The Closing Print live trading and financial blog during market hours.

Futures are higher this morning, on better than expected NFP numbers.

The dance between growth and value continues, as rotation into growth stocks becomes more obvious to investors. Financials were strong on Thursday, holding up fairly well throughout the session. Industrials and Consumer Discretionary sectors are higher in the pre-market session, going green just after the government reported better than expected additions of 222,000 new jobs in June. The unemployment rate hovers at 4.4 percent. As a result, growth stocks will likely remain confined to the shaded area, in its current descending pattern.

IGX IVX Growth and Value

Value stocks outperforming Growth. Sector rotation into XLB XLE XLF XLI XLY in the interim.

Economists had been expecting nonfarm payrolls growth of close to 179,000 (+/-) and the unemployment rate to tick down one-tenth percent to 4.3.

The reported increase in payrolls came on the heels of a disappointing report in May, which saw an increase of only 152,000 new jobs. As anticipated, that number was revised upward, from the initial report of 138,000. In addition, April was revised upward as well, from 174,000 to 207,000. The upward revisions point to slow but steady economic growth.

What does this all mean for the average investor?

My take is we could remain in this range bound consolidation pattern, like last summer. At some point, a catalyst such as bank earnings (due in two weeks) could get the ball rolling again. For now, smaller and fewer positions still makes sense.

Happy Fry-Day


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