US stocks were broadly higher driven by the strong jobs report and easing of concerns over Italy potentially heading down the path of leaving the euro. The S&P 500 rose 0.5%, while the Dow was down 0.5% for the week. Internationally, Europe fell 1.1% and Japan declined 1.2% for the week. The yield on the 10-year treasury eased over the week ending at 2.90%. Oil declined 3% to finish at $65.81 a barrel.
The May jobs report showed 223,000 new employees were added, ahead of expectations. The jobless rate dropped to 3.8%, the lowest level since April 2000. There were upward revision of 15,000 jobs over the past two months bringing the year to date pace to 207,000. Wage growth picked up as well, rising a better than expected 2.7%.
US auto sales rose in May compared to a year earlier, again aided by SUV and truck sales.
The Trump administration announced it was moving forward with tariffs on Chinese goods surprising many after a deal appeared close.
Two anti-establishment Italian political parties were able to strike a deal and form a coalition government.
The US imposed tariffs on steel and aluminum imports from Canada, Mexico and the EU. Each ally threatened retaliation with their own tariffs on US goods. The movers raise fears of an escalating trade war.
The Fed designated Deutsche Bank’s US business as being in a “troubled condition.” The designated had been applied a year ago but just recently came to light.
Reposted from the Raffa Wealth Management Blog.
All the news you need to stay informed about what’s currently driving the market – courtesy of Raffa Wealth Management, LLC