How About that Jobs Report – Monday Morning Market Memo – June 10, 2024

How About that Jobs Report – Monday Morning Market Memo – June 10, 2024

The major stock market averages all finished higher last week.  The Dow Jones Industrial Average gained .3% to 38,799 – the Standard & Poor’s 500 Index rose 1.3% to 5,347 and touched a record high intraday on Friday – while the NASDAQ Composite jumped 2.4% to 17,133.  The highlight of the trading week was the May Jobs Report.

The U.S Bureau of Labor Statistics reported the economy added 272,000 jobs last month, much stronger than estimates for a gain of 190,000.  Additionally, average hourly earnings were higher-than-expected as well, rising .4% last month and 4.1% from a year ago.  On the negative side, the unemployment rate came in a notch above market expectations, ticking up to 4%.  All in all, the jobs report was strong.  Many investors had been hoping for a weak number, on the thought that would lower inflation and the Fed would then be more likely to cut interest rates.  While we should all be happy the job market is strong, it does lower the likelihood for upcoming interest rate cuts.

Following the jobs report data Friday morning, the odds for a September rate cut declined.  The current probability, according to the CME FedWatch Tool, is now approximately 50/50 the Fed will cut rates in September.

Looking to the week ahead, we will be watching the Consumer Price Index (inflation) report due out on Wednesday, where expectations are for a 3.4% year-over-year increase.  Along with employment, inflation is a determining factor regarding if and when the Federal Reserve will begin cutting rates, so this number could be market moving.  Additionally, we’ll be tracking earnings reports from OracleBroadcom, and Adobe.

Speaking of big tech stocks and for some market history/trivia, last week NVIDIA became the third company ever to reach $3 trillion in market value, joining Microsoft and Apple in that elite group!

As always, please contact us with any questions or if you would like to set up a meeting.

All the best – Southport Station Financial Management, LLC