U.S. factory orders were up $14.0 billion, or 3.0% to $481.1 billion in June from May 2017, making it the sharpest increase since October 2016.  The starting segment of the report was transportation, which climbed 19%, the fastest since July 2014.  Other highlights include:

• Farm machinery +3.7%
• Industrials +1.8%
• Automobiles +6.2%

I continue to cheer for the industrial economy because the foundation for long-term sustainable growth must be a foundation rather than the world of ether and thin air, where real commerce takes place, but not by real people. Yesterday, industrials were the second best performer to utilities as investor angst stalled all the major indices ahead of today’s jobs report. 

The Jobs Report

The government’s jobs report isn’t expected to be a barnburner, but there are key details I’m always looking for; today, it’s wages and the long-term unemployed. While the latter has improved, it continues to reflect a nightmare I was warned about early in the Recession. There are some folks who have become trapped in the unemployment line. 

I’m not talking about people who don’t want to work, but folks who have mismatched skill sets. Most couldn’t get jobs at newfangled factories; many don’t want jobs because of their pride and integrity. Why should they?  This is a difficult area because it’s really not the role of the federal government and yet, with a business and a blue-collar friendly President, there might not be a chance to provide the kind of training that’s needed. 

Meanwhile, this morning, these are the big estimates. I’ll update this report after the release and before the open. 

Today’s Session

Bureau of Labor Statistics released its July jobs report which came in at 209,000 surpassing Wall Street consensus.   

Additional highlights:

• 4.3% Unemployment Rate
• 349,000 Increase Civilian Labor Force
• +$0.09 Increase in Hourly Wages to $26.36
• +39,000 Increase in Healthcare
• +53,000 Increase in Restaurants & Bars
• +49,000 Increase in Professional Services
• 153,500,000 Americans Working – Record

Disappointments

• 22,000 Goods Producing down from 32,000
• 8.6% U6 Number unchanged month to month down from 10.0 year ago

The market will open higher, but I suspect there could be a little early pressure.