Upside Possibilities More Likely Than Downside

Last week, stocks started the abbreviated trading week on a down note, but things turned around heading into Thursday and Friday, pushing the major benchmarks to record highs. Equity prices closed higher on Friday, June 2, following a non-farm payrolls report that showed a weaker-than-expected 138,000 jobs were created in May (versus consensus of 185,000). Logic holds that stock prices would move lower on such news. However, the (negative) new jobs portion of the report was counterbalanced by lower unemployment and (almost undetectable) wage inflation. In essence, news is mixed and markets are maintaining their resilience.

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