The weekly numbers from the US job market make Wall Street investors somewhat optimistic. Because despite the weak development, there are no nasty surprises. Meanwhile, the gold price is climbing to a new all-time high.
The first glimmers of hope appear on the US labor market. After the ADP labor market turned out to be significantly worse than expected on Wednesday, weekly data on initial jobless claims made investors confident.
Of the Dow Jones Index rose by 0.7 percent to 27,387 points. Of the S&P 500 advanced 0.6 percent. Of the Nasdaq Composite continued his record series and surpassed the 11,100 point mark after climbing over 11,000 points for the first time the day before. The index closed 1 percent higher.
The number of initial claims for US unemployment benefits fell more than expected last week and was as low as it was in March. Nevertheless, the data are still at historic highs. The data and market reaction to it showed how much investors' perception of positive developments had changed, said Ram Lee, president of Seven Bridges Advisors.
The weak development is nevertheless an alarm signal and speaks against a rapid economic recovery. The continued high number of new infections and regionally tightened lockdown measures in the USA are slowing down the willingness to hire. In view of the weakness of the labor market, the extension of the corona aid is very important. But Republicans and Democrats in Congress were still unable to agree.
Meanwhile, the US-Chinese ongoing dispute is entering another round. US Secretary of State Mike Pompeo urged US companies to keep their apps and applications away from mobile phones made by the Chinese manufacturer Huawei. In addition, US companies should not park sensitive data in the clouds and data centers of the Chinese providers Tencent, Alibaba and Baidu.
Oil is losing something
On the foreign exchange market, the ICEDollar index by just under 0.1 percent and showed little movement. The music played in the gold market, where the price jumped to another all-time high of $ 2,070. In late trading, the cost Troy ounce at $ 2,065, 1.2 percent more than the previous day. With the labor market data, which was somewhat better than feared, smaller profit-taking began on the gold market. Since the beginning of the year, the precious metal has risen by an impressive 35 percent. If you want to know how investors actually felt during the recession, you have to pay attention to the gold price, according to one observer. The development of the supposedly safe haven of gold does not match the optimism on the stock market, warned voices.
The Oil prices came back from their five month highs. US light oil of the grade WTI fell 0.6 percent to $ 41.95, the European reference oil of the variety Brent fell by 0.2 percent to 45.09 dollars per barrel. Fears of weak demand for months or even years have slowed the rise in prices, it said.
Under the individual stocks climbed Bristol-Myers Squibb by 2.7 percent. The pharmaceutical group performed better than expected in terms of earnings in the second quarter. Bausch Health improved by 3.4 percent. The Canadian health company wants to outsource its eye care business. Godaddy increased by 6.1 percent. The Internet company surprised positively thanks to increased home work in the second period.
Weapons manufacturer Vista Outdoor is making strong gains
The hard drive manufacturer Western Digital has disappointed after a good final quarter with weak prospects for the start of the new financial year. The stock plunged 16.1 percent. Also Metlife-Shares fell as the insurer fell short of forecast with its second quarter profit. The papers lost 3.4 percent. On the other hand it went with Zynga up by 1.2 percent. The producer of mobile games raised its annual targets after the need for games increased due to the corona pandemic. In the past quarter, sales jumped 47 percent.
Firearms and ammunition manufacturers' stocks were mixed after New York Attorney General Letitia James opened a lawsuit against the National Rifle Association (NRA) gun lobby aimed at disbanding the organization. James accuses the non-profit organization of numerous legal violations and improper financial conduct of registered NRAs. Sturm, Ruger fell by 0.7 percent and Smith & Wesson Brands by 1.4 percent.
Market leader Vista Outdoor and the too Olin Winchester, which belongs to the division, had benefited from the corona crisis and the unrest in the USA in the second quarter, but only the Vista share rose sharply, namely by 11 percent. Olin however, fell by 6.4 percent. The group ended the quarter with a loss despite higher arms sales.
. (tagsToTranslate) Wall Street