Dalio tells Wall Street to keep dancing but watch the exit as central bankers unwind cri


Its jobs day, and the solid employment report is inspiring more chatter about when central banks will take away the punch bowl.

Talk about the end of the easy-money era has helped put the S&P
SPX, +0.64%
on track for a weekly loss. Theres a bit of a Friday rally in the cards, however, judging by the latest moves for U.S. stock futures.

But not helping the mood are techs recent retreat, persistent North Korea worries and concerns about President Trumps one-on-one today with Vladimir Putin at the G-20 hootenanny. Oh, and silver
SLV, -2.77%
suffered a flash crash during Asian trading hours.


Getting back to the Fed and its friends, one key point is theyve signaled the start of another epoch, says Ray Dalio, founder and chief investment officer of the worlds largest hedge fund.

And Janet Yellen, Mario Draghi and their sidekicks are now closer to getting it wrong, so investors should prepare to hit the eject button, the Bridgewater Associates big shot suggests, delivering our call of the day.

The world is now at the beginning of the late-cycle phase of the business/short-term debt cycle, in which central bankers try to tighten at paces that are exactly right in order to keep growth and inflation neither too hot nor too cold, until they dont get it right and we have our next downturn, Dalio writes in a fresh post on LinkedIn.


Recognizing that, our responsibility now is to keep dancing but closer to the exit and with a sharp eye on the tea leaves.

But Bridgewater doesnt see a big debt bubble bursting any time soon (because of the balance sheet repairs that have taken place), though we do see an increasingly intensifying Big Squeeze, Dalio adds.

See: Dalio warns of squeeze for the economy and markets

And its time to say thank you to the worlds central bankers, according to the storied investor.

Generally speaking (depending on the country), it is appropriate for central banks to lessen the aggressiveness of their unconventional policies because these policies have successfully brought about beautiful deleveragings, he writes.


We should savor this accomplishment and thank the policy makers who fought to bring about these policies. They had to fight hard to do it and have been more maligned than appreciated.

Go here to read Dalios full take.

Read: Central banks have set investors up for a long, hard road back to normal

Key market gauges

The Dow
DJIA, +0.44%
booked a weekly gain, as did the S&P 500 inde
SPX, +0.64%
and Nasdaq Composite Index
COMP, +1.04%
as the market climbed following Friday jobs report that showed the U.S. added 222,000 jobs in June, well above forecasts. Concerns about a major slowdown in job growth were premature, says one economist as analysts react to the report.


Europe
SXXP, -0.07%
lost ground, after Asia closed lower. Oil
CLU7, -2.63%
ended down sharply, gold
GCQ7, -0.93%
slipped, while the dollar
DXY, +0.20%
gained.


See the Market Snapshot column for the latest action.

The chart
FactSet


Silver futures
SIU7, -2.65%
dived 10% early in Fridays Asian trading session, and reversed course but still finished the session sharply lower on Friday, capping a

This latest flash crash for an asset may have stemmed from a buy or sell order being entered at the wrong price.


If the drop had real volumes behind it, [prices] would not have bounced back so quickly, OM Financials Stuart Ive told The Wall Street Journal. It suggests trading error rather than anything more serious at this point of time.

Read: High-profile glitches arent rare heres how they keep rattling markets

And see: Finance sites erroneously show Amazon, Apple, other stocks crashing

The buzz
WSJ


Samsung
005930, -0.42%
probably has inched past Apple
AAPL, +1.02%
to become the worlds most profitable tech company, though that is just for the most recent quarter.


Check out: MarketWatchs Economic Calendar

Hackers reportedly have been targeting companies that operate U.S. nuclear power plants.

Warren Buffetts Berkshire Hathaway
BRK.A, +0.48%
has struck a deal to buy Oncor, following reports Thursday that the conglomerate was close to acquiring that power-transmission company. However, Elliott Managements Paul Singer may be entering the fray for the utility.


Teslas stock
TSLA, +1.42%
finished higher as its bad week came to a close. The company said late Thursday that its building the worlds largest battery system in Australia, and CEO Elon Musk also is thinking about the worlds population potentially imploding:


The world's population is accelerating towards collapse, but few seem to notice or care

— Elon Musk (@elonmusk) July 6, 2017
The quote
AFP/Getty Images Police walk past burning bins after the "Welcome to Hell" rally against the G-20 summit.


Its good that they are meeting, but if they really want to talk about helping people make their lives better then they shouldnt talk about helping a few people get richer.Benedikt Mietner, 30, is among the thousands protesting the Group of 20 summit in Hamburg, Germany.

Dont miss: Welcome to Hell protesters, police clash at G-20 summit

And read: Hamburg police call for reinforcements as G-20 protests escalate

Random reads

Virginia carried out an execution under a new protocol that makes the procedure more secret.

Cameras are about to get a lot smaller.

Wimbledon sounds defensive after an Americans injury. It also faces a prize-money row.

Was Rick Perry referring to Says theory that says supply is the origin of demand?

A shelter says Lena Dunham invented a story about her rescue dogs abuse.

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