The 163,000 jobs added in July gave investors something to cheer about

The 163,000 jobs added in July gave investors something to cheer about at the end of last week and, for the most part, has them upbeat heading into this week. July’s numbers were better than the expected 95,000 forecasted and the largest uptick in jobs in the past five months. Unfortunately, the unemployment rate moved a notch higher to 8.3% leading many to speculate that further monetary easing by the Fed is not off the table…especially after it was made clear that the unemployment rate is a key focus point for the Fed in determining the need for further monetary action in the future. With little in the way of economic reports to kick off the week the focus will move overseas to the Eurozone. With the absence of any tangible road map for the region, following last week’s ECB meeting, discussions surrounding a bond buying program have been able to support investor sentiment. Spanish and Italian 10-year bond yields have eased off record highs but remain at levels far above comfortable (Spain at 6.79% and Italy at 6.02%). Have a great day!