
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