As the economy recovers from COVID, U.S. stock indices climbed early Friday, going into a long holiday weekend, as a monthly report on the labor market came in stronger than expected on headline employment. Investors are watching the jobs numbers because, despite a record number of job postings, the labor market recovery has been uneven in the aftermath of the devastating pandemic.
The bond market in the United States will shut an hour early on Friday and will be closed on Monday in commemoration of the Fourth of July holiday, which comes on a Sunday this year. What is the current state of benchmark trading?
The Dow Jones Industrial Average DJIA, +0.10 percent was up almost 60 points at 34,694, up 0.2 percent. After a report of a water landing by a Boeing Co. BA, -1.11 percent cargo jet, the blue-chip indexes saw their gains held in check.
The S&
The Nasdaq Composite Index COMP, +0.24 percent gained 63 points to 14,584 points, a 0.4 percent gain. Near Friday’s open, it hit an intraday all-time high of 14,607.18.
The S&P 500 gained 22.44 points, or 0.5 percent, to close at 4,319.94 on Thursday; the Dow gained 131.02 points, or 0.4 percent, to close at 34,633.53, within striking distance of its record close of 34,777.76 set on May 7. The Nasdaq Composite finished at 14,522.38, up 18.42 points, or 0.1 percent. As of Thursday’s close, the Dow was on track for a weekly gain of 0.7 percent, marking its second consecutive weekly gain; the S&P 500 was up 1.2 percent, also on track for its second consecutive weekly gain; and the Nasdaq Composite was on track for a weekly gain of 1.7 percent, marking its second consecutive weekly gain. What is the stock market’s driving force? The United States added 850,000 jobs in June, the most since March, while employment growth in May were revised up to 583,000 from 559,000 in May. According to economists polled by The Wall Street Journal, the United States added 706,000 new jobs in June. Unemployment, on the other hand, increased to 5.9% from 5.8%. The unemployment rate was predicted to drop to 5.6 percent from 5.8 percent. In June, average hourly earnings in the United States increased by 10 cents to $30.40, and the average workweek in the United States decreased by 0.1 hour to 34.7 hours. Investors have been focusing on jobs because, despite signs that inflation is picking up in the aftermath of the pandemic, the jobs recovery hasn’t given market participants much confidence. The number of people quitting their jobs has lately reached an all-time high. There has also been a surge in retirements among the elderly who do not want to jeopardize their health. “While we know the Fed isn’t blind to inflation threats, we also know the labor market is a critical element in deciding the likely timing and pace of tightening when it occurs,” stated Neil Wilson, chief market analyst at Markets.com. In May, the labor-force participation rate, which measures the proportion of able-bodied adults 16 and older who are employed, was 61.6 percent, the same as in October. “The US economy has generated 14 million jobs since the labor market bottomed out in April of last year, but employment in May 2021 was still 7.5 million behind its pre-pandemic level,” according to PNC Financial Services senior economist Gus Faucher. The jobs report comes as weekly statistics released on Thursday revealed that weekly unemployment benefit claims in the United States fell to a historic low of 364,000 as additional benefits are phased out. In emailed remarks, Sameer Samana, senior global market strategist, Wells Fargo Investment Institute, stated, “Payrolls growth came in ahead of forecasts, with both the unemployment and underemployment rates continuing to fall.” However, the average workweek fell and the participation percentage remained stable, indicating that the recovery is still gradual and uneven, according to the Wells Fargo analyst. A report on foreign commerce in goods and services for May revealed an estimated deficit of $72.1 billion, slightly higher than predicted and higher than the $68.9 billion deficit in April. Factory orders for May will be released at 10 a.m., and are predicted to grow 1.5 percent month over month. On Friday, the Organization of the Petroleum Exporting Countries and Russia—members of the group known as OPEC+—delayed a decision on whether to ease output limitations in place to help stabilize oil prices. The oil decision comes as the group grapples with the COVID pandemic’s long-term effects on energy demand, as well as concerns about the impact of coronavirus variants in some parts of the world, as well as expectations for higher demand as many economies emerge from lockdowns and stay-at-home protocols imposed to contain the pandemic’s spread. Investors may also be watching the debate over the United States’ debt ceiling, as reports suggest Congress has no intentions to raise it. Which businesses are being scrutinized?
Didi Global Inc. DIDI’s stock dropped more than 6% after China’s internet regulator announced it is looking into the company’s cybersecurity threats, according to Dow Jones Newswires.
Tesla Inc. (NASDAQ:TSLA) said on Friday that it produced 206,421 vehicles and delivered 201,250, falling short of FactSet’s forecast of 207,000 vehicle sales.
The stock was up more than 2%.
Krispy Kreme DNUT, -6.90% shares were up over 6% after the business finished its maiden trading day with a 24 percent gain.
Robinhood Markets HOOD, a brokerage firm,
announced its intention to list under the ticker “HOOD” on the Nasdaq Inc. platform.
What about your other assets? How are they doing?
The 10-year Treasury note yield TMUBMUSD10Y fell over 2 basis points to 1.45 percent. The yield curve and the price of debt move in opposite directions.
The ICE U.S. Dollar Index DXY, which compares the currency to a basket of six major rivals, fell 0.1 percent.
As investors awaited OPEC+’s delayed decision on whether to increase output beginning next month, the US oil benchmark CL00 was trading 0.4 percent lower at $74.89 a barrel. Gold futures GCQ21 were trading at $1,785.30 an ounce, up $8.90, or 0.5 percent, on their way to their highest close since June 16.
The Stoxx 600 Europe SXXP increased 0.2 percent, while the London Stock Exchange’s FTSE 100 UKX fell less than 0.1 percent.
The Shanghai Composite SHCOMP fell 2% in Asia, while Japan’s Nikkei 225 NIK gained 0.2 percent./n
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