Stocks surged higher in the closing days of a holiday-shortened trading week, ignited by a political resolution on raising the debt ceiling and a strong employment report.
The Dow Jones Industrial Average rose 2.02%, while the Standard & Poor’s 500 advanced 1.83%. The Nasdaq Composite index gained 2.04% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, slipped 0.52%.1,2,3
The weight of uncertainty over negotiations to raise the federal debt ceiling was lifted last week by the news of an agreement between President Biden and House Speaker McCarthy and its subsequent passage in Congress.
After a modest gain on Thursday following the House vote, stocks rallied on Friday, responding to the Senate passage of the debt ceiling bill, which eliminated a significant overhang to the market. A robust federal employment report also contributed to the Friday rally. The report exceeded market expectations in the growth of new jobs while reflecting a deceleration in wage growth.
Last week’s employment data showed that the labor market remains stout after over a year of sharp interest rate hikes.
Job openings in April increased to more than 10 million, reversing three straight months of declines, while private sector employment increased by 278,000 jobs in May, according to a survey by Automated Data Processing (ADP), a significant payroll processor.4,5
In line with these strong numbers, the Department of Labor reported 339,000 new jobs were added in May. That came above the consensus estimate of 190,000 and marked the 29th consecutive month of positive growth.6
Monday: Factory Orders. Institute of Supply Management (ISM) Services Index.
Tuesday: Jobless Claims.
Source: Econoday, June 2, 2023 – The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
Tuesday: The J. M. Smucker Company (SJM)
Wednesday: Campbell Soup Company (CPB)
Thursday: DocuSign (DOCU)
Source: Zacks, June 2, 2023 – Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
Investment advisory services offered through the Impact Partnership Wealth, LLC (“IPW”), a Registered Investment Advisor firm. Registration is not an endorsement of the firm by securities regulators and does not mean the advisor has achieved a specific level of skill or ability. This email is being sent by, or on behalf of, a Registered Investment Advisor. It is intended exclusively for the individual or entity to which it is addressed. This communication may contain information that is proprietary, privileged, or confidential, or otherwise legally exempt from disclosure. If you are not the named addressee, you are not authorized to read, print, retain, copy, or disseminate the email or any part of it. If you have received this email in error, please notify the sender immediately by email or fax, and destroy all copies of this communication. Please be advised that you may conduct securities transactions only by speaking directly with your Investment Advisor Representative, either by phone or in person. Requests for securities transactions via email will not be executed by Impact Partnership Wealth, LLC. To help protect your privacy, we strongly suggest you avoid sending sensitive information, such as account numbers and social security numbers via email. Please be further advised that, pursuant to the Bank Secrecy Act, the USA Patriot Act, and similar laws, any communication in this email is subject to regulatory, supervisory, and law enforcement review. Insurance and annuities offered through Fortified Futures, Inc, NC License #18786413.
