Thursday, July 3, 2014

Economic Journal - Thursday, 7/3/2014

(as of 7:20 AM PST)

It’s all about the jobs report today.  It was a stellar economic report easily topping analyst estimates.  The economy created 288,000 jobs last month, confirming the strong ADP private jobs report that we saw earlier in the week.  The unemployment rate also fell from 6.3 to 6.1%.  These are the best numbers we have seen in a long time and the stock market is up solidly as a result.  The Dow Jones Industrial Average has topped 17,000 for the first time ever.  Adding fuel to the fire was a report that showed exports increasing and balance of payments deficit shrinking, more good news for the economy.  The ISM Services report, a key indicator of future activity was down, but only slightly, still showing expansion.  The only negative of today’s terrific newsfeed is the fact that economic stimulus and low interest rates might be at risk sooner than had been expected.  Gold is down about 1% this morning, with oil on the downside about 1/2 %.  What looked to be a mundane week for the stock market, with many traders on vacation, has turned into a nice upward surprise. 

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