The American economy continues to boost new job numbers with June recording a massive 288,000 new positions created, news which pushed the Dow above 17,000 points for the first time and a record close, and also helped the S&P 500 to yet another record as well.
The unemployment rate fell to 6.1% from 6.3% and economists wondered if the report meant the Fed would start raising rates earlier than it has previously said.
But if anyone fears the stepped up pace of US job creation this year might lead to a breakout of inflation look at the still weak growth in pay – up 2% over the past year.
Still the US 10-year bond yield jumped to 2.64% in reaction to the thought that the Fed is closer to lifting official interest rates from the current level of 0% to 0.25%.
It was a stunning end to the holiday shortened week for the US markets and those start of year blues and contraction caused by the big freeze have been forgotten, with economists now boosting their estimates of June quarter growth to more than 3% (annual).
Gold’s rise of the past few weeks continued as well, but slowed sharply, while oil prices fell over the four days.
Markets closed early for the July 4 holiday in the US tonight, our time.
That was after the Dow closed 92.41 points, or 0.6%, higher at 17,068.26 to be up 1.3% over the week.
The S&P 500 added 10.81 points, or 0.6%, to end at 1,985.343 and was also 1.3% higher over the week.
And The Nasdaq Composite added 28.19 points, or 0.6%, to 4,485.93 and finished the week with a 2% gain, its third weekly gain in a row.
But the average monthly job gains in the first half of this year are about 230,000, up from 2013’s monthly average of 195,000.
The 288,000 new jobs in June was the fifth straight monthly gain of 200,000 or more.
The last time that happened was in 1999. Employment gains for May and April were also revised up by a combined 29,000.
In June virtually every major industry added jobs, led by professional services, retail, restaurants, health care, finance and manufacturing. The 6.1% unemployment rate was the lowest since September of 2008
The strong payrolls data came as international trade data also offered encouragment for the US economy.
Exports rose to a record high, while imports declined, leading to a narrowing of 5.6% in the trade deficit from April.
That was due to the lowest level of oil imports in 18 years, as America’s fracking boom boosts domestic production.
In New York, US oil futures fell for a sixth session to close at their lowest level in about a month.
August crude fell 42 cents, or 0.4%, to settle at $US104.06 a barrel, down 1.6% for the week
And August gold futures fell $US10.30, or 0.8%, end the week at $US1,320.60 an ounce on Comex in New York.
Prices ended the week with a modest gain of 60 just cents an ounce.
Comex copper for September delivery rose 1.5 cents, or 0.4%, to end at $3.28 a pound in New York.
Copper was up 4% over the shortened trading week.
