Author: Zac Martin, Investment Associate
Week Ending July 3rd – Like a Rocket
ISM Service PMIs increased for June, reporting a new positive trend for new orders and overall business activity. Meanwhile, employment rolled over into contractionary territory. Despite the index moving into expansionary territory, respondents continued to highlight slower growth and economic uncertainty as well as higher input prices.
ISM Manufacturing PMIs slightly increased for June, prices and production continued to climb higher. The demand-based variables, New Orders, Backlog Orders, Inventories and Exports continue to contract. While output-based variables like Production and Employment remain mixed with production moving to expansion territory and employment deteriorating.
JOLTS Report for May continued the increase in job openings from April, reporting 7,769K up from 7,395K. Additionally, Total Separations also climbed while hiring decreased slightly.
Nonfarm payrolls for June positively surprised analysts and revised previous reports higher. The economy added 147K jobs, which was slightly above the twelve-month average. The unemployment rate also improved, decreasing to 4.1% from 4.2%, below the estimates of 4.3%. Interest rates moved higher on this news as market odds for the Fed to cut at this next meeting dropped to 5% from 20%, according to CME FedWatch.
The Week Ahead:
- NFIB Small Business (7/8)
- FOMC Meeting Minutes (7/9)
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