June 7, 2024

Markets:

Stock futures fell Friday as traders digested the latest U.S. jobs report, looking for clues on what the next Federal Reserve policy moves may be. Futures tied to the Dow Jones Industrial Average fell 119 points. Nasdaq-100 futures ticked down by 0.2%, while S&P 500 futures slipped 0.3%.

Nonfarm payrolls increased by 272,000 in May, above the 190,000 estimate from Dow Jones and April’s 175,000. The unemployment rate increased to 4%. Investors hoped for signs of a weakening labor market, as evidence of a slowing economy may support interest rate cuts from the Federal Reserve.

The jobs report comes after the European Central Bank on Thursday cut rates for the first time since 2019, adding pressure to the Fed to potentially lighten up on policy.

The Fed will give its decision on rates next week after its June 11-12 policy meeting. Fed funds futures trading data suggests the central bank will most likely hold rates steady this time, but they imply a roughly 70% chance that policymakers will ease in September, according to the CME FedWatch Tool.

GameStop reported its first-quarter results Friday, showing a steep decline in sales along with a loss on the bottom line. Shares were more than 20% despite the results as traders awaited a livestream from meme trader “Roaring Kitty” slated to begin at noon ET.

Portfolio:

We enter the last trading session of the week holding set-ups in SG, MARA, AI, AMDL, PLTR, and TSLL. We are well positioned with set-ups we feel will lead it the month of June.  Keep this in mind, month of June has never been the "top" of the market since 1980. Once again, we are seeing large number of market to callers. Every time we see this and note it…new highs print shortly thereafter.