The Closing Bell will be updated sometime after 4:00 PM CDST to include the latest updates from IBD and Bloomberg Evening Briefing.)
FYI: The Dow Jones Industrial Average extended its rally Friday, putting the index on pace for its best week in more than six months, after lackluster employment figures for May fanned investors’ expectations of loosened monetary policy.
The gains have pushed the blue-chip index up more than 1,000 points since Monday, a major rebound following six straight weeks of losses, with nearly all stocks in the Dow industrials notching gains.
Newfound optimism that the Federal Reserve will cut interest rates soon has been stoking the bounceback, which got a boost Friday following weaker-than-expected jobs data from the Labor Department.
Although worsening economic data just a month ago would have likely sent stock prices lower, investors have had a change of heart. Federal Reserve Chairman Jerome Powell said on Tuesday the central bank would “act as appropriate to sustain the expansion,” suggesting a possible rate cut as a solution to contracting economic data.
Since then, major indexes have been in rally mode. The Dow industrials jumped more than 500 points on the day of Mr. Powell’s comments, followed by a 207-point-gain on Wednesday after private-sector employment data also showed a steep drop in hiring activity.
Those convictions deepened Friday. The Dow industrials rose 263 points, or 1.02%, to 25983 after the Labor Department said hiring activity in the U.S. slowed, with employers adding 75,000 jobs, well below analysts’ expectations.
“It does show some moderation in activity,” said Evan Brown, head of macro asset allocation strategy at UBS Asset Management. “And it suggests a rate cut in either July or September is looking more likely than not.”
Meanwhile, the S&P 500 added 1.05%, while the Nasdaq Composite rose 1.66%.
At the same time, bond yields fell further. The yield on the benchmark 10-year Treasury note fell to 2.074%, according to Tradeweb, from 2.105% before the report.
The run of gains this week has put all three major indexes on track to snap their losing streaks. The Dow is on pace to rise 4.8% over the past five days, its first weekly gain after falling the past six, while the S&P is up 4.6% following four straight weeks of declines. The Nasdaq is on track to add 3.8% to clinch its first gain after four consecutive weeks of losses.
Stocks in other parts of the world got a lift, too. The Stoxx Europe 600 added 0.9%, putting it up 2.3% for the week, its best gain since early April. Japan’s Nikkei rose 0.5% and climbed 1.4% over the week.
Regards,
Ted
Bloomberg Evening Briefing:
https://www.bloomberg.com/news/articles/2019-06-07/your-evening-briefingMarketWatch:
https://www.marketwatch.com/story/stock-market-poised-to-rise-ahead-of-friday-jobs-report-2019-06-07/printWSJ:
https://www.wsj.com/articles/global-stocks-advance-ahead-of-u-s-jobs-data-11559895022Bloomberg:
https://www.bloomberg.com/news/articles/2019-06-06/asia-stocks-seen-higher-on-mexico-tariff-optimism-markets-wrap?srnd=premiumIBD:
https://www.investors.com/market-trend/stock-market-today/dow-today-tops-26000-briefly-stocks-surge-rate-cut-hopes/CNBC:
https://www.cnbc.com/2019/06/07/us-futures-edge-higher-as-wall-street-rally-set-to-continue-jobs-data-in-focus.htmlReuters:
https://www.reuters.com/article/us-usa-stocks/wall-street-rallies-on-rate-cut-hopes-china-tariff-delay-idUSKCN1T817NU.K:
https://uk.reuters.com/article/uk-britain-stocks/ftse-100-marks-best-week-in-four-months-buyout-offer-lifts-millennium-copthorne-idUKKCN1T80LHEurope:
https://www.reuters.com/article/europe-stocks/european-stocks-recover-after-ecb-disappointment-idUSL4N23E1AIAsia:
https://www.marketwatch.com/story/asian-stocks-rise-on-hopes-of-us-mexico-deal-to-avert-tariffs-2019-06-06/printBonds:
https://www.cnbc.com/2019/06/07/us-treasurys-edge-lower-as-investors-await-jobs-data.htmlCurrencies:
https://www.cnbc.com/2019/06/07/forex-market-us-jobs-report-ecb-policy-in-focus.htmlOil:
https://www.cnbc.com/2019/06/07/oil-market-us-mexico-talks-opec-supply-cuts-in-focus.htmlGold:
https://www.cnbc.com/2019/06/07/gold-market-fed-rate-cut-expectations-us-mexico-tariffs-in-focus.htmlWSJ: Markets At A Glance:
https://markets.wsj.com/usMajor ETFs % Change:
https://www.barchart.com/etfs-funds/etf-monitorSPDR's Sector Tracker:
http://www.sectorspdr.com/sectorspdr/tools/sector-trackerSPDR's Bloomberg Sector Performance Pie Chart:
https://www.bloomberg.com/markets/sectorsCurrent Futures:
https://finviz.com/futures.ashx 
