The U.S. jobs report was released today, giving investors mixed feelings. Certain numbers indicate a strong economy bouncing back from a tepid first quarter while other data foreshadows an economy trapped in the same low growth trajectory. Signs of a solid job market were aided by 223,000 new June jobs and a 0.2 percent decrease in unemployment that brought the jobless rate to 5.3 percent. The new jobs added in June mark the 13th time in the last 15 months the economy has added at least 200,000 per month. However the U.S. job market did take hits from reduced employment gains, disappointingly flat wages and a record low labor force participation number. Remember that a robust job market is one of the Fed’s key indicators for raising rates and every jobs report from here on plays a significant role on when that hike will take place. Look to Employment Payrolls on page 54 and Unemployment Rate on page 55 of the Voya Global Perspectives™ book to see a detailed history of the U.S. job market.
The Latest Market Commentary From Our Strategists
Weekly Commentary & Statistics
Domestic equity markets were choppy on the week, as a lack of resolution to the latest Greek bailout talks had investors in a skittish mood despite decent economic data flow; the health care sector was a notable exception, however, surging as the Supreme Court upheld certain elements of the Affordable Care Act. Yield on the benchmark ten-year U.S. Treasury continued to edge higher, closing at the highest level in nearly nine months.
Monthly Commentary & Outlook
- In the first half of 2015, the long-running bull market continued to overcome a variety of potential stumbling blocks.
- With ECB stimulus blazing, Europe has been a pleasant surprise this year.
- While the mechanics of policy normalization can test near-term resolve, investors must remain focused on their long-term goals.
- If the bull market that arose out of the Great Recession taught us anything it’s that waiting on the sidelines for a precise entry point is pure — and costly — folly.