Dow starts the weekend with a slight plus
After the holiday, traders on Wall Street have one foot in the weekend, trading is running on low flame. The latest numbers from the US labor market are expected to be received positively. For the crypto industry, things are looking down in the face of a potential Bitcoin sell-off.
US investors have returned to the stock markets after the holiday break with a handbrake on. The Dow Jones Index of Industrial Average closed 0.2% higher at 39,375 points. The technology-heavy Nasdaq lost 0.9% to 18,352 points. The broad-based S&P 500 gained 0.5% to 5567 levels.
The US exchanges were closed on Thursday due to the Independence Day holiday. "The day after a holiday is very quiet on the market, and tomorrow is the weekend. I don't think the offices are very well staffed, so not much is happening," said Portfolio Manager Robert Pavlik of Dakota Wealth. Investors had to digest a mixed US labor market report. In June, 206,000 new jobs outside agriculture were added, which was more than expected. However, the previous month's value was significantly revised downward. In addition, the unemployment rate, which is calculated separately, surprisingly rose to 4.1%.
From the stock market's perspective, signs of a cooling labor market expected by the Fed grew stronger. "The key here is the fact that wage growth is slowing down, and that makes this report a respectable one for the markets," said Economist Peter Cardillo of Spartan Capital Securities. "If it continues like this in the next month and hourly wages don't rise, then we believe we will see a rate cut in September and another one in December."
The likelihood of a 25 basis point rate cut in September, according to data from the options market, was raised from 66% to 72%. The central bank is keeping rates high to curb inflation. At the same time, it wants to cool down the overheated labor market without stifling the economic engine.
At the bond market, yields were falling. The ten-year US Treasuries were priced at 4.278%.
Bank titles fly out of deposits
Investors in stocks grabbed titles of large tech companies. So, the stocks of Apple, Microsoft, and the parent company of Google, Alphabet, hit new record highs at times. Bank titles, on the other hand, were thrown out of deposits. The stocks of Morgan Stanley lost 0.6%.
Speculation about an increased takeover offer drove the stocks of Macy's up almost 10%. The "Wall Street Journal" reported that the real estate investor Arkhouse and the hedge fund Brigade Capital had placed a billion-dollar bid for the traditional US department store chain.
A Bitcoin crash pulled papers from the cryptocurrency universe down with it. The securities of trading platform Coinbase Global and Bitcoin miner Marathon Digital dropped up to 3.8%. The cyber currency had reached its lowest point since four months ago, as investors feared a sell-off due to creditors of the once largest Bitcoin exchange Mt. Gox. Over ten years ago, 650,000 Bitcoin had gone missing from the Japanese, leading the exchange to bankruptcy. According to media reports, the company could now begin returning Bitcoin to creditors. Investors feared that the cyber currency, whose value was only a few hundred dollars in 2014, would then be sold in large quantities.
Further information on today's stock market developments can be found here.
traders on Wall Street are eagerly awaiting the impact of the latest US labor market numbers on share trading, as the Dow Jones Index closed higher despite the subdued trading atmosphere; however, the technology-heavy Nasdaq and broad-based S&P 500 saw minor losses. Despite the potential Bitcoin sell-off and negative sentiment towards banks, individual investors continue to show interest in large tech companies, with Apple, Microsoft, and Alphabet stocks reaching new record highs. On the flip side, the crypto industry and related shares like Coinbase Global and Bitcoin miner Marathon Digital have taken a hit due to fears of a large-scale Bitcoin sell-off, prompted by potential creditors of the failed Mt. Gox exchange.
