Surprise Spoiled… President Trump’s “prediction” came true, but despite a “big” July NFP number this morning, US indices find themselves trading modestly in the red into the afternoon. Perhaps elevated expectations cued up by the improved ADP payrolls yesterday did take some of the shine off NFPs, but speculation that the improving jobs picture might further solid the Congressional stalemate of further unemployment relief (the two sides are reportedly remain far apart amid on meeting ongoing now) has also created reason for pause. Trump’s latest TikTok/TenCent targeting has US-China tensions in the mix as well, though the S&P clinging to most of its over +2% weekly gain suggests the back-and-forth is still a clear second fiddle to the virus/recovery narrative. Transports top the sector table with UPS (+7.3%) and Fedex (FDX +6.0%) leading the charge on word they are planning to raise holiday shipping fees as deliveries surge; otherwise Banks / Insurance are doing a bit of catching up, while Tech/Semis are taking a well-deserved breather, while Gold, Oil and Copper all give back some recent gains. Of course should a stimulus deal announcement come through before 4pm, things could be looking a lot rosier heading into the weekend…
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