Major averages rose on lower volume though it was above average on the NASDAQ Composite. The lagging Russell 2000 led the way, closing above its 50-dma.
May nonfarm payrolls came in weak at 138,000 vs. est 185,000. The prior month's reading was revised to 174,000 from 211,000. Nonfarm private payrolls added 147,000 vs. est 172,000. The previous month's reading was revised to 173,000 from 194,000. The unemployment rate fell to 4.3% vs. est 4.4% marking the lowest rate since 2001. Average hourly earnings increased 0.2% vs. est 0.3%, while the previous month's reading was revised to 0.2% from 0.3%. The average workweek was reported at 34.4 matching estimates. The previous month's reading was left unrevised at 34.4.
Futures partially reversed on the weak jobs report but are still trading higher. Note that the low 4.3% unemployment rate has more to do with people who have given up looking for work than those who actually found jobs. This is in line with the weaker GDP numbers that have been observed in recent quarters.
Focus List Review
MOMO has been lagging after its disappointing earnings report as it continues to test its 50dma. Other leading Chinese names continue to perform well, so the question is whether MOMO can continue its ascent. MOMO is a mobile-based social networking platform in China, and is the leader in this mobile space.
ANET has posted two pocket pivots in a row at its 10-dma. This remains in a buyable position using the 10-dma or 20-dema as a selling guide.
BABA is holding tight along its 10-dma as volume dries up. This may offer a lower-risk entry using the 20-dema as a maximum selling guide.
BZUN is holding support at its 20-dema as volume declines. This would offer a lower-risk entry position using the 20-dem as a tight stop.
COHR is holding very tight along its 10-dma with volume drying up as it continues to hold support along the 140 price level and the intraday low of its May 10th BGU.
FB held support at its 20-dema as volume dries up. Pullbacks to the 20-dema would offer lower-risk entries.
NFLX remains within buying range of last week's gap-up pocket pivot breakout using the 10-dma as a tight selling guide.
SNAP is on a "voodoo" streak as it posted another extremely low-volume day (-68% below average) while holding very tight along its 10-dma and 50-dma. This continues to represent a lower-risk entry position.