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Wall Street Strategies has been providing independent stock market research since 1991 to individual, retail and institutional clients through a balanced approach to investing and trading. Charles Payne, our founder and chief analyst, is routinely sought after for his stock market, political,... More
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  • Relief Sighs And New Highs By Jennifer Coombs, Research Analyst 0 comments
    Jun 6, 2014 1:17 PM

    Both the Dow Jones Industrial Average and the S&P 500 are having a phenomenal day following the jobs report from the Bureau of Labor Statistics this morning. The dust has settled from the details of the report and the equity indices are now set to close at new all-time highs.

    Nonfarm payrolls for the month of May added 217K jobs compared to the revised 282K (from 288K) added in April, and the consensus expectation of 220K. The unemployment rate for May remained unchanged from April at 6.3%, while economists expected that the unemployment rate would increase to 6.4%. More notable was that the labor participate rate held steady at 62.8% for May; clearly the added jobs were a great net-gain since there weren't more individuals leaving the labor force. Additionally, the percentage of long-term unemployed individuals (i.e. 27 weeks or more) fell to 34.6% from 35.3% back in April.

    In the end we conclude that the May employment data conveyed more of same-old. There's continued improvement in the labor market, a low participation rate, and only modest growth in hourly earnings. The big takeaway driving the markets higher, however, is that the first rate hike by the Federal Reserve should be moved out into the future. So the markets have dodged a bullet for now.

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