By Markus Heitkoetter
The Jobs Report was the main event on Friday. The report came out better than expected with 280K jobs added in May vs. the 222k that were expected.
The Unemployment Rate came out slightly higher. But traders didn’t seem to mind this minor increase since it was only up to 5.5% compared to last month’s 5.4%.
After an early drop on Friday, stocks recovered and ended the day mixed. Both the S&P and DOW ended lower, down 0.14% and 0.31% respectively. The NASDAQ managed to end the day with a 0.18% gain.
At week’s end, the major indices were all lower for the second consecutive week in a row.
The S&P was down 0.69% for the week with a close of 2092.83. The DOW lost 0.90% and ended the week at 17849.46.
The NASDAQ outperformed the other indices and closed just 0.03% lower at 5068.46.
Here’s what’s in store THIS week:
The S&P ended last week below the 2100 support level and closed below its 50-day moving average. The Dow is below 18,000 and also closed below its 50-day moving average.What once was support can act as resistance on the way up, and we know that traders typically respond to “key psychological” levels and indicators. Because of this these levels could have a major influence on trading this upcoming week.
The Greece debt saga continues… After weeks of negotiations, Greece somehow managed to put a band-aid on its debt issues by avoiding last week’s debt repayment to the IMF. Greece is now expected to bundle all June debt obligations into a one lump sum that is due later this month. We know the Greek debt concerns are not over, and any changes or new concerns until the payment is made can move the market.
Fed Rate Hike
Last week the IMF urged the Fed to wait until early 2016 for a rate increase. However, Friday’s better than expected job’s report and higher average hourly earnings has many traders thinking that a rate hike this year is more likely. Traders are going to keep a close eye on any “rate related” news – Especially ahead of the FOMC Statement in 2 weeks on June 17th.
It’s a light economic calendar, but things pick up towards the end of the week. Highlights include: Retail Sales at 8:30am ET and Business Inventories at 10:00am ET on Thursday. Followed by PPI at 8:30am ET and Preliminary Consumer Sentiment at 10:00am ET on Friday.
Goldman Sachs Group (GS) went against the general trend and jumped to highs of the year on Friday. With a .76% gain GS ended the day at 210.45.
The move higher was just what PowerX Method traders were looking for. A PowerX Buy Signal was identified on 11th May 2015 and traders were targeting $210.41 for an ADR Profit Target.