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    Widespread Job Growth, Record 11 Year Expansion, Stocks Down On Rate Fears

    July 5, 2019
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    A booming jobs report follows the 4th

    Strong Jobs Report

    Jobs added in the U.S. for June hit 224,000, beating expectations of 160,000 by +64,000. After May's dour report, This strong showing heightened investor sentiment about the overall economy. By sector, gains were robust and widespread, except in retail, where a loss of 6,000 marks a fifth straight decline. The unemployment rate ticked up slightly to 3.666% from 3.62%, but the household survey of employment rose by 247,000, and the participation rate--the share of employed working-age people--moved higher to 62.9%.

    Stocks Fall As 50 BP Cut Hopes Fade

    The news on jobs erased investor hopes for a 50 basis point rate cut at the FOMC meeting on July 31st, therefore stocks fell slightly on the news, with the Dow, NASDAQ and S&P 500 all off roughly half a percent at time of writing. The CME's FedWatch tool has taken the probability of a 50 bp cut down to 8% from 32.3% a week ago.

    Record American Expansion, Strong Dollar

    The American economic expansion has reached the 11 year mark, setting an all-time record in the wake of the Great Recession. The new record coincides with a moment when all three major stock indexes are at, or very close to, all-time highs. At time of writing, the U.S. Dollar Index (DXY, USDX) has now broken through all three of its key metrics, the 50-, 100- and 200-day moving averages.



    CDM Staff

    The mission at Creative Destruction Media is to be the catalyst for the "process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one."
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