Non-Farm Payrolls Add Fuel to Market Rally

Good morning contrarians! Welcome to the Daily Contrarian, our morning look at events moving markets. It is Thursday, July 3. Jobs Day.

Read this month’s update on the Contrarian Portfolio here.

State of Play

Non-farm payrolls, which we’ve been waiting for all week, just came in better than anticipated. As we eye or board of indicators for signs of direction at 0845 ET, risk on is the story:

• Stock index futures are moving higher after that jobs number, led by small caps (usually a good sign). The Russell 2000 is up 1%. S&P 500 and Nasdaq ~0.3% to the good;

• Cryptos are moving higher. Bitcoin is up 2% to trade around $109,400;

• Bonds are seeing a few bids. The 10-year yield is down 3 basis points to 4.26% (yields move inversely to prices);

• Commodities are quiet after a broad rally yesterday. Nothing to report there.