Market Lab Report - Premarket Pulse 6/5/15
The unemployment report showed 280,000 new jobs in May - the biggest gain since the end of 2014. Economists had expected a gain of 210,000 nonfarm jobs. The unemployment rate edged up to 5.5% from 5.4%, but mainly because more people entered the labor force in search of work.
The average wage of American workers rose 0.3% in May to $24.96 a hour, which is the highest level since mid-2013. Overall, wages in the past 12 months have risen 2.3% for the first time since August 2013 and only the third time since 2010. Going forward, most economists expect hourly wages to rise to 2.5% annual rate or higher as the dwindling pool of workers forces companies to pay more which would be another sign of strength for the recovering US economy.
Futures reacted negatively to the relatively strong report, trading down almost 0.5% at the time of this writing, as expectations rise of a rate hike sooner than later, meaning the beginning of the end for quantitative easing.
Semiconductor Cavium (CAVM) had a pocket pivot breakout yesterday. Institutional sponsorship has grown last 5 quarters, ROE 28%, group rank 9. Note, its pocket pivot on 5/27 was too soon after its gap down on 4/23. Yesterday's action is redeeming.
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