A better than expected July jobs report helped vault the markets into higher territory today. The U.S. economy added 255,000 jobs in July, well above the expected 180,000. The unemployment rate remained unchanged at 4.9% but today’s unemployment report sent stocks on major upswing with the S&P 500 & NASDAQ hitting new all-time highs. Merck was the big winner on the Dow, followed by Goldman Sachs. Oil closed at $41.80 per barrel.   Bristol-Myers stock plummeted following word that its latest cancer drug failed to meet targets in a late-stage study. Not all experts were giddy about the markets overall gains today.
Mike Wachholz, president of Pontoon Solutions told CNBC–

“I think we’ve reached terminal velocity. I find it difficult for the labor market to keep up this pace since businesses are under pressure to make the right hiring decisions, and they know they have limited bullets in the chamber.”

Dow Jones Industrial Average: 18,543.53  (+191.48 / +1.04%)

NASDAQ: 5,221.12 (+54.87 / +1.06%)

S&P 500: 2,182.87  (+18.62/ +0.86%)

Falling oil prices put a drag on the stock market for the first day of August. Oil prices closed 3.7% lower at $40.06 per barrel after briefly dropping below $40. The big topic over the weekend was whether the Glass-Steagall Act should be brought back and if so, what would it mean to the financial markets.  The Glass–Steagall Act, also known as the Banking Act of 1933, was passed by Congress in 1933 and prohibited commercial banks from engaging in the investment business. It was enacted as an emergency response to the failure of nearly 5,000 banks during the Great Depression.  It had originally been put into place to establish a fire-wall between commercial and investment banking.  The legislation was repealed in 1999 by President Clinton.  The idea of resurrecting Glass-Steagall was brought up during the GOP convention.  A report from Keefe, Bruyette & Woods took an in depth review of what resuscitating it would mean to the markets.  See more below.

Here are the final numbers from Monday, August 1st on Wall Street:

Dow Jones Industrial Average: 18,404.51  (-27.73 / -0.15%)

NASDAQ: 5,184.20 (+22.07 / +.43%)

S&P 500: 2,170.83  (-2.76/ -0.13%)

This was the worst week for the Dow Jones Industrial average in over a month as its 4 weeks winning streak ended.  For the week the Dow lost 143 points.  The latest readings on American Gross Domestic Product for the 2nd quarter of 2016 show the GDP fell below the financial industry’s meager predictions. The 1.2% percent growth rate in the second quarter combined with a downward revision to the first three months of this year produced an average growth rate of just 1%.  It was far below the Wall Street forecast of 2.6%. Today’s data supported the Fed’s warning about weak business investment. Business investment fell 2.2%, its 3rd straight quarterly decline. Gross private domestic investment dropped 9.7%, and residential investment fell 6.1% -the first drop in two and a half years.

CNBC Senior Economics Reporter Steve Liesman today surmised that the latest GDP figures could signal one of the signs of a possible recession.

Watch below.

Here are the final numbers from Friday, July 29th on Wall Street:

Dow Jones Industrial Average: 18,432.24  (-24.11 / -0.13%)

NASDAQ: 5,162.13 (+7.15 / +.14%)

S&P 500: 2,173.60  (+3.54/ +0.16%)

As the price of oil hit a 3 month low & Facebook stock hit an all-time high, the big story to hit the financial headlines today was an interview that appeared on CNBC with Terry Chan-head of S&P Global Ratings Analytical Research. The focus was on corporate debt and how it continues to pile up to the tune of $10 trillion dollars, due over the next several years. The $10 trillion dollars represents 20% of the $51 trillion dollars owed by companies around the world, which will mature between now and 2021. According to Terry Chan this scenario poses a very dangerous situation, financially speaking.

Watch below.

Here are the final numbers from Thursday, July 28th on Wall Street:

Dow Jones Industrial Average: 18,456.35  (-15.82 / -0.09%)

NASDAQ: 5,154.98 (+15.17 / +.30%)

S&P 500: 2,170.06  (+3.48/ +0.16%)

The Federal Open Market Committee has opted against raising the federal funds rate for July.  As expected, the FOMC kept its overnight interest rate at 0.25 percent despite signs that the labor market has gotten stronger along with other signs indicating growth.

According to the Fed statement released today:

“Job gains were strong in June following weak growth in May. On balance, payrolls and other labor market indicators point to some increase in labor utilization in recent months. Inflation is expected to remain low in the near term and then rise as the decline in energy prices turns and the labor market continues to strengthen. Near-term risks to the economic outlook have diminished.”

Kathy Jones, VP & chief fixed income strategist at Charles Schwab told CNBC-

“The Fed has clearly set the stage for a potential rate hike in September, but they didn’t want to commit themselves. You can tell they’re feeling a bit more confident.”

The decision by the Fed to leave rates alone comes as concerns increase over global growth. In fact, Fitch Ratings today cut its forecast for Fed rate hikes from two to one this year and from three to two next year.

Click here to see what changed in the most recent Fed statement.

Here are the final numbers from Wednesday, July 27th on Wall Street:

Dow Jones Industrial Average: 18,472.17  (-1.58 / -0.01%)

NASDAQ: 5,139.81 (+29.76 / +.58%)

S&P 500: 2,166.58  (-2.60/ -0.12%)

After a four week winning streak the markets are now down in each of the first two sessions of the week after a mixed today Tuesday. Dow components led decliners with telecom issues and McDonalds leading the slide. The fast food giant fell 4.5% after reporting lower than expected sales. The Federal Open Market Committee (FOMC) is scheduled to wrap up its two-day meeting tomorrow afternoon with its statement on monetary policy. Most don’t expect the Fed to raise interest rates, but will watch for indications on the timing of the next rate hike.

CNBC’s Steve Liesman tries to explain, why: “sell in May and go away” has turned into: “buy, buy buy in July” for the stock market.

Here are the final numbers from Tuesday, July 26th on Wall Street:

Dow Jones Industrial Average: 18,473.75  (-19.31 / -0.10%)

NASDAQ: 5,110.05 (+12.42 / +.24%)

S&P 500: 2,169.18  (+.69/ +0.03%)

Coinciding with the start of the DNC in Philadelphia, stocks kicked off the week on a down note as oil prices slid.  The price of a barrel of oil closed at its lowest level since April 25th over worries over a global “over-supply.” U.S. crude settled down $1.06, or 2.4 percent, at $43.13 a barrel. The biggest losers were energy stocks as investors look ahead to major earnings reports and the upcoming Fed meeting on interest rates. The U.S. Federal Reserve is scheduled to conclude its two-day meeting Wednesday afternoon.

Meantime, one of Wall Street’s largest firms sent a clear message to investors that there could be trouble brewing in this current stock rally as so-called “safe havens” are becoming danger zones. Watch below.

Here are the final numbers from Monday, July 25th on Wall Street:

Dow Jones Industrial Average: 18,493.06  (-77.79 / -0.42%)

NASDAQ: 5,097.63 (-2.53 / -.05%)

S&P 500: 2,168.49  (-6.54/ -0.30%)