Jobs Report Momentum is Recovery Blueprint

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as jobs report momentum is recovery blueprint. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

Dow futures up more than 200 points after Nasdaq hits record to start third quarter

Futures contracts tied to the major U.S. stock indexes rose early Thursday as investors awaited two closely watched jobs reports on the week’s final day of trading ahead of the July Fourth holiday. Dow Jones Industrial Average futures indicated an opening gain of more than 200 points.

The S&P 500 (SPY) added +0.45% today. Sector advancers led decliners 9 to 2 as shown below in the sector graph. Gains ranged from +1.88% to less than 1%. Communication services (XLC) and real estate (XLRE) suffered minor losses, check the sector graph for specifics.

The Dow Jones index ended in the green by +92 points (+0.36%) to close at 25,827. The Nasdaq advanced +53 points (+0.52%) to settle at 10,207.

Jobs Report Momentum is Recovery Blueprint

All 3 major averages finished positive as a better than expected jobs report gave investors hope for a faster recovery.

Thursday’s gains led to strong weekly performances for the major averages. The Dow rose 3.3% this week and the S&P 500 climbed 4% in the same time period. It was the Dow and S&P 500′s biggest weekly gains since June 5. The Nasdaq posited its best weekly performance since May 8, jumping 4.6% this week. U.S. markets will be closed on Friday for the July Fourth holiday.

Wall Street started the session with sharp gains after the government reported that a record 4.8 million jobs were created in June. Economists were expecting 2.9 million jobs were created. The unemployment rate fell to 11.1% from 13.3% in May. Economists were expecting a rate of 12.4%, according to Dow Jones.

“Another major surprise here in terms of market expectations,” said Christian Scherrmann, U.S. economist at DWS. “What we’ve seen in May and June is a blueprint for a fast recovery, but only once the virus situation is under control.”

Last month, economists forecast a loss of 8 million jobs in May and the economy gained 2.5 million payrolls instead.

Key Takeaway…

U.S. economy adds 4.8 million jobs in June, vs expected increase of 2.9 million

CNBC’s Steve Liesman and CNBC’s Rick Santelli report the latest employment data, including weekly jobless claims for week ending June 27 and the June jobs report.

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P 500 movers (both winners & losers).

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

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7/2/20

S&P 500 Sector Graph

Jobs Report Momentum is Recovery Blueprint

S&P 500 (SPY)

Jobs Report Momentum is Recovery Blueprint

Communication Services (XLC)

Jobs Report Momentum is Recovery Blueprint

Consumer Discretionary (XLY)

Jobs Report Momentum is Recovery Blueprint

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Consumer Staples (XLP)

Jobs Report Momentum is Recovery Blueprint

Energy (XLE)

Jobs Report Momentum is Recovery Blueprint

Financials (XLF)

Jobs Report Momentum is Recovery Blueprint

Real Estate (XLRE)

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

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Technology (XLK)

Jobs Report Momentum is Recovery Blueprint

Utilities (XLU)

S&P 500 Sector Heat Map

 

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