By K. Mat.
Stocks Get Ready For Friday's Employment Report
Stocks closed lower yesterday. After a strong start right from the open, on reports that the U.S. and China were close to a deal, the markets pared their gains shortly thereafter before finishing lower on the day.
But traders remain optimistic that a deal will get done. Although, we're soon going to need to hear some concrete details on what's been done or what's to come to keep this trade-deal rally going.
Rumors suggest that President Trump and President Xi will meet in Florida later this month after China's President wraps up his European trip. The market is anxious to hear exactly when they will meet as it's a great indication that they indeed are close to an agreement. And that's because they presumably would only decide to meet if they could emerge victorious with a signed deal. Once there's official word that the two will meet, the markets will likely celebrate, or at least breathe a sigh of relief.
Of course, what the market really wants is a signed deal that will put the threat of a trade war behind us, and the markets can get back to focusing on the spectacular economy the United States is enjoying right now. And look forward to a recovering Chinese economy as well.
We will get the usual slate of economic reports this week. But we'll also get the always important Employment Situation report on Friday.
The jobs numbers have been nothing short of stunning lately. While nobody is predicting a blowout like last month's 304,000, nobody was predicting a blowout back then either. But expectations are still for a solid 178,000 new jobs for the next report. And the historic employment gains are expected to continue.
In the meantime, stocks continue to trade near their highs of the year. And the Nasdaq will be trying to extend their winning streak to 11 weeks in a row.
See you tomorrow,
