(CercleFinance.com) – The New York Stock Exchange is moving without a clear trend on Friday at the start of the session following the announcement of a job creation figure significantly higher than expectations in May.
At the end of the morning, the Dow Jones advanced 0.1% to 38,928 points, while the Nasdaq Composite fell more than 0.2% to 17,126.7 points.
Investors learned this morning that the American economy had created 272,000 new jobs last month, almost 100,000 more than expected since the consensus expected 180,000.
If this figure tends to reinforce the impression of solidity of the American economy, it should on the other hand encourage the Federal Reserve not to rush its interest rate cuts too much.
‘Combined with an unexpected wage increase, this most likely eliminates the possibility of a rate hike in September, as there are no concerns over the full employment aspect of the Fed’s dual mandate at this time current’, underlines Jeff Schulze, at Clearbridge Investments, a subsidiary of Franklin Templeton.
‘We still have not reached an inflection point in the labor market and the better than expected figures published today may well have a lasting influence on the Fed’s next decisions,’ adds Mahmoud Alkudsi, market analyst at ADSS.
The speakers, however, seem perplexed about the significance of this news, not really knowing whether it is better to see the Fed delay its monetary easing or to have a still solid economy.
On the bond market, the yield on 10-year Treasuries rose to almost 4.42% after falling yesterday to its lowest since March.
The dollar accentuates its gains against the euro, while crude oil prices remain on an upward trend following the employment report, which confirms the good health of the American economy and therefore the strength of demand.
On the NYMEX, American light crude oil (WTI) advanced 0.3% to $75.8, but fell around 1.5% over the entire week.
As for individual values, Nvidia is down 1.4% while the processor manufacturer will divide the par value of its shares this evening by ten.
Note that 3M gained more than 1% in the wake of an increase in the purchase recommendation from BofA analysts, who welcomed the arrival of a new general manager at the head of the American industrial group.
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