Entering the final trading day of the week, the Dow had risen over 400 points during the three days prior, but today the winning streak ended. Stocks finished down across the board following the release of the May jobs report. There had been a great deal of discussion recently that the Fed would seriously considering raising interest rates after an expected solid employment report for May. The jobs report, however was not stellar. Expectations for a summer rate hike fell after the Labor Department reported that non-farm payrolls grew by just 38,000 in May; the worst monthly jobs growth in five years.
What does this mean for the market? Watch below.
Meanwhile, “bond-king” Bill Gross, manager of the Janus Capital Unconstrained Bond Fund, had some bad news for investors when he appeared on CNBC’s “Power Lunch.”
Gross contended that:
“Bond and stock returns realized in the last 40 years are “a grey if not black swan event that cannot be repeated.” Investors should not expect 7 percent returns on bonds or returns in the high single digits or double digits on stocks. The markets are entirely different and it would pay to travel to Mars as opposed to stay on Earth, because the returns here are very, very low.”
Gross added:
“Investors should “basically go the other way” by holding liquid cash…they should not buy corporate bonds and resist buying high-yield bonds or riskier stocks.”
Watch Bill Gross’ interview on CNBC below.
Here are the final numbers from Friday, June 3rd on Wall Street:
Dow Jones Industrial Average: 17,807.06 (-31.50 / -0.18%)
NASDAQ: 4,942.52 (-28.85/ -0.58%)
S&P 500: 2,099.13 (-6.13/ -0.29%)
