August 6, 2021, 1:38 pm EDT
Strong July Job Report
The US Bureau of Labor Statistics reported strong July non-farm payrolls of 943K jobs and 5.4% unemployment rates this morning. Leisure and hospitality (hotels, restaurants, bars, cruises) added 380K and the government increased 240K which took the main part of the jobs. These numbers impressed the market participants so DJIA and S&P 500 made another historical high.
All bankers (JPM, GS, MS, BAC, WFC, C) cheered up with it. The rising interest rates era is coming. If the US economy can sustain this type of growth with the help of the government, it is possible the stock market can run even higher.
Of course, we all know the threat of inflation after money-printing and low-interest rates policy is coming as well. Therefore, investment strategy is to focus on the following sectors: financial, material, and consumer discretionary. We will list more details in our next report.