The market ended the holiday-shortened week on a strong note. The S&P 500 rose by 1.02%, and the Dow was higher by 0.98%. Nine of the ten S&P 500 sectors rose on the day.
Stocks opened higher after June nonfarm payrolls came in well above expectations. The actual number was 195,000 against an estimate of 166,000.
The number was constructive to the Fed starting its tapering process sooner rather than later. A few weeks ago this thought sent the market into an aggressive sell-off. Now the consensus is that it would be good in the long run if the Fed reduced QE activities on the back of accelerating economic growth and an improving job market.
The dollar roared to a three-year high on the back of continued strong economic releases. Precious metals sold off as the fear trade was not in favor today, and a strengthening dollar is not good for metals.
The spike in interest rates today put homebuilders under heavy pressure. The rate on the 30-year mortgage has increased by more than 1% over the past several weeks.
Growth-oriented sectors like industrials, technolog, and consumer discretionary stocks were the leaders today. The Dow Transportation Average increased by more than 1.5%, as all 20 names in the index moved higher.
Source: PFS Group
