July 7, 2023

Markets:

Stock futures were little changed Friday morning, as investors refocused their attention on the upcoming June jobs report and the implications for the Federal Reserve’s policy stance.

This week’s main event for economic data looms ahead: the Labor Department’s June payrolls report, which is due Friday morning. Economists polled by Dow Jones anticipate an increase of 240,000 positions, a cooldown from May’s gain of 339,000 jobs.

Investors are on high alert for signs that the central bank will tighten policy even further. Traders now forecast a 91% chance the Fed will raise rates at its July meeting, according to the FedWatch tool from CME Group. Policymakers indicated at their June gathering that two more rate hikes could be ahead in 2023.

The major averages slipped Thursday after data from ADP showed that private sector employers added 497,000 jobs in June. That figure far exceeded the 220,000 estimate from economists polled by Dow Jones.

U.S. Treasury yields fell on Friday as investors looked to June’s jobs report for fresh insights into the labor market and clues about the Federal Reserve’s next interest rate moves, after ADP’s employment report came in far higher than expected on Thursday.

European equity markets staged a muted open Friday, following the sharp drops in the previous session. Major indexes in the Asia-Pacific tracked Wall Street’s losses and fell for a second consecutive day.

Portfolio:

We enter the new trading session holding positions in SRAD, DKNG, COMM, S, and EXEL. Market remains in a bullish channel and continues to build on a launch pad. The pain trade remains higher as so many continue to try and chase this short trade. It's honestly mind boggling to me. Close to 850 points now to the upside on the S&P bears have chased and continue to pour money into. The real pain…higher! Next week will provide us strong price activity with the majority of traders returning from the Fourth Of July break. Should be an exciting period next week. Be ready today!