Market Brief – Friday 6/4/21

Stocks rose in overnight trading as investors celebrated a weaker-than-expected payroll report. Stocks continued their overnight rally into early trading. Treasury yields were flat in overnight trading until the payroll report numbers hit which lead to a decline in yields, followed by a spike in yields, and then another decline in yields that continued into early trading.

The May Nonfarm Payroll report missed expectations with only +559k jobs created for the month. Average weekly hours worked were flat at 34.9 hours, however, average hourly earnings rose +0.5% in May and +2.0% from this time last year.

The unemployment rate declined to +5.8% with the U6 unemployment rate also declined to +10.2%. The labor force participation rate declined to 61.6% as fewer Americans are participating in the workforce.

Factory orders fell -0.6% in April but excluding transportation, rose +0.5% in April. Durable goods new orders, excluding defense were flat in April.

Stocks held their morning rally and closed even higher due to a final surge in trading going into the closing bell. Treasury yields closed lower as traders could not get 30-year Treasury yields to break above 2.3% despite repeated attempts. Thirty-year Treasury yields now have their sights set at 2.2% as financial conditions slowly tighten.