July 6, 2023

Markets:

Stock futures fell Thursday after better-than-expected jobs data increased investors’ anxiety around the path of interest rates.

Private sector jobs increased by 497,000 in June, according to data from payroll processing firm ADP, in the biggest monthly gain since July 2022. June’s increase was more than double the Dow Jones consensus estimate of 220,000 gained and far better than the downwardly revised 267,000-job addition seen in May.

The shortened trading week resumed Wednesday for a losing session after a break for the Fourth of July holiday. The major indexes logged modest losses. Wall Street combed through minutes from June’s Federal Reserve policy meeting, which showed that most officials would support more increases ahead.

The 10-year Treasury yield jumped above 4% after traders absorbed strong jobs data that could mean further tightening from the Federal Reserve.

Hong Kong-listed shares of Chinese banks were among the leading decliners in the Hang Seng index after Goldman Sachs reportedly downgraded its ratings for the top mainland lenders.

Portfolio:

We enter the new trading session holding positions in COMM, SRAD, S, SOFI, EXEL, and DKNG.  Trying to remain super patient here as volume is very low as traders are returning from vacation.  As we mentioned earlier this week, we expect this type of price action this week.  Stay patient and do not chase day to day moves this week.  Technically, the S&P sits strong and will carry this markets price action.  Only under 4350 would we need to worry about a change in pattern.  Stay ready.