Major averages rose yesterday on lower volume. All major averages sit below their respective 50-day moving averages with exception of the small cap Russell 2000, which yesterday churned around the 50-day line before closing just above it. With Greek headwinds amplifying volatility, the market is not out of the woods as of yet, though word has it that Greece may accept the current bailout terms. US markets are closed tomorrow for the July 4 holiday, so much can happen regarding Greece between now and Monday. A gap up or gap down at the market open on Monday is entirely possible, so manage your position sizes ahead with respect to your personal risk tolerance levels ahead of the long weekend.
The market is keying in on today's unemployment report for June, especially the wage-growth figure. Unemployment fell from 5.5% to 5.3%, the lowest level since spring of 2008, but this drop was due largely to more than 400,000 people leaving the labor force. In addition, the average hourly wage of American workers was flat in June, reducing the year-over-year increase to a lackluster 2% from 2.3% in the prior month. Rate hikes in September may be delayed as a result of this report.
Futures are rallying.
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