Stocks Move Higher After Strong Non Farm Payrolls Report

Unemployment Rate Increased To 5.9% In June

U.S. has just released Non Farm Payrolls and Unemployment Rate reports for June.

Non Farm Payrolls report indicated that U.S. economy added 850,000 jobs in June compared to analyst consensus of 700,000. The previous report was revised from 559,000 to 583,000.

Unemployment Rate unexpectedly increased from 5.8% in May to 5.9% in June while analysts expected that it would decline to 5.7%.

S&P 500 futures are moving higher after the release of better-than-expected Non Farm Payrolls report, and it looks that traders are ready to ignore the risks of higher rates and prefer to focus on the robust rebound of the U.S. economy.

Today, traders will also have a chance to take a look at Factory Orders data for May. Analysts expect that Factory Orders increased by 1.6% month-over-month in May after declining by 0.6% in April.

WTI Oil Stays Near $75 As OPEC+ Tries To Reach Consensus

Yesterday, OPEC+ failed to reach a consensus deal on production cuts as UAE presented its objections. UAE wants to increase its production faster as it has made significant investments in production capacity.

According to reports, OPEC+ planned a gradual production increase of 400 million barrels per day (bpd). If no deal is reached, OPEC+ may have to maintain current production cuts for some time, which will be bullish for the oil market and may push WTI oil towards the $80 level.

OPEC+ negotiations have never been easy, and negotiators may have to work over the weeked to find a solution to the current problem.

Gold Moves Closer To The $1800 Level

Gold continues to move higher amid concerns about the fast spread of the Delta variant of coronavirus.

At this point, stock traders do not believe in the rapid rebound of the gold market, and gold mining stocks have mostly moved lower during yesterday’s trading session.

It looks that gold needs to get above the $1800 level to boost investors’ interest in gold mining stocks.

For a look at all of today’s economic events, check out our economic calendar.