S&P 500 (SPY) Report – 07/06/23
Good morning traders!
The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…
Stock futures declined Thursday as investors grow more concerned about the state of the economy and the trajectory of interest rates. According to recent economic data, private sector jobs increased by 497,000 in June, marking the largest monthly gain since July 2022. This surpassed the consensus estimate of 220,000 jobs and was a significant improvement over May’s revised figure of 267,000. However, the reliability and volatility of ADP data make it less reliable compared to other jobs reports.
Investors are now awaiting Friday’s official June payrolls report, with economists predicting the addition of 240,000 non-farm payrolls. This represents a slowdown from May’s 339,000 jobs. The market sentiment suggests that traders may anticipate a stronger number, potentially leading to the Federal Reserve resuming its interest rate hikes after a temporary pause. The Fed’s next decision on interest rates is scheduled for July 26.
Investors closely analyzed the minutes from the Federal Reserve’s June policy meeting, which indicated that most officials would support future interest rate increases. The market is currently pricing in an approximately 89% chance of a rate hike at the central bank’s upcoming meeting.
Thursday Economic Events:
MBA Mortgage Applications 7:00am ET
Challenger Job Cut 7:30am ET
ADP Employment Report 8:15am ET – High Volatility Expected
Int. Trade in Goods 8:30am ET
Jobless Claims 8:30am ET – High Volatility Expected
PMI Composite Final 9:45am ET – High Volatility Expected
ISM Services Index 10:00am ET – High Volatility Expected
Fed Speaker Scheduled:
Lorie Logan 8:45am ET
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