US adds 206K jobs in June, while unemployment rises to 4.1%

Nonfarm payrolls rose above expectations for the month of June, the US Bureau of Labor Statistics reporting 206,000 new jobs added to the economy against economist estimates of 190,000. The US unemployment rate ticked up to 4.1%, while many experts were originally forecasting it to hold at 4.0%.

The Morning Brief’s Brad Smith and Brian Sozzi break down the latest jobs print.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Luke Carberry Mogan.

Video Transcript

We are five seconds away from getting that jobs report.

And as we’re keeping a close eye on the futures, they are positive going into it.

Let’s take a look at the numbers that are crossing.

Now, we’ve got 206,000 jobs that were added versus the 190,000 jobs expected.

So that better than expected here, the unemployment rate ticks higher to 4.1%.

Average hourly earnings month over month came in at 3/10 of a percent.

And you also saw the year over year figure for average hourly earnings move to 3.9 percent ultimately unchanged from what we had seen prior as of right now.

Taking a look at the futures.

We’re seeing much of the same that we were just seeing a moment ago where mesh of the futures activity is still leaning positive at this juncture.

So we’ll see exactly what this does to the CME fed watch probability as well.

Uh Speaking of government, government jobs up 70,000 really want to highlight one thing here real quick before we get to our Jared blier on markets downward revisions to April by 57,000 downward revision to May 54,000.

You have to think what does this mean in the context of inflation?

Initially, this report may suggest perhaps we are back on the table for that September rate cup.

Let’s go over Jared, who’s watching some of these early market moves?

Very interesting report here, Jared.

Yes, I’m looking at the two year Treasury Note futures and so these move inversely to yield and what we’re seeing is a spike higher here on the report.

So that means yields are dropping.

Not too many worries about that higher for longer.

That was a two year.

These are 10 year note futures up 30 basis points.

So similar boat there.

And let’s see what’s going on in the stock futures.

You can see S and P futures have rallied to their prior overnight high, which happened about the European open, but we’re only talking about 13 basis points.

This is not a big move by any stretch.

And in fact, we usually see a little bit of a fake out on these days.

So we might end up going the opposite direction.

Once the market actually opens here are dow futures, you can see similar chart but didn’t quite make it up to their prior high here.

Story continues

And then let’s check out what’s going on with gold.

We can see a little bit of a jump higher, maybe some concerns about inflation.

I didn’t really see too hot.

A wage growth number but that’s one factor that happens or that’s one of the things we see sometimes when we see gold futures heading higher here and then here, copper futures basically unchanged.

Do you want to check out what’s going on with Bitcoin?

Because sometimes that does have a little bit of a delayed reaction, not seeing any fireworks just yet, but we’ll keep an eye on that and then we gotta check out what’s going on in the sector action in stocks and the background color is what happened on Friday.

But you can see XL wide there.

That is the number one pre market gainer up about 41 basis points or 4/10 of a percent after closing up 6/10 of a percent on Friday.

So we got kind of a mixed board energy trading to the downside.

So is utilities but not by a large margin.

And then some of the other gainers, I should note real estate staples and financials tech just a little bit in the green there guys.