TSP Talk Blog

Strong U.S. jobs report bolsters case for further Fed tightening

The Labor Department said that nonfarm payrolls increased by 209,000 jobs last month amid broad-based gains. June's employment gain was revised up to 231,000 from the previously reported 222,000.

The unemployment rate dropped one-tenth of a percentage point to 4.3 percent in July, matching a 16-year low touched in May. It has declined four-tenths of a percentage point this year and is now at the most recent

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The Dow continues to lead as it was one of the few indices that posted a gain on Thursday, although gaining just 10-points, but that makes 7 straight positive days. The S&P 500, Nasdaq, and the small caps all saw modestly lower prices yesterday, while the Transports posted a moderate gain after bouncing off its 200-day SMA.

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Stocks opened higher on Wednesday with the help of Apple's earnings, but there was an interesting sharp sell-off shortly afterward. Once again however, the dip-buyers were right on queue. By the close the Dow gained 52-points but percentage-wise the broader markets did not fare as well.

The S&P gained just a point, although well off the morning lows, the Nasdaq was flat, and the small caps had a bad day losing about 0.75%. The Transports were up ...

Stocks opened higher on Tuesday and after some morning bouts of selling, the opening gains were recaptured for the most part. The Dow gained another 73-points, leading the percentage gains, while the other large indices gained about 0.25% - except for the Transports which was down another 0.40% and continues to lag.

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Yet another mixed day on Wall Street and the new highs in the Dow may be sending a smoke screen as the media hypes the action while the broader market is showing signs of wear. The Dow gained 61-points on the day, but the Nasdaq, small caps, and Transports - the market leaders - have been lagging of late possibly sending signs of trouble.

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