Week of July 8, 2015

In a week that saw the nation in social unrest, the market finished the week on Friday based on the employment numbers.    While the numbers seemed impressive at 287,000 jobs created last month, the truth is that because last month’s numbers were extremely low.  However, if you average last month’s low employment numbers and this month’s higher than expected employment the number is somewhere around 165,000 jobs created per month.

While average, it still not what the analysts would be expecting in a strong growing economy. The truth is that more people still aren’t looking for work because they’ve given up.  The Federal number crunchers don’t even include them in the official employment number anymore.  Why bother, their job is to make the economy look good.

Money keeps pouring money into bonds driving the yields downs as investors run to what they think consider to be a safe investment.    As the money pours in, the yields keep going lower.   Around the globe in Europe and Japan, the bond yields have gone negative.   For government and corporation, money has become cheap as investors flock to these investments.  Keep expecting the yields to push lower as the money keeps pouring into bonds.

Oil prices finished the week down at $45.07.

This week kicks off the second quarter earnings season beginning with Aloca  (AA).  Other companies reporting this week are Fastenal (FAST), CSX (CSX), Yum! Brands (YUM), JPMorgan (JPM), BlackRock (BLK), Progressive (PGR), U.S. Bancorp (USB), Wells Fargo (WFC), and Citigroup (C).

Additionally, most individuals are still focus on the British exit vote to see how it plays out with the British Parliament picking a new prime minister.