Most of the time the hot air coming out of Washington, DC doesn’t distract the market until it’s put into policy, but it seems to me that yesterday’s House Oversight hearing with James Comey distracted traders that fumbled a strong start to the session.  For a moment it appeared the session would be a disaster; however, stocks rebounded into the close ahead of today’s jobs report.

While the Dow and S&P finished fractionally lower; the NASDAQ posted solid gains, led by an extended rally in biotechnology names and cyber security stocks (perhaps benefiting from all the talk of private servers and international hacking).

HACK +1.5% and +7.7% since June 27

Moreover, I like the action in cybersecurity names.  I think we could be seeing the start of a major rally for the group, which is poised to outperform the broad market during the next leg higher for stocks.   The ISE Cyber Security (HACK) exchange traded fund breaks out big time with a close above 25.00.

XBI +0.9% and +14.7% since June 27

However, I am not sure if biotechnology can keep the momentum going after Juno Pharma (JUNO) received bad news from the FDA, sending its shares plunging in afterhours trading.

The broad market will continue to spin its wheels for sure.  By now, we all know the key parameters on the upside and downside.  I continue to see good news moving the needle, which means a net report of 180,000 jobs or more.

Today's Session

Its off to the races for the market after the June non-farm payroll number of 287,000 created exceeded the expectation of 175,000. The unemployment rate however was slightly higher to 4.9%.  May was revised down from 38,000 to 11,000.