The super strong employment numbers today with 339,000 new jobs versus a forecast of 190,000 are certainly being well received by equities–the S&P500 is up 1.25%. The unemployment rate shot up to 3.7% versus 3.4% last month.
Interest rates have bounced a bit to the 3.67% area–just fine all things considered.
The economic reports overall continue to be mixed and as we look at the FOMC meeting on June 13-14 it seems like we have a ‘coin toss’ situation–the talking heads seem to be fairly certain of a pause–I thought a pause, but this employment number is not helpful so I guess we will see what further data bring us–CPI will be released on June 13–the 1st day of the FOMC meeting.
How about those smaller banking issues? I was reviewing my holdings and most issues are up $1 to $3 since my purchases. Of course I wish I had full positions–but I will take the gains regardless. There remains plenty of high yielding issues out there to buy–but I am not going ‘all in’ I am too conservative to go crazy–but will continue to nibble, nibble, nibble.