The DOW JONES fell 0.45% to 33,771 points, while the S&P 500 lost 0.30% to 4,398 points. The NASDAQ 100 falls slightly by 0.12% to 13,663 points.
Wall Street had a clearly bearish day yesterday, with the Dow down more than 1% and the S&P 500 and Nasdaq falling 0.8%. The three main New York indices are facing a losing week. The S&P 500 is down 0.9% through Thursday, while the Nasdaq is headed for a 0.8% decline. The Dow was the worst performer, losing 1.4%.
Yesterday’s falls came after lADP data shows private sector companies added 497,000 jobs in June. That number far exceeded the estimate of 220,000 by economists polled by Dow Jones. The ADP results fueled concerns about next steps from the Federal Reserve, which has warned it will base its decisions on leaked credentials.
Today all eyes were on the Department of Labor’s employment report and that was a slight relief. Non-farm payrolls rose by 209,000 jobs in June and the unemployment rate was 3.6%.. Dow Jones consensus estimates were for 240,000 job growth and an unemployment rate of 3.6%.
The total, while still robust from a historical perspective, represented a notable decline from May’s revised down total of 306,000 and was the weakest month for job creation since December 2020. The closely watched wage figures were slightly higher than expected. Average hourly wage increased 0.4% month-on-month and 4.4% year-on-year. Economists had forecast average hourly wages would rise 0.3% in June and 4.2% year-on-year.
“The weaker-than-expected jobs data was not supported by other data in the report,” Academy Securities’ Peter Tchir said in a note. It’s “such a mixed report that the Fed can probably raise 25.” [puntos básicos] at the next meeting, but we don’t have to price much more than that.
These numbers are analyzed in detail for their potential impact on Federal Reserve monetary policy. According to CME Group’s FedWatch tool The Federal Reserve has a 92% chance of raising rates at its July meeting. According to minutes released this week, policymakers hinted at their June meeting that two more rate hikes could occur in 2023.
“The Fed is signaling its willingness to raise rates further, but markets are unconvinced it will go as far as they are predicting,” said Kathy Jones, chief fixed income strategist at the Schwab Center for Financial Research, in a statement Launch update. the bonds. “The gap between the maximum interest rate implied in the scatter plot and market expectations has narrowed but not closed.”
In bond markets, which are always very sensitive to changes in monetary policy, bond yields are down today after yesterday’s sharp rise. Benchmark 10-year bond yield falls one point but remains above 4%, at 4.0376%. The yield on the two-year bond falls two points to 4.9818%. It briefly touched a 16-year high of 5.120% on Thursday.
In business, Levi Strauss is the protagonist against his will, with declines of nearly 7% after lowering earnings forecasts for the year. Levi now expects full-year adjusted earnings per share to be in the range of $1.10 to $1.20, up from the previous range of $1.30 to $1.40. Analysts had expected adjusted earnings of $1.29 per share. The company attributed the cut to its forecasts to a decline in wholesale sales in the US.
The jeans maker posted adjusted earnings of 4 cents a share on sales of $1.34 billion for the fiscal second quarter. That balance is in line with the market’s forecast, which had forecast earnings of 3 cents per share and earnings of $1,340 million.
Also of note is that Biogen’s listing resumed this Friday ahead of the opening, after being suspended yesterday when it was announced that the FDA had approved Biogen and Esai’s drug Lequembi to treat Alzheimer’s. Medicare has also announced that it will cover payments for treatment.
Bloom Energy shares are up around 2%. RBC Capital Markets opened coverage of the hydrogen and power company with an “Overweight” rating The stock could soar more than 50% given the strong demand for fuel cells.
Slight declines at Costco after the retail giant reported sales of $22.86 billion in June, up 0.4% year over year. US comparable sales declined 2.5% year over year.
In the technology sector, investors should pay close attention to Meta (Facebook) price after learning this Twitter has threatened to sue the company over its new Threads platform.
Meta, which started threads on Wednesday and racked up more than 30 million signups, aims to rival Elon Musk’s Twitter by leveraging the billions of Instagram users. Twitter attorney Alex Spiro has accused Meta of hiring former Twitter employees who “had and have access to Twitter trade secrets and other highly confidential information,” according to a letter from Facebook parent Mark to the CEO the US press Zuckerberg.
In the commodity markets Oil prices headed for a second straight week of gains amid signs of supply constraints and rising demand. US stocks fell more-than-expected in the week ended June 30, according to data released Thursday. The sharp drop in gasoline inventories was due to increased fuel consumption during the summer cruising season.
U.S. oil futures rose 0.59% to $72.19, while benchmark European Brent crude rose 0.64% to $76.94. Both contracts are close to a 2% gain this week.
The exchange rate between the euro and the dollar remains unchanged, with a slight increase of 0.03% for the euro to an exchange rate of 1.0892 dollars for each common currency.