Investors Shrug Off Weaker Jobs Data and Push Stocks Higher

The market is higher in early trading, despite a weaker than expected ADP payrolls report. The ADP report showed private payrolls were cut by 473,000 in June vs. expectations for -395k. This report isn't the official jobs report. That one comes from the govt. and will be released tomorrow. So maybe for today investors are focusing on the positive reports that have come out.

The ISM Manufacturing Index for June came in at 44.8 (in-line), up from last month's level of 42.8. (Anything under 50 still represent contraction in the industry) Pending home sales in May increased +0.1%, but that comes on the heels of April's +7.1% surge.

General Mills (GIS) reported solid earnings, gave upbeat guidance, and also hiked its dividend. That news is helping push the consumer staples (XLP) stocks higher by +2.0%.

A bounce in commodity prices is also helping energy and materials stocks bounce, led by gold miners shares. The dollar is weaker today vs. the Euro, but up slightly vs. the Yen.

Asian stocks were mixed overnight, despite positive news out of China (+1.7%) that its manufacturing sector index rose to 53.2, marking its 4th consecutive month of expansion; the 10-year yield is higher to 3.58%; and the VIX is right at 25 (-5.1%) for the first time since Lehman's bankruptcy last September. A return to normalcy?

Trading comment: Today could be new mutual fund money coming into the market and being put to work, so I don't want to read into it too much. Let's see how the market closes, and how volume comes in. I am still leaning towards adding to some hedges, but I have also noted a rise in bearish sentiment lately, so I will have to weigh that into the equation as well.

Check back later for my mutual fund monthly update--