Intense Wrestling Match
Job openings increased last month according to the JOLTs report; it reached its highest point since last July.
The record high reading was 5,973,000 in July 2015 while the lowest was 2,196,000 in July 2008. I keep wondering when all these job openings will result in a serious uptick in wages; perhaps it is a number north of six million and if history is a guide, it will probably happen in July. Last Friday’s jobs report was a dud with a few bright spots, but wages are the linchpin if we are to truly get Main Street moving again.
Tempest in Teapot
Yesterday, was another wild and crazy session that for the casual observer, it may have looked like a non-event. Make no mistake; there is a heck of a tug-of-war happening.
The Dow Jones Industrial Average was down as much as 146 points. And after several rebound attempts, it finished off only six points. The good news is there are strong buyers in dips, and the bad news is 20,660 to 20,700 (on a closing basis) has become a significant resistance zone.
The standout sector on Tuesday was housing, led by upscale builder Toll Brothers (TOL). I happen to like the trends in housing and signs on household formation reemerging. The housing stocks are still well below their go-go day highs back in 2005, and many are on the cusp of major breakouts.
Everyone should consider one or two for their portfolios.
By the way, after the bell, the American Petroleum Institute (API) crude oil data showed a surprising draw of 1.3 million barrels of crude if the U.S. Energy Information Administration (EIA) report today matches this. Watch for West Texas Intermediate (WTI) to pop over $55.00 a barrel- and yes, that is good news for jobs and the economy, and it puts support under the equity markets as well.
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