(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.
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