Dow Jones Futures Post Second Straight Record Close

New Yotk (June 3)  Dow industrials climbed to all-time highs on Friday, as investors shrugged off a much weaker than expected jobs report.

The Dow Jones Industrial Average advanced 0.3% to 21,206.29, finishing off session highs. Nineteen of 30 blue-chips recorded gains, with a mixture of technology and defense stocks leading the rally.

Microsoft Corp (NASDAQ: MSFT) rose 2.4%. Shares of The Boeing Company (NYS: BA) added 1.6%.

Energy blue-chips Exxon Mobil Corp (NYSE: XOM) and Chevron Corp (NYSE: CVX) fell 1.5% and 1.1%, respectively, after President Trump withdrew the United States from the Paris climate accord.

The broader S&P 500 Index rose 0.4% to close at 2,439.07, with most sectors reporting gains. The technology-heavy Nasdaq Composite was the best performer in percentage terms, adding 0.9% to 6,305.80.

All three main indexes closed at record highs for the second straight session and ended the week with firm gains.

The May nonfarm payrolls report showed employers added 138,000 workers to payrolls last month, well below economists’ forecasts. In a silver lining, unemployment fell to a fresh 16-year low.

Weaker jobs data had no impact on monetary policy expectations – at least, in the short term. Traders are pricing in a 91% probability of an interest rate increase this month, according to 30-day Fed Fund futures prices.

The Federal Open Market Committee (FOMC) kicks off its next meeting on June 13, with the official rate statement scheduled the following afternoon. The statement will be accompanied by revised economic projections covering GDP, inflation and unemployment.

In other data, Washington’s April trade deficit widened more than expected, putting the U.S. on track for a bigger gap in 2017. The Commerce Department reported Friday that the deficit climbed to $47.6 billion from a revised $45.3 billion in March.

Source: EconomicCalendar