The US job market data is creating a good mood on Wall Street. So good that after a strong plus take-away effects begin. Meanwhile, Tesla investors can continue to cry for joy.
Wall Street posted small premiums on Thursday. At first, significantly higher profits melted in late business, because investors wanted to minimize their risk before the long weekend and in view of the uncertainty surrounding the corona pandemic. It was the last trading day of the week as there was no trading on Friday due to Independence Day.
The trigger for the initially very good mood was the highly anticipated US labor market data for June. These are significantly better than expected and indicate that the US economy is recovering from the effects of the corona pandemic faster than expected. The number of employees rose by 4.8 million in June, the expectation was only 2.9 million. The unemployment rate of 11.1 percent also fell short of the expected 12.4 percent.
Of the Dow Jones index lost 0.4 percent to 25,827 points. Of the S&P 500 rose 0.5 percent for Nasdaq composite it also went up 0.5 percent. There were a total of 1,967 (Wednesday: 1,605) course winners and 1,009 (1,386) losers. 72 (52) titles closed unchanged.
"All eyes are on the changes in the US labor market," said Berenberg economist Florian Hense. "The US consumer is the most important engine for the global economy." In addition, investors continued to rely on stimulus measures. "The aggressive fiscal and monetary stimuli are continuing, and this will support the market; recent economic data suggest a recovery is in the offing," said Patrick Spencer, general manager of the US investment firm Baird.
However, investors' concerns about the further spread of the corona virus remained unbroken in view of the long holiday weekend. Many people traditionally go outdoors on Independence Day. With the easing of pandemic restrictions, the number of new coronavirus infections in the USA has risen to a new record high. 52,898 new cases were recorded within 24 hours, according to the Johns Hopkins University. In some states, the rebound in the economy was therefore stopped regionally and easing was partially reversed. The states of California, Texas and Florida are particularly affected.
Dollar rebounds after labor market data
At the Foreign exchange market the recovered dollar of its weakness throughout the day. The dollar index turned 0.1 percent up. Of the Euro was trading at $ 1.1240 versus a daily high of around $ 1.13.
Little movement showed up on Bond market. The yield on ten-year US securities fell 0.5 basis points to 0.67 percent with prices rising slightly. The gold price turned positive during the course of the day and signaled that the uncertainty remained. The troy ounce rose 0.4 percent to $ 1,776.
Also the Oil prices benefited from the unexpectedly good US job data. In addition, Saudi Arabia has threatened to re-enter the price war if the other Opec members fail to keep their commitments to reduce oil production. The US variety WTI rose 2.1 percent to $ 40.65 a barrel on settlement, nearly a four-month high, Brent won 1.7 percent to $ 42.73.
Nu Skin peddles after an elevated view
MC Donalds lost 0.6 percent after the burger giant interrupted the reopening of its restaurants in the United States due to the increasing spread of the corona virus in various states. Apple is also closing dozens of stores in the affected regions. On Wednesday, the company closed 16 stores in Florida, Mississippi, Texas and Utah, a spokesman said. The Apple share closed unchanged.
Tesla continued to race upwards. The day after the group became the most valuable automobile company, it impressed with strong sales figures. 90,650 electric vehicles were delivered in the second quarter. According to the factset, analysts had expected only 72,000 electric vehicles to be delivered. The stock rose another 8 percent to just under $ 1,209. In a bull scenario, Wedbush believes a rate of $ 2,000 is possible.
Nu skin jumped 25 percent up. The manufacturer of nutritional supplements and personal care products increased its sales outlook. Business in America and Europe in particular is booming.
Form factor advanced 7.8 percent. The semiconductor equipment supplier had announced that the Covid 19 pandemic had not affected sales development as severely as originally feared.
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