US Jobs Report shows better than expected improvement
8/7/20 Market Notes
US equities notched a fifth straight day of gains led by tech shares and driven by headlines suggesting progress inside the Beltway on the stimulus front. A better than expected read on Initial Jobless Claims and mostly positive earnings reports played supporting roles in a somewhat muted trading session ahead of today’s much anticipated labor report. The S&P 500 Index gained 21 points (0.6%) to 3,349, the Dow added 185 points (0.7%) to 27,387, and Nasdaq posted another new high, rising 110 points (1.0%) to 11,108, crossing the 11,000 mark for the first time.
Asian markets finished lower amid a rise in US-China tensions after a US ban on TikTok and WeChat. European markets and US futures were trading lower ahead of the monthly US jobs report but improved after the report showed better than expected improvement overall while missing on manufacturing gains. The report will be closely parsed for regional trends and signs of weakness related to local COVID-19 impacts. It will also be the focus of continued stimulus debate in Washington, and together will set the tone and direction for markets today, and into next week.
In other news; Uber technologies is down in premarket trading after missing estimates on a steeper than expected drop in ridership that a doubling food deliveries was not enough to offset. The Dollar is up slightly, and gold is backing off a little from recent record highs.
Disclosures: This market commentary is written by the 1879 Advisors® and represents the views of 1879 Advisors®. This commentary is not investment advice and should not be used as a basis to make investment decisions. Please consult with your registered investment advisor before making any investment decisions.