Wednesday, July 3, 2013

Economic Journal - Wednesday, 7/3/2013

(As of 7:25 am PST)
 
It’s a data packed morning on Wall Street with trading ending at 1 pm EST today ahead of tomorrow’s Independence Day holiday.  Futures traded lower this morning before a slew of data hit the wires, which helped stocks pare early losses.  Jobs data surprised, with ADP reporting that private sector employment increased by 188,000 from May to June, exceeding expectations.  Jobless claims (people filing for unemployment benefits) fell last week by 5,000.  As we’ve seen in the past, the ADP data can be slightly exaggerated in either direction and less reliable than the Labor Department’s non-farm payrolls report, which is due out Friday.  A strong jobs report Friday could have a negative effect on markets, as an improving economy means less stimulus from the Fed.  Other reports today showed the US trade deficit widened by 12.1% in May and a report on the US services sector showed slower growth for June.  Volatility is up today on international news.  Asian markets finished on a lower note on weak data out of China.  Europe is choppy as investors worry over a collapse of Portugal’s government after a recent exit of two cabinet members.  Oil continues to surge, up over $101.50 per barrel as the turmoil in Egypt rages on.  Gold prices are creeping higher today.  Expect choppy trading to continue in this action packed shortened session. 

 
 ***US markets will be closed tomorrow for Independence Day and will re-open on Friday.  Have a safe and happy 4th of July!***

No comments: