U.S. jobs data released today eased investors’ worry that the Federal Reserve would be ending its stimulus program in the near future. The S&P 500 ended its two week losing streak on Friday, gaining 20.82 points, or 1.28 percent, to end at 1,643.38.
Oil: -0.35% to $94.43 per barrel Gold: -2.08% to $1,386.30 an ounce U.S. 10-Year: +0.099 to 2.175%
Labor’s Mixed Results: Jobs Spiked But Unemployment Rose: The U.S. Department of Labor released its monthly employment situation report on Friday, which showed that United States employers added a better-than-expected 175,000 jobs in May. This announcement further supported the thesis that the labor market has been remarkable resilient to the uneven gains made by the economy so far this year. However, as with all economic data recently, the report contained both good and bad news. Despite the 175,000-job gain, the unemployment rate rose back up to 7.6 percent from 7.5 percent, an unexpected jump… (Read more.)
Is This Stock Market Cheap?: In times of critical importance, the conventional P/E ratio often lags the index to the point of being useless as a value indicator. “Why the lag?” you may wonder. “How can the P/E be at a record high after the price has fallen so far?” The explanation is simple… (Read more.)
Here’s How Fiscal Policy is Slowing Down the Economy: Brian Lucking and Daniel Wilson, a research associate and a senior economist in the Economic Research Department of the Federal Reserve Bank of San Francisco, respectively, published a report on June 3 that argued about one basic idea: federal fiscal policy has been a modest headwind to economic growth during the recovery, but that headwind will blow more severely over the next three years… (Read more.)