Jobs Data and More Jobs Data

S&P 500 and Russell 2000 hit highest levels since February
Market is anticipating a bipartisan deal in Congress
Stock Market Update for Traders

Stock Market Update for Traders

Wednesday's Close

E-mini S&P 500 Futures (September): Settled at 3316, up 16.00

E-mini Nasdaq-100 Futures (September): Settled at 11,091.75, up 5.75

U.S. benchmarks are higher on the week and clinging to those gains with jobs in focus.

The Nasdaq-100 set another fresh record yesterday whereas overnight the S&P 500 achieved the highest level since the scene of the crime February 21 and the Russell 2000 small caps hit the highest since February 27. Weekly Initial Jobless Claims came out at 7:30 a.m. CT, but just as important are the Continuing Claims, which peaked just below 25 million on May 21. After slipping below 17 million 2 weeks ago, they rose last week. This comes ahead of tomorrow’s Nonfarm Payroll Report for July. Yesterday, the private ADP survey showed vastly less jobs created last month than expected at 167,000 versus 1.5 million. Analysts expect tomorrow’s official results to show 1.6 million jobs created with an unemployment rate dropping to 10.5% from its peak of 14.7%.

Unprecedented stimulus measures out of Washington has buoyed the economy and jobs picture from the depths of the pandemic. Expectations for industry-specific layoffs, such as airlines, are mounting or small businesses once they’ve exhausted loans. On the other side of the coin, some individuals are choosing not to work because they’re making more money on unemployment. Congress is attempting to thread the needle on these and other topics. The market is certainly anticipating a bipartisan deal to get done. Congress always finds a way to come through in the end, right? With critical elections only 3 months away, some officials are holding ground a bit stronger. Friday’s deadline is looming.

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