Your Weekly Market Blip 6/5/20

Your Weekly Market Blip 6/5/20

Stocks took off like a Falcon 9 rocket after the jobs report came in better than expected…..by a mile! At the close the Dow was up 892 at 27,110. Trading volume was up big. Banks and energy sectors were leaders. For the week the Dow was up 6.6% or roughly 1,680 points.
Ian “Son of Sheep herder” Shepherdson over at Pantheon Macroeconomics called today's jobs figure “the biggest payroll surprise in history”. He said it’s a “mystery” how it happened but some suspect that PPP loans caused a lot of people to get back to work quickly. The gurus had predicted an unemployment rate of 19.8% with 8+ million jobs lost but the actual numbers showed a 13.3% unemployment rate with a stunning 2.5 million jobs added. Within the report there was even a sharp recover in leisure and hospitality. While some wonder if today’s report is a mere “head fake” and rightly warn of bumps in the road the numbers today at least partially explain why the markets have been imitating one of Elon’s rockets.
Boeing won a deal to sell a 747 freighter that was originally being built for a Russian customer and is in talks to sell between four and seven additional jumbo cargo airplanes to a mystery buyer believed to be UPS. These widebody planes are made in Everett, WA.
Crude oil continues to creep higher with WTI hitting $40 per barrel. OPEC + is set to meet tomorrow to discuss extension of output cuts and this, coupled with the strong US labor report might hint that a supply demand crunch could be in the cards. Baker Hughes reported that active rigs in the US continue to decline implying further declines in US production all while demand continues to improve.
Camp Parsons said it will suspend operations for the summer! The lunkheads are crushed! Camp Fire Mountain up near Bellingham is still an option and we are looking into it. Maybe we should go to Camp Buffalo in Wyoming. I also will be planning a hike for this summer to help get them out into the woods where they can experience the joys of being cold, wet, hungry and tired instead of being cooped up, bored and frustrated.

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