US equities opened July with another leg higher
US equities opened July with another leg higher climbing to fresh S&P 500 and Nasdaq all-time highs that’s despite the 1% pullback following the better then expected jobs report yesterday.
The markets initially pulled back on the best job report since January however the move lower granted buyers a reversal entry that ended the trading day with markets at the all-time highs once again.
This marks the second month in a row where the initial markets move following the jobs report is contrary to the report strength, this time the surge in the dollar and in government bond yields sent futures sharply lower before markets open yesterday. As we inch towards the open of earnings season this week it looks that the runup in the markets this year is far from looking exhausted and earnings results will take care near term of markets direction, at least until the next Fed, 3 weeks away.
US President Trump anti Fed sentiment made an impact as well, following his bold statement that "the economy will take off like a rocket" on lower interest rates. EU markets traded higher this week to fresh 2019 highs on the DAX and EURSX50, aided by the weaker Euro that traded yesterday below the 1.1250 versus the dollar, a 2-week low. Gold investors went thru a tumultuous week, trading a $60 range to close just bellow the $1,400 level, leaving a double top on the daily chart at $1,438 and signaling a possible reversal lower from 6-year highs.
Oil investors faced another red week, 4 out of the last 7, despite markets rally to all time highs in the US, global growth fears and record US production levels overpowered the rising tensions in the Middle east and OPEC stand on extending current production level cuts agreement until the end of 2019.
Prices closed at $57.6 yesterday, down two dollars this week, as OPEC meetings failed to impress on lack of leadership and the obvious Saudi Arabia versus Iran ongoing rivalry.