Your Thursday Blip 7/2/20

Your Thursday Blip 7/2/20

The latest jobs report was much better than expected sending stocks to a closing gain of 92 points at 25,827. Trading volume was light which is expected given the long 4th of July weekend. For the week the Dow was up about 3.5%.
The June labor figures were better than expected. 4.8 million jobs were added bringing the unemployment rate to 11.1%. In the manufacturing sector the job gains were 606,000. Brian Wesbury, economist at First Trust and honorary member of the Westport Mafia noted that with all the PPP stimulus creating furloughs, absent employees and temporary layoffs the actual unemployment rate should be closer to 12%. Over the past two months 7.5 million jobs have been added to the workforce as the economy reopens.
While Ford, GM, Toyota and Fiat Chrysler reported a more than 30% drop in vehicle sales for the second quarter Tesla beat estimates and delivered 90,650 cars which was down only 4.8%. FactSet had reported that guru estimates for delivery were 72k and Bloomberg was more optimistic with a delivery estimate of 83k vehicles. CEO Elon “Megalomaniac” Musk sent an email to employees congratulating them on their amazing execution during such difficult times.
Markets are closed tomorrow in honor of the 4th of July weekend. The Christian Science Monitor reported that fireworks sales this year are up significantly along with complaints about the use of illegal fireworks in cities where they are banned. Boston said complaints are up 2,300% from last year. It was also reported that while individual fireworks sales are booming (ha-ha) the companies that specialize in large displays are suffering because big traditional 4th of July events with lots of people have been canceled.
Have a good long weekend and hats off to Uncle Sam as we celebrate 244 years of freedom.