The gloomy job report has risk traders seeking cash.
* The Dow,S&P and Nasdaq were all down 2.6% +.
* Money flowed into the Dollar and US Treasuries as investors were seeking safety.
* Precious metal stocks were down 3%; gold was down 1.25%.
* The energy sector was hard hit as oil sold off 3.7% and energy stocks down over 4% .
* Energy subsectors such as refiners, nat gas and services were hit harder than 4%.
* Real estate and REITS were very weak.
Investors decided to play it safe before the long 4th of July weekend usually a bullish timeframe.
The strong commodity and tech trade in particular lost their leadership. July will be critical as the FED plans to sell $136B next week and corporate earnings will start to dribble in. Uncertainty reigns till the data provides a benchmark. Up to now the pivot point was the Ten Year Tsy hitting close to 4% in mid-June. The Ten Year Tsy Yield is now 3.5%!
Energy and earnings will provide the next trade. Tech and healthcare needs to provide support.