US MARKET / trust dominates after the report on good jobs | News

Author: Steffen Gosenheimer

NEW YORK (Dow Jones) – On Friday, the US stock markets found themselves between economic confidence and fears of a recession. The background is the US labor market report for June, which was much better than expected. On the one hand, it speaks for a strong economy, on the other, it raises concerns about further aggressive interest rate hikes by the US Federal Reserve, which previously talked about overheating of the labor market. However, soaring interest rates could not only slow down growth but also lead to a recession, in line with financial market concerns.

However, in the course of trading, the market seems to lean more towards cautious economic confidence and relying on the fact that a soft landing is ultimately possible. This scenario could also be heard in central banker circles.

After a lighter opening session, the New York stock indices slightly increased at noon, while at the same time oil prices rose by approx. 2%.

The Dow Jones index gains 0.1 percent to 31,410 points. The S&P 500 and Nasdaq indices are doing similarly. In the bond market, prices are falling, so yields are rising, in line with the underlying expectations of rate hikes. The 10-year profitability increases by 8 basis points to 3.08 percent. So it is exactly at the 2-year rate, which means that the recession reversal has so far disappeared once again.

Wage growth in the expected range

While the unemployment rate remained unchanged at 3.6%, despite the fact that much more jobs were created than expected, the increase in the hourly wage was within the expected range of 5.1%. compared to the previous year. Wage growth at this consistently high level maintains pressure on the central bank to act against inflation, observers say.

All things considered, the dollar has changed little, especially as interest rate expectations have changed little. Euro costs 1.0170 dollars, it was already available for a day low for 1.0072.

The US inflation data coming next week are eagerly awaited. Analysts expect consumer prices to rise by 1.0 percent. month on month, which will bring full-year inflation down to 8.8%. (8.6 percent in May). US consumer price growth was most recently stronger in December 1981.

Musk dissatisfied with Twitter statement

Twitter shares fell 4.1 percent. The team is considering an acquisition, according to the Washington Post, citing informed individuals Elon Musk the information requested and provided by Twitter was insufficient. The background to this is Musk’s concern that many of the user accounts on the platform could be fake. Meanwhile, Twitter announced it would be shedding jobs due to a slowdown in business and a possible upcoming acquisition by Musk.

Gamestop was down 4.3 percent after a video game retailer replaced its chief financial officer. The day before, the price rose 15 percent on news of the stock split.

Levi Strauss rose half a percent after the jeans maker beat expectations with sales and earnings in the second quarter.

The forecast of the lubricant manufacturer WD-40 is disappointing. Shares fell 11.7 percent.

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INDEX last + / -% absolute + / -% YTD

DJIA 31 409.60 + 0.1% 25.05 -13.6%

S&P 500 3,903.42 + 0.0% 0.80 -18.1%

Nasdaq Comp. 11 634.40 + 0.1% 13.06 -25.6%

Nasdaq-100 12 120.20 + 0.1% 11.15 -25.7%

US bonds

Term Profitability Bp to VT Profitability VT +/- Bp YTD

2 years 3.08 +6.6 3.02 235.2

5 years 3.13 +9.0 3.04 186.5

7 years 3.16 +8.6 3.07 171.7

10 years 3.08 +8.3 3.00 157.3

30 years old 3.26 +7.8 3.19 136.5

FOREX last +/-% Fri 8:18 Thu 17:06% YTD

EUR / USD 1.0172 + 0.1% 1.0162 1.0173 -10.5%

EUR / JPY 138.48 + 0.2% 137.81 138.28 + 5.8%

EUR / CHF 0.9952 + 0.5% 0.9894 0.9897 -4.1%

EUR / GBP 0.8452 -0.0% 0.8466 0.8477 + 0.6%

USD / JPY 136.13 + 0.1% 135.64 135.93 + 18.3%

GBP / USD 1.2034 + 0.1% 1.2005 1.2000 -11.1%

USD / CNH (offshore) 6.6883 -0.1% 6.7064 6.7019 + 5.3%

Bitcoin

BTC / USD 21 819.03 + 0.7% 21 839.83 20 973.54 -52.8%

ROHL last VT-Settl. +/-% +/- USD% YTD

WTI / Nymex 104.79 102.73 + 2.0% 2.06 + 45.2%

Brent / ICE 107.21 104.65 + 2.4% 2.56 + 43.1%

GAS VT close +/- EUR

Dutch TTF 169.13 184.50 -7.7% -14.05 + 41.6%

METALS last day before +/-% +/- USD% YTD

Gold (spot) 1 742.56 1 740.06 + 0.1% +2.50 -4.8%

Silver (Spot) 19.31 19.22 + 0.5% +0.09 -17.2%

Platinum (spot) 898.12 876.73 + 2.4% +21.40 -7.5%

The future of copper 3.53 3.58 -1.4% -0.05 -20.5%

YTD at the end of the day

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Contact the author: maerkte.de@dowjones.com

DJG / DJN / gos / ros

(END) Dow Jones Newswires

July 8, 2022 12:27 PM CET (4:27 PM GMT)

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